GENEVA, Switzerland, September 3 /PRNewswire-FirstCall/ -- Serono
(virt-x: SEO and NYSE: SRA) today announced that, in connection with the
grant of a license under a non-core technology it is to receive a licence
fee, payable in annual instalments over the next three years. The identity of
the licensee was not disclosed.
The license fee is non-refundable and non-cancellable, received instead
of future ongoing royalties and will in accordance with International
Financial Reporting Standards be recognized immediately as license income in
Serono's third quarter 2004 results of operations. As a result, Serono will
record exceptional royalty revenue of USD 67 million in the third quarter.
Serono reiterates its guidance for 2004 with an increase in total
revenues of at least 12% and an increase in net income of at least 20% in
local currencies, reflecting our underlying growth. The exceptional revenue
from this license agreement, and its resulting impact on the net income, is
considered over and above our guidance for 2004.
Some of the statements in this press release are forward looking. Such
statements are inherently subject to known and unknown risks, uncertainties
and other factors that may cause actual results, performance or achievements
of Serono S.A. and affiliates to be materially different from those expected
or anticipated in the forward-looking statements. Forward-looking statements
are based on Serono's current expectations and assumptions, which may be
affected by a number of factors, including those discussed in this press
release and more fully described in Serono's Annual Report on Form 20-F filed
with the U.S. Securities and Exchange Commission on March 25, 2004. These
factors include any failure or delay in Serono's ability to develop new
products, any failure to receive anticipated regulatory approvals, any
problems in commercializing current products as a result of competition or
other factors, our ability to obtain reimbursement coverage for our products,
and government regulations limiting our ability to sell our products. Serono
has no responsibility to update the forward-looking statements contained in
this press release to reflect events or circumstances occurring after the
date of this press release.
About Serono
Serono is a global biotechnology leader. The Company has eight
biotechnology products, Rebif(R), Gonal-F(R), Luveris(R), Ovidrel(R)/
Ovitrelle(R), Serostim(R), Saizen(R) , Zorbtive(TM) and Raptiva(R)
(Luveris(R) is not approved in the USA). In addition to being the world
leader in reproductive health, Serono has strong market positions in
neurology, metabolism and growth and has recently entered the psoriasis area.
The Company's research programs are focused on growing these businesses and
on establishing new therapeutic areas. Currently, there are approximately 30
ongoing development projects.
In 2003, Serono achieved worldwide revenues of US$2,018.6 million, and a
net income of US$390.0 million, making it the third largest biotech company
in the world. Its products are sold in over 90 countries. Bearer shares of
Serono S.A., the holding company, are traded on the virt-x (SEO) and its
American Depositary Shares are traded on the New York Stock Exchange (SRA).
http://www.serono.com
http://www.seronousa.com
Reuters: SEO.VX / SRA.N
Bloomberg: SEO VX / SRA US
SOURCE Serono International S.A.
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CONTACT:
For more information, please contact:
Corporate Media Relations: Tel: +41-22-739-36-00, Fax:
+41-22-739-30-85; Corporate Investor Relations: Tel:
+41-22-739-36-01, Fax: +41-22-739-30-22; Media Relations, USA:
Tel: +1-781-681-2486, Fax: +1-781-681-2935, Investor Relations,
USA: Tel: +1-781-681-2552, Fax: +1-781-681-2912
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