Serono And IVAX To Develop Oral Therapy For Multiple Sclerosis

Business Wire, Oct 30, 2002

Business Editors/Health & Medical Writers

GENEVA, Switzerland & MIAMI--(BUSINESS WIRE)--Oct. 30, 2002

Serono S.A. (virt-x: SEO) (NYSE:SRA) and IVAX Corporation (AMEX:IVX) (LSE:IVX.L) today announced a worldwide agreement to develop and commercialize IVAX' product, cladribine, as potentially the first orally effective treatment of multiple sclerosis.

"We are very pleased to enter into this agreement with Serono, a leading innovator in the development of drugs to treat multiple sclerosis," remarked Phillip Frost, M.D, Chairman and Chief Executive Officer of IVAX Corporation. "This agreement brings together our combined expertise in the development of CNS therapeutics, IVAX' capabilities for manufacturing proprietary oral pharmaceutical products and Serono's global experience in the marketing and sales of Rebif, an important treatment for multiple sclerosis."

Ernesto Bertarelli, Chief Executive Officer of Serono, commented, "This agreement is part of our long-term strategy for developing novel therapies in neurology. With cladribine we plan to offer patients an oral therapy which complements Rebif, our leading treatment for multiple sclerosis."

Based upon clinical and Magnetic Resonance Imaging (MRI) data from phase II trials suggesting that intravenous cladribine may be effective in certain MS patients, Serono and IVAX plan to establish the optimal oral formulation of cladribine and then initiate further clinical trials.

Under terms of the agreement, IVAX will receive a series of undisclosed milestone payments and will also receive royalties on sales of the product, once marketed. The current worldwide market for multiple sclerosis treatments is more than $2.5 billion.

About Cladribine

Cladribine is a purine-analogue that disrupts the proliferation of certain white blood cells, including monocytes and lymphocytes, which are involved in the pathological process of multiple sclerosis.

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) (somatropin). (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 seventeen new molecules in development.

In 2001, Serono achieved worldwide revenues of U.S. $1.38 billion, and a net income of U.S. $317 million, making it the third largest biotech company in the world based on revenues. 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 Depository Shares are traded on the New York Stock Exchange (SRA).

About IVAX

IVAX Corporation, with operations in nearly 30 countries and its products sold in 70 countries, had sales in 2001 of $1.2 billion. IVAX discovers, develops, manufactures, and markets branded and brand equivalent (generic) pharmaceuticals and veterinary products in the U.S. and internationally. The company has a number of proprietary drugs in various phases of clinical trials to treat respiratory, oncologic, urologic and central nervous system diseases. Among the new molecules being developed, immunotoxins to treat cancer, soft steroids to treat a variety of inflammatory diseases, and a brain targeted estrogen for postmenopausal hormone replacement therapy represent particularly novel advances.

Copies of this and other news releases may be obtained free of charge from IVAX' web site at http://www.ivax.com. Shareholders and prospective investors can register to automatically receive the company's press releases via email at http://www.ivax.com/ComNewsv2.htm.

For Serono:

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 May 21, 2002. 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.