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Moberg Pharma AB Interim Report January – June 2016



  •  Revenue MSEK 140.7 (165.3)
  •  EBITDA MSEK 31.8 (28.5)
  •  EBITDA for Commercial Operations MSEK 43.4 (41.9)
  •  Operating profit (EBIT) MSEK 31.8 (23.2)
  •  Net profit after tax MSEK 22.3 (16.4)
  •  Earnings per share SEK 1.56 (1.13)
  •  Operating cash flow per share SEK -0.16 (pos: 1.20)


  •  Revenue MSEK 71.3 (92.2)
  •  EBITDA MSEK 31.2 (11.1)
  •  EBITDA for Commercial Operations MSEK 36.4 (16.3)
  •  Operating profit (EBIT) MSEK 31.2 (8.3)
  •  Net profit after tax MSEK 28.0 (5.5)
  •  Earnings per share SEK 1.96 (0.38)
  •  Operating cash flow per share SEK 0.09 (1.52) 

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


  •  Acquisition of three brands from Prestige Brands in the U.S. for MUSD 40 (transaction completed in July)
  •  MSEK 85 tap issue of the company’s outstanding bond loan
  •  Launch in Japan initiated for our nail product
  •  Patents for MOB-015 granted in several territories, including the U.S., Canada, the EU and Japan.
  •  Exercised employee stock option program increased the number of shares and votes in June by 71,666 to 14,289,188
  •  Divestment of the Jointflex®, Fergon® and Vanquish® brands for MUSD 10 completed on April 1


  •  IND application for phase 3 submitted to the U.S. Food and Drug Administration (FDA) and corresponding applications to the authorities in Germany, Poland and Canada for MOB-015
  •  Acquisition of New Skin®, Fiber Choice® and PediaCare® completed on July 7

In Q2, we secured significant drivers for future growth. The acquisition of brands from Prestige was closed on July 7 and is expected to double reported sales of our U.S. franchise. New Skin® in particular will strengthen our dermatology franchise and become a major profit contributor starting from Q3. Kerasal Nail® delivered a record 28% market share in the U.S. and we initiated launches in markets such as Japan and Taiwan. For MOB-015, we submitted Phase 3 applications and expect to start enrolling patients in the coming months.

Due to the divestments of non-core brands completed on April 1, Q2 2016 numbers cannot be directly compared to Q2 2015. Total net sales declined with 23% (21% at fixed exchange rates), and net sales excluding the divested brands declined with 13%. The EBITDA margin, including the brand divestment, increased to 47% for the quarter and 21% for last 12 months, a result primarily due to the gain from the brand divestment. The gross margin in the quarter was 72% (78%). The Commercial EBITDA margin was 51% in the second quarter and 27% for the last 12 months. Excluding the capital gain from the brand divestment, the EBITDA margin was -11% in Q2, due to the significant investment in the Kerasal Nail® repositioning. 

Transforming acquisition and Phase 3 submission for MOB-015
On July 7, we completed the acquisition of New Skin®, Fiber Choice® and PediaCare® from Prestige Brands. The transaction is in line with our strategic focus and is expected to double net sales of our U.S. franchise and to contribute an estimated $5 million to our EBITDA over the next 12 months. The acquisition is expected to immediately contribute to net sales and profitability. The transaction was fully debt-financed through our recent bond loan, which makes it an excellent contributor to earnings per share.

We recently submitted Phase 3 applications for MOB-015 in the U.S., Canada, Germany and Poland. We expect to start enrollment in Q3 of in total 675 patients. Both our pipeline assets 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 franchises in select territories.

Direct sales - All time high U.S. market share for Kerasal Nail®, decline due to discontinued products 
Direct sales, excluding divested brands, declined by 7% in the second quarter (decline by 5% at fixed exchange rates) due to discontinued product variants and a decline for Kerasal Ointment. All other products delivered growth. The significant marketing investment in Kerasal Nail resulted in a new all-time high U.S. market share, although it had a short-term negative impact on profitability. Last 12 weeks, market share increased by five points to 28%[1] compared to the same period last year. Kerasal Nail delivered 25% value growth1 (in sales to consumers) and was the key driver for the category to resume growth (+2%). Note that there is a lag of at least one month between growth in consumer sales and effects on net sales. Since marketing is seasonal and peaking in Q2, we expect a positive effect on sales and profitability in Q3. On April 1, we successfully divested non-core brands for $10 million resulting in a capital gain of 41 MSEK. Recently, a launch in the UK was initiated opening UK as our second direct sales market after the U.S.

Expansion continues in Asia
Distributor sales, excluding divested brands, declined by 27% (decline by 26% at fixed exchange rates). The majority of the decline originates from lower sales in Europe (decline by 43%) related to increased competition. Going forward, we expect European sales to be at a lower level. In Asia, total volumes in the first half of 2016 have increased by 20% and Emtrix®/Kerasal Nail® is reaching market leading positions in most countries launched. Test launches have been initiated in Japan and are progressing in China. However, RoW sales excluding divested brands, declined at 6% in Q2 due to volume discounts. Asia is expected to contribute to drive long-term growth.  

Focus on value creation
I am very excited with our recent acquisition, market share gains and pipeline progress. I firmly believe that MOB-015 will give us the platform to become a true global leader within the nail fungus category. We are on track to meet our long-term targets and to drive growth organically as well as through acquisitions.

Peter Wolpert, CEO Moberg Pharma

CEO Peter Wolpert will present the report at a teleconference today at 3:00 p.m., CET August 9, 2016. Telephone: SE +46-8-566 426 95 US: +1 646 502 51 20

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 August 9, 2016.

Peter Wolpert, CEO, tel. +46 (0)8-522 307 00,
Anna Ljung, CFO, tel. +46 (0)8-522 307 01,

For more information about Moberg Pharma´s operations, please visit the company´s website at

[1] U.S. retail sales of nail fungus products excluding private label in Multi Outlet Stores over the last 12 weeks ending June 15, 2016 as reported by SymphonyIRI