ICN seeks to reclaim pharmaceutical facility from Yugoslav government

Facility forcibly seized by Milosevic regime in February 1999

ICN Pharmaceuticals Inc. (Costa Mesa, CA) announced yesterday that it plans to ask the new Yugoslav government of Vosiljav Kostunica to return ICN's pharmaceutical company in Yugoslavia that was seized by the Milosevic regime in February 1999.

On February 5, 1999, armed Serbian police and paramilitary forcibly seized ICN's main pharmaceutical facility in Zemun and installed a new government management team to replace ICN's ousted senior managers. The Milosevic-inspired government action gave the Serbian government and the Serbia Ministry of Health 75% ownership of the ICN Yugoslav company. At the time of its seizure, ICN was the largest pharmaceutical producer in Yugoslavia, with export sales to a number of Eastern European countries.

According to Milan Panic, chairman and CEO of ICN Pharmaceuticals and former Prime Minister of Yugoslavia, "The illegal seizure and nationalization of our Yugoslav company was one of a series of repressive acts by Milosevic to keep a firm grip on power in Yugoslavia." Panic, a U.S. citizen since 1963, ran against Milosevic for the presidency of Yugoslavia in the rigged election of 1992.

Panic said ICN would ask the newly constituted Kostunica government to allow ICN management to return to the plant immediately and begin running the facility, which has been operated by the government since the takeover.

"Subject to a number of issues, including legal and accounting, we believe we have a reasonably good chance of getting our business back," Panic added.

For more information: ICN Pharmaceuticals Inc., 3300 Hyland Ave., Costa Mesa, CA 92626. Tel: 714-545-0100 or 800-548-5100. Fax: 714-556-0131.

Edited by Jim Pomager
Assistant Editor, Pharmaceutical Online