Moberg Pharma AB Interim report January - September 2016



  • Revenue MSEK 244.9 (231.9)
  • EBITDA MSEK 65.9 (42.4)
  • EBITDA for Commercial Operations MSEK 76.0 (59.9)
  • Operating profit (EBIT) MSEK 55.1 (34.1)
  • Net profit after tax MSEK 35.1 (25.1)
  • Earnings per share SEK 2.45 (1.76)
  • Operating cash flow per share SEK -1.64 (pos: 1.99)


  • Revenue MSEK 104.1 (66.6)
  • EBITDA MSEK 29.0 (13.8)
  • EBITDA for Commercial Operations MSEK 32.6 (18.1)
  • Operating profit (EBIT) MSEK 23.4 (10.9)
  • Net profit after tax MSEK 12.8 (8.8)
  • Earnings per share SEK 0.89 (0.61)
  • Operating cash flow per share negative SEK 1.47 (pos: 0.80)

*Note that the profitability includes a capital gain of MSEK 41.1 in Q2 from divestment of Jointflex®, Fergon® and Vanquish®.


  • IND application for MOB-015 Phase 3 were submitted to, and approved by, U.S. FDA. Corresponding applications were approved by the regulatory authorities in Germany, Poland* and Canada.
  • Patient enrollment for the MOB-015 Phase 3 studies has started in North America and Europe.
  • The acquisition of three brands in the U.S. from Prestige Brands was completed on July 7. The purchase price amounted to MUSD 40 and Moberg Pharma expects the acquired brands to contribute approximately MUSD 5 to the company’s EBITDA for the 12 months following closing of the transaction.


  • A European patent was granted for BUPI. The patent is expected to provide coverage through 2031.
  • Moberg Pharma convened a bondholders’ meeting to increase the company’s flexibility in connection with acquisition financing.

* The approval for Poland was in October.


We had very positive momentum in Q3. The strategic investments in Q1 and Q2 are clearly starting to pay off. Already now, the team has delivered on all major milestones for 2016; we closed a major brand acquisition which brings significant scale to our U.S. business and further diversifies our portfolio; we received all regulatory approvals and initiated patient enrolment to phase 3 trials for MOB-015 in North America and Europe; and Kerasal Nail® continued to deliver record market share in the U.S. confirming the success of the relaunch initiated earlier this year.

Significant growth in sales and profitability
Total net sales in Q3 increased by 56% (56% at fixed exchange rates). Net sales excluding divestments and acquisitions increased by 28%. EBITDA increased by 110% to 29 MSEK, equivalent to an EBITDA margin of 28% for the quarter and 23% for the trailing 12 month period[1]. Gross margin decreased in the quarter to 69% (73%) reflecting the change in product mix. Commercial EBITDA margin increased to 31% (27%) for the quarter and to 28% (25%) for the trailing 12 months, due to proportionally lower costs.

Key milestones - Integration of acquired brands progressing and Phase 3 enrollment initiated for MOB-015
As expected, the acquired brands – and in particular New Skin® - made a significant contribution to Q3 results. These products are sold through Moberg’s current sales channels in the U.S, primarily in chain drugstores and in mass retailers, which enables a smooth integration, an overall improved position at U.S. retail and we can also benefit from economies of scale by already having a sales platform in place. The integration is progressing according to plan and is expected to be finalized during Q4.

All health authority approvals have been obtained for initiation of MOB-015 Phase 3 studies in U.S, Canada, Germany and Poland. Patient enrollment has begun with the objective of enrolling 700 patients by mid-2017. Both MOB-015 and BUPI 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 franchise in select territories. For BUPI, the first patent approval in the EU was a key milestone, securing IP protection to 2031.

Direct sales – Growth fueled by acquired brands and new all-time high market share for Kerasal Nail®
Direct sales increased by 61% in the third quarter (a 60% increase at fixed exchange rates). Excluding divestments and acquisitions, the increase was 12%. For Kerasal Nail®, the effects of the marketing investments during the peak season drove further market share increases as well as improved profitability. L26W the market share increased to 29%[2], a five percentage point gain vs last year. Kerasal Nail® was also a key driver to get the whole category as such back to growth over the peak season (L26W: +2%). In the UK, launch activities are progressing according to plan.

Growth also in distributor sales – in Asia as well as Europe
Distributor sales grew by 42% (40% at fixed exchange rates). Distributor sales excluding divestments, i.e. distributor sales of Kerasal Nail and Emtrix only, increased by 88%. Sales in RoW increased by 62% (excluding divested brands) with Emtrix®/Kerasal Nail® continuing to establish leading positions in most countries launched, most recently in Taiwan. The dynamic Asian market represents a significant long-term growth opportunity where a “glocal” strategy, reflecting the different market conditions within the region, is key for success. We continue to deepen the launch and lifecycle management strategy in close interaction with our partner Menarini APAC. Sales to Europe grew by 158% (excluding divested brands).

Positive momentum provides value creation opportunities
Excellent results and progress achieved to date enable additional value creation opportunities. To ensure optimal financing of future acquisition opportunities, we have engaged Carnegie Investment Bank as adviser and summon today a bondholders’ meeting in which we propose to gain further flexibility in our debt-financing. Our proposal is supported by key bondholders and enables better access to the remaining 215 MSEK of the current bond facility in connection with further acquisitions of profitable assets.

Our proven commercial niche strategy enables us to grow a profitable business with a significant potential at reasonable risk. We have several attractive business opportunities in front of us, including an exclusive option to the end of 2017 to acquire Dermoplast, an attractive dermatology brand from Prestige Brands. The option provides us with a one-time right to perform an evaluation of Dermoplast on an exclusive basis, and after such evaluation we may, at our own discretion, decide if we wish to complete an acquisition or not. We have recently informed Prestige Brands of our wish to initiate such evaluation.

All in all, I am very pleased with the progress and our prospects to create value and take Moberg to the next level.

Peter Wolpert, CEO Moberg Pharma

[1]Note that the trailing 12 months include the capital gain of 41,4 MSEK in Q2 2016 from the brand divestment

[2]U.S. retail sales of nail fungus products excluding private label in Multi Outlet Stores over the last 26 weeks ending October 2, 2016 as reported by SymphonyIRI

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

About this information
This information is information that Moberg Pharma AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 8:00 a.m. CET on November 8, 2016.

For additional information, please contact:
Peter Wolpert, CEO, Phone: +46 707 35 71 35, E-mail:
Anna Ljung, CFO, Phone: +46 707 66 60 30, E-mail:


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:




We had very positive momentum in Q3. The team has already now delivered on all major milestones for 2016
Peter Wolpert, CEO of Moberg Pharma