SCHEDULE 14A INFORMATION Proxy Statement Pursuant To Section 14(a) Of The Securities Exchange Act Of 1934 Filed by the Registrant [X] Filed by a Party other than the Registrant [_] Check the appropriate box: [_] Preliminary Proxy Statement [_] CONFIDENTIAL, FOR USE OF THE COMMISSION ONLY (AS PERMITTED BY RULE 14A-6(E)(2)) [_] Definitive Proxy Statement [X] Definitive Additional Materials [_] Soliciting Material Pursuant to Section 240.14a-12 ICN Pharmaceuticals, Inc. -------------------------------------------------------- (Name of Registrant as Specified in its Charter) N/A -------------------------------------------------------- (Name of Person(s) Filing Proxy Statement, if other than the Registrant) Payment of Filing Fee (Check the appropriate box): [X] No fee required. [_] Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11. (1) Title of each class of securities to which transaction applies: ------------------------------------------------------------------- (2) Aggregate number of securities to which transaction applies: ------------------------------------------------------------------- (4) Proposed maximum aggregate value of transaction: ------------------------------------------------------------------- (5) Total fee paid: ------------------------------------------------------------------- [_] Fee paid previously with preliminary materials. [_] Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing. (1) Amount Previously Paid: ------------------------------------------------------------------- (2) Form, Schedule or Registration Statement No.: ------------------------------------------------------------------- (3) Filing Party: ------------------------------------------------------------------- (4) Date Filed: ------------------------------------------------------------------- Following is the text of additional presentation materials delivered to ICN Pharmaceuticals, Inc. stockholders on or about May 13, 2002: [LOGO - ICN] ICN PHARMACEUTICALS, INC. MAY 2002 FORWARD LOOKING STATEMENTS ------------------------------------------------------------------------------ THE SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: o Except for the historical information herein, the matters discussed in this presentation include forward-looking statements that may involve a number of risks and uncertainties, including but not limited to, projections of future sales, operating income, returns on invested assets, obtaining and maintaining regulatory approval processes, market acceptance of, and continuing demand for ICN pharmaceuticals' products and other risks detailed from time to time in the Company's Securities and Exchange Commission filings 1 RESTRUCTURING RATIONAL ----------------------------------------------------------------------------- RESTRUCTURING HISTORY ------------------------------------------------------------------------------ o The restructuring was ALWAYS ICN's and UBS's idea; no one else had it. o It was ALWAYS designed to unlock value for shareholders. o The restructuring is a complicated process that cannot be rushed. o The timing has been SOLELY impacted by market conditions. 3 RESTRUCTURING OVERVIEW ------------------------------------------------------------------------------ o Initiatives to unlock significant shareholder value Biotechnology Ribapharm - RNA listed on NYSE on April 12, 2002 - IPO Completed - tax-free spin-off in 2002 Specialty ICN Pharmaceuticals Pharmaceuticals ICN Americas Americas Specialty Pharmaceuticals ICN International Europe o IPO Prospectus filed 4 GOVERNANCE ------------------------------------------------------------------------------ o ICN has had a long history of dependable corporate governance. o Corporate governance provisions adopted that codify what ICN has practiced all along. o Nominating committee established that it is comprised solely of independent directors. - Membership - Process o CEO succession process established that will result in a timely and orderly change in leadership. 