Drug maker ICN reports revenue drop

Paul Clinton

With its hepatitis C treatment facing stiffer competition, local drug

maker ICN Pharmaceuticals saw a 14% drop in revenue in the first

quarter.

The drop in revenue was largely due to falling profits from the

sale of ribavirin, which the company markets via a partnership with

Schering-Plough Corp. Royalties from the drug fell to $48.6 million

from $57 million a year ago.

Still, ICN reported a profit of $13.7 million, or 16 cents per

share, compared with $8.4 million, or 10 cents per share, a year ago.

But revenue fell to $110.1 million from $128 million.

The 63% improvement in bottom-line profit over the past year was

due to an accounting charge that hurt the company in the first

quarter of 2002. During the late quarter, which ended March 31, the

company also experienced a drop in royalty revenue in North America

and excesses in ribavirin capacity.

“We continue to make progress in executing our strategic direction

in the specialty pharmaceuticals business,” ICN Chairman and Chief

Executive Robert O’Leary said.

The company still owns a significant piece of Ribapharm Inc., a

former division that was spun off last year.

After releasing the news, prior to trading on the New York Stock

Exchange, ICN spiked 5.8% to $9.28. On Tuesday, shares of ICN rose

again, this time 4.6% to $9.71.