U.S.-Russian Pact Will Help Distribution, ICN Says

ICN Pharmaceuticals Inc. said Tuesday that an agreement between the United States and Russia will help its business.

ICN drugs already are sold in Russia, such as Virazole, which is used to treat infants hospitalized with respiratory infections. But the agreement will mean wider distribution for its products, the Costa Mesa drug-maker said in a news release.

The two countries agreed last week that any American drug already approved by the federal Food and Drug Administration will be approved in Russia within 90 days.

An ICN spokesman also said construction should start “in the near future” on a $40-million drug factory the company is building in St. Petersburg in partnership with a Russian drug-maker.

Engineering plans are being drawn up now and a site has been found.

The Russian company, Oktyabr, is the oldest and one of the largest drug companies in Russia.

ICN acquired 75% of Oktyabr last year in return for agreeing to supply the $40 million to build the factory, where both companies’ drugs will be manufactured. ICN said it has not yet got financing for construction, but is talking to lenders now.