5 BOARD INDEPENDENCE ------------------------------------------------------------------------------ o ICN's board has ALWAYS been comprised of independent directors. o Since ICN's founding, 39 out of 42 directors have been non-insiders. o As of May 29, 2002, five elected within the last year: - Three as shareholder candidates - Two as qualified by nominating committee - Roderick Hills - Barry Cohen - Gen. Ronald Fogleman - Ed Burkhardt - Steven Lee 6 COUNTERACT - SUBSTANTIAL RISK TO SHAREHOLDERS ------------------------------------------------------------------------------ o There is ENORMOUS RISK to shareholders in siding with the opposition. o They have no track record, no experience and no strategy. o ICN management has CONSISTENTLY delivered on its promises. o A vote for the opposition places shareholders' investment in ICN at substantial risk 7 FINANCIAL OVERVIEW ----------------------------------------------------------------------------- SPECIALTY PHARMACEUTICALS REVENUES 1.2. ----------------------------------------------------------------------------- 1995 - 2001 CAGR: +18% [BAR GRAPH OMITTED] 1995-273 $mm 1996-347 $mm 1997-527 $mm 1998-659(2)$mm 1999-639 $mm 2000-645 $mm 2001-721 $mm 1 Excluding Royalties 2 Excludes ICN Yugoslavia 2. Reflects effect of Major Russia Devaluation in Q3 1998 through 2001 9 SPECIALTY PHARMACEUTICALS OPERATING INCOME STATEMENT (1) 2001 VS. 2000 FULL YEAR (000's) -------------------- ------------------------- ---------------------------- -------------------------- ------------------------- NORTH AMERICA LATIN AMERICA WESTERN EUROPE EASTERN EUROPE -------------------- ------------------------- ---------------------------- -------------------------- ------------------------- -------------------- ------------- ----------- ------------- ------------- ------------- ------------ ------------- ------------ ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL 2001 2000 2001 2000 2001 2000 2001 2000 -------------------- ------------- ----------- ------------- ------------ ------------- ------------ ------------- ------------ - -------------------- ------------- ----------- ------------- ------------ ------------- ------------ ------------- ------------ - Product Sales 155,201 119,994 128,218 127,485 206,374 187,192 103,066 106,271 -------------------- -------------------- Royalties -- -- -- -- 2 14 -- -- -------------------- -------------------- Services 18,473 593 -- -- -- -- -- -- -------------------- -------------------- Revenues 173,674 120,587 128,218 127,485 206,376 187,206 103,066 106,271 -------------------- -------------------- Cost of Sales 23,576 13,692 34,745 35,662 106,597 96,021 66,054 64,651 -------------------- -------------------- Gross Profit 131,625 106,302 93,473 91,823 99,777 91,171 37,012 41,620 -------------------- -------------------- Gross Margin 85% 89% 73% 72% 48% 49% 36% 39% -------------------- -------------------- Operating Expenses: -------------------- -------------------- Selling 42,276 22,606 26,996 26,831 39,505 35,654 25,130 24,784 -------------------- -------------------- Advertising 22,045 19,918 11,364 10,563 9,629 9,815 5,493 3,479 -------------------- -------------------- Goodwill 11,507 10,872 3,642 3,313 8,605 7,797 (1,977) (1,192) -------------------- -------------------- R & D 2,304 1,746 168 273 478 2,571 107 782 -------------------- -------------------- G & A 6,145 1,027 6,616 5,434 14,272 15,096 8,002 10,465 -------------------- -------------------- Other (2,408) 2,795 3,880 3,459 863 3,848 6,170 7,678 -------------------- -------------------- Total Op. Exp. 81,869 58,964 52,666 49,873 73,352 74,781 42,925 45,476 -------------------- -------------------- Operating Income 68,229 47,931 40,807 41,950 26,427 16,404 (5,913) (3,856) -------------------- -------------------- O.P. % 39% 40% 32% 33% 13% 9% (6%) (4%) -------------------- ------------- ----------- ------------- ------------ ------------- ------------ -------------- ------------ ------------------------------------------------ -------------------------- --------------------------- AAA BIOMEDICAL SPECIALTY PHARMA* ------------------------------------------------ -------------------------- --------------------------- --------------------------------- -------------- ------------ ------------- ------------- ------------- ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL 2001 2000 2001 2000 2001 2000 -------------------------------- -------------- ------------ ------------- ------------- ------------- -------------------------------- -------------- ------------ ------------- ------------- ------------- Product Sales 49,826 45,133 59,955 58,522 702,640 644,597 -------------------- -------------------- Royalties -- -- -- -- 2 14 -------------------- -------------------- Services -- -- -- -- 18,473 593 -------------------- -------------------- Revenues 49,826 45,133 59,955 58,522 721,115 645,204 -------------------- -------------------- Cost of Sales 25,174 25,420 27,949 28,013 284,095 263,459 -------------------- -------------------- Gross Profit 24,652 19,713 32,006 30,509 418,545 381,138 -------------------- -------------------- Gross Margin 49% 44% 53% 52% 60% 59% -------------------- -------------------- Operating Expenses: -------------------- -------------------- Selling 9,995 10,320 18,456 17,476 162,358 137,671 -------------------- -------------------- Advertising 3,126 2,479 2,317 3,469 53,974 49,723 -------------------- -------------------- Goodwill 4,156 4,562 2,089 1,657 28,022 26,289 -------------------- -------------------- R & D 161 175 -- -- 3,218 5,547 -------------------- -------------------- G & A 1,879 2,571 3,500 3,178 40,414 37,771 -------------------- -------------------- Other 29 106 745 3,032 9,279 21,118 -------------------- -------------------- Total Op. Exp. 19,346 20,213 27,107 28,812 297,265 278,119 -------------------- -------------------- Operating Income 5,306 (500) 4,899 1,697 139,755 103,626 -------------------- -------------------- O.P. % 11% (1%) 8% 3% 19% 16% --------------------------------- -------------- ------------ ------------- ------------- ------------- * Before Corporate allocations (1) EXCLUDING ROYALTIES 10 FINANCIAL POSITION ------------------------------------------------------------------------------ SELECTED CONSOLIDATED BALANCE SHEET DATA DECEMBER 31, DECEMBER 31, (US$mm) 2000 2001 ------------------------------------------------------------------------- Cash 155.6 327.6 Total Assets 1,477.1 1,754.4 Senior Debt 496.9 191.2* Convertible Debt - 525.0 Total Debt 510.8 740.7 Total Stockholders Equity 757.2 810.7 ------------------------------------------------------------------------- CREDIT STATISTICS 2000 2001 ------------------------------------------------------------------------- Total Debt/EBITDA 1.86x 2.80x EBITDA/Interest 4.56x 4.73x Total Debt/Total Book Cap. 40% 48% ------------------------------------------------------------------------- * paid off in April 2002 reflecting improvement of rations 11 Q1 2002 CONSOLIDATED RESULTS FINANCIAL PERFORMANCE ----------------------------------------------------------------------------- Q1 02 Q1 01 %CHG. ----- ----- ----- Revenues $246M R $199M 23 Royalties 57M R 28M 103 REVENUES - SPECIALTY PHARMA 189M 171M 10 Operating income 66M R 41M 60 Net Interest 13M up $2M 11M 22 Income before tax and MI 51M 30M Translation 2M .4M nm Provision for income taxes 20M up $11M 9M 119 Net Income(1) 30M R 21M 43 Cumulative effect 4M -- nm Net Income 34M R 21M 62 EPS (diluted)-income 0.36 R 0.26 38 Cumulative efect 0.04 -- Net Income 0.40 R 0.26 54 (1) Before Cumulative Effect of Accounting Change R = Record results 12 Q1 2002 - Continued Growth and Records ----------------------------------------------------------------------------- o Record revenue -------------- o Record Gross Margin ------------------- o Record royalties ---------------- o Record Operating Income ----------------------- o Record pre-tax income --------------------- o Record Earning per Share ------------------------ 13 SPECIALTY PHARMACEUTICALS ------------------------------------------------------------------------------ SPECIALTY PHARMA INVESTMENT HIGHLIGHTS ------------------------------------------------------------------------------ o High margin specialty business in Americas - Record of historical growth in Latin America since 1970 - Consistent new product flow in pharmaceuticals - New growth platform in vast cosmetic dermatology market o One of the largest specialty pharmaceutical businesses in Europe - 57% of international revenues from Western Europe - New product pipeline 15 SPECIALTY PHARMACEUTICALS REVENUES ------------------------------------------------------------------------------ SPECIALITY PHARMA REVENUES ANNUAL GROWTH 12% [BAR GRAPH OMITTED] ICN International