SCHEDULE 14A INFORMATION
Proxy Statement Pursuant To Section 14(a) Of
The Securities Exchange Act Of 1934
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[_] 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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Following is the text of ICN's presentation to Institutional Shareholder
Services on May 15, 2001:
ICN
ICN PHARMACEUTICALS, INC.
ISS 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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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 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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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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Improving Cash Flow
[BAR GRAPH OMITTED - EBITDA
1994(*) - $65M
1995 - $107M
1996 - $152M
1997 - $154M
1998 - $258M
1999 - $264M
2000 - $259M]
(*) Excludes Charges and Reserves
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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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Hepatitis C Treatment Market Opportunity
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Royalties from Ribavarin
1997-2000 CAGR +225%
[BAR GRAPH OMITTED - 1997 - $6M
1998 - $37M (Rebetron(R) Approved
in June 1998)
1999 - $109M
2000 - $155M]
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ICN Pharmaceuticals, Inc.
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ICN Proposed Restructuring
Americas
ICN Pharmaceuticals International
Ribapharm
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The ICN Restructuring Plan
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The Goal: Unlock Shareholder Value
o Three Separate Public Companies
o Transparency
o Investor focus
o Separate management
o Two Step Process Considers
o Raise significant cash on Ribapharm to pay debt
o Then, spin-off to shareholders
o Ribapharm
o Separate Board of Directors
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ICN Restructuring - A Complex Task
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o 52 offices, plants and facilities
o 31 countries
o Product sales in 100 countries
o 60 registered subsidiaries
o 12,000 employees without Yugoslavia
o Consolidation of foreign subsidiaries
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Restructuring - A Complex Task
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o Valuations on all subsidiaries and assets
o Extensive due diligence
o Working capital reports
o Governmental/regulatory approvals required
o Significant tax planning to preserve benefits
o Complete internal reorganization
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The ICN Restructuring Plan
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o Status of Restructuring
o Ribapharm IPO filed with SEC
o Amendment filed 5/14/01
o ICN International IPO filed March 3 with Budapest and London
stock exchange for 40% sale
o Repurchased $95 million debt
o Roche ownership exchange agreement
o Issues in Finalization
o Biotech market dead
o Need for sufficient cash for debt repayment
o Bond holders will not restructure
o Seeking optimum value for assets
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Inconsistency in Dissident's Plan
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1999:
o Separation through spin-offs (Agreed with ICN plan)
o Maintain IPO is illegal and will block it
October 2000:
o IPOs for Ribapharm and ICN-International plus spin-offs (Agrees
with)
January 2001:
o A prompt sale of ICN shareholder proposal - new idea
March 2001:
o Proposed sale of ICN withdrawn
o Reversed decision again and now agrees with ICN restructuring
plan
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The Dissident Slate
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o Burkhardt
o Ousted Chairman of Wisconsin Central
o Led unsuccessful proxy fight supported by Denton & Providence
Capital
o Stock value during tenure decreased 70%
o Lee
o CEO of PolyMedica
o Poor track record
o Company under federal investigation
o Fogelman
o No relevant experience
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The Dissident Slate in Summary
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o No pharmaceutical experience
o No known operational plan
o An inconsistent agenda
o No corporate governance
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The ICN Slate
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o Independent
Current
o 11 Independent
o 3 Inside
Proposed
o 10 Independent
o 2 Inside
o Breadth, comprehensive, diverse, expertise
o Science, academia, business, law, financial, political, medical
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ICN Independent Directors
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o Dr. Roger Guillemin Noble Prize Winner - Medicine
o Senator Birch Bayh, Esq. Former US Senator
o Norman Barker, Jr. Former Chairman - First Interstate Bank
o Jean-Francois Kurz International Banker
o Alan F. Charles Former Vice Chancellor of UCLA
o Stephen D. Moses Real estate development Former President of
Boise Cascade Subsidiary
o Robert Smith Professor Emeritus Chemistry and
Biochemistry of UCLA
o Rosemary Tomich Leading California Business Woman
o Tom Lenagh Former Treasurer of Ford Foundation
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The ICN Slate
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o Ray Irani Fortune 500 CEO
International Business Expertise
o Kim Campbell Politics: Former Canadian Prime Minister
International Trade
Harvard lecturer
o Charles Manatt Ambassador of Dominican Republic
Chairman National Democratic Committee
Co-founder major law firm
Founder of major bank
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Accomplishments
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o Ribapharm re-filed with the SEC yesterday
o ICN International IPO filed with London and Budapest exchanges
o Repurchased $95 million in public debt
o Roche ownership exchange agreement
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Summary
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o Tettamanti plan ignores market reality
o Input from shareholders including SSP reflected in the restructuring
plan
o ICN has taken steps to move forward with restructuring
o ICN believes that SSP nominees are not qualified
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Tettamanti & SSP
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o Who is Tettamanti?
o Who are his investors?
o Why puts and calls?
o See trading activity - SSP Proxy
o Short-term or long-term?
o What's Tettamanti's true goal?
o Why doesn't he understand the process, the issues?
o Why isn't he running for the board?
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Herbert Denton
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"A practice of trying to get fees and other payments from companies he
targets for change."
WSJ
5/28/98
"There's a perception by the company and the shareholder community that
it's a payoff to go away."
Nel Minow
Lens Fund
"And he counts four companies which, in the past couple of years, have
reimbursed him for the cost of fighting them."
WSJ
5/28/98
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