SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
________
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the month of April, 2003
Serono S.A.
-----------------------------------
(Registrant's Name)
15 bis, Chemin des Mines
Case Postale 54
CH-1211 Geneva 20
Switzerland
-----------------------------------
(Address of Principal Executive Offices)
1-15096
-----------------------------------
(Commission File No.)
(Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.)
Form 20-F X Form 40-F
--- ---
(Indicate by check mark if the registrant is submitting the Form 6-K in
paper as permitted by Regulation S-T Rule 101 (b)(1).)
---
(Indicate by check mark if the registrant is submitting the Form 6-K in
paper as permitted by Regulation S-T Rule 101 (b)(7).)
---
(Indicate by check mark whether the registrant by furnishing the
information contained in this form is also thereby furnishing the information to
the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.)
Yes No X
--- ---
(If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b): 82-______)
Serono
[GRAPHIC OMITTED]
Media Release
FOR IMMEDIATE RELEASE
-----------------------
SERONO ANNOUNCES GOOD FIRST QUARTER RESULTS
WITH STRONG REVENUE GROWTH
- Rebif(R) sales of $175.2m and Gonal-F(R) sales of $122.0m -
- Raptiva(TM) filed for psoriasis in the EU, Switzerland and Canada -
GENEVA, SWITZERLAND, APRIL 24, 2003 - Serono S.A. (virt-x: SEO and NYSE: SRA)
today reported its first quarter results for the period ended March 31, 2003.
HIGHLIGHTS
- Total revenues of $442.4m up 29.4% in dollars and 17.3% in local currencies
- Product sales up 30.1% to $407.8m
- Strong Rebif(R) growth of 52.0% to $175.2m
- Gonal-F(R) up 20.5% to $122.0m
- Solid underlying net income growth of 16.8% excluding a $25m milestone
payment related to the filing of Raptiva(TM) in the EU
- Reported net income of $60.2m
- On track to meet 2003 outlook of total revenue growth of 15% to 20% and net
income growth of 15% to 20% on a reported basis
"Our first quarter performance has been very strong with substantial top-line
growth driven by sales in Neurology and Reproductive Health," said Ernesto
Bertarelli, Chief Executive Officer of Serono. "Our first-quarter net income is
in line with our expectations, which included a milestone payment related to the
filing of Raptiva(TM) in Europe."
"We are confident of our ability to meet full-year revenue growth of 15% to 20%
and net income growth of 15% to 20% on a reported basis," said Allan Shaw, Chief
Financial Officer. "The positive currency effect on sales was offset by a
corresponding increase in total operating expenses, which resulted in a small
favorable currency impact of $1.2m on the bottom line reflecting the significant
natural hedge provided by our global operations."
-more-
FINANCIAL PERFORMANCE
In the first quarter of 2003 total revenues increased by 29.4% to $442.4m
(Q1 2002: $341.9m). Worldwide product sales advanced 30.1% to $407.8m
(Q1 2002: $313.5m). Product sales growth in local currency was 17.6%. There
was a favorable currency effect of $39.1 million on product sales due to the
relative weakness of the dollar compared with the first quarter of 2002.
Royalty and licensing income rose 22.1% to $34.6m (Q1 2002: $28.4m). This
included a license fee from Abbott following the first regulatory approval of
Humira(R) as well as the commencement of royalty payments on Humira(R) in
relation to our intellectual property rights in the area of TNF antagonism.
Our gross margin has increased to 84.6% of product sales (Q1 2002: 83.8%), as a
result of the continued rise in the proportion of recombinant product sales,
which accounted for 90.2% of total product sales in the first quarter of 2003
(Q1 2002: 85.6%).
Selling, general and administrative expenses were $140.9m or 31.9% of total
revenues (Q1 2002: $116.3m or 34.0% of total revenues). This increase was
primarily driven by investments we made in our neurology infrastructure over the
past year in the USA and selling expenses related to the promotion of Rebif(R),
as well as the launch of a new presentation of Gonal-F(R) in Europe.
Research and development expenses reached $127.9m or 28.9% of total revenues (Q1
2002: $75.6m or 22.1% of total revenues). As anticipated, this temporary
increase reflects primarily a $25m milestone payment to Genentech as a result of
the filing of Raptiva(TM) in the EU. In this quarter we also extended the
Raptiva(TM) agreement, providing Serono with worldwide rights to develop and
market Raptiva(TM) outside of the United States and Japan.
