Moberg Pharma divests three brands for $10.0 million

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STOCKHOLM, March 7, 2016. Moberg Pharma AB (OMX: MOB) announces that the company has entered into an agreement with Strides Pharma Inc. to divest the brands Jointflex, Fergon and Vanquish for a total consideration of $10 million plus the inventory value at closing.

Moberg Pharma’s strategy is to build value through profitable growth of strategic brands, increasing the value of pipeline assets and acquisitions.

Divesting the three brands enables Moberg Pharma to focus on its core business. The three divested brands had total net sales of $6.1 million in 2015 and originated from earlier acquisitions where the primary purpose was to acquire strategic assets in specialty skin care. The divestment results in a capital gain of $3 million.

The transaction is expected to close within the next four weeks.

“We are pleased with the agreement with Strides which enables us to further focus on our strategic assets and M&A activities. The transaction also results in a capital gain for our shareholders”, says Peter Wolpert, CEO Moberg Pharma.

About this information
Moberg Pharma discloses this information pursuant to the Swedish Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication at 8:00 am (CET) on March 7, 2016.

For additional information contact:
Peter Wolpert, CEO, Telephone: +46 707 35 71 35, E-mail: peter.wolpert@mobergpharma.se
Mats Pettersson, Chairman, Telephone: +46 8 522 307 00, E-mail: info@mobergpharma.se

About Moberg Pharma AB (publ)
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®, Emtrix®, Balmex®and Domeboro. Kerasal Nail®(Emtrix®or Nalox™ in certain markets) is a leading OTC treatment of nail disorders in the U.S., Canada and several EU markets and is currently being launched in Southeast Asia. The company is growing organically as well as through acquisitions. Internal development programs focuses on innovative drug delivery of proven compounds and include two phase II 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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Quotes

We are pleased with the agreement with Strides which enables us to further focus on our strategic assets and M&A activities. The transaction also results in a capital gain for our shareholders
Peter Wolpert, CEO Moberg Pharma