DECLINES IN 1st QTR AT ARES-SERONO

Swiss company Ares-Serono has announced declines in sales and profits in the first quarter of 1994 which, in the main, were a result of reimbursement measures taken by the Italian government. Sales were $168.7 million in the quarter, down 6.6% or 1% excluding unfavorable currency fluctuations. Net income declined 18.9% to $13.7 million.

The Italian reimbursement changes resulted in sales of Ares-Serono's products TP-1 (thymostimulin) and Frone (interferon beta) declining more than 50% in the 1994 first quarter. "To compensate for the effects of the health care reform in Italy, we have taken various steps to decrease our operating costs in this country, including reducing the head count by 165 people and cutting expenses throughout the organization," said Fabio Bertarelli, chief executive of the group.

Excluding Italy, the group's sales advanced 15.5% in the first quarter. Sales growth in the USA was said to have been particularly impressive, representing 25.5% of total sales, compared with 16.1% in the like, year-earlier period. Italian sales accounted for 19.6% in the first quarter, compared to 38.2% in the 1993 first quarter.