Other operating expenses increased to $45.8m (Q1 2002: $19.4m), principally
reflecting predetermined quarterly licensing fees to Amgen for the marketing
rights of Novantrone(R). Novantrone(R), a commercial product protected by
orphan drug status, is strategic for our neurology franchise in the USA as it is
complementary to Rebif(R) and allows us to leverage investments made in our
neurology infrastructure. The increase in other operating expenses also
includes higher amortization of goodwill.
Net financial income was $8.4m in the first quarter (Q1 2002: $4.6m) reflecting
the continued low interest environment.
Total taxes in the first quarter were $11.5m, representing an overall tax rate
of 16.0% of profit before tax (Q1 2002: $14.2m, or 17.0% of profit before tax).
Reported net income was 13.4% less than last year at $60.2m (Q1 2002: $69.5m)
reflecting the temporary increase in R&D expenses in the first quarter.
Excluding the $25m milestone payment, our underlying net income was $81.2m
representing growth of 16.8%.
-more-
Foreign exchange fluctuations have increased the reported US dollar value of our
revenues and also raised our expenses in terms of US dollars. The net impact of
translation of currency on our operating results was only $1.2m, or a 2.0%
positive effect on reported net income. The company's currency exposures
principally continue to be hedged by the broad geographic nature of our global
operations.
Basic earnings per share (EPS) for the first quarter were $3.80 per bearer share
(Q1 2002: $4.32) and $0.09 per American Depositary Share (ADS) (Q1 2002: $0.11).
Excluding the $25m milestone payment to Genentech in the first quarter, EPS were
$5.12 per bearer share and $0.13 per ADS.
For the first quarter, net cash flow from operating activities was up 156.4% to
$115.2m, compared to $44.9m for Q1 2002. This includes a $55m payment received
from OSI Pharmaceuticals, following the agreement by which OSI will market and
promote Novantrone(R) for the approved oncology indications in the United
States.
As of March 31, 2003, we have bought back 281,995 of our bearer shares on the
open market, representing 41.2% of the CHF500m authorized amount.
The weighted average amount of equivalent bearer shares outstanding for the
three months ended March 31, 2003 was 15,849,191.
NEUROLOGY
Rebif(R) performed very strongly with worldwide sales up 52.0% to $175.2m in the
first quarter (Q1 2002: $115.3m). Rebif(R) continues its market leadership
outside the US. In Europe, sales grew by 37.6% to $98.3m (Q1 2002: $71.4m).
Since launch in the United States in March 2002, Rebif(R) sales have broken
through the $100m mark, and at the end of March 2003, our US market share in
dollar terms is estimated to be 11%. US sales were $40.3m in the first quarter
of 2003 (Q1 2002: $6.2m). Underlying demand was strong with prescriptions
growing at 25.4% between the fourth quarter of 2002 and the first quarter of
2003.
Quarterly sales of Novantrone(R) were $12.8m in the USA for both MS and
oncology. In the first quarter, we took over the marketing of Novantrone(R) in
MS and we recently commenced our own promotional activities. During the
quarter, we signed an agreement with OSI Pharmaceuticals by which they will
market and promote Novantrone(R) in oncology allowing us to focus on the
marketing of this product in MS.
REPRODUCTIVE HEALTH
In the first quarter, we strengthened our market leadership in reproductive
health with product sales increasing by 13.7% to $160.6m (Q1 2002: $141.3m)
while continuing the phase-out of our urine-derived products. In Europe, we
introduced a new multidose presentation of Gonal-F(R) providing physicians with
more dosing flexibility and optimal product consistency. Sales of Gonal-F(R)
increased by 20.5% to $122.0m (Q1 2002: $101.2m). Recombinant product sales in
this franchise grew by 22.2%, and accounted for 85.3% of Serono's gonadotropin
sales.
-more-
GROWTH AND METABOLISM
In the first quarter, sales of Serono's recombinant growth hormone products rose
by 7.4% to $53.0m (Q1 2002: $49.4m). Saizen(R) sales increased by 12.3% to
$33.1m (Q1 2002: $29.5m). The launch of our needle-free device, cool.click(TM),
across Europe contributed to this growth. Serostim(R) sales were flat at $19.9m
reflecting the rollout of the Serostim(R) Secured Distribution Program across
the USA allowing us to stabilize reimbursement in the major states.
