Profits at Switzerland's Serono jump 64.2% as royalty revenues rise

Having recently posted sales for full-year 2000 of $1.15 billion, anincrease of 15.2% in local currencies (Marketletter January 29), Serono of Switzerland has reported a 64.2% jump in net income to $301 million, while earnings per share rose 59% to $19.50. Gross margins increased 15.6% to $917.1 million or 80% of sales, as a result of the continued rise in Serono's proportion of biotechnology products, and the company noted that its royalty and licensing income advanced 18.2% to $92.7 million.

Earnings, which surpassed analyst forecasts of $268-$292 million, benefited from the continued growth of Rebif (interferon beta-1a) for multiple sclerosis and fertility hormones, notably Gonal-F (follitropin alfa), which has just obtained approval from the US Food and Drug Administration for a new multi-dose presentation. Serono said the multi-dose variety of Gonal-F has the added advantages of flexible dosing, and can be injected more quickly and comfortably, due to a reduced drug volume per injection, adding that the product will be introduced in the USA in the middle of the year.

Results of Avonex head-to-head study soon