ICN Profit Jumps 60%; Calpine Posts Loss
Costa Mesa drug maker ICN Pharmaceuticals Inc. reported a 60% hike in first-quarter net income as royalties more than doubled for its biggest product, the hepatitis C drug ribavirin.
ICN, which also sells antibiotics, sedatives, vitamins and cosmetic lasers, said net income rose to $33.7 million, or 40 cents a share, from $21 million, or 26 cents, a year earlier.
Revenue increased 23% to $245.7 million.
The earnings exceeded Wall Street estimates averaging 36 cents a share, and Chairman Milan Panic said he expects better results for the second quarter. He forecast earnings to exceed current Wall Street estimates of 43 cents a share for the second quarter.
For the first quarter, ribavirin royalties jumped to $57 million from $27.6 million as more doctors prescribed the antiviral drug in combination with Schering-Plough Corp.’s Intron A and an improved version called Peg-Intron. Schering-Plough introduced Peg-Intron in October. It sells the former combination as Rebetol.
ICN also sells ribavirin overseas in other forms for viral diseases such as herpes, influenza, measles, chicken pox and HIV. Ribavirin made up 16% of product sales last year, the bulk of that from royalties, the company said.
Sales of ICN’s specialty pharmaceuticals, a line of more than 400 prescription drugs and 200 nonprescription products sold in 40 countries, increased 10% to $188.6 million.
ICN partially spun off Ribapharm Inc., which makes ribavirin, in an initial public stock offering last month. But a group of dissident shareholders called for ICN to break up into three separate businesses to enhance shareholder value.
ICN stock rose 7 cents to close at $27.80 a share on the New York Stock Exchange.
Other earnings from California companies:
* Calpine Corp. reported a first-quarter net loss of $74.3 million, or 24 cents a share, contrasted with net income of $119.7 million, or 36 cents, a year earlier. Revenue rose 30% to $1.74 billion from $1.34 billion as new plants owned by the San Jose-based power plant developer boosted generating capacity.
* Clorox Co.’s fiscal third-quarter net income dropped to $46 million, or 20 cents a share, from $79 million, or 33 cents, a year earlier. Revenue for the Oakland home products manufacturer rose 7.4% to $1.03 billion in the period ended March 31.
* Health Net Inc. said first-quarter net income rose to $49.8 million, or 40 cents a share, from $42.4 million, or 34 cents, a year earlier. Revenue fell to $2.47 billion from $2.49 billion as enrollment in the Woodland Hills insurance company’s health plans declined.
* Rubio’s Restaurants Inc. reported first-quarter net income of $427,000, or 5 cents a share, contrasted with a net loss of $154,000, or 2 cents, a year earlier. Revenue for the Carlsbad restaurant chain was up 12.4% to $29.9 million.