REGIONAL SALES
Sales in North America were very strong, growing at 56.6% to reach $149.2m
(Q1 2002: $95.3m). European sales were also strong, increasing by 31.2% to
$185.6m (Q1 2002: $141.5m), and sales in the Middle East, Africa and Eastern
Europe were up 30.4% to $33.0m (Q1 2002: $25.3m). Sales in Japan and Oceania
were stable at $11.5m (Q1 2002: $10.8m), as were sales in Asia Pacific at $13.0m
(Q1 2002: $13.8m). Economic and market conditions in Latin America were
reflected in first quarter sales which declined to $15.5m (Q1 2002: $26.9m);
notwithstanding these conditions, we maintained our leadership position in MS
and reproductive health in this region.
R&D NEWS
In February, we submitted a Marketing Authorization Application to the EMEA for
Raptiva(TM) (efalizumab) in moderate-to-severe psoriasis and we also filed
applications with Swiss and Canadian authorities. During the quarter, we
announced the extension of Serono's exclusive license to develop and market
Raptiva(TM) in Asia. As a result of the new agreement, Serono will now develop
and market Raptiva(TM) worldwide outside of the United States and Japan.
At the recent American Association of Dermatology (AAD) meeting in San
Francisco, results were presented from the latest Phase 3 study of Raptiva(TM)
that showed consistent, strong efficacy and safety data. The preliminary
long-term data from another study demonstrated that approximately 65% of the
patients who continued treatment with Raptiva(TM) through 60 weeks, achieved a
75% or greater improvement in PASI scores (PASI 75). These data also
demonstrated persistent efficacy of Raptiva(TM) when administered continuously
on a weekly basis.
These efficacy results together with Raptiva(TM)'s rapid onset of action, its
subcutaneous administration and its safety profile, mean that Raptiva(TM) has
significant potential as a once-weekly continuous treatment for
moderate-to-severe psoriasis. The on-going Phase 2 study of Raptiva(TM) in
Rheumatoid Arthritis has completed enrollment and the Phase 2 study in Psoriatic
Arthritis has recently begun enrollment.
We initiated a Phase 2 trial with anastrozole for follicular development and
ovulation in infertile women with ovulatory dysfunction. A phase 1 study with
our B-sheet breaker peptide, a potential treatment of Alzheimer's disease, has
also been initiated in healthy volunteers.
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CONFERENCE CALL AND WEBCAST
Serono will hold a conference call today, April 24, 2003, starting at 3.00 pm
Central European Time (9.00 am U.S. Eastern Time) during which Serono Management
will present the Company's First Quarter 2003 Results. To join the telephone
conference please dial 091 610 5600 (from Switzerland), 0207 866 4111 (from the
UK), +1 412 858 4600 (from the USA) and +41 91 610 5600 (from elsewhere).
Telephone playback will be available one hour after the conference call and
until close of business 5.00 pm CET on April 30, 2003. To access this playback
please dial the following numbers: 091 612 4330 (from Switzerland), 0207 866
4300 (from the UK), +1 412 858 1440 (from the USA) and +41 91 612 4330 (from
elsewhere) and enter the PIN code 519# from a touch tone telephone.
The event will also be relayed by live audio webcast that interested parties may
access via Serono's Corporate home page, www.serono.com. A link to the webcast
will be provided immediately prior to the event, and accompanying slides will be
made available for download approximately 1 hour before the beginning of the
webcast. Additionally, the webcast will be available for replay until close of
business on May 16, 2003.
###
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 April 17, 2003. 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 six recombinant
products on the market, Gonal-F(R), Luveris(R), Ovidrel(R)/Ovitrelle(R),
Rebif(R), Serostim(R) and Saizen(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. The Company's research
programs are focused on growing these businesses and on establishing new
therapeutic areas. Currently, there are over 30 projects in development.
Serono was awarded the International James D. Watson Helix 2003 Award from the
Biotechnology Industry Organization (BIO) in recognition of the Company's
outstanding leadership and highest standards of scientific and product
achievement.
In 2002, Serono achieved worldwide revenues of US$1.546 billion, and a net
income of US$321 million, making it the third largest biotech company in the
world. The Company operates in 45 countries, and its products are sold in over
100 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).
