ICN Quarterly Numbers Show a Healthy Jump : * Earnings: The Costa Mesa-based pharmaceutical conglomerate saw bottom line boosted by sales from Eastern European subsidiaries. Early figures show a 30% gain.
ICN Pharmaceuticals Inc. Thursday said it expects a 30% increase in first-quarter earnings, due in large part to sales from its Eastern European subsidiary.
Preliminary first-quarter earnings for the period ended March 31 show profits of “at least” $6 million, or 45 cents a share, compared to $4.6 million, or 37 cents a share, for the same period last year, said chairman and CEO Milan Panic.
Quarterly sales were estimated at $140 million, more than double last year’s first-quarter sales of $64 million, Panic told those attending the company’s annual stockholders’ meeting.
An audited first-quarter earnings report is due out soon, possibly as early as next week, company officials said.
Panic attributed the healthy gain in the company’s finances to the May, 1991, purchase of a 75% interest in a Belgrade, Yugoslavia, drug manufacturer by ICN’s chief subsidiary, SPI Pharmaceuticals Inc. ICN Galenika contributed $225 million in sales for the year ended Dec.31.
Total sales for SPI Pharmaceuticals in 1991 was $364.3 million.
Panic also credited a 177% increase in worldwide sales of the antiviral drug Virasol, sold through SPI Pharmaceuticals, for the jump in ICN sales and profits.
The stockholders meeting was the third such session to be held this week at ICN’s Costa Mesa headquarters.
The meetings for ICN and its subsidiaries have been rife with announcements--most centered around Panic, the companies’ colorful founder and chief executive and chairman of the board for all four corporations.
During Tuesday’s SPI Pharmaceuticals’ stockholders meeting, Panic announced an ambitious expansion plan into much of Eastern Europe.
And Wednesday, during a stockholders meeting of subsidiary Viratek Inc., it was disclosed that Panic was set to take on additional duties as president of ICN’s third subsidiary, ICN Biomedicals Inc., when it meets today.
If the move is approved by the board of directors, Panic will replace M. William Lightner Jr., who has been transferred to ICN Pharmaceuticals to work as vice president of corporate development to assist in future Eastern European acquisitions.
In other business Thursday, it was announced that James P. Miscoll, retiring vice chairman of BankAmerica Corp., and Charles T. Manatt, a Los Angeles attorney and former chairman of the Democratic National Committee, have been elected to SPI Pharmaceuticals’ board of directors.
During Thursday’s board meeting, one shareholder questioned Panic’s $6.1 million in salary, bonuses and SPI stock for 1991. Company officials have defended that compensation plan, saying that Panic earned the hefty fee for his efforts in arranging the ICN Galenika joint venture.
Panic, in the style that has earned him a reputation as a sometimes controversial but always outspoken executive, did not miss a beat.
“You should never be ashamed of making a lot of money,” Panic answered quickly. “It’s nice to know people appreciate what you do. It’s a philosophical thing.”
