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 COSTA MESA, Calif., Nov. 16 /PRNewswire/ -- ICN Pharmaceuticals, Inc. (NYSE: ICN), which holds significant equity positions in three publicly traded companies -- SPI Pharmaceuticals, ICN Biomedicals and Viratek -- today reported that all three companies wee profitable in the third quarter.
 ICN said:
 SPI Pharmaceuticals, the international pharmaceutical manufacturer which accounts for 82 percent of the pro forma combined sales of the ICN companies, reported third quarter income of $6.9 million, or 36 cents a share, on worldwide sales of $70 million.
 ICN Biomedicals, the biotechnology research products company which accounts for 17 percent of ICN's pro forma sales, reported net income of $866,000, or 5 cents a share, on worldwide sales of $15 million. This was its third consecutive quarter of improved profits since its restructuring.
 Viratek, the pharmaceutical research and development company which accounts for 1 percent of pro forma combined sales, reported net income of $249,000, or 2 cents a share, on revenues of $2 million.
 SPI's third quarter benefited from higher margins in its business in North and Latin America and Western Europe, which accounted for 59 percent of its total sales in the quarter. Sales in Mexico benefited from continued strong medical acceptance of the antiviral Virazole (ribavirin), including a recently launched cream for the treatment of herpes zoster and herpes genitalis. Operations of SPI's Yugoslav joint venture, ICN Galenika, broke even in the quarter, despite hyperinflation, currency devaluations and the impact of United Nations sanctions against the country, demonstrating ICN Galenika management's ability to operate the business under the most adverse conditions.
 ICN Biomedicals, a major world supplier of world biotechnology research products and medical diagnostics, also benefited from higher margins in the quarter. The company's performance marked the third consecutive quarter of profitability for the company and reflects continued implementation of the company's strategy to place more emphasis on more profitable products and product lines. ICN Biomedicals markets and distributes 55,000 different biotechnology research and medical diagnostic products in over 100 countries.
 Viratek's third quarter results reflected royalties from the worldwide sales of the antiviral Virazole by SPI, offset by significantly increased investment in research and development. R&D expenses totaled $1.4 million in the quarter. The company is currently completing U.S. and European Phase III clinical trials of Virazole against chronic active hepatitis C.
 An estimated 1.8 million Americans are infected with the hepatitis C virus (have antibodies), with 150,000 new cases reported annually. There are an estimated 275,000 cases of chronic active hepatitis C in the U.S. at present. Hepatitis is a slowly progressive liver disease that often leads to inflammation of the liver, cirrhosis and liver cancer. If the current trials against chronic active hepatitis C prove successful, application will be made to the U.S. Food and Drug Administration.
 Pro forma combined cash, cash equivalents and restricted cash of all three companies plus cash applicable to ICN alone totaled $69 million at the end of the third quarter.
 Non-cash currency translation adjustments resulted in a net loss for ICN of $2.3 million, or 11 cents a share, compared to a loss of $9.7 million, or 69 cents a share in the third quarter last year. Income before translation, minority interests and income taxes totaled $107,000 in the most recent third quarter.
 The non-cash currency adjustments of $2.5 million related to the company's outstanding foreign-denominated public debt. ICN's total liabilities were $196 million at the end of the third quarter, down $46 million from year-end. The foreign debt is predominantly in Dutch Guilder and Swiss Franc denominations, which fluctuates depending on the strength or weakness of the U.S. dollar against those currencies.
 ICN's sales consolidate those of ICN Biomedicals and Viratek. SPI's sales are not consolidated since it is carried as an equity investment. On this basis, third quarter ICN sales were $15.8 million in the quarter. Were SPI sales included, total third quarter pro forma combined sales would be $86 million.
 Summary Financial Information
 For The Three And Nine Months Ended Sept. 30, 1993 and 1992
 (000's omitted, except per share amounts)
 For the periods Three months Nine months
 ended Sept. 30, 1993 1992 1993 1992
 Net sales $15,815 $113,003 $48,170 $425,467
 Income (loss) before
 income taxes,
 minority interest
 and extraordinary
 income (2,369) 1,075 (4,443) 37,798
 Income taxes (222) 4,513 (60) 16,733
 Minority interests 196 6,214 491 20,921
 Net income (loss) $(2,343) $(9,652) $(4,247)(A) $144
 Per share information:
 Net loss per share $(0.11) $(0.69) $(0.22)(A) $(0.03)
 Shares used in per
 share computation 20,411 14,095 19,572 14,498
 (A) Includes extraordinary income of $627,000, or 3 cents a share.
 -0- 11/16/93
 /CONTACT: Jack Sholl, 714-545-0100, ext. 1013, for ICN Pharmaceuticals/

CO: ICN Pharmaceuticals, Inc. ST: California IN: MTC SU: ERN

SH-TW -- NY018 -- 4960 11/16/93 10:02 EST
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Publication:PR Newswire
Date:Nov 16, 1993

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