Roche May Swap Stake in ICN for Stock in Unit

Roche Holding is discussing swapping a stake in ICN Pharmaceuticals Inc. for stock in the ICN unit that controls rights to its blockbuster hepatitis drug, according to people familiar with the talks. ICN Chairman Milan Panic met with Roche officials in Basel, Switzerland, and an announcement may come as early as this week, sources said. Roche owns less than 5% of the company, the sources said. The move comes as Costa Mesa-based ICN prepares to sell shares in the unit, called Ribapharm, to the public in a restructuring designed to boost its stock. The transaction would give Roche a stake in the company that owns rights to the ribavirin hepatitis C drug and potential access to a new version of ribavirin in early stages of development that could become ICN’s next blockbuster. It also could be a prelude to an acquisition of Ribapharm, analysts say. An ICN spokesman declined to comment, as did a Roche spokeswoman. ICN shares rose $3.56, or 13%, to close at $30.25 on the New York Stock Exchange; Roche’s American depositary receipts fell 38 cents to close at $96 in Nasdaq trading.