Annual Growth 6% 2000 $338mm 50% 2001 $359mm of specialty pharma revenues ICN Americas Annual Growth 18% 2000 $307mm 50% 2001 $362mm of specialty pharma revenues 2000 $645mm 2001 $721mm 16 SPECIALTY PHARMACEUTICALS OPERATING INCOME* ----------------------------------------------------------------------------- SPECIALTY PHARMA OPERATING INCOME ANNUAL GROWTH 35% [BAR GRAPH OMITTED] ICN International Annual Growth 114% 2000 $12mm 22% 2001 $26mm of specialty pharma 0I ICN Americas Annual Growth 24% 2000 $94mm 2001 $117mm 78% of specialty pharma OI 2000 $105mm 2001 $142mm * Before corporate charges 17 SPECIALTY PHARMACEUTICALS EBITDA* ------------------------------------------------------------------------------ SPECIALTY PHARMA EBITDA ANNUAL GROWTH 26% [BAR GRAPH OMITTED] ICN International Annual Growth 32% 2000 $41mm 30% 2001 $54mm of specialty pharma EBITDA ICN Americas Annual Growth 24% 2000 $121mm 70% 2001 $150mm of specialty pharma EBITDA 2000 $162mm 2001 $204mm *Before corporate charges 18 SPECIALTY PHARMACEUTICALS OPERATING INCOME STATEMENT (1) Q4 2001 vs. Q4 2000 (000's) ------------------- ---------------------------- -------------------------- -------------------------- -------------------------- NORTH AMERICA LATIN AMERICA WESTERN EUROPE EASTERN EUROPE ------------------- ---------------------------- -------------------------- -------------------------- -------------------------- ------------------- ------------- -------------- ------------ ------------- ------------- ------------ ------------- ------------ ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL 2001 2000 2001 2000 2001 2000 2001 2000 ------------------- ------------- -------------- ------------ ------------- ------------- ------------ ------------- ------------ ------------------- ------------- -------------- ------------ ------------- ------------- ------------ ------------- ------------ Product Sales 44,637 37,756 41,806 37,079 56,436 50,620 32,802 30,752 ------------------- ------------------- Royalties - - - - - 12 - - ------------------- ------------------- Services 3,601 593 - - - - - - ------------------- ------------------- Revenues 48,238 38,349 41,806 37,079 56,436 50,632 32,802 30,752 ------------------- ------------------- Cost of Sales 8,231 5,296 11,009 10,469 29,087 28,919 18,753 18,073 ------------------- ------------------- Gross Profit 36,406 32,460 30,797 26,610 27,349 21,701 14,049 12,679 ------------------- ------------------- Gross Margin 82% 86% 74% 72% 48% 43% 43% 41% ------------------- ------------------- Operating Expenses: ------------------- ------------------- Selling 10,103 6,030 7,441 7,114 10,479 9,716 6,743 7,763 ------------------- ------------------- Advertising 6,704 5,466 3,486 2,767 2,578 3,239 1,767 1,254 ------------------- ------------------- Goodwill 2,909 2,750 1,067 830 2,384 1,937 (488) (462) ------------------- ------------------- R & D 780 641 41 62 397 849 (19) 77 ------------------- ------------------- G & A 1,577 4,662 1,713 1,464 3,990 5,244 1,703 2,692 ------------------- ------------------- Other (1,931) 57 1,871 1,521 (1,301) 1,713 2,207 2,156 ------------------- ------------------- Total Op. Exp. 20,142 19,606 15,619 13,758 18,527 22,698 11,913 13,480 ------------------- ------------------- Operating Income 19,865 13,447 15,178 12,852 8,822 (985) 2,136 (801) ------------------- ------------------- O.P. % 41% 35% 36% 35% 16% (2%) 7% (3%) ------------------- ------------- -------------- ------------ ------------- ------------- ------------ ------------- ------------ -------------------- -------------------------- ---------------------------- ------------------------- AAA BIOMEDICAL SPECIALTY PHARMA* -------------------- -------------------------- ---------------------------- ------------------------- -------------------- ------------ ------------- -------------- ------------- ------------- ----------- ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL 2001 2000 2001 2000 2001 2000 -------------------- ------------ ------------- -------------- ------------- ------------- ----------- -------------------- ------------ ------------- -------------- ------------- ------------- ----------- Product Sales 13,658 8,685 15,363 13,692 204,702 178,584 ------------------- ------------------- Royalties - - - - - 12 ------------------- ------------------- Services - - - - 3,601 593 ------------------- ------------------- Revenues 13,658 8,685 15,363 13,692 208,303 179,189 ------------------- ------------------- Cost of Sales 6,846 7,220 7,073 7,279 80,999 77,256 ------------------- ------------------- Gross Profit 6,812 1,465 8,290 6,413 123,703 101,328 ------------------- ------------------- Gross Margin 50% 17% 54% 47% 60% 57% ------------------- ------------------- Operating Expenses: ------------------- ------------------- Selling 3,299 2,545 5,040 4,420 43,105 37,588 ------------------- ------------------- Advertising 646 668 650 808 15,831 14,202 ------------------- ------------------- Goodwill 1,056 1,131 522 423 7,450 6,609 ------------------- ------------------- R & D 22 42 - - 1,221 1,671 ------------------- ------------------- G & A 558 499 1,014 796 10,555 15,357 ------------------- ------------------- Other 12 35 138 975 996 6,457 ------------------- ------------------- Total Op. Exp. 5,593 4,920 7,364 7,422 79,158 81,884 ------------------- ------------------- Operating Income 1,219 (3,455) 926 (1,009) 48,146 20,049 ------------------- ------------------- O.P. % 9% (40%) 6% (7%) 23% 11% -------------------- ------------ ------------- -------------- ------------- ------------- ----------- * Before Corporate allocations. (1) EXCLUDING ROYALTIES 19 SPECIALTY PHARMACEUTICALS OPERATING INCOME STATEMENT (1) Q1 2002 VS. Q1 2001 (000's) -------------------- --------------------------- -------------------------- -------------------------- -------------------------- NORTH AMERICA LATIN AMERICA WESTERN EUROPE EASTERN EUROPE --------------------------- -------------------------- -------------------------- -------------------------- -------------- ------------ ------------- ------------ ------------- ------------ ------------- ------------ ACTUAL 2002 ACTUAL 2001 ACTUAL 2002 ACTUAL 2001 ACTUAL 2002 ACTUAL 2001 ACTUAL 2002 ACTUAL 2001 Product Sales 44,077 37,112 29,487 26,092 54,854 52,531 29,776 24,399 Royalties - - - - - 2 - - Services 2,862 5,171 - - - - - - Revenues 46,939 42,283 29,487 26,092 54,854 52,533 29,776 24,399 Cost of Sales 6,567 5,013 8,269 6,885 26,945 28,626 16,877 16,224 Gross Profit 37,510 32,099 21,198 19,207 27,909 23,905 12,899 8,175 Gross Margin 85% 86% 72% 74% 51% 46% 43% 34% Operating Expenses: Selling 10,421 11,212 6,296 5,782 10,072 9,205 6,056 5,980 Advertising 6,260 3,989 2,536 2,516 2,923 2,552 1,654 1,236 Goodwill 2,552 2,867 1,029 827 2,397 1,946 - (483) R&D 842 550 11 62 586 23 232 105 G&A 1,958 990 1,539 1,468 3,216 3,370 2,156 2,327 Other 1,747 (648) 740 397 121 2,489 915 1,185 Total Op. Exp. 23,780 18,960 12,151 11,052 19,315 19,585 11,013 10,350 Operating Income 16,592 18,310 9,047 8,155 8,594 4,322 1,886 (2,175) O.P.% 35% 43% 31% 31% 16% 8% 6% (9%) -------------------- -------------- ------------ ------------- ------------ ------------- ------------ ------------- ------------ ----------------------------------------------- --------------------------- ---------------------------- AAA BIOMEDICAL SPECIALTY PHARMA* --------------------------- --------------------------- ---------------------------- ------------- ------------- ------------- ------------- -------------- ------------- ACTUAL 2002 ACTUAL 2001 ACTUAL 2002 ACTUAL 2001 ACTUAL 2002 ACTUAL 2001 Product Sales 11,820 10,638 15,785 15,474 185,799 166,246 Royalties - - - - - 2 Services - - - - 2,862 5,171 Revenues 11,820 10,638 15,785 15,474 188,661 171,419 Cost of Sales 5,613 5,619 7,431 7,118 71,722 69,485 Gross Profit 6,207 5,019 8,354 8,356 114,077 96,761 Gross Margin 53% 47% 53% 54% 61% 58% Operating Expenses Selling 2,533 1,548 4,577 4,200 39,955 37,927 Advertising 923 619 867 595 15,163 11,507 Goodwill 1,090 1,074 2 523 7,070 6,754 R&D 39 52 - - 1,710 792 G&A 684 487 891 783 10,444 9,425 Other (478) (22) 67 56 3,112 3,457 Total Op. Exp. 4,791 3,758 6,404 6,157 77,454 69,862 Operating Income 1,416 1,261 1,950 2,199 39,485 32,072 O.P.