Interim Report, January-March 2014

January-March 2014

  · The Group’s net sales reached SEK 3,365 million (3,199), corresponding to
organic growth[1