Moberg Pharma interim report January – June 2013
CONTINUED GROWTH AND INCREASED FINANCIAL STRENGTH PREPARING FOR PORTFOLIO EXPANSION
FIRST SIX MONTH (JAN-JUN 2013)
- Revenue MSEK 83.4 (55.5)
- EBITDA MSEK -7.3 (9.4), loss of MSEK 4.2 excluding acquisition-related costs
- Operating loss (EBIT) MSEK 10.3 (profit: 9.3)
- Net loss after tax MSEK 7.0 (profit: 39.4)
- Loss per share SEK 0.65 (earnings: 4.33)
- Operating cash flow per share negative SEK 0.09 (pos: 0.64)
SECOND QUARTER (APR-JUN 2013)
- Revenue MSEK 44.9 (24.5)
- EBITDA MSEK -5.1 (1.4), loss of MSEK 5.1 excluding acquisition-related costs
- Operating loss (EBIT) MSEK 6.6 (profit: 1.4)
- Net loss after tax MSEK 4.3 (profit: 1.4)
- Loss per share SEK 0.39 (earnings: 0.15)
- Operating cash flow per share negative SEK 0.06 (pos: 1.71)
SIGNIFICANT EVENTS DURING THE SECOND QUARTER
- The company changed its corporate identity to Moberg Pharma
- Moberg Pharma and Paladin expanded their distribution agreement for Kerasal Nail™ to Mexico
- Patient enrollment completed in clinical study of MOB-015
SIGNIFICANT EVENTS AFTER THE END OF THE QUARTER
- Financing of portfolio expansion secured through a private placement of MSEK 36 to Bure Equity
- Distribution agreement with Menarini for Kerasal Nail expanded to China
Moberg Pharma is continuing to grow at a rapid pace. Product sales in the second quarter of the year rose 107 percent compared with the year-earlier period. In the U.S., sales performed better than expected and, for the first time, our proprietary sales accounted for the majority of revenue. Kerasal® Nail™ is now the best-selling product in its segment in the U.S with a market share of 19% increasing from 10% in the same period last year . The trend in Europe to date this year has been weaker than expected. We are achieving major successes in such key markets as France, Italy and the Netherlands, although overall growth in Europe is affected by intensifying competition. Increased share of proprietary sales improved our gross margin from 69% to 78% during the first six months.
Increased distribution of our current products
In the U.S., additional retailers, including national mass retailer Target, and regional retailers such as Meijer and Hannaford, have added our products to their shelves. Kerasal® Nail™ is now available at approximately 30 000 retail outlets in the U.S. With increased distribution and strong demand for Kerasal® Nail™, we have increased our marketing investments, which normally peak during the second quarter. We also continue to expand our network of distributors in other parts of the world. In recent months, we signed new distribution agreements for two important and emerging markets – China and Mexico – with our existing partners Menarini Asia-Pacific and Paladin Labs, respectively. The Chinese market for non-prescription products is growing rapidly and presents significant growth opportunities, but naturally also substantial challenges. Preparations for market approval in China have been initiated.
The ongoing clinical study of MOB-015, our drug candidate for the treatment of nail fungus, is continuing according to plan. Patient enrollment for the study was completed during the quarter. To strengthen our pipeline, we are continuously evaluating acquisition and in-licensing opportunities, focusing on OTC brands for the U.S. markets, but also on development projects and technologies.
Strengthened financing and resources for growth
In early July we strengthened our financial position through a private placement to Bure Equity, which enhances our freedom of scope for continued growth. Our organic sales growth will make us profitable, although individual quarters may result in losses, due to timing of marketing investments and large orders from customers and distributors. We are making significant growth investments – in our brands with marketing investments, mainly in Kerasal® Nail™ – but also in the planned expansion of the product portfolio with acquisitions and proprietary development projects. We retain our expectation of achieving profitability on a full-year basis and an EBITDA margin of 25 percent within two to four years.
Strong demand for our products, a larger geographical reach driven by new and expanded distribution agreements, and a strengthened financial position provide excellent conditions for continuing to build a different kind of pharmaceutical company. We are now ready to fuel our growth by adding brands, products and projects to our portfolio through acquisitions and in-licensing.
Peter Wolpert, CEO Moberg Pharma
CEO Peter Wolpert will present the report in a telephone conference today at 10:30 a.m. (CET), August 6th, 2013. Telephone: +46 (0)8-506 26 900 and submit the code 409017
ABOUT THIS INFORMATION
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 am (CET) on August 6th, 2013.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Peter Wolpert, President and CEO of Moberg Pharma Mobile: +46 70-735 71 35 E-mail: firstname.lastname@example.org
Magnus Persson, IR Mobile: +46 73-355 26 01 E-mail: email@example.com
For further information about Moberg Pharma, please visit: www.mobergpharma.com