MOBERG DERMA YEAR-END REPORT 2012
DOUBLED REVENUE, PROFITABLE AND ESTABLISHMENT IN THE U.S.
FULL-YEAR (JAN-DEC 2012)
- Revenue MSEK 112.5 (55.9)
- Operating profit MSEK 12.6 (-7.6), MSEK 19.2 excluding acquisition-related costs
- Net profit after tax MSEK 35.8 (-6.4), MSEK 42.4 excluding acquisition-related costs
- Earnings per share SEK 3.68 (-0.82)
- Operating cash flow per share SEK 0.97 (-0.99)
- The Board proposes no dividend for the 2012 fiscal year
FOURTH QUARTER (OCT-DEC 2012)
- Revenue MSEK 30.2 (20.5)
- Operating profit/loss MSEK -0.7 (3.8); MSEK 5.9 excluding acquisition-related costs
- Net profit/loss after tax MSEK -6.3 (4.4); MSEK 0.3 excluding acquisition-related costs
- Earnings/Loss per share SEK -0.63 (0.48)
- Operating cash flow per share SEK -0.26 (1.84)
SIGNIFICANT EVENTS DURING THE FOURTH QUARTER
- Proprietary market presence in the U.S. established through the acquisition of Alterna LLC. In conjunction with the acquisition, an issue in kind of 825,652 shares and loan financing of MSEK 40.0 where effected.
- Through a private placement, Moberg Derma raised MSEK 31.8 before issue expenses.
- George Aitken-Davies, Management Director of Altaris Capital Partners, was elected a new Board member.
- New Phase II study initiated of MOB-015 for the treatment of onychomycosis.
- Distribution agreement entered into with Paladin Labs Inc. for Nalox™/Emtrix® in Canada.
The key factor that enabled us to double our revenue in 2012 and achieve profitability one year ahead of expectations was the successful commercialization of Nalox™. During the autumn, we took the next step in our growth strategy – establishment in the U.S. The acquisition of Alterna has equipped us with our own sales organization in the world’s largest pharmaceutical market and broadened our portfolio with established brands, including the rights to Kerasal Nail™ (Nalox™ in Sweden).
The rapid increase in revenue resulted from the successful progress made this year for the global commercialization of Nalox™, which is now sold in 20 countries. Nalox™ retains its position as the market leader in the Nordic region, where the total market for the treatment of nail fungus has expanded significantly as a result of our launch. We worked intensively during the year to support our partners and distributors in conjunction with the launches in 12 markets, which included France, Germany, the Netherlands, Italy, Austria and South Africa. The product has also quickly become one of the leaders in several of these new markets. New agreements were signed with selected distributors in Canada, South Africa and Iran, and all remaining milestone payments were received from Meda.
In the U.S., Kerasal Nail™ was ranked number two in its category in U.S. drugstores. This is the result of a targeted launch in the U.S., where we successfully expanded distribution to more than 25,000 retail stores, including nearly all of the Walmart stores. Furthermore, Kerasal Nail™ was nominated to the Drug Store News’ Top-50 list of the Most Innovative New Products in competition with thousands of products.
The integration of our acquired U.S. unit is proceeding as planned. An integrated organization is in place and the company was recently renamed Moberg Pharma North America LLC. The U.S. operation performed strongly in the fourth quarter, of which about one month is included in our accounts for 2012.
One of the accounting effects of the acquisition is a revaluation up to its fair value of the inventory held by the U.S. firm in the amount of MSEK 4.6, thus reducing earnings by a corresponding amount. A positive effect is that acquisition values of MUSD 17.9 will be eligible for tax write-offs in the U.S. for a period of 15 years.
We focus continuously on new ideas and products through internal development and evaluation of acquisition candidates. The aim is to meet the needs of patients for new treatments in commercially attractive niche markets. At present, we have two internally development projects in clinical phases: MOB-015 for the treatment of nail fungus and Limtop for the treatment of actinic keratosis (sun-damaged skin). A Phase II study of an improved formulation of MOB-015 was initiated in December and, for the Limtop project, Phase II data is expected in the first six months of 2013.
As a result of the acquisition of Alterna, we had the pleasure of welcoming new shareholders to the company bringing extensive experience and international networks: The Third Swedish National Pension Fund, Handelsbanken Funds and Rhenman & Partners, as well as the U.S. private equity fund Altaris Capital Partners.
Our shareholders can look back on a successful year. The progress in 2012 has made us a substantially stronger and profitable company, with favorable prospects for continued strong growth in 2013.
Peter Wolpert, CEO
CEO Peter Wolpert will present the report in a telephone conference today at 10:30 a.m. (CET), February 5, 2013. Telephone: +46 (0)8-506 26 900 and submit the code 409017
ABOUT THIS INFORMATION
Moberg Derma discloses the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication at 8:30 am (CET) on February 5th, 2013.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Peter Wolpert, President and CEO of Moberg Derma
Mobile: +46 70-735 71 35
Magnus Persson, IR
Mobile: +46 73-355 26 01
For further information about Moberg Derma, please visit: www.mobergderma.com