Moberg Pharma interim report January - March 2017

CONTINUED STRONG GROWTH IN EBITDA  

FIRST QUARTER (JAN–MAR 2017)

  • Net revenue SEK 104.6 million (69.5)
  • EBITDA SEK 16.7 million (3.4)
  • EBITDA for commercial operations SEK 21.0 million (7.0)
  • Operating profit (EBIT) SEK 6.9 million (0.5)
  • Profit after tax SEK -3.0 million (-5.6)
  • Earnings per share SEK -0.17 (-0.40)
  • Operating cash flow per share SEK -0.17 (-0.25)

SIGNIFICANT EVENTS DURING THE FIRST QUARTER

  • Nationwide launch in Japan for Zanmira® Nail (Kerasal Nail®)
  • Additional distribution for New Skin® Spray at Walmart and Walgreens
  • The nomination committee proposes Sara Brandt as a new board member

SIGNIFICANT EVENTS AFTER THE END OF THE QUARTER

  • Additional distribution for Dermoplast® at Walmart and CVS

CEO COMMENTARY

The year got off to an intense start with a focus on our major brands, including recent acquisitions, which are performing well and contributing to both growth and profitability. The expanded launch in Japan offers opportunities in one of the world’s biggest markets, and our pipeline is advancing as planned.

During the first quarter, revenue increased by 51% to 104 MSEK and EBITDA was five times higher than previous year, increasing from 3.4 MSEK to 16.7 MSEK. Growth is mainly driven by our acquisitions, New Skin® and Dermoplast®, which together with Kerasal Nail® account for well above 2/3 of revenue and an even higher share of profitability. Kerasal Nail® has continued to develop strongly while maintaining its market share since the previous year’s re-launch. At the same time, we are seeing slightly weaker development for our smaller brands, which is a natural consequence of our decision to focus our resources where they produce the biggest dividends. We see good opportunities to continue driving organic growth for our major brands.

We are excited about the expanded launch of Zanmira® Nail (Kerasal Nail®) in Japan, which begins in full force in the second quarter. The national launch together with our local partner, CMIC Group, is a major effort from their side. If it succeeds, Japan could become one of our largest distribution markets. At the same time, our partnership with Menarini around Asia is progressing. Distributor sales decreased slightly in the first quarter due to higher inventory levels in Asia, while sales to distributors in Europe increased.

Our pipeline continues to advance. For BUPI, the next step is the applications to launch the Phase 3 program, while patient recruitment to the Phase 3 studies for MOB-015 is ongoing and expected to be completed during the year. A recent survey of nearly 90 U.S. physicians indicates a significant need for a product like MOB-015. The results strengthen our belief in the potential in our pipeline, where I personally see MOB-015 as the company’s biggest asset.

Going forward, we are awaiting the outcome of the Japanese launch, where the majority of the product shipments for the launch are being made and invoiced in the second quarter. We are also looking forward to tracking the performance of our largest brands with the broader distribution for our recent acquisitions and stronger claims for Kerasal Nail® in time for high season in the U.S.

Peter Wolpert, CEO of Moberg Pharma

CONFERENCE CALL
CEO Peter Wolpert will present the report in a conference call at 3 p.m. today, May 9, 2017. Phone +46 (0)8 566 426 95

THIS INFORMATION
This information is information that Moberg Pharma AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 8.00 a.m. (CET) on May 9th 2017  

FOR ADDITIONAL INFORMATION, PLEASE CONTACT:
Peter Wolpert, CEO, telephone: +46 70 735 71 35, e-mail: peter.wolpert@mobergpharma.se
Anna Ljung, CFO, Phone: +46 707 66 60 30, E-mail: anna.ljung@mobergpharma.se

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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® and Fiber Choice®. 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: www.mobergpharma.com.

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