Jerney Succeeds Panic as ICN, 2 Subsidiaries’ CEO

Adam Jerney, the Hungarian immigrant who by most accounts was long groomed to succeed Milan Panic as head of ICN Pharmaceuticals Inc.’s family of companies, has fulfilled his destiny--almost.

The company announced on Wednesday that Jerney, 50, will take over Panic’s role as chief executive officer of ICN Pharmaceuticals and two of its subsidiaries, SPI Pharmaceuticals Inc. and Viratek Inc.

Fred Andrea, vice president of the third subsidiary--ICN Biomedicals Inc.--will take on the duties of chief executive of that entity, company spokesman Jack Sholl said.

But the reshuffling of executive positions after Panic became prime minister of his troubled homeland of Yugoslavia will not include a change at the very top, Sholl said.

Panic, who immigrated to the United States after escaping communist Yugoslavia, will remain chairman of the board despite being on an official leave of absence, Sholl said.

“All of these appointments are part of the routine succession plan and the orderly continuity of management during Mr. Panic’s leave of absence,” Sholl said.

Sholl said Panic’s participation in the day-to-day operations of the company will be minimal at best, even though he recently “has had input in the (succession) plan.”

Jerney’s ascension came a month after Panic, the flamboyant founder of ICN, flew to Yugoslavia in an attempt to stem the civil war that has ravaged his homeland.

As Panic announced his decision to fly to Belgrade, the capital of the struggling federation, questions arose about who would fill his role as chairman of the board and chief executive of the four entities.

Jerney and ICN Pharmaceuticals co-founder Roberts A. Smith, president of Viratek, quickly emerged as the two top candidates. Jerney, who was also elected to the boards of the four companies this week, largely won out.

Smith was appointed to the newly created position of vice chairman of ICN Pharmaceuticals.

Jerney was considered a good choice by analysts, who said that for the past several years he has been in charge of the day-to-day operations of the $1.1-billion conglomerate while Panic worked on a handful of sweet deals in Eastern Europe.

In the past year, the conglomerate has bought a controlling interest in Yugoslavia’s largest drug company, now called ICN Galenika, based in Belgrade. Panic was credited with spearheading the negotiations. Panic also has acquired agreements to purchase drug companies in Russia, Hungary and Poland.

Like Panic, Jerney is a chemist turned businessman and an immigrant from an Eastern European country. He left Hungary when he was 14, later studying chemistry in Geneva and working for Hoffman-La Roche Inc. in European sales.

Jerney joined ICN in 1973 and worked in Europe for the company until 1981, when he was elected vice president of operations at ICN Pharmaceuticals. In 1987, he was appointed president and chief operating officer of ICN’s chief subsidiary, SPI Pharmaceuticals.

Burke Trafton, a stock analyst for H. J. Meyers & Co. in Beverly Hills, said he is surprised that Panic will continue in his role as chairman. He wondered aloud if Panic will be able to carry out his duties as prime minister of his homeland and function effectively at ICN. He predicted that Panic will give up his remaining corporate duties soon.

Trafton lauded Jerney’s selection, describing the new CEO as a “real nuts and bolts kind of guy.”

He predicted that Jerney’s intimate knowledge of the company will keep it going despite Panic’s preoccupation with forging a peace in the Balkans.

“You can run companies without chairmen,” Trafton said, “but I am sort of surprised that (Panic) is still chairman.”