Shares of drugmaker

ICN Pharmaceuticals

(ICN)

rose 30% Thursday after the company beat expectations for its fiscal third quarter and announced a new direction for its business.

The Costa Mesa, Calif.-based company reported a net loss of $74.9 million, or 90 cents a share, compared with a loss of $11.7 million, or 14 cents a share, in the year-ago quarter, according to generally accepted accounting principles. Excluding one-time items, ICN posted a net profit of 18 cents a share, 3 cents ahead of analysts' expectations, and up from the 12 cents it earned a year ago.

The company cited strong sales of its ribavirin drug, a treatment for Hepatitis C, as the catalyst for its third-quarter performance. Earlier this year, ICN partially spun off

Ribapharm

(RNA)

, the subsidiary that makes ribavirin, in an initial public offering. ICN received $63.4 million in royalties for ribavirin from

Schering-Plough

(SGP)

in the third quarter, more than doubling last year's intake.

The company also said it is taking steps to restructure its business, including refocusing on its core specialty pharmaceuticals business, appointing a new management team and divesting businesses that don't fit its strategic growth plan, such as raw materials, photonics, biomedicals and its operations in Eastern Europe.

"We have already begun the implementation process, and have closed some business lines and reduced overhead. In fact, we have already achieved $10 million of our targeted cost savings through actions taken to date," the company said in a press release.

The shares closed up $2.79 at $11.99 on the

New York Stock Exchange.. Heading into Thursday's session, the stock was down 73% year to date.