SPI Pharmaceuticals Reports Record Earnings Despite Yugoslavia Problems

COSTA MESA —  SPI Pharmaceuticals Inc., the chief subsidiary of drug giant ICN Pharmaceuticals Inc., reported record worldwide profits for 1992, despite reported problems with a joint venture in Yugoslavia.

The company has complained that it has been having trouble getting raw materials to its ICN Galenika manufacturing facility in Belgrade, the capital of Yugoslavia, because of the continuing conflict among neighboring republics. SPI holds a 75% stake in Galenika.

But the company reported that Galenika had 1992 sales of $326 million, compared to $225 million for 1991. But the 1991 figure represented only eight months of ICN ownership.

SPI posted a 1992 profit of $34.5 million, or $1.90 a share, up 15% from earnings of $30.1 million, or $1.69 a share, for 1991. Annual revenue was $476 million, a 31% increase from revenue of $364 million for 1991.

Galenika had more of an effect on the company’s fourth-quarter performance. Three-month earnings came to $9 million, or 49 cents a share, a 25% drop from profit of $12 million, or 66 cents a share, for the- same period a year earlier. Fourth-quarter revenue was $109 million, down 29% from $154 million.