SCHEDULE 14A INFORMATION
Proxy Statement Pursuant To Section 14(a) Of
The Securities Exchange Act Of 1934
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RULE 14A-6(E)(2))
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[X] Definitive Additional Materials
[_] Soliciting Material Pursuant to Section 240.14a-12
ICN Pharmaceuticals, Inc.
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(Name of Registrant as Specified in its Charter)
N/A
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(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
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[_] Check box if any part of the fee is offset as provided by Exchange Act
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Following is the text of an ICN presentation made to investors on or about
May 16, 2001:
[LOGO - ICN]
ICN Pharmaceuticals, Inc.
Investor Presentation
May 2001
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THE SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM
ACT OF 1995:
This presentation contains forward-looking
statements that involve risks and uncertainties,
including but not limited to, projections of future
sales, operating income, returns on invested assets,
regulatory approval processes, and other risks
detailed from time to time in the Company's
Securities and Exchange Commission filings.
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[LOGO - ICN]
Company Overview
Company Overview
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Strategy
Innovative, global,
research-based
pharmaceutical company
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ICN Pharmaceuticals, Inc.
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Global Presence - Operates in Over 90 Countries
15 Major World Markets
[OBJECT OMITTED - MAP OF THE WORLD SHOWING PLACES OF ICN PRESENCE, OFFICE
AND MANUFACTURING/PRODUCTION]
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ICN Pharmaceuticals, Inc.
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Proposed Restructuring
Americas
ICN Pharmaceuticals International
Ribapharm
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ICN Pharmaceuticals, Inc.
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Global Revenues Increased +7% in 2000
[PIE CHART OMITTED - RIBAVIRIN ROYALTIES - 155M (+42%) = 19%
ICN INTERNATIONAL - 338M (+3%) = 43%
ICN AMERICAS - 307M (0%) = 38%]
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ICN PHARMACEUTICALS, INC.
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Revenues by Region
7% Asia 15%
16% Latin America 15%
25% Western Europe 35%
Europe
13% Eastern Europe 35%
39% North America 35%
2000 Target
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[LOGO - ICN]
Research & Development
ICN Pharmaceuticals, Inc.
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Research & Development
o Ribavirin
o Chronic Hepatitis C Treatment Opportunity
o 170 million of worldwide population infected
o 12 million infected in N. America/W. Europe/Japan
o Marketed by ICN as VIRAZOLE in 44 countries for Ten Indications
o Nucleoside Analog Library
o 3500 compounds
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Hepatitis C Treatment Market Opportunity
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Worldwide Approval of Ribavirin for Hepatitis C
o US - approved in 1998
o EU -
o Germany /UK/ Italy approved in 1999
o Spain and France approved in 2000
o EU - CPMP recommended Ribavirin/Peg-Intron for approval
o Japan - estimated 2001/2002
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Hepatitis C Treatment Market Opportunity
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Royalties from Ribavirin
1997-2000 CAGR +225% E
[BAR GRAPH OMITTED - 1997 - $6M
1998 - $37M (Rebetron(R) Approved
in June 1998)
1999 - $109M
2000 - $155M]
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Hepatitis C Treatment Market Opportunity
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Royalty Revenue Assumptions
Worldwide Annually Patients Rebetol Total
Prevalence Diagnosed Treated Cost* Revenue
US 4.0 million $500 million
Europe 5.0 million 5% 25% $10,000 $625 million
Japan 3.0 million $375 million
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Total 12.0 million $1.5 billion x royalty
rate**
* Assumes Rebetol cost is approximately 2/3 of a 48 week course of Rebetron
Therapy
** Compilation of Wall Street Analyst methodologies
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Ribavirin Poised for Continued Growth
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o Expanding number of patients diagnosed with Hepatitis C
o Increased awareness of Hepatitis C
o Ribavirin with Peg-Intron - improved efficacy
o Unbundling creates addditional opportunities
o Japan launch expected next year
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Ribavirin - Patent Position
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o SGP has two formulation patents through 2017
o ICN has a mechanism of action patent until 2016
o SGP has a new use patent on the combination of Peg-Intron and Ribavirin
o Additional Waxman-Hatch Protection with Peg-Intron and Ribavirin
combination
o Data exclusivity in Europe for 10 years
o Data exclusivity in Japan for 6 years
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Technology Platform
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o Nucleoside analogues vs non-nucleoside small molecules
o Therapeutic Focus:
o Antivirals
o Anticancer
o Expansion of our Technology Platform:
o Library expansion
o Utilization of the latest technologies
o Goal: To enhance the speed of drug discovery
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X-ray crystallography:
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[OBJECT OMITTED - PHOTO OF X-RAY MACHINE
PHOTO OF DIFFRACTION
PHOTO OF PATTERN
PHOTO OF CRYSTALS
PHOTO OF STRUCTURES - RNA BINDING GROOVE, NTP CHANNEL,
PRODUCT EXIT AND ACTIVE SITE]
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Research & Development Pipeline
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[TIMELINE BAR GRAPH OMITTED FOR RIBAVIRIN, ADENAZOLE, TIAZOLE,
LEVOVIRIN, VIRAMIDINE, PHOTODYNAMIC THERAPY
FROM DISCOVERY, PRE-CLINICAL, PHASE 1,
PHASE 2, PHASE 3, NDA, TO PROJ APPVL DATE]
* - Phase IV, Label Extension
** - Orphan Drug Status Application - Western Europe
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Levovirin - A Novel New Compound
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o L-sugar isomer of Ribavirin
o Appears to have a favorable side effect profile
o Strong potential in Hepatitis C
o NCE patent protection until 2016
o Phase 1 clinical trials initiated in February 2001
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[LOGO - ICN]
Specialty Pharmaceuticals
Specialty Pharmaceuticals
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Top Ten Products
Products 2000 Sales ($mm)
Efudex/Efudix $35.3
Mestinon 33.9
Bedoyecta 25.6
Librax 16.9
Virazole 14.8
Dalmane/Dalmadorm 14.5
Kinerase 12.4
Omeprazol 10.9
Ancotil/Ancobon 10.2
Flurouracil 10.1
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Total $184.8
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Innovative Product
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[OBJECT OMITTED - PHOTO OF N/LITE MACHINE]
o Non Ablative Wrinkle Removal
o In development: Acne
o In development: Stretch Marks
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Top Four Competitive Products
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Growth in # Procedures
1996 1998 1999
1. Laser Resurfacing (CO 2/other) 185,154 224,774 310,000
2. Chemical Peel 42,628 1,004,579 966,888
3. Botox N/A 433,047 662,768
4. Microdermabrasion N/A 168,000 335,500
* (80% of patients interested in laser resurfacing do not proceed)
Source - AACS
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[LOGO - ICN]
Financial Overview
Financial Overview
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ICN Achieves Record Revenues in 2000
1995-2000 CAGR +24%
[BAR GRAPH OMITTED - 1995 - $273M
1996 - $347M
1997 - $527M
1998 - $696M
1999 - $747M
2000 - $800M]
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Financial Overview
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2000 Operating Income*
1995-2000 CAGR +26%
[BAR GRAPH OMITTED - 1995 - $47M
1996 - $43M
1997 - $64M
1998(*) - $121M
1999 - $199M
2000 - $184M]
* Continuing Operations
(*) Excludes EE charges
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Financial Overview
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Statement of Income
($ in millions except EPS) 2000 1999
Revenues $800 $747
Gross Profit 537 491
SG&A & R&D 353 292
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Operating Income 184 199
Interest, net 47 47
Translation 7 12
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Pretax income before minority
interest 130 140
Income Taxes 38 29
Minority Interest (1) (8)
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Net Income before extraordinary
item $93 $119
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EPS $1.14 $1.45
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Financial Overview
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Consolidated Balance Sheet - Assets
($000's)
December December
2000 1999
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Cash $ 155,585 $ 177,991
Accounts receivable 225,639 231,902
Inventories 170,263 136,762
Prepaid expenses 13,929 18,075
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Current assets 565,416 564,730
Property, plant & equipment 367,229 332,360
Other assets 544,427 575,171
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Total assets $1,477,072 $1,472,261
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Financial Overview
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Consolidated Balance Sheet
Liabilities and Stockholders' Equity
December December
2000 1999
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Current liabilities $ 158,777 $ 140,622
Long-term debt 510,781 596,961
Other liabilities 50,320 51,106
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Total liabilities 719,878 788,689
Stockholders' equity 757,194 683,572
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Total liabilities and
stockholders' equity $1,477,072 $1,472,261
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Financial Overview
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Improving Performance will Drive Cash Flow
and Earnings
[BAR GRAPH OMITTED - EBITDA
1994(*) - $65M
1995 - $107M
1996 - $132M
1997 - $154M
1998(*) - $208M
1999 - $265M
2000 - $248M]
(*) Excludes charges and reserves
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[LOGO - ICN]
Summary
Summary
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o Global, innovative research company
o Ribavirin royalty
o International profitable
o Investments in R&D
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Summary
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o Continued profitability provides opportunities to invest in R&D
o Good financial position and cash flow
o Restructuring - Maximization of value
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