% 12% 12% 12% 14% 21% 19% --------------------------------- ------------- ------------- ------------- -------------- ------------- * Before Corporate allocations (1) EXCLUDING ROYALTIES 20 TOP TEN PRODUCTS ICN PHARMACEUTICALS ---------------------------------------------------------------------------- ($ in Millions): Efudex Antimetabolit 35.3 45.1 27.8 Mestinon Cholinesterase 33.9 42.4 25.1 Bedoyecta vitamins 25.6 25.3 -1.2 N-Lite Derm. 1.3 17.3 1230.8 Bleaches Derm. 5.0 13.9 178.0 Virazole antivirals 15.1 13.6 -9.9 Kinerase Derm. 13.2 13.2 0.0 Nuclosina Gastro 10.9 12.7 16.5 Oxsoralens antipsor. 6.5 9.4 44.6 Pentalgin NSAID 8.3 9.2 10.8 Sub-Total 155.1 202.1 30.3 All Other products 490.1 519.1 5.9 TOTAL SALES 645.2 721.2 11.8 top ten % of total 26 31 21 SPECIALTY PHARMACEUTICALS INTERNATIONAL ------------------------------------------------------------------------------ SPECIALTY PHARMACEUTICALS INTERNATIONAL - OVERVIEW ------------------------------------------------------------------------------ 2001 Revenue: US$359mm o 466 ethical products 2001 EBITDA: US$54mm* o 266 OTC products o A broad product portfolio with increasing focus on: - central nervous system - anti-infective / anti-virals [PIE CHART OMITTED] - dermatology Export (AAA) - alimentary tract and metabolism 14% - oncology Eastern Europe o 2,100+ sales and marketing staff 29% Western Europe * before corporate allocations 57% 23 SPECIALTY PHARMACEUTICALS INTERNATIONAL HIGHLIGHTS ------------------------------------------------------------------------------ ICN Western Europe Sales Share per Market [GRAPH OMITTED] 24 SPECIALITY PHARMACEUTICALS INTERNATIONAL HIGHLIGHTS ------------------------------------------------------------------------------ ICN Western Europe Product Sales per Category [GRAPH OMITTED] 25 SPECIALITY PHARMACEUTICALS INTERNATIONAL HIGHLIGHTS ------------------------------------------------------------------------------ ICN Western Europe Sales Performance 1998-2001 CAGR: +30% [BAR GRAPH OMITTED] 1998-53$mm 1999-85$mm 2000-107$mm 2001-117$mm 26 SPECIALITY PHARMACEUTICALS INTERNATIONAL HIGHLIGHTS ------------------------------------------------------------------------------ ICN Russia '000 EUR Top Ten Products Q1 '01 vs Q2 '02 PRODUCT/ % of TRADE NAME Q1 '01 Q1'02 increase Pentalgin line 2079 4427 113% Inhalypt 595 717 20% Terpincode 377 1013 169% Oligovit 1277 2094 64% Codelac 282 1183 320% Asvitol 395 1237 213% Nitrocor Line 1391 2321 67% Solcoseril Line 590 1563 165% Renipril Line 290 111 -62% Solcotrichovac Line 0 192 0% Sub-Total 7276 14858 104% All Other Products 12540 11398 -9% TOTAL SALES 19816 26256 32% 27 SPECIALITY PHARMACEUTICALS INTERNATIONAL HIGHLIGHTS ------------------------------------------------------------------------------ ICN Russia Retail Sales Performance 1998-2001 CAGR: +133% [BAR GRAPH OMITTED] ICN Pharmacies in Russia ------------------------ Number of 1998-2$mm City Pharmacies 1999-15$mm Moscow 48 St. Petersburg 19 Kursk 3 2000-23(1)$mm Orel 10 Chelyabinsk 4 Tomsk 5 2001-25$mm Yoskar-Ola 2 Krasnoyarsk 1 Total 92 (1) Closed polyclinics 28 SPECIALITY PHARMACEUTICALS INTERNATIONAL HIGHLIGHTS ------------------------------------------------------------------------------ [GRAPH OMITTED] 29 SPECIALTY PHARMACEUTICALS AMERICAS ------------------------------------------------------------------------------ SPECIALTY PHARMACEUTICALS AMERICAS - OVERVIEW ----------------------------------------------------------------------------- o High-margined product portfolio 2001 Revenue: US$362mm o Increasing investment in sales 2001 EBITDA: US$150mm* and marketing o Significant expansion in dermatology o consistent new product flow [PIE CHART OMITTED] Latin America 35% North America 65% * before corporate allocations 31 SPECIALTY PHARMACEUTICALS AMERICAS - GEOGRAPHIC SALES ----------------------------------------------------------------------------- YEAR ENDED DECEMBER 31, 2001 [PIE CHART OMITTED] Brazil $6mm Argentina $15mm Mexico $107mm Canada $24mm United States $210mm $362mm 32 SPECIALTY PHARMACEUTICALS AMERICAS - REVENUE MIX [PIE CHART OMITTED] ----------------------------------------------------------------------------- 2000 2001 ---- ---- Biomedical Biomedical $59mm $60mm Ethical Pharma Ethical Pharma $248mm $269mm $307 Photonics $33mm $362mm 33 THERAPEUTIC MIX - NORTH AMERICA PRODUCT SALES* ----------------------------------------------------------------------------- YEAR ENDED DECEMBER 31, 2001 [PIE CHART OMITTED] HRT 8% Neurology 14% Dermatology 60% Other 18% $155mm *Excluding Biomedicals 34 TOP TEN PRODUCTS - SALES SUMMARY* ----------------------------------------------------------------------------- 2000 Sales 2001 Sales Gross Product Category (US$mm) (US$mm) Margin ------- -------- -------- ------- ------ Efudex Dermatologic 32.4 41.4 93% Bedoyecta Vitamin 25.5 25.3 71% Mestinon Myasthenia Gravis 18.1 24.3 85% NLite Dermatologic Laser na 19.0 64% Kinerase Dermatologic 12.6 12.1 86% GlyQuin Dermatologic 1.7 9.8 84% Virazole Antiviral 11.7 9.8 94% Oxsoralen Dermatologic 6.6 9.3 90% Testred HRT 5.2 7.9 93% CES HRT 5.7 5.3 41% --------- -------- -------- 119.5 164.2 82% Percentage of Total Revenue 48% 54% *Excluding Biomedicals 35 ICN NORTH AMERICA ----------------------------------------------------------------------------- MARKET LEADERSHIP IN PHYSICIAN SKIN CARE 36 DEMOGRAPHICS DRIVE DEMAND ----------------------------------------------------------------------------- o 78 million Americans between 35-54 o 22 million women with household income of $56,000 o Seek non-invasive products that will [GRAPHIC OMITTED] treat and prevent aging with minimal downtime o Growing importance of AK therapy as risk of skin cancer increases 37 SKIN CARE STRATEGY ----------------------------------------------------------------------------- [GRAPHIC OMITTED] DERMATOLOGY --- Rx DERMATOLOGY --- Physician Dispensed DERMATOLOGY --- Aesthetic Elective 38 BROAD SKIN AGING PORTFOLIO ----------------------------------------------------------------------------- [GRAPHIC OMITTED] 39 Top Ten Products North America* ------------------------------------------------------------------------------- (*$ in Millions) % Product 2001 Actual 2000 Actual Inc/(Dec) 2001 GM% 2001 GM% ------- ----------- ----------- --------- ------- ------- Efudix/Efudex $ 39,854 $ 30,802 29.4% 93.1% 93.1% Mestinon 21,262 15,250 39.4% 84.6% 84.6% N-Lite 14,552 1,144 1172.0% 61.5% 61.5% Kinerase 11,716 12,365 -5.2% 85.6% 85.6% Bleaches 9,827 1,735 466.4% 84.3% 84.3% Oxsoralens 9,212 6,478 42.2% 90.3% 90.3% Androif/Testred 7,962 5,168 54.1% 92.6% 92.6% C.E.S. 5,350 5,743 -6.8% 41.2% 41.2% Ancobon/Ancotil 3,758 1,785 110.5% 51.8% 51.8% Glyderm 3,044 3,278 -7.1% 68.0% 68.0$ ----------- ----------- --------- Subtotal $ 126,537 $ 83,748 51.1% 83.0% All Others 47,137 36,839 28.0% 90.0% ----------- ----------- --------- Grand Total $ 173,674 $ 120,587 44.0% 85.0% ----------- ----------- --------- 40 Source: ICN North America GLYQUIN TRx MARKET SHARE ----------------------------------------------------------------------------- 52 WEEK TREND [GRAPHIC OMITTED] Source: IMS Health National Prescription Audit 41 WRINKLE REDUCTION PROCEDURE MARKET ----------------------------------------------------------------------------- Number of Procedures (000s) 1997 1998 1999 2000 2001 -------- -------- ------- -------- -------- BOTOX 65 180 498 1,097 1,600 ABLATIVE RESURFACING 64 283 1,262 1,358 2,399 COLLAGEN 347 406 475 592 1,099 NONABLATIVE LASER -- -- -- 50 150 ------- ------ ------ ------ ------ TOTAL 476 869 2,235 3,097 5,248 ======= ====== ====== ====== ====== Sources: ASAPS, ICN Estimate 42 GROWTH DRIVERS ----------------------------------------------------------------------------- NLITE Laser Collagen Replenishment o GROWTH OF NON ABLATIVE PROCEDURES o CONTINUED PHYSICIAN ADOPTION FOR NON-ABLATIVE LASERS [GRAPHIC OMITTED] o COMBINATION THERAPY WITH BOTULINUM TOXIN FOR WRINKLES DUE TO COLLAGEN DEFICIENCY o MULTI APPLICATION SYSTEM - FDA approved: wrinkles - Current studies: acne scars, vascular, active acne o CONSUMER MARKETING - Drive patients directly to physicians 43 PHYSICIAN DIRECT ----------------------------------------------------------------------------- o DISTRICT OFFICES - AESTHETIC ACCOUNT MANAGEMENT [] AREAS SERVED 2000 2001 (ACTUAL) (ACTUAL) -------- -------- PROCEDURES PER MONTH NA 4200 STATES SERVED 47 50 -------------------- -------- -------- [GRAPHIC OMITTED] DOCTORS SERVED PLASTIC SURGEONS 687 1,400 Dermatologists 518 2,977 --- ----- 1,105 4,377 OBGYN NA 1,055 Podiatrists NA 0 -- - 1,105 1,105 ----- ----- TOTAL 2,720 5,432 44 R&D PIPELINE ----------------------------------------------------------------------------- PHOTOTHERAPY NEW INDICATION PIPELINE ----------------------------------------------------------------------------- DISCOVERY