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 COSTA MESA, Calif. Aug. 18 /PRNewswire/ -- ICN Pharmaceuticals Inc. (NYSE: ICN), said today that, as previously reported, two of its three operating subsidiaries were profitable in the second quarter, while significantly higher research and development investment resulted in a loss at the third operating subsidiary.
 Overall, ICN reported a loss of $3 million, or 15 cents a share, in the second quarter of 1993, compared to net income of $3.2 million, or 21 cents a share, in last year's second quarter.
 ICN is the parent of three public companies -- Viratek Inc., ICN Biomedicals Inc. and SPI Pharmaceuticals Inc. -- and holds principal equity ownership positions in each.
 The company pointed out that its total liabilities declined by $35 million in the first six months of 1993. The company had cash and cash equivalents totaling $26 million at the end of the quarter. In addition, SPI held $45 million in unrestricted and restricted cash at the end of the quarter.
 ICN Biomedicals, ICN's 88 percent-owned subsidiary and one of the world's leading suppliers of research products, reported earnings of $3.4 million on sales of $15.4 million for the second quarter of 1993, reflecting the continued turnaround of the company.
 As a result of sharply higher research and development expenses of $1.4 million to support clinical testing of the antiviral ribavirin (Virazole) against chronic active hepatitis C, Viratek, ICN's 70 percent-owned pharmaceutical research and development company, reported a loss of $1.1 million on revenues of $540,000 in the quarter.
 SPI, ICN's 43 percent-owned equity investment, reported net income of $1.1 million on sales of $66 million, reflecting the effects of economic disintegration, currency devaluation and severe United Nations economic sanctions against Yugoslavia. The United Nations sanctions continue to specifically exempt the importation of certain medical supplies for humanitarian purposes, a portion of which are manufactured and distributed by SPI's Yugoslav venture.
 SPI is not consolidated into ICN's financial statements in 1993. It is held as a long-term investment. ICN's 43 percent-ownership of SPI had a value of $126 million based on a market price per share of $15.75 at Aug. 16, 1993.
 Consolidated financial information for ICN for the three and six months ended June 30, 1993 and 1992, is attached.
 Summary Financial Information for the
 Three and Six Months Ended June 30, 1993 and 1992
 (000s omitted, except per share amounts)
 Three Months Ended Six Months Ended
 June 30, June 30,
 1993 1992 1993 1992
 Net sales $15,723 $170,136 $32,355 $312,464
 Gross profit 8,766 93,403 18,022 167,523
 Income (loss) before net
 interest expense, gain
 on sales of subsidiaries
 common stock, equity in
 earnings of SPI, minority
 interest, income taxes and
 extraordinary income 28 15,125 (580) 17,730
 Interest expense, net (4,421) (8,025) (9,418) (15,316)
 Gain on sales of
 subsidiaries common
 stock --- 10,029 3,732 34,309
 Equity in earnings
 of SPI 1,010 --- 4,193 ---
 Income (loss) before
 income taxes, minority
 interest and extra-
 ordinary income (3,383) 17,129 (2,073) 36,723
 Income taxes 127 5,986 162 12,220
 Minority interests 83 7,937 295 14,707
 Income (loss) before
 extraordinary income (3,593) 3,206 (2,530) 9,796
 Extraordinary income 627 --- 627 ---
 Net income (loss) ($2,966) $3,206 ($1,903) $9,796
 Per share information:
 Net income (loss) before
 extraordinary income ($0.18) $0.21 ($0.13) $0.66
 Extraordinary income 0.03 --- 0.03 ---
 Net income (loss)
 per share ($0.15) $0.21 ($0.10) $0.66
 Shares used in per share
 computation 20,416 14,354 19,135 14,288
 -0- 8/18/93
 /CONTACT: Jack Sholl of ICN Pharmaceuticals, 714-545-0100, ext. 3013/

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

JB-BP -- LA006 -- 3905 08/18/93 12:14 EDT
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Publication:PR Newswire
Date:Aug 18, 1993

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