Serono (NYSE:SRA; SWX:SEO), which recently closed InterPharm Laboratories and fired its staff, will open a unique biotechnology R&D center in Israel. Sources inform “Globes” that Serono and Ministry of Industry, Trade and Labor director-general Raanan Dinur reached an agreement on the R&D center at a meeting yesterday.
Intense efforts by Chief Scientist Dr. Eli Opper and Ministry of Foreign Affairs officials apparently persuaded Serono, headed by CEO Ernesto Bertarelli, the heir to the Serono empire, to launch new activity in Israel. The new biotechnology R&D center will work in genetic engineering. The center will later focus on unique research in a field that Serono declines to disclose.
A source close to the Ministry of Industry told "Globes" that Serono decided to open an R&D center in Israel following negotiations with the Office of the Chief Scientist. The negotiations touched on Serono's commitments to Israel stemming from its removal of activities based on Israeli developments and government R&D grants.
Serono will employ 25 scientists and staff at the R&D center, which will operate through InterPharm. In addition to R&D, InterPharm will handle business development for Serono by locating new investment opportunities. InterPharm general manager Dr. Ezra Ouziel, who recently wentthrough hard times and lay-offs with the company, will continue to manage its new activities.
Serono apparently made the decision a few days ago, following a lengthy review, during which Serono's management was impressed by the high latent potential of basic research in Israel. Serono decided that these capabilities could contribute toward the development of new drugs.
InterPharm will continue to employ 50 of the 165 employees of the closed plant through mid-2005. These employees will shut down the production line and set up the R&D center's administrative and technological infrastructures. InterPharm is expected to have 25 full-time employees after mid-2005. The company's R&D activities will initially be carried out in Ness Ziona.
Serono and the Ministry of Industry, Trade and Labor were unavailable for comment by web-posting.
Published by Globes [online], Israel business news - www.globes.co.il - on December 29, 2004