Moberg Pharma AB Interim report January - March 2016


•    Revenue MSEK 69.5 (73.2)
•    EBITDA MSEK 3.4 (17.4)
•    EBITDA for Commercial Operations MSEK 7.0 (25.6)
•    Operating profit (EBIT) MSEK 0.5 (14.9)
•    Net loss after tax MSEK 5.6 (profit: 10.9)
•    Loss per share SEK 0.40 (earnings: 0.75)
•    Operating cash flow per share SEK -0.25 (neg: 0.35)

•    Positive Phase 2 data for BUPI in terms of pain treatment in cancer patients suffering from oral mucositis
•    Agreement with Cadila Pharmaceuticals for Phase 3 development and regional commercialization of BUPI
•    The issue of bond loans of MSEK 300 for financing growth and acquisitions
•    Divestment of three brands for MUSD 10 (transaction completed in April)

•    Divestment of Jointflex, Fergon and Vanquish completed

In Q1, although declining European sales impacted growth and profitability, key components to enable future growth were secured. Positive early consumer response to the relaunch of Kerasal Nail® drove increasing market share in the U.S. and the launch in Asia progressed well. Our Innovation Engine delivered positive phase 2 data and a partner agreement for BUPI as well as good progress in Phase 3 preparations for MOB-015. Significant funds were secured for growth and acquisition initiatives by closing a bond issue of SEK 300 million and divesting non-core brands for USD 10 million.

Sales grew in Asia and the U.S, but total net sales declined by 5% (decline by 6% at fixed exchange rates) due to lower European sales. As communicated, we invest significantly to reposition the Kerasal® brand in the U.S, which short-term affects profitability. The EBITDA margin decreased to 5% for the quarter and 12% for last 12 months. The gross margin in the quarter was 70% (78%) reflecting the change in product mix compared to last year and volume discounts to larger distributors enabling marketing investments for future growth. The Commercial EBITDA margin was 10% in the first quarter and 18% for the last 12 months.

Positive initial response to U.S. repositioning of Kerasal Nail
U.S. direct sales increased by 4% in the first quarter (3% at fixed exchange rates) thanks to the addition of Balmex. The main priority for our U.S operations has been to reverse negative trends by repositioning the Kerasal® brand to enable future growth. In March, pre-season support was initiated with new packaging on shelf and new TV campaign. Although not yet visible in net sales, early consumer response is promising. Last 12 weeks, market share increased by three points to 25%  and resulted in +9% value growth (in sales to consumers) in a declining category (-8%). On April 1, we divested three non-core brands for USD 10 million. The divestment resulted in a capital gain of USD 3 million (to be included in Q2 numbers) and enables us to redirect resources to our strategic brands and future acquisitions.

Distributor sales declined but Asian launch continues to progress well
Total distributor sales declined by 15% (decline by 14% at fixed exchange rates). European sales declined due to high incoming inventory levels and quarter-to-quarter variations. The launch in Asia continues to perform well with RoW sales growing at 31%. Emtrix® and Kerasal Nail® are reaching market leading positions in most countries/regions launched in Asia. Test launches are being initiated in additional key markets globally and are expected to drive long-term growth.

High activity level in our Innovation Engine
Phase 3 preparations for MOB-015 are continuing at full speed and according to plan - to start phase 3 trials in the second half of this year. For BUPI, we were highly pleased to report strong Phase 2 data - treatment with BUPI decreased pain with an additional 31% compared to standard pain treatment. The regional partner agreement with Cadila Pharma and grant funding from Eurostars is part of a derisked strategy which enables Moberg Pharma to generate Phase 3 data at a limited investment. We aim at starting enrollment of patients for Phase 3 in the first half of next year.

Both our pipeline assets have the potential to become major growth drivers for us in the next few years through a combination of license deals as well as a basis to start our own franchises in select territories.

We are accelerating our business development activities backed by a strong cash position of more than SEK 400 million, including the bond issue as well as the recent brand divestment. The focus for our BD efforts is to strengthen our commercial portfolio, e.g. for our U.S. OTC franchise.

Focus on value creation
This spring we celebrate our 10th anniversary! It is with pride I look back on the team’s achievements in these years. Although we had lower growth/profitability this quarter, I am convinced we are on the right track to meet our long-term targets. Our focus remains to become the leading player in nail fungus and to drive growth organically as well as through acquisitions.

Peter Wolpert, CEO Moberg Pharma

CEO Peter Wolpert will present the report at a teleconference today at 3:00 p.m., May 10, 2016
Telephone: SE +46-8-566 426 95 US +1 646 502 51 20

Moberg Pharma 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 8:00 (CET) on March 10, 2016

Peter Wolpert, CEO, Phone: +46 (0)70 - 735 71 35, E-mail:

Anna Ljung, CFO, Phone: +46 (0)70 – 766 60 30, Email:


About Us

Moberg Pharma AB (publ) is a rapidly growing Swedish pharmaceutical company with OTC sales operations in the U.S. and a distributor network in more than 40 countries. The ompany’s portfolio includes the OTC brands Kerasal®, Kerasal Nail®, Balmex®, NewSkin®, Dermoplast®, Domeboro®. Kerasal Nail® (Emtrix® or Nalox™ in certain markets) is a leading OTC treatment of nail disorders in the U.S., Canada as well as in several markets in EU and Southeast Asia. The company is growing organically as well as through acquisitions. Internal development programs focus on innovative drug delivery of proven compounds and include two clinical stage assets, MOB-015 (onychomycosis) and BUPI (pain management in oral mucositis). Moberg Pharma has offices in Stockholm and New Jersey and the company’s shares are listed on the Small Cap list of the NASDAQ OMX Nordic Exchange Stockholm (OMX: MOB).For further information, please visit: