ICN’s Panic to Turn Over Some of His Duties to COO
ICN Pharmaceuticals Inc.’s controversial founder, Milan Panic, will shed one of his corporate titles but remain chairman and chief executive officer, the drug company said Friday.
ICN said Panic’s longtime protege, Adam Jerney, 54, would be named to succeed the founder as president. The company, characterizing the move as part of a planned executive succession, didn’t say when the change would take place. Jerney is ICN’s chief operating officer.
Panic said in an interview in 1995 that he was grooming Jerney, the company’s longtime No. 2 executive, as his successor, but gave no indication as to when Jerney might take over.
Observers said the announcement Friday reflects the company’s decision to proceed with management changes at its own pace, rather than bend to any possible pressures to replace Panic. One analyst attributed the change to Panic’s age--he’s 67--and dismissed the possibility that the board, which approved the move, is starting to ease him out because he’s been a lightning rod for litigation.
Panic is under investigation by the U.S. attorney in Los Angeles for alleged securities violations. The company is cooperating with the government investigation and denies all wrongdoing. He also has been the target of sexual harassment suits by three former employees. Panic and ICN settled two of the cases, admitting no wrongdoing. The third suit was filed last month.
Jerney, who joined ICN 23 years ago, handled the chief executive’s duties during 1992 and 1993 when Panic took a leave to serve as Yugoslavia’s prime minister. He also was credited with overseeing ICN’s successful expansion into Hungary.
Jerney was born in Budapest during World War II and escaped to Austria after the 1956 Hungarian revolution. He received a degree in biochemistry from the University of Geneva,
Before joining ICN, Jerney held posts with Switzerland-based Hoffman-LaRoche, the last as director of worldwide product management. He was selected to the ICN board five years ago, ICN shares closed Friday at $22.875 a share on the New York Stock Exchange, up 50 cents for the day.
