Moberg Pharma divests Balmex® for $4.25 million

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STOCKHOLM, February 28th 2018, Moberg Pharma AB (OMX: MOB) has entered into an agreement with Randob Labs to divest the brand Balmex® for a total consideration of $4.25 million (34.6 million SEK) plus the inventory value at closing. The divestment is expected to result in a capital gain of circa $0.5 million (4.4 million SEK), enabling Moberg Pharma to further focus resources on its larger brands.

The brand Balmex®, with a number of products for treating and preventing diaper rash, was acquired from Chattem Inc. in April, 2015. The role of Balmex® in the product portfolio has reduced after the 2016 acquisitions. Divesting the brand, enables Moberg Pharma to focus resources on its larger and more profitable brands. The brand generated net sales of $3.8 million (32.8 million SEK) in 2017.

The transaction is expected to close in April.

“We are pleased with the divestment. We have now successfully divested most of our minor brands, enabling us to focus our resources on growing our larger brands”, says Peter Wolpert, CEO Moberg Pharma.

About this information
Moberg Pharma AB is obliged to make this information public pursuant to the EU Market Abuse Regulation (MAR). The information was submitted for publication, through the agency of the contact person set out above, at 08:30 a.m. (CET) on February 28th, 2018

For more information, please contact:
Peter Wolpert, CEO, phone: +1 908 432 22 03 (US), +46 70 735 71 35, e-mail: peter.wolpert@mobergpharma.se
Anna Ljung, CFO, phone: +46 70 766 60 30, e-mail: anna.ljung@mobergpharma.se

About Moberg Pharma, www.mobergpharma.com
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 company’s portfolio includes the OTC brands Kerasal®, Kerasal Nail®, New Skin®, Dermoplast®and Domeboro®. Kerasal Nail®(Emtrix®, Zanmira®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 assets in late-stage clinical development, MOB-015 (onychomycosis, phase 3 studies ongoing) and BUPI (pain management in oral mucositis, preparations for phase 3 studies ongoing). 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).

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Quotes

We are pleased with the divestment. We have now successfully divested most of our minor brands, enabling us to focus our resources on growing our larger brands
Peter Wolpert, CEO Moberg Pharma