-more-
FOR MORE INFORMATION, PLEASE CONTACT:
SERONO IN GENEVA, SWITZERLAND:
MEDIA RELATIONS: INVESTOR RELATIONS:
Tel: +41-22-739 36 00 Tel: +41-22-739 36 01
Fax: +41-22-739 30 85 Fax: +41-22-739 30 22
http://www.serono.com Reuters: SEOZ.VX / SRA.N
--------------------- Bloomberg: SEO VX / SRA US
SERONO, INC., ROCKLAND, MA
MEDIA RELATIONS: INVESTOR RELATIONS:
Tel. +1 781 681 2340 Tel. +1 781 681 2552
Fax: +1 781 681 2935 Fax: +1 781 681 2912
http://www.seronousa.com
------------------------
On the following pages, there are:
- Tables detailing sales in dollars by therapeutic area, geographic
region and the top 10 products for the 3 months ended March 31, 2003.
- The unaudited consolidated financial statements for the 3 months ended
March 31, 2003, including income statements, balance sheets and
statements of cash flows, prepared in accordance with International
Financial Reporting Standards (IFRS).
-more-
SALES BY THERAPEUTIC AREA
-------------------------
THREE MONTHS ENDED THREE MONTHS ENDED
MARCH 31, 2003 MARCH 31, 2002
$MILLION % OF SALES % CHANGE $ $MILLION % OF SALES
-------------------------------------------------------------------------------------
Multiple Sclerosis (Rebif) 175.2 43.00% 52.00% 115.3 36.80%
Reproductive Health 160.6 39.40% 13.70% 141.3 45.10%
Growth 33.1 8.10% 12.30% 29.5 9.40%
AIDS Wasting 19.9 4.90% 0.30% 19.9 6.30%
MS/Oncology (Novantrone) 12.8 3.10% 100.00% -- --
Others 6.2 1.50% -20.00% 7.5 2.40%
-------------------------------------------------------------------------------------
Total sales (US$million) $ 407.8 100% 30.10% $ 313.5 100%
SALES BY GEOGRAPHIC REGION
--------------------------
THREE MONTHS ENDED THREE MONTHS ENDED
MARCH 31, 2003 MARCH 31, 2002
$MILLION % OF SALES % CHANGE $ $MILLION % OF SALES
-----------------------------------------------------------------------------------
Europe 185.6 45.50% 31.20% 141.5 45.10%
North America 149.2 36.60% 56.60% 95.3 30.40%
Latin America 15.5 3.80% -42.50% 26.9 8.60%
Others 57.5 14.10% 15.20% 49.8 15.90%
-----------------------------------------------------------------------------------
Total sales (US$ million) $ 407.8 100% 30.10% $ 313.5 100%
-more-
TOP TEN PRODUCTS
THREE MONTHS ENDED THREE MONTHS ENDED
MARCH 31, 2003 MARCH 31, 2002
---------------------------------------------------------
* TA $MILLION % OF SALES % CHANGE $ $MILLION % OF SALES
Rebif(R) MS 175.2 43.0% 52.0% 115.3 36.8%
Gonal-F(R) RH 122.0 29.9% 20.5% 101.2 32.3%
Saizen(R) Growth 33.1 8.1% 12.3% 29.5 9.4%
Serostim(R) Wasting 19.9 4.9% 0.3% 19.9 6.3%
Novantrone(R) MS/Oncology 12.8 3.1% 100.0% -- --
Pergonal(R) RH 10.3 2.5% 17.2% 8.8 2.8%
Metrodin HP(R) RH 7.1 1.7% (49.2%) 14.0 4.5%
Cetrotide(R) RH 5.6 1.4% 52.9% 3.7 1.2%
Crinone(R) RH 4.5 1.1% 41.5% 3.2 1.0%
Profasi(R) RH 3.7 0.9% (25.8%) 5.0 1.6%
* THERAPEUTIC AREAS
RH = Reproductive Health Wasting = AIDS Wasting
MS = Multiple Sclerosis Growth = Growth Retardation
Oncology = Oncology
-more-
CONSOLIDATED INCOME STATEMENTS
THREE MONTHS ENDED MARCH 31 2003 * % OF 2002 * % of
US$'000 REVENUES % change US$'000 Revenues
Revenues
Product sales 407,786 30.1% 313,532
Royalty and license income 34,620 22.1% 28,359
------------------------------------------------------------------------------------------------
TOTAL REVENUES 442,406 100.0% 29.4% 341,891 100.0%
------------------------------------------------------------------------------------------------
Operating Expenses
Cost of product sales 62,631 23.4% 50,760
% of Sales 15.4% 16.2%
Selling, general and administrative 140,916 31.9% 21.1% 116,340 34.0%
Research and development 127,937 28.9% 69.1% 75,636 22.1%
Other operating expense, net 45,751 10.3% 135.5% 19,430 5.7%
