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Moberg Pharma Interim report January - March 2014



  • Revenue MSEK 47.4 (38.4)
  • EBITDA MSEK 7.5 (loss: 2.2)
  • EBITDA for Commercial Operations*) MSEK 11.6 (5.3)
  • Operating profit (EBIT) MSEK 5.7 (loss: 3.7)
  • Net profit after tax MSEK 4.1 (loss: 2.8).
  • Earnings per share SEK 0.34 (loss: 0.25)
  • Operating cash flow per share negative SEK 0.24 (neg: 0.04)

*) Commercial Operations include existing portfolio of marketed products including development of line extensions, but not development projects or business development for new products.


  • Moberg Pharma launched a new patent-pending formulation of Kerasal Nail™ in the U.S.
  • Distribution agreement with Menarini for Kerasal Nail™ extended to South East Asia.


  • Moberg Pharma acquired the global rights to a topical formulation for the treatment of oral pain.

We got an excellent start to the year, with strong growth and improved profitability. Our direct sales in the U.S. grew by 115 percent, which was the primary driver combined with cost reductions. The gross margin increased to 79 percent. To increase transparency, we also report the EBITDA margin for our commercial operations (adjusted for R&D and business development costs related to future products), which totaled 24 percent during the first quarter. The long-term financial objectives for the company as a whole are to achieve continued healthy growth and an EBITDA margin of at least 25 percent within three years.

U.S. continued to perform well
The integration of the products we acquired from Bayer has progressed well. All major customers have placed new orders and the products contributed to both sales and earnings. We continue to expand the distribution of Kerasal Nail™ and took a major step into the food retail segment with launches at Safeway (second largest food retail chain in North America) and regional chains Publix and Wegmans. Kerasal Nail™ consumer sales increased by double digits in the first 12 weeks of the year[1] and led to strong replenishment orders. Additionally, sales of Kerasal NeuroCream™, launched in the autumn, developed well and Walgreens expanded distribution of the product from 1,000 to more than 7,000 stores. The combination of organic growth, acquisitions and early orders in advance of the summer nail fungus season, including pipeline orders from several new customers, contributed to a strong and profitable quarter.

Prerequisites for improvement in Europe, Asia progresses according to plan
Sales in the EU remained low compared with the strong first quarter of 2013. Together with our partners we have worked hard to improve the situation. We recently obtained approval to expand the indication for Nalox, which improves possibilities for our distributors to claim the advantages of the product in their marketing and a new market campaign was recently launched. In February, we signed a distribution agreement with Menarini for South East Asia, which we expect to contribute to future growth. The registration work in China and eight markets in South East Asia is proceeding at full intensity.

Profitability of commercial operations clarified by supplementary accounting
The rapid growth of our commercial operations (existing product portfolio) - in parallel with R&D investments in future pharmaceuticals - has made it difficult to analyze Moberg Pharma’s underlying profitability. To facilitate transparency, we are supplementing our accounts so that the earnings contribution from the commercial operations is visible. I am convinced that our R&D and forward-looking business development will prove to be valuable for the company’s shareholders, just as Kerasal Nail™/Nalox™ have been.

Balance between investments and cost reductions
We were disappointed with last year’s profit and initiated cost reductions, which contributed to improving earnings in the first quarter. We are continuing this work in parallel with targeted investments in marketing and selected areas.

Acquisitions of development projects with significant potential and limited risk
In April, we acquired the rights to a Phase II product candidate, with pain relief for oral mucositis as the first indication. The acquisition is an attractive addition to our development portfolio and was completed on favorable terms, with low initial costs until the product delivers profitability. What particularly captured our interest was the pressing medical need, the product's ease of use and the extended pain relief compared with alternatives. In addition to the relatively low development risk, we envisage opportunities to generate revenue in the foreseeable future with long-term sales potential estimated at MUSD 50-100. We also see opportunities for larger indications in oral and throat pain relief.

Favorable prospects for the year
I am very satisfied with the start to the year and the positive contribution from strong early order volumes. While this may have some effect on future quarters, the Board has set the goal of improving earnings compared with the preceding year, something which we see as highly achievable. We continue our work to achieve organic growth and to evaluate opportunities for additional acquisitions.

Peter Wolpert, CEO Moberg Pharma

[1] Retail sales as reported by IRI at MULO, includes food, drug, and mass retail stores, including Walmart, for the 12 week period ending March 24, 2014

Telephone conference
CEO Peter Wolpert will present the report at a teleconference today at 10:30 a.m., May 13, 2014
Telephone: +46 (0)8-50626900, and enter the code 409017

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 May 13st, 2014.

For further information about Moberg Pharma, please visit:

Peter Wolpert, President and CEO of Moberg Pharma
Mobile: +46 70-735 71 35

Peter Östling, IR
Mobile: +46 76-314 09 78