ICN’s Net Losses for 1987 Reported at $16.6 Million

ICN Pharmaceuticals in Costa Mesa reported a fiscal 1987 net loss of $16.6 million, which was caused by a $19.4-million loss in the company’s investment portfolio.

The investment loss was the result of a decline in the value of ICN’s holdings in government and corporate bonds, which were battered in year-end market volatility.

ICN’s 1987 deficit reflected a $10.9-million loss reported for the year by Viratek and net earnings of $8.5 million by SPI Pharmaceuticals, both partially owned subsidiaries.

ICN’S fiscal 1987 net loss contrasts with net earnings of $13.4 million a year earlier.

Sales for the fiscal year that ended Nov. 30 totaled $121 million, up 18% from $102.8 million.

The drug maker reported a fiscal fourth-quarter net loss of $21.2 million, contrasted with net earnings of $6.1 million in the year-earlier period. Revenues for the quarter increased 12% to $37.3 million, from $33.3 million.

Analysts had said that ICN would suffer a loss for the quarter and for the year, but they had not speculated on the size of the loss. ICN released its financial results after the stock market closed Friday, and analysts could not be reached for comment.

ICN’s Viratek subsidiary, a pharmaceutical development firm, reported a net loss of $10.9 million, contrasted with net income of $3.8 million a year ago. Revenues for the year declined 87% to $1.4 million, from $10.9 million.

For the fourth quarter, Viratek reported a net loss of $3.1 million, contrasted with a net gain of $3.1 million in the year-earlier period. Revenues declined 84% to $850,000, from $5.3 million.

Viratek blamed its huge loss on weak sales of its drug ribavirin, which had been a big seller a year ago, and an increase in ribavirin research and development expenses. Ribavirin is used to fight respiratory viruses and influenza, and the company is developing the drug as a possible treatment for AIDS.

ICN’s SPI Pharmaceuticals subsidiary reported net income of $8.5 million, up 5%, compared to $8.1 million a year earlier. Revenues for the quarter increased 28% to $78.6 million, compared to $61.4 million in fiscal 1986.

For the fourth quarter, SPI, a vitamin maker, reported net earnings of $500,000, down 82% from $2.8 million in the year-earlier period. Revenues for the quarter were up 18% to $26.1 million, from $22.2 million in the year-earlier period. SPI said its sales increased because of international growth.