GENEVA, Switzerland and PARIS, France, November 15 /PRNewswire-FirstCall/
-- Serono (virt-x: SEO and NYSE: SRA) and protein evolution company Nautilus
Biotech (Private) announced today that they have signed an agreement under
which Serono and Nautilus will work together to develop the next-generation
of human growth hormone, with improved biological, pharmacological and
clinical profiles. This improved version of human growth hormone would allow
less frequent injections of this therapeutic protein which is currently
administered daily.
    Under the terms of the agreement, Serono will receive an exclusive
license to develop the next-generation human growth hormone and an exclusive
option to license exclusive worldwide rights to develop, manufacture, and
commercialize improved variants of the protein generated by Nautilus's
rational evolution technology, a process mimicking natural evolution. In
return, Nautilus will receive an initial fee and potential milestone payments
related to development progress, regulatory submissions and approvals. If a
new version of growth hormone is successfully developed and registered
worldwide, and Serono exercises its option right, the aggregate amount of
these payments could reach Euro 19 million. Nautilus will also receive
undisclosed royalties on sales of the improved protein.
    "Serono has a long-term commitment to people with endocrine and metabolic
disorders requiring growth hormone treatment", said Tim Wells, Senior
Executive VP Research of Serono. "We believe that the rational evolution
technology of Nautilus represents a promising approach to generate growth
hormone variants with great potential to deliver improved patient care."
    "Serono has an impressive track record in the development and marketing
of protein therapeutics," said Manuel Vega CEO of Nautilus Biotech. " We are
confident that in Serono we have found a strong and committed partner to
fully exploit the power of our protein improvement technology and to develop
this new product as a competitive improvement to currently marketed
alternatives. This agreement with Serono, a world leader in protein
pharmaceuticals, validates our strategy and business model in the area of
biopharmaceuticals".
    Serono forward-looking statements
    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). 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).
    About Nautilus Biotech
    Nautilus is focused on improving and developing next generation protein
pharmaceuticals. Using its proprietary and unique technologies, Nautilus has
generated a pipeline of improved therapeutic protein molecules with single
amino acid substitutions; and has IP claims on 20 improved cytokines. Long
lasting interferon alpha and interferon beta, presently in preclinical
development, are Nautilus' lead molecules. Nautilus Biotech is a privately
owned, VC backed company, founded in late 1999. More about Nautilus:
http://www.nautilusbiotech.com

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