O.C. Firm Forging Hungarian Ties

SPI Pharmaceuticals Inc., a subsidiary of ICN Pharmaceuticals Inc., on Monday announced plans to buy 30% of a state-owned drug manufacturer in Hungary for an undisclosed amount. Completion of the transaction awaits approval by the Hungarian government.

The company, Alkaloida, makes about 60 products--including medicinal morphine, antacids and treatments for asthma--sold in 80 countries. It is based in Tiszavasvari, Hungary, and employs 2,100 people.

ICN spokesman David Calef said the purchase will fit into his company’s plan to expand its presence in Eastern Europe. “We’re looking at other acquisitions as well,” he said. “Eastern Europe is a huge, untapped market.”

The deal includes an option for SPI to increase its stake in Alkaloida to 51% in the future. “Eventually, we would like to own a controlling interest in the company,” Calef said.

SPI, based in Costa Mesa, now sells 600 drug products in more than 60 countries.

Parent ICN already has a subsidiary, ICN Galenika, outside Belgrade, Yugoslavia. And in April ICN created a joint venture, ICN Oktyabr, with a company in St. Petersburg, Russia.

“When it comes to that part of the world, I doubt there is anyone in the pharmaceutical business as connected as ICN,” said Dennis Roth, and analyst with the brokerage Lew Lieberbaum & Co. in Long Island, N.Y. “But that area is so volatile that some of the deals might not work out as well as they would like.”