S&P says ICN unchanged

Standard & Poor's said ICN Pharmaceuticals Inc.'s ratings are unchanged including its corporate credit at BB- with a negative outlook in response to the announcement that it is raising its offer to acquire the 20% of Ribapharm Inc. it does not own to $188 million from $168 million.

Ribapharm holds the rights to ribavirin, which is licensed to Schering-Plough Corp. and sold as the combination hepatitis C treatment, PEG-Intron/Rebetol. Given the drop in market share of the combination treatment, due to the entrance of a new rival treatment, and the possibility of generic competitors to ribavirin by year-end 2003, the revenue and cash flow contribution of ribavirin are uncertain.

However, Ribapharm also holds the rights to ICN's internal drug development pipeline and continued growth of ICN's specialty drug business should lead to a gradual de-emphasis on ribavirin-related revenues, S&P said. ICN also continues to maintain a high level of liquidity, as the company had, as of June 30, 2003, $402 million of cash on hand and generates positive funds from operations.

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