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Biotech / Medical : ICN Pharmaceuticals -- Ignore unavailable to you. Want to Upgrade?

To: Beltropolis Boy who wrote (843)	5/5/1998 9:30:00 PM
From: Michael Young	Read Replies (1) \| Respond to of 1029

Stock Investor Trading News Initiates Coverage of ICN Pharmaceuticals AUSTIN, Texas, May 5 /PRNewswire/ -- Stock Investor Trading News (http://www.sitn.com) initiates coverage of ICN Pharmaceuticals (NYSE: ICN) with a "Strong Buy" rating and a price target of $84 per share. "ICN remains undervalued in light of the FDA's antiviral drug advisory panel's recommendation of approval for ICN's antiviral drug Rebetol for treatment of Hepatitis C, and strong secular growth in the company' Eastern European operations. In our opinion ICN is one of the best values in the drug sector," says David Barney, Analyst for SITN. On May 4, the FDA's antiviral drug advisory panel unanimously recommended for approval the use of ICN's antiviral Rebetol in combination with Schering Plough' (NYSE: SGP) Intron A, the current standard for Hepatitis C treatment. This recommendation followed published Phase III data demonstrating that Rebetol increased the effectiveness of Intron A by a factor of ten in relapsed patients. "We expect formal FDA approval in the near future," says Michael Young, Fundamental Analyst with Stock Investor Trading News. "Hepatitis C is just now capturing media and government attention as a major public health concern. It is estimated by the Center for Disease Controls that over four million Americans carry the Hepatitis C virus. The World Health Organization (WHO) estimates the virus infects 70 million people worldwide. A large percentage of those afflicted are unaware they are carrying the virus and exposed to the effects of the disease. Approximately 30% will go on to suffer chronic Hepatitis. Progression of the disease can lead to cirrhosis of the liver and even liver cancer." "A reliable test for the Hepatitis C virus was not developed until 1990. Thus, anyone who received a blood transfusion prior to that time was potentially exposed to the virus. The National Institute of Health (NIH) has recently announced a campaign to notify those individuals so they can be tested." "We expect that the Rebetol/Intron A combination will be the treatment of choice for Hepatitis C for at least the next several years. Intron A alone has limited effectiveness against the disease. We anticipate that a larger percentage of diagnosed sufferers will elect to undergo treatment now that the odds of a favorable outcome are much higher," notes Mr. Young. "The company has made an aggressive push into the Eastern European markets over the past several years. From a position of dominance in Yugoslavia, ICN has aggressively pursued opportunities in Russia, Poland, Hungary and Romania. For example, ICN is now the leading pharmaceutical company in Russia. We anticipate the company increasing its position in those markets as governments look to privatize state owned pharmaceutical companies." "ICN is presently undervalued. The company recently reported first quarter fully diluted EPS of $.44, on a 51% increase in sales. The forward PE of 18 on our 1999 estimate compares favorably to projected PE's of approximately 30 for the industry. While ICN certainly doesn't have the stable track record of the major pharmaceutical companies, such a disparity in valuation is unwarranted in light of a projected growth rate for ICN that is approximately 1.5 times that of the sector. A PE of approximately 30 on our 1999 estimate of $2.80 is more appropriate after balancing the inherent risks of the emerging markets in which ICN operates against the tremendous growth opportunities in those markets and the potential for Rebetol as the standard therapy for Hepatitis C in combination with Intron A," says Mr. Young. David Barney, Technical Analyst for Stock Investor Trading News, notes that "the stock has been in a consolidation pattern over the last few weeks as investors waited for the FDA to review Rebetol. Now that the stock has broken out of a triple top formation and closed at a new high, I think the stock could make a strong move higher over the next few weeks." "The stock is clearly under accumulation as investors search for value in this volatile market. The drug sector represents somewhat of a safe haven in the minds of many investors looking for an alternative to technology stocks. With the worries over Asia and inflation still on investors minds, we feel that ICN offers a very unique opportunity for investors to participate in a rapidly growing company which still offers value," notes Mr. Barney. "In conclusion, we encourage all prospective investors to do their own due diligence and research regarding the company and the industry before making any investment decisions," notes Mr. Barney. Stock Investor Trading News ( sitn.com ) provides a daily newsletter service to traders and investors around the globe. Some of the companies past recommendations have included 800 Travel Systems (Nasdaq: IFLY), Amazon.com, Inc. (Nasdaq: AMZN), America Online Inc. (NYSE: AOL), Applied Materials (Nasdaq: AMAT), Dell Computer Corp. (Nasdaq: DELL), Intel Corp. (Nasdaq: INTC), K-tel International (Nasdaq: KTEL), Tellabs, Inc. (Nasdaq: TLAB), Pfizer Inc. (NYSE: PFE), Eli Lilly and Company (NYSE: LLY). The company is in the process of building a new website which will be an online hub for both traders and investors to exchange ideas and get information. Mr. Barney and Mr. Young, as well as other principals and affiliates of Stock Investor Trading News, currently hold a long position in ICN. Subscribers to Stock Investor Trading News received this research on a first call basis. SOURCE Stock Investor Trading News CO: Stock Investor Trading News; ICN Pharmaceuticals ST: Texas, California IN: FIN MTC MLM SU: RTG 05/05/98 10:01 EDT prnewswire.com