ICN Pharmaceuticals Profits From Eastern European Partnership

Buoyed by the success of its link to an Eastern European pharmaceutical company, ICN Pharmaceuticals Inc. said Monday it earned $5.9 million, equal to 40 cents per share, last year after a 1990 loss of $22.4 million, or $1.92 a share.

Sales for the drug manufacturer rose to a record $460.4 million for the year, contrasted with $272 million last year.

Sales were nearly $200 million higher last year because ICN is now including the revenues of a Yugoslavian drug manufacturer with which ICN started a joint venture last year.

For its fourth quarter, ICN reported a loss of $314,000, 5 cents per share, contrasted with a loss of $9 million, or 77 cents per share, in 1990. Quarterly sales rose to $175.1 million from $75.5 million the year before.

ICN Pharmaceuticals stock dropped on the news. It fell to $14.25 a share Monday on the New York Stock Exchange, down 87.5 cents.

ICN is a holding company for three other publicly traded drug companies. Two of the units reported profits for the year: SPI Pharmaceuticals Inc., which makes vitamins, skin products and other drugs; and Viratek Inc., which makes ribavirin, a drug used for treating virus infections. The third, ICN Biomedicals Inc., posted a loss.

The cost of selling off unprofitable product lines accounted for some of the ICN Biomedicals losses, said the parent company, which also blamed the recession.

ICN Biomedicals, which makes biotechnology research products and medical diagnostic equipment, lost $12.9 million on revenues of $96.5 million.

ICN Biomedicals stock closed at $6 a share, down 25 cents on the American Stock Exchange.

SPI Pharmaceuticals’ profits, on the other hand, rose more than 100% to a record $30 million and sales jumped to $364 million, also a record. Much of that, however, was attributable to its new partner in Eastern Europe, Galenika, the Yugoslavian drug-maker that joined ICN in May to form ICN Galenika.

SPI stock closed at $25.625 Monday on the American Stock Exchange, down 62.5 cents.

Viratek reported net income of $3.6 million on revenues of $4.5 million last year.

Viratek shares fell $1.50 Monday to $11.75 on the over-the-counter market.

Parent company ICN switched to a calendar year last year, so 1990’s results are based on a fiscal year ending Nov. 30.

ICN Pharmaceuticals Inc.

Despite a $6.1-million restructuring charge taken by subsidiary ICN Biomedicals, parent company ICN Pharmaceuticals Inc. ended up in the black, largely because of record profits from its SPI Pharmaceuticals subsidiary.

Figures are in thousands, except per-share data.

4th Qtr. 4th Qtr. 12 Mos. 12 Mos. Ended Ended Ended 12 Mos. Dec. 31, 1991 Nov. 30, 1990 Dec. 31, 1991 Nov. 30, 1990 Revenue $175,068 $75,459 $460,365 $271,975 Net income (314) (8,960) 5,855 (22,445) Per share (0.05) (0.77) 0.40 (1.92)

Source: ICN Pharmaceuticals Inc.