------------------------------------------------------------------------------------------------
Total Operating Expenses 377,235 85.3% 43.9% 262,166 76.7%
------------------------------------------------------------------------------------------------
OPERATING INCOME 65,171 14.7% (18.3%) 79,725 23.3%
------------------------------------------------------------------------------------------------
Financial income, net 8,382 81.7% 4,613
Other expense, net 1,499 543
------------------------------------------------------------------------------------------------
Total Non Operating Income, Net 6,883 4,070
------------------------------------------------------------------------------------------------
Income Before Taxes and Minority Interests 72,054 16.3% (14.0%) 83,795 24.5%
Taxes 11,529 14,245
------------------------------------------------------------------------------------------------
Income Before Minority Interests 60,525 69,550
Minority interests 367 73
------------------------------------------------------------------------------------------------
NET INCOME 60,158 13.6% (13.4%) 69,477 20.3%
------------------------------------------------------------------------------------------------
Milestone payment for Raptiva 1) 25,000 0
Tax impact (4,000) 0
------------------------------------------------------------------------------------------------
NET INCOME W/O RAPTIVA MILESTONE PAYMENT 81,158 18.3% 16.8% 69,477 20.3%
------------------------------------------------------------------------------------------------
* Unaudited
1) Payment made to Genentech for filing of Raptiva in Europe
2003 2002 % CHANGE 2003 2002 % CHANGE
W/O RAPTIVA
MILESTONE
Basic Earnings per Share (in U.S. dollars) PAYMENT 1)
--------------------------------------------------------------------------------------------------
- Bearer shares 3.80 4.32 (12.2%) 5.12 4.32 18.5%
--------------------------------------------------------------------------------------------------
- Registered shares 1.52 1.73 (12.2%) 2.05 1.73 18.5%
--------------------------------------------------------------------------------------------------
- American depositary shares 0.09 0.11 (12.2%) 0.13 0.11 18.5%
--------------------------------------------------------------------------------------------------
Diluted Earnings per Share (in U.S. dollars)
- Bearer shares 3.79 4.32 (12.1%) 5.12 4.32 18.6%
--------------------------------------------------------------------------------------------------
- Registered shares 1.52 1.73 (12.1%) 2.05 1.73 18.6%
--------------------------------------------------------------------------------------------------
- American depositary shares 0.09 0.11 (12.1%) 0.13 0.11 18.6%
--------------------------------------------------------------------------------------------------
Basic earnings per share are calculated in accordance with IAS 33 (Earnings per
Share) by dividing the net income of the group, US$60.2 million (2002 US$69.5
million), by an appropriate number of shares. This is 11,443,975 bearer shares
(2002 11,670,858) and 11,013,040 registered shares (2002 11,013,040). The total
weighted average equivalent number of bearer shares is 15,849,191 (2002
16,076,074) for the three months ended March 31, 2003. As each American
depositary share represents ownership interest in one fortieth of a bearer
share, basic and diluted earnings per American depositary share is calculated as
one fortieth of the earnings per bearer share.
For diluted earnings per share, the total number of bearer shares is adjusted to
assume conversion of all share options granted to employees and directors. The
number of bearer shares used to calculate diluted earnings per share is
11,451,180 (2002 11,695,125).
-more-
CONSOLIDATED BALANCE SHEETS
As of MARCH 31, 2003 * December 31, 2002
US$ 000 US$ 000
ASSETS
Current Assets
Cash and cash equivalents 603,323 686,033
Short-term financial assets 436,256 378,865
Trade accounts receivable 273,943 257,313
Inventories 277,865 259,477
Prepaid expenses 43,460 26,609
Other current assets 192,435 208,100
-----------------------------------------------------------------------------------------------------
Total Current Assets 1,827,282 1,816,397
-----------------------------------------------------------------------------------------------------
Long-Term Assets
Property, plant and equipment 604,715 554,509
Long-term financial assets 780,597 711,201
Intangible assets 229,089 230,117
Deferred tax assets 137,345 136,687
Other long-term assets 44,420 45,763
-----------------------------------------------------------------------------------------------------
Total Long-Term Assets 1,796,166 1,678,277
-----------------------------------------------------------------------------------------------------
TOTAL ASSETS 3,623,448 3,494,674
-----------------------------------------------------------------------------------------------------
LIABILITIES
Current Liabilities
Bank advances 61,065 70,093
Trade accounts payable 66,127 60,591
Current portion of long-term debt 24,101 23,505
Income taxes 33,397 55,152
Other current liabilities 418,437 348,704
-----------------------------------------------------------------------------------------------------
Total Current Liabilities 603,127 558,045
-----------------------------------------------------------------------------------------------------
Long-Term Liabilities
Long-term debt 24,893 25,857
Deferred tax liabilities 12,343 12,080
Other long-term liabilities 461,648 436,329
-----------------------------------------------------------------------------------------------------
Total Long-Term Liabilities 498,884 474,266
-----------------------------------------------------------------------------------------------------
Total Liabilities 1,102,011 1,032,311
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
Minority Interests 1,554 1,165
-----------------------------------------------------------------------------------------------------
SHAREHOLDERS' EQUITY
Share capital 253,851 253,416
Share premium 1,001,621 989,141
Treasury shares (147,526) (126,460)
Retained earnings 1,424,786 1,364,626
Fair value reserves (51,512) (44,807)
Cumulative foreign currency translation adjustments 38,663 25,282
-----------------------------------------------------------------------------------------------------
Total Shareholders' Equity 2,519,883 2,461,198
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
Total Liabilities, Minority Interests and Shareholders' Equity 3,623,448 3,494,674
-----------------------------------------------------------------------------------------------------
* Unaudited
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CONSOLIDATED STATEMENTS OF CASH FLOWS
Three months ended March 31 2003 * 2002 *
US$ 000 US$ 000
Cash Flows From Operating Activities
Income before taxes and minority interests 72,054 83,795
Depreciation and amortization 34,498 22,846
Financial income (12,087) (16,526)
Financial expense 2,161 2,608
Other non-cash items 13,686 (8)
--------------------------------------------------------------------------------------------
Cash Flows From Operating Activities Before Working Capital Changes 110,312 92,715
--------------------------------------------------------------------------------------------
Working Capital Changes
Trade accounts payable, other current liabilities and deferred income 74,800 (12,879)
Trade accounts receivable (9,982) (11,381)
Inventories (22,638) (5,514)
Prepaid expenses and other current assets (6,200) 4,421
Taxes paid (31,081) (22,424)
--------------------------------------------------------------------------------------------
NET CASH FLOWS FROM OPERATING ACTIVITIES 115,211 44,938
--------------------------------------------------------------------------------------------
Cash Flows From Investing Activities
Purchase of property, plant and equipment (57,468) (28,805)
Purchase of intangible and other long-term assets (7,257) (2,616)
Purchase of financial assets (130,926) (777,970)
Other non-current liabilities (4,308) (6,903)
Proceeds from sale of property, plant and equipment 2,220 24
Interest received 21,330 (260)
--------------------------------------------------------------------------------------------
Net Cash Flows From Investing Activities (176,409) (816,530)
--------------------------------------------------------------------------------------------
Cash Flows From Financing Activities
Proceeds from issuance of share capital 13,090 11,602
Proceeds from exercises of stock options 159 349
Premiums received on written calls 384 --
Purchase of treasury shares (24,637) --
Repayment of bank advances (9,260) (34,645)
Repayment of long-term debt (1,517) (605)
Interest paid (1,102) (2,054)
--------------------------------------------------------------------------------------------
Net Cash Flows From Financing Activities (22,883) (25,353)
--------------------------------------------------------------------------------------------
Effect of Exchange Rate Changes on Cash and Cash Equivalents 1,371 (672)
--------------------------------------------------------------------------------------------
Net Increase in Cash and Cash Equivalents (82,710) (797,617)
--------------------------------------------------------------------------------------------
Cash and Cash Equivalents
- Beginning of period 686,033 1,131,091
--------------------------------------------------------------------------------------------
- End of period 603,323 333,474
--------------------------------------------------------------------------------------------
* Unaudited
-end-
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
SERONO S.A.
a Swiss corporation
(Registrant)
April 24, 2003 By: /s/ Allan Shaw
-----------------------------
Name: Allan Shaw
Title: Chief Financial Officer