Serono reports disappointing sales

Serono of Switzerland says that revenues for the third quarter of 2001rose 5.5% to $321.9 million, with product sales up 4.9% to $295.4 million. These somewhat unimpressive figures reflect the impact of the recall of the firm's fertility drug Crinone (progesterone vaginal gel), which was taken off the market earlier this year following a drug viscosity problem in some applicators (see allso page 26), and return of the respiratory treatment Curosurf (porcine surfactant) back to Italy's Chiesi (Marketletter March 5).

Excluding the aforementioned factors and other exceptional items, net income grew 20% to $63.8 million. Earnings principally benefited from continued growth in sales of Rebif (interferon beta-1a) for multiple sclerosis, and of fertility hormones, notably Gonal-F (follitropin alfa).

Rebif sales jumped 47% in local currencies to $95.4 million, and Serono noted that the drug has a 35% market share outside the USA. The company's target now is to overturn the orphan drug exclusivity held by Biogen in the USA for its MS drug Avonex (interferon beta-1a), and the firm recently filed an amendment to its Biologics License application for Rebif there (Marketletter October 15). Serono said it will invest $30 million by the end of the year to prepare for a US launch of Rebif and this, coupled with lower interest rates, has forced it to lower its target for full-year growth in reported income to 6%-8% from 20% forecast earlier.