ICN And A L Hit By Restructuring Charges

ICN Pharmaceuticals reported a loss in the fourth quarter of 1994 of $207.3 million. The company took a one-time charge in the fourth quarter of $221 million in relation to the merger of the company with its three affiliates, Viratek, SPI Pharmaceuticals and ICN Biomedicals, last year. Without the charge, the company would have posted net fourth-quarter income of $13.7 million. The fourth-quarter loss per share in 1994 was $8.39. Sales for the quarter were $123 million, down 16.7%. For the full year, ICN achieved sales of $366.9 million, down 9.2%. The loss was $183.6 million or $8.38 per share.

The one-time charge was $31 million more than had been anticipated in a proxy statement issued by the company in November last year. The company stressed that the write-off is not related to ongoing R&D activities for its antiviral Virazole (ribavirin). ICN has recently had problems concerning the approval of Virazole by the US Food and Drug Administration as a treatment for hepatitis C (Marketletter February 27).

Half of ICN's worldwide sales are in the USA, while eastern Europe accounts for 35% and western Europe 13%. Pharmaceuticals make up 87% of the business, with research chemicals and diagnostics the remainder. Prescription drugs account for 52% of sales and over-the-counter products 20%.