ICN to Purchase Stock of Subsidiary

ICN Pharmaceuticals Inc. in Costa Mesa said its directors have approved the purchase of up to 500,000 shares of common stock of one of ICN’s majority-owned subsidiaries, SPI Pharmaceuticals Inc.

ICN will periodically purchase the shares in the open market or privately in order to maintain ownership of more than 80% of SPI’s shares so it can continue to file consolidated federal income tax returns, a company spokesman said.

Larry Panitz, an ICN senior vice president, said the stock purchase is necessary because SPI executives and outside consultants have options to buy 314,285 shares of SPI stock. If they exercise the options, ICN’s current 83% interest in SPI would drop below 80%.

Panitz said that no target date for completing the stock purchase has been set.

ICN, which also owns 45% of Viratek Inc. and more than 80% of ICN Biomedicals, heads a group of health care companies that develop prescription drugs and pharmaceutical products primarily in the United States, but also in Canada, Mexico and Europe.