Despite Higher Profits for Subsidiaries : Overall Earnings Fall 37% at ICN Pharmaceuticals

Subsidiaries of ICN Pharmaceuticals Inc. on Monday reported higher profits for the first quarter of the firm’s 1989 fiscal year, but overall earnings for the Costa Mesa company fell 37%.

ICN Pharmaceuticals reported net income of $2.9 million for the quarter ended Feb. 28, compared to $4.6 million a year earlier. The 1988 profits were boosted by rebounding stock and bond markets, which enhanced the value of the company’s investment portfolio.

Revenue for the 1989 first quarter was up 22% to $42.5 million, from $35 million in 1988.

SPI Pharmaceuticals Inc., the primary marketing subsidiary of ICN Pharmaceuticals, reported a 91% jump in net income to $2.6 million for the quarter, compared to $1.4 million last year. The subsidiary’s revenue was $29.6 million, up 25% from $23.6 million.

The gains at SPI Pharmaceuticals were attributed to strong sales of ribavirin, the company’s principal drug. The antiviral agent is used to treat respiratory diseases and is being investigated as a possible AIDS treatment.

Viratek Inc., a research subsidiary, reported net income of $440,000 for the first quarter, compared to a loss of $3.8 million in the same period a year ago. Revenue for the quarter was $1.4 million, up sharply from $44,000.

Viratek receives royalties from the sale of ribavirin. ICN Pharmaceuticals said that Viratek was able to boost earnings even though it spent $3 million on research and development in the first quarter of this year, nearly double the year-ago level.

A third subsidiary, ICN Biomedicals Inc., reported improved first-quarter results last week.