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ICN Pharmaceuticals, Inc.
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Following is the text of the presentation used by ICN Pharmaceuticals, Inc.
at the CIBC World Markets Annual Biotechnology & Specialty Pharmaceuticals
Conference on May 2, 2002:
ICN PHARMACEUTICALS, INC.
CIBC World Markets
Annual Biotechnology & Specialty
Pharmaceuticals Conference
May 1-2, 2002
FORWARD LOOKING STATEMENTS
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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
ICN PHARMACEUTICALS - COMPANY OVERVIEW
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2001 Revenues: US$858 million
REVENUE MIX [PIE CHART OMITTED]
o 42% Specialty Pharmaceuticals Americas
o 16% Ribapharm
o 42% Specialty Pharmaceuticals International
Source: ICN Pharmaceuticals, Inc.
2
ICN PHARMACEUTICALS - COMPANY OVERVIEW
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2001 EBITDA: US$265 million
EBITDA MIX [PIE CHART OMITTED]
o 40% Specialty Pharmaceuticals Americas
o 17% Specialty Pharmaceuticals International
o 43% Ribapharm
Source: ICN Pharmaceuticals, Inc.
3
INVESTMENT HIGHLIGHTS
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o Ribapharm - Ribavirin is one of the largest biotechnology drugs in the
world
- part of the leading therapy for Hepatitis C
- large un-treated patient population
- Pipeline of second generation Ribavirin analogues
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 pepeline
o $2.4 billion market capitalization, $265 million in 2001 EBITDA
o Restructuring plan being implemented to unlock significant equity value
4
CONSOLIDATED REVENUES - CONTINUED OPERATIONS (1)
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1995 - 2001 CAGR: +21% [BAR GRAPH OMITTED]
1995 $273mm
1996 $347mm
1997 $527mm
1998 $696mm
1999 $747mm
2000 $800mm
2001 $858mm
Note:
(1) Exludes ICN Yugoslavia
5
FINANCIAL POSITION
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SELECTED BALANCE SHEET DATA
DECEMBER 31, DECEMBER 31,
(US$mm) 2000 2001
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Cash 155.6 327.6
Total Assets 1,477.1 1,769.2
Senior Debt 496.9 191.2
Convertible Debt - 525.0
Total Debt 510.8 737.8
Total Stockholders Equity 757.2 802.9
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CREDIT STATISTICS
2000 2001
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Total Debt/EBITDA 1.86x 2.78x
EBITDA/Interest 4.56x 4.73x
Total Debt/Total Book Cap.
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6
RESTRUCTURING OVERVIEW
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RESTRUCTURING OVERVIEW
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o Initiatives to unlock significant shareholder value
Biotechnology Ribapharm
o IPO Completed
- listed on NYSE
4/12/02
- closed 4/17/02
- tax-free
spin-off in 2002
Specialty
ICN Pharmaceuticals Pharmaceuticals ICN Americas
Americas
Specialty
Pharmaceuticals ICN International
Europe
o IPO Prospectus filed
8
RESTRUCTURING STEPS
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Tax Free
Distribution & Spin-off
of Rebapharm
Ribapharm IPO ICN International IPO
Retire Remaining
Debt
Retire Partial Debt
Convertible Offering
Filed Prospectus for
ICN International
S-1 Filed for
Ribapharm
Announced UNLOCKING EQUITY VALUE
Restructuring
Reorganization of
Business Operations
Into Three Distinct
Businesses
9
SPECIALTY PHARMACEUTICALS
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SPECIALTY PHARMACEUTICALS REVENUES
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SPECIALITY PHARMA REVENUES ANNUAL GROWTH 12% [BAR GRAPH OMITTED]
ICN International Annual Growth 6%
2000 $339mm
2001 $359mm
ICN Americas Annual Growth 18%
2000 $307mm
2001 $362mm
2000 $646mm
2001 $721mm
11
SPECIALTY PHARMACEUTICALS OPERATING INCOME
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SPECIALTY PHARMA OPERATING INCOME ANNUAL GROWTH 34% [BAR GRAPH OMITTED]
ICN International Annual Growth 107%
2000 $12mm
2001 $25mm
ICN Americas Annual Growth 24%
2000 $92mm
2001 $114mm
2000 $104mm
2001 $138mm
12
SPECIALTY PHARMACEUTICALS EBITDA
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SPECIALTY PHARMA EBITDA ANNUAL GROWTH 25% [BAR GRAPH OMITTED]
ICN International Annual Growth 27%
2000 $41mm
2001 $52mm
ICN Americas Annual Growth 24%
2000 $119mm
2001 $148mm
2000 $160mm
2001 $200mm
13
SPECIALTY PHARMACEUTICALS INTERNATIONAL
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SPECIALTY PHARMACEUTICALS INTERNATIONAL - OVERVIEW
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2001 Revenue: US$359mm
o 466 ethical products 2001 EBITDA: US$52mm*
o 266 OTC products Export
(AAA)
o A broad product portfolio with 14%
increasing focus on:
- central nervous system
- Anti-infective / anti-virals [PIE CHART OMITTED]
- dermatology
- alimentary tract and metabolism
- oncology
o 2,100+ sales and marketing staff
* before corporate allocations
15
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SPECIALTY PHARMACEUTICALS AMERICAS
MARK TAYLOR
EVP/GM, NORTH AMERICA
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SPECIALTY PHARMACEUTICALS AMERICAS -
OVERVIEW
