Moberg Pharma interim report January – June 2013

CONTINUED GROWTH AND INCREASED FINANCIAL STRENGTH PREPARING FOR PORTFOLIO
EXPANSION
FIRST SIX MONTH (JAN-JUN 2013)

  · Revenue MSEK 83.4 (55.5)
  · EBITDA MSEK -7.3 (9.4), loss of MSEK 4.2 excluding acquisition-related costs
  · Operating loss (EBIT) MSEK 10.3 (profit: 9.3)
  · Net loss after tax MSEK 7.0 (profit: 39.4)
  · Loss per share SEK 0.65 (earnings: 4.33)
  · Operating cash flow per share negative SEK 0.09 (pos: 0.64)

SECOND QUARTER (APR-JUN 2013)

  · Revenue MSEK 44.9 (24.5)
  · EBITDA MSEK -5.1 (1.4), loss of MSEK 5.1 excluding acquisition-related costs
  · Operating loss (EBIT) MSEK 6.6 (profit: 1.4)
  · Net loss after tax MSEK 4.3 (profit: 1.4)
  · Loss per share SEK 0.39 (earnings: 0.15)
  · Operating cash flow per share negative SEK 0.06 (pos: 1.71)

SIGNIFICANT EVENTS DURING THE SECOND QUARTER

  · The company changed its corporate identity to Moberg Pharma
  · Moberg Pharma and Paladin expanded their distribution agreement for Kerasal
Nail™ to Mexico
  · Patient enrollment completed in clinical study of MOB-015

SIGNIFICANT EVENTS AFTER THE END OF THE QUARTER

  · Financing of portfolio expansion secured through a private placement of MSEK
36 to Bure Equity
  · Distribution agreement with Menarini for Kerasal Nail expanded to China

CEO COMMENTARY
Moberg Pharma is continuing to grow at a rapid pace. Product sales in the second
quarter of the year rose 107 percent compared with the year-earlier period. In
the U.S., sales performed better than expected and, for the first time, our
proprietary sales accounted for the majority of revenue. Kerasal® Nail™ is now
the best-selling product in its segment in the U.S with a market share of 19%
increasing from 10% in the same period last year . The trend in Europe to date
this year has been weaker than expected. We are achieving major successes in
such key markets as France, Italy and the Netherlands, although overall growth
in Europe is affected by intensifying competition. Increased share of
proprietary sales improved our gross margin from 69% to 78% during the first six
months.

Increased distribution of our current products
In the U.S., additional retailers, including national mass retailer Target, and
regional retailers such as Meijer and Hannaford, have added our products to
their shelves. Kerasal® Nail™ is now available at approximately 30 000 retail
outlets in the U.S. With increased distribution and strong demand for Kerasal®
Nail™, we have increased our marketing investments, which normally peak during
the second quarter. We also continue to expand our network of distributors in
other parts of the world. In recent months, we signed new distribution
agreements for two important and emerging markets – China and Mexico – with our
existing partners Menarini Asia-Pacific and Paladin Labs, respectively. The
Chinese market for non-prescription products is growing rapidly and presents
significant growth opportunities, but naturally also substantial challenges.
Preparations for market approval in China have been initiated.

Pipeline progress
The ongoing clinical study of MOB-015, our drug candidate for the treatment of
nail fungus, is continuing according to plan. Patient enrollment for the study
was completed during the quarter. To strengthen our pipeline, we are
continuously evaluating acquisition and in-licensing opportunities, focusing on
OTC brands for the U.S. markets, but also on development projects and
technologies.

Strengthened financing and resources for growth
In early July we strengthened our financial position through a private placement
to Bure Equity, which enhances our freedom of scope for continued growth. Our
organic sales growth will make us profitable, although individual quarters may
result in losses, due to timing of marketing investments and large orders from
customers and distributors. We are making significant growth investments – in
our brands with marketing investments, mainly in Kerasal® Nail™ – but also in
the planned expansion of the product portfolio with acquisitions and proprietary
development projects. We retain our expectation of achieving profitability on a
full-year basis and an EBITDA margin of 25 percent within two to four years.

Strong demand for our products, a larger geographical reach driven by new and
expanded distribution agreements, and a strengthened financial position provide
excellent conditions for continuing to build a different kind of pharmaceutical
company. We are now ready to fuel our growth by adding brands, products and
projects to our portfolio through acquisitions and in-licensing.

Peter Wolpert, CEO Moberg Pharma

TELEPHONE CONFERENCE
CEO Peter Wolpert will present the report in a telephone conference today at
10:30 a.m. (CET), August 6th, 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 8:00 am (CET) on August 6th, 2013.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Peter Wolpert, President and CEO of Moberg Pharma Mobile: +46 70-735 71 35 E
-mail: peter.wolpert@mobergpharma.se
Magnus Persson, IR Mobile: +46 73-355 26 01 E-mail:
magnus.persson@mobergpharma.se

For further information about Moberg Pharma, please visit: www.mobergpharma.com