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news.Serono has reported its second quarter results for the period ended June 30, 2006, with highlights including record total revenues of $699.2 million and reported net income of $189.2 million.
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Total revenues increased by 3.3%, or 3.9% in local currencies, to $699.2 million in the second quarter of 2006, compared to $676.8 million in Q2 2005. Product sales grew 2.8% to $628.7 million, compared to a strong quarter last year, when product sales reached $611.5 million.
Excluding the impact on sales of the Bourn Hall clinic management buyout and the sale of TerraCell, in 2005, as well as the introduction of generics of Novantrone in early April 2006, sales growth was 7% in local currencies in Q2 2006. Royalty and license income increased by 8% to $70.5 million, compared to $65.3 million for Q2 2005.
Operating income in Q2 2006 was up 21.1% to $203 million, compared to $167.7 million in Q2 2005, with an operating margin of 29% of total revenues.
Net income in the second quarter of 2006 was $189.2 million up 8.1% or 25.9% on an adjusted basis, compared to Q2 2005 figures of $175.1 million reported and $150.3 million adjusted. Basic earnings per share (EPS) were up 7.5%, or 25.2% on adjusted basis, to $12.92 per bearer share.
Products key to driving growth include Rebif, which saw its sales rise 10.9% for the quarter, to reach $361.6 million, as well as Gonal-f, Saizen and Raptiva, which saw its Q2 sales grow 24.3% over the first quarter of 2006.
“Given our financial performance in the first half of 2006, we are on track to achieve our EPS guidance of $45,” said Stuart Grant, Serono CFO. “Our EPS growth is driven by the strength of our operating margin which increased by an impressive eight percentage points in the first half of the year to 29.5% of total revenues.”