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o High-margined product portfolio 2001 Revenue: US$362mm
o Increasing investment in sales 2001 EBITDA: US$148mm*
and marketing
o Significant expansion in
dermatology
o consistent new product flow [PIE CHART OMITTED]
Latin America 35%
North America 65%
* before corporate allocations
17
GEOGRAPHIC SALES
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YEAR ENDED DECEMBER 31, 2001 [PIE CHART OMITTED]
Brazil $6mm
Argentina $15mm
Mexico $107mm
Canada $23mm
United States $210mm
$362mm
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REVENUE MIX [PIE CHART OMITTED]
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Biomedical
2000 $59mm
2001 $60mm
Ethical Pharma
2000 $248mm
2001 $269mm
Photonics
2000 $33mm
2000 $307mm
2001 $362mm
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THERAPEUTIC MIX - NORTH AMERICA
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YEAR ENDED DECEMBER 31, 2001 [PIE CHART OMITTED]
(Excluding Biomedical)
HRT 8%
Neurology 14%
Dermatology 60%
Other 18%
$155mm
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TOP TEN PRODUCTS - SALES SUMMARY
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(Excluding Biomedical)
2000 Sales 2001 Sales Gross
Product Category (US$ mm) (US$mm) Margin
------- -------- -------- ------- ------
Efudes 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%
21
ICN NORTH AMERICA
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MARKET LEADERSHIP IN PHYSICIAN SKIN CARE
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DEMOGRAPHICS DRIVE DEMAND
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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
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SKIN CARE STRATEGY
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DERMATOLOGY --- Rx
DERMATOLOGY --- Physician
Dispensed
DERMATOLOGY --- Aesthetic
Elective
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BROAD SKIN AGING PORTFOLIO
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[GRAPHIC OMITTED]
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EMERGING SPECIALIZATION IN PHOTOAGING
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[GRAPHIC OMITTED]
Pharmaceuticals
Cosmetic Products
Light Therapy
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ACTINIC KERATOSES PATIENTS [BAR GRAPH OMITTED]
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27
WHEN TREATING ACTINIC KERATOSES (AKS)...
YOU CAN'T DISGUISE THE MANY BENEFITS OF EFUDEX (C).
DISCOVER SOME OF THE REASONS WHY o Demonstrated efficacy with 2- to 4-week
EFUDEX(R) 5% CREAM IS THE dosing.(2)
#1 PRESCRIBED 5-FLUOROURACIL.(1)
- 85% complete lesion response rate
for visible AKs.(2)
- 93% cure rate for superficial basal
cell carcinomas.(2)
o 35 years of proven clinical use.(2)
PLEASE SEE ENCLOSED COMPLETE PRESCRIBING
INFORMATION.
[GRAPHIC OMITTED]
EFUDEX
fluorouracil 5% cream
A standout among the pack.
28
For your patients
with dyschromia ...
Introducing
GLYQUIN(R)
(Hydroquinone USP, 4%)
[GRAPHIC OMITTED]
It's no ordinary hydroquinone. It's Glyquintessential!
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GLYQUIN TRx MARKET SHARE
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52 WEEK TREND
[GRAPHIC OMITTED]
Source: IMS Health National Prescription Audit Plus
30
[GRAPHIC OMITTED]
Now, additional patients can benefit when you
Discover
the kindness
of Kinerase(R).
KINERASE(R)
Lotion or Cream with 0.1% N6-furfuryladenine
Trust the kindness of Kinerase(R).
31
WRINKLE REDUCTION PROCEDURE MARKET
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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
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TYPICAL CO 2 SIDE EFFECT - ABLATIVE RESURFACING
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[GRAPHIC OMITTED]
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NLITE MODE OF ACTION
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o Produces low grade inflammation
o Release of inflammatory mediators [GRAPHIC OMITTED]
Laser Light
o Fibroblast activity stimulated by
mediators
o New collagen produced improving
skin tone.
34
COSMETIC OUTCOME
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[GRAPHIC OMITTED]
3 Months Post Treatment
35
GROWTH DRIVERS
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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
36
"VITAL ELEMENTS"
POST PROCEDURAL SKIN CARE REGIMEN
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[GRAPHIC OMITTED]
37
PHYSICIAN DIRECT
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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
38
DRIVE PATIENTS TO PHYSICIANS
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[GRAPHIC OMITTED]
39
NEW INDICATION PIPELINE
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DISCOVERY PRECLINICAL CLINICAL SUBMISSION CLEARANCE
PHOTOTHERAPY
------------
PERIOCULAR WRINKLE
GENERAL WRINKLE
[BAR GRAPH OMITTED]
VASCULAR
ACNE SCAR
STRIAE
ACNE
40
THE VISION
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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.
42
ICN PHARMACEUTICALS, INC.
CIBC World Markets
Annual Biotechnology & Specialty
Pharmaceuticals Conference
May 1-2, 2002