Schering/ICN Rebetron agreement

ICN will collect over $100 mil. in royalty payments from Schering-Plough for 1999 worldwide sales of oral ribavirin, ICN exec Benjamin Lapp told investors at Chase H&Q. The firm expects royalty contributions in 2000 to approach $200 mil. Lapp said, AAnalysts have guessed that the blended [royalty] rate is approximately 25%, and you wouldn=t make a huge miscalculation if you used that number.@ He added that ICN receives royalties from European sales in the 30% range. Schering has worldwide marketing rights to Rebetron, the combination of ICN=s ribavirin and Schering=s Intron A, for the hepatitis C indication. Schering recently added 120 Innovex sales reps to promote its hepatitis C products to primary care physicians. Currently 225 Schering reps promote the company=s hepatitis C products to gastroenterologists and hepatologists. Schering also markets Intron A as a single agent for treatment of hepatitis C