Interim Report, January-March 2015

January-March 2015[1]

  • Net sales reached SEK 4,583 million (3,365), corresponding to an increase of 36%, 24% at constant exchange rates compared to the previous year.
  • EBITDA, excluding non-recurring items, was SEK 1,403 million (1,010), corresponding to an increase of 39%, 26% at constant exchange rates and yielding a 30.6% margin (30.0).
  • Non-recurring effects had a SEK 218 million negative impact on earnings before tax.
  • Profit after tax amounted to SEK 226 million (260).
  • Earnings per share reached SEK 0.62 (0.83)[2]. Excluding non-recurring effects, earnings per share totaled SEK 0.59 (0.83).
  • Cash earnings per share amounted to SEK 0.74 (1.90)[2]. Excluding non-recurring effects cash earnings per share totaled SEK 1.94 (1.90).
1)     For information about non-recurring effects, see page 62)      Recalculation of comparative figures to consider the bonus issue elements in the 2014 new share issue.

CEO statement

Q1 2015 marked another quarter of transformational growth. Sales came in at SEK 4,583 million, 36% higher compared to last year (+24% CER). While weaker than previous quarter due to seasonality, sales were ahead of our internal plans. The integration of Rottapharm continues to proceed according to plan and the benefits are flowing through to the bottom line. I am very pleased that our operating expenses are more than SEK 200 million lower in Q1 2015 versus Q1 last year on a pro forma basis at constant exchange rates. This means that we continue to be very confident to achieve our synergy commitment of SEK 900 million of run-rate synergies in 2016 from the deal. In fact, we are relentlessly working to fully exploit the best of Meda and Rottapharm. This again proves that turning Meda into a leader in European specialty pharma through the acquisition of Rottapharm was the right move at the right time. Identifying, executing and integrating acquisitions is a core skill for Meda and Q1 2015 reinforced my conviction that M&A is at the very heart of Meda’s strategy going forward.

Sales in the Rx product area (prescription drugs) reached SEK 2,820 million in Q1, corresponding to 14% growth (+3% CER). Some of our prioritized products continue to deliver. In Respiratory, Dymista prescriptions in the US continue to grow at around 30% although wholesalers reduced their inventory levels in the quarter. This was complemented by good growth in Western Europe (40% in constant exchange rates). EpiPen was up 20% (+7% CER). Also, since end of February, Aerospan prescriptions have more than doubled. Furthermore, in Dermatology I am very pleased to note that we are back at normalized supply for Elidel. The product rebounded - increase of 23% (+10% CER) thanks to good performance in Emerging Markets - which in light of the uncertainty of last year proves the strength of this franchise and end-customer loyalty.

The Cx/OTC product area (non-prescription products) reached SEK 1,650 million in sales in Q1, corresponding to a 93% increase (+78 % CER). New product additions from the Rottapharm business performed well. Dona, Meda’s largest product, increased by 42% (+21% CER) compared last year driven by strong performance in Emerging Markets. Also, Legalon with an 18% increase (+8% CER) showed good growth. CB12 sales were weaker compared to previous quarters as anticipated as marketing activity was muted ahead of the new product campaign launch in April.

At the end of the day, sales need to flow to the EBITDA and cash flow lines. And I am pleased that they did. EBITDA was taken to a new level, up 39% (+26% CER). Also, despite accumulation of working capital, free cash flow was up 19%. It is noteworthy that both measures were supported by the gross margin expansion of 1%-point to 62%.

We will continue down the path we have set upon – building a bigger, stronger and better Meda. Nothing will distract us from this objective. Our focus for the rest of the year is threefold: to fully exploit the synergy potential from the Rottapharm acquisition, to strengthen our cash flow, and to gear up for further M&A by building pipeline for 2016. We remain committed to the guidance as communicated earlier.

Jörg-Thomas Dierks

Group President and CEO

CER = constant exchange rates

The companys auditors did not review this interim report.

Webcasted presentation of the report on May 6 at 10:30 AM.
The presentation can be accessed at, where a recorded version will also be available until the next interim report.For further inquiries, please contact:
Paula Treutiger, VP Corporate Communications & Sustainability,, +46 733-666 599.

Forward-looking statement

This report is not an offer to sell or a solicitation to buy shares in Meda. This report also contains certain forward-looking statements with respect to certain future events and Meda’s potential financial performance. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts and may sometimes include words such as “may”, “will”, “seek”, “anticipate”, “expect”, “estimate”, “intend”, “plan”, “forecast”, “believe”, or other words of similar meaning. These forward-looking statements reflect the current expectations on future events of the management at the time such statements are made, but are made subject to a number of risks and uncertainties. In the event such risks or uncertainties materialize, Meda’s results could be materially affected. The risks and uncertainties include, but are not limited to, risks associated with the inherent uncertainty of pharmaceutical research and product development, manufacturing and commercialization, the impact of competitive products, patents, legal challenges, government regulation and approval, Meda’s ability to secure new products for commercialization and/or development, and other risks and uncertainties detailed from time to time in Meda AB’s interim or annual reports, prospectuses, or press releases. Listeners and readers are cautioned that no forward-looking statement is a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking statement. Meda does not intend or undertake to update any such forward-looking statements.

 Meda AB discloses the information provided herein pursuant to the Securities Market Act and/or the Financial Instruments Trading Act. This information was submitted for publication on May 6, 2015 at 8:00 AM.


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Meda is one of Europe's leading specialty pharma companies, with focus on marketing and market-adapted product development. Long-term partnerships and acquisitions are fundamental factors in its strategy.