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ICN Pharmaceuticals (ICN – 22-1/2) is warning of a slowdown. Citing higher research expenses and a "temporary" slowdown in royalties for one of its drugs, ICN Pharmaceuticals forecast profits for 2000 and 2001 that are significantly below analysts' expectations.
The company expects per-share profit to come in between $1.25 and $1.30 for 2000 and between $1.50 and $1.55 for 2001. The Street had expected the company to post earnings of $1.68 per share in 2000 and $1.96 per share in 2001. ICN also expects to register "mid-single-digit" revenue growth for the year 2000.
The company expects to formally report its fourth-quarter and full-year financial performance in the first week of March.
The shares gapped lower on the open today by 3-9/16, or 13 percent, and have not looked back. Today's price action has the shares trading at their March 200 levels. The stock had a near-term peak in October at 41-3/4.
In options activity for ICN, the February 35 call and February 40 call represent the peak concentrations of options open interest with 1,139 and 1,220 positions open, respectively. The February 30 put at just 632 contracts open is peak for the put side of the equation.