PRECLINICAL CLINICAL SUBMISSION CLEARANCE PERIOCULAR WRINKLE GENERAL WRINKLE [BAR GRAPH OMITTED] VASCULAR ACNE SCAR STRIAE ACNE 46 ICN INTERNATIONAL PIPELINE ----------------------------------------------------------------------------- [GRAPH OMITTED] Therapeutic Area Discovery Preclinical Phase I Phase II Phase III NDA ICN INT 0001* (extended release) TRICHOVAC (new indication) ICN INT 0002 (new indication) ICN INT 0003 (topical) *Bioequivalence/kinetic-study required 47 ICN LATIN AMERICA PIPELINE ----------------------------------------------------------------------------- [GRAPH OMITTED] Discovery Preclinical Phase I Phase II, Phase III NDA BIOPROTECT Antioxidant ARGENTAFIL Topical antibacterial SINPEBAC Skin infection CLOBESOL Anti-allergy & anti-inflammatory IVEXTERM Intestinal parasites YUREDOL Muscle pain EUVENT Bronchial asthma KETOPROFEN Pain, fever, inflammation 48 THE VISION ----------------------------------------------------------------------------- o Concentrate in the fast growing skin aging market o Cross sell Rx, light and cosmetic products. o Invest in product development, clinical proof and line extensions. o Accelerate consumer advertising. o Licensing, product and corporate acquisition consistent with the growth strategy. 49 ICN - FORMULA FOR SUCCESS ----------------------------------------------------------------------------- o Record Operating Performance o Strong Drivers for Future Growth o Successful Completion of Ribapharm IPO o Final Stages of Restructuring on Target o Independent Board o Proven Management Team with Global Pharmaceutical Experience 50 Following is the text of a press release issued by ICN Pharmaceuticals, Inc. and appearing in the May 13, 2002 edition of the Wall Street Journal: [LOGO - ICN] ICN PHARMACEUTICALS, INC. BOARD INDEPENDENCE IS NOT AN ISSUE The dissidents criticize your company for a lack of board independence. Frankly, we think the record speaks for itself: o If ICN's slate is elected, five out of nine directors will have been elected within the last year. None of these five directors had any prior affiliation with ICN, and are independent by anyone's definition. o Three of the five are shareholder nominated and elected directors. - Ronald R. Fogelman, General United States Air Force (Retired), President and Chief Executive Officer of Durango Aerospace, Inc. - Edward A. Burkhardt, President of Rail World, Inc. - Steven J. Lee, Chairman and Chief Executive Officer of Polymedica Corporation o Two directors were recently appointed only after first being qualified by the independent nominating committee. - Roderick M. Hills, Former Chairman of the Securities and Exchange Commission (S.E.C.) - Abraham (Barry) A. Cohen, Former President of Merck Sharp & Dohme International HOW MUCH MORE INDEPENDENT CAN A BOARD BE? "The establishment of sound corporate governance is a director's most important responsibility. At my first meeting as an ICN director, I found an independent and effective Board that dealt with issues in a frank and effective fashion. I am confident that the ICN Board as it is now constituted will effectively act in the best interests of all the company's shareholders. As a member of the succession planning committee, I am also confident that ICN will have a well-planned, orderly succession of management." Roderick M. Hills, ICN Director and Former Chairman of the Securities and Exchange Commission (S.E.C.) VOTE THE GOLD PROXY CARD ---- If you have any questions or need assistance voting your shares, please call: MORROW & CO., INC. Call 1-800-607-0088 Primar 1059 Morrow & Co., Inc. Independence Ad Draft 6 5/10/02 Following is the text of correspondence sent to ICN Shareholders on May 13, 2002: [LOGO - ICN] ---------------------------------------------------------------------------- ICN PHARMACEUTICALS May 13, 2002 Dear Shareholder: We have enclosed copies of two recent ads that explain the importance of your support for ICN's director nominees at the May 29th Annual Shareholders Meeting. We urge you to review them carefully and to sign and return the GOLD proxy card. Thank you for your consideration and support. Sincerly, ICN PHARMACEUTICALS, INC. /s/ Alan F. Charles Alan F. Charles Executive Vice President Corporate Relations