ICN Reports $2-Million Quarterly Gain

ICN Pharmaceuticals Inc., fortified by a joint venture with Yugoslavia’s largest drug manufacturer, on Tuesday reported a third-quarter profit of $2 million, contrasted with a loss of $5.5 million in the corresponding period last year.

Sales jumped 89% to $118 million, up from $63 million in last year’s third quarter. Most of the sales gain is attributable to the Costa Mesa company’s Eastern European venture, ICN Galenika, which added $67 million during the quarter ended Aug. 31.

The joint venture between ICN subsidiary SPI Pharmaceuticals and the Yugoslav company Galenika Holdings began in May and posted its first full-quarter results on Oct. 9, in SPI’s third-quarter earnings report.

All three of ICN’s Costa Mesa-based subsidiaries--SPI, ICN Biomedicals and Viratek Inc.--operated profitably during the quarter, with SPI taking a wide lead.

SPI, a pharmaceutical manufacturing and marketing firm, reported a record third-quarter net income of $8.7 million, up from $3.4 million for the same quarter last year. Sales totaled $97 million, compared to $31 million for the third quarter of 1990. ICN Galenika sold $23 million in pharmaceutical products to the Soviet Union during the third quarter, said ICN spokesman Jack Sholl.

ICN Biomedicals, which makes medical diagnostic products, reported a net income of $840,000 on sales of $21.2 million. Viratek, ICN’s pharmaceutical research and development subsidiary, earned a net income of $515,000 on sales of $385,000.

The combined net income was offset by the parent company’s interest expense of $9.5 million for the quarter.

Earlier this month, ICN Pharmaceuticals and Viratek settled a four-year dispute with the Securities and Exchange Commission. The SEC’s complaint, which ICN and Viratek settled without admitting or denying guilt, alleged that the firms had made false statements about the effectiveness of the drug ribavirin in treating acquired immune deficiency syndrome. No fines or penalties were levied against the companies, which agreed not to violate securities laws in the future.

The end of the SEC investigation will relieve the companies of a financial burden, Sholl said.

ICN Pharmaceuticals’ Performance

ICN Pharmaceuticals Inc. reported third-quarter net income of $2 million, showing a recovery from a $5.5-million loss in last year’s third quarter. The boost was attributed, in part, to a recent joint venture between a company subsidiary and Yugoslavia’s largest drug manufacturer.

Figures are in thousands, except per-share data.

3rd Qtr 3rd Qtr 9 Months 9 Months 1991 1990 1991 1990 Revenue $118,019 $62,577 $259,105 $196,516 Net income (loss) 1,989 (5,515) 7,778 (13,485) Per share (loss) 0.14 (0.48) 0.58 (1.16)

Source: ICN Pharmaceuticals Inc.