ICN Pharmaceuticals Resolves Arbitration With Schering-Plough on Indigent Royalty Payments

04-Aug-2003
ICN Pharmaceuticals, Inc. announced that it received a decision in its arbitration case between ICN and its 80-percent owned subsidiary, Ribapharm Inc. and Schering-Plough Corporation. The arbitration dispute was related to royalties on ribavirin sales that were part of Schering's indigent care program. In the ruling, the arbitrator said that ICN and Ribapharm were entitled to receive past royalties for sales of ribavirin under the Schering indigent care program prior to 2002. In addition, the arbitrator ruled that neither ICN nor Ribapharm would be entitled to receive future royalty payments under the Schering indigent care program as currently structured. The amount awarded is approximately equal to the receivable ICN and Ribapharm have recorded for such payments. Thus, ICN expects that the royalty will have little impact on its or Ribapharm's financial results or condition.

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