Rus News Journal

Milan Panich has paid for love to Russia

ICN Pharmaceuticals has sent in resignation of the founder
personnel shifts
On Friday Reuters agency has informed that the board of directors of pharmaceutical company ICN Pharmaceuticals has sent Panicha in resignation of the chairman, one of founders of the company of Milan. According to the western analysts, as the reason for that the investment policy which mister Panich spent in emerging markets the main things from which - Russia and Yugoslavia has served. It is possible to assume that now the volume of investments ICN will be sharply reduced to the Russian market.
in 1955 a member of an Olympic team of Yugoslavia on cycling Panich (Milan Panic) during competitions in Holland has asked Milan a political asylum. Soon he has got over in the USA where in 1959 has based own company International Chemical and Nuclear Corp which turn in a year made already $180 thousand Today ICN Pharmaceuticals - one of the largest pharmaceutical corporations in the world with an annual turnover more than $1 billion In the beginning 90 - h Milan Panich was fond of a policy and in 1992 has held a post of premieres - the minister and the Minister of Defence of Yugoslavia. Having lost presidential election in 1993, Panich has returned to the favourite child.
according to the foreign mass-media, six of nine councillors of directors have voted against re-election of Milan Panicha on a post of the chairman and the chief executive of the company. As analysts believe, directors ICN are dissatisfied with huge investments into emerging markets which no means always appeared profitable. And to criticise for it of Milan Panicha have begun in 1998, but ICN continued to carry out investment to the policy - the head of the company liked to repeat that the risky markets are attractive in long-term prospect.
the largest investments have been made in business ICN in Russia (here the company supervises 20 % of the pharmaceutical market) and Yugoslavia. Only in development of manufacture and creation of own retail network in Russia for eight years ICN invested more $200 million As a result here the biggest has been created in corporation the industrial complex consisting of five factories - ICN Marbiofarm (Joshkar - Ola), ICN Leksredstva (Kursk), ICN Polifarm (Chelyabinsk), ICN Tomskhimfarm (Tomsk), ICN October (St.-Petersburg). However any of these manufactures does not correspond to the international quality standard GMP, and their modernisation will demand additional investments. In March of this year Panich has promised Milan that the next three years in manufacture development in Russia $ more 200 million will be enclosed And during the recent visit to Moscow has declared desire to open in Russia of 1,5 thousand Drugstores and to enclose in this project of $150 million more (wrote about it 05. 06. 2002).
Resignation of mister Panicha, according to the western experts, will lead to change of investment policy ICN in countries of Eastern Europe. It is possible to expect that investment plans concerning Russia first of all will be reconsidered. In the Russian representation ICN, however, comments yet do not give - here wait for the communique from a staff - company apartments.
as to the Milan Panicha it as early as remains a year in board of directors ICN. Now, as he said, it considers offers from the government of Yugoslavia offering to it a post of the adviser for economic problems.