MOBERG PHARMA INTERIM REPORT JANUARY – MARCH 2013
CONTINUED STRONG GROWTH - MOBERG DERMA BECOMES MOBERG PHARMA
FIRST QUARTER (JAN-MAR 2013)
- Revenue MSEK 38.4 (31.0 including milestone payments of MSEK 14.3)
- EBITDA MSEK -2.2 (8.0), profit of MSEK 0.9 excluding acquisition-related costs
- Operating loss MSEK 3.7 (profit: 7.9), loss of MSEK 0.6 excluding acquisition-related costs
- Net loss after tax amounted to MSEK 2.8 (profit: 38.0).
- Loss per share SEK 0.25 (profit: 4.17)
- Operating cash flow per share negative SEK 0.04 (negative: 1.07)
SIGNIFICANT EVENTS DURING THE FIRST QUARTER
- In March, the company decided to discontinue the clinical development program for Limtop.
SIGNIFICANT EVENTS AFTER THE END OF THE QUARTER
- The Annual General Meeting held on April 23 resolved to change the company’s corporate identity to Moberg Pharma AB (publ).
- In May, the distribution agreement with Paladin Labs was extended to also include Kerasal Nail™ in Mexico.
Sales rose 129 percent compared with the first quarter of 2012. The sharp increase resulted from the successful acquisition of our North American operation, combined with strong organic growth. We took over a professional and well-aligned organization and are highly satisfied with the organizations having merged in accordance with schedule and budget. The milestones set prior to the acquisition were surpassed. The acquisition entails a radically improved opportunity to influence our revenues – proprietary sales in the US now account for 41 percent of total sales, while distributors in the rest of the world contribute 59 percent.
The tendency to treat nail discoloration increases as the sun-bathing and swimming season approaches and we are continuing to capture market share. In the U.S., we had a market share of 17 percent for the first quarter, compared with 5 percent a year earlier. Two factors made the higher market share in the U.S. possible: excellent distribution and successful marketing. Kerasal Nail™ is sold over the entire continent and is now available at 28,000 points of sale, at the large chains of Walmart, CVS, Walgreens and Rite Aid, as well as large wholesalers and a number of regional chains. Distribution through Duane Reade (New York) and HEB (Texas) was expanded during the quarter. We continue to see significant growth potential for Kerasal Nail™ in the U.S. market, and are further increasing our marketing activities during the spring. Based on the results of previous campaigns, we are convinced that these resources are well invested. Our partners in other parts of the world are also intensifying their marketing over the March to October period, which should impact sales figures. Nalox™ is now being launched in Spain and Turkey and is sold in more than 25 markets. Launch preparations are being made at full intensity in Canada and recently the agreement with Paladin was also expanded to Mexico.
This is the first interim report under our new company name Moberg Pharma. The change of name was a natural step – the company has been broadened with the acquisition of our U.S. operation and already encompasses products outside the area of dermatology. Also, the new company name better corresponds to our strategy of focusing on additional areas outside dermatology. Our focus on pharmaceuticals based on proven compounds remains.
We see favorable opportunities for regeneration in our pipeline, despite deciding to discontinue the development of Limtop in March. The ongoing Phase II study for MOB015 is progressing according to plan. New product variations also facilitate the continued growth of our existing brands; for example, Jointflex ICE was recently launched at Walgreens in the U.S. We are continuing to work intensively on evaluating products for acquisition and licensing. This year, I expect that we will evaluate more than 100 business opportunities that will hopefully lead to at least one new product.
The strong growth means that we are now in a situation where the level of ongoing revenues is enabling profitability. For accounting purposes, earnings for the first quarter were adversely affected by nonrecurring costs related to the inventory revaluation in conjunction with the U.S. acquisition, which has now been completed. We retain our full-year assessment of continued growth with profitability, although some quarters may report figures in the red.
Peter Wolpert, CEO Moberg Pharma
CEO Peter Wolpert will present the report in a telephone conference today at 10:00 a.m. (CET), May 21st, 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 8:30 am (CET) on May 21st, 2013.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Peter Wolpert, President and CEO of Moberg Pharma
Mobile: +46 70-735 71 35
Magnus Persson, IR
Mobile: +46 73-355 26 01
For further information about Moberg Pharma, please visit: www.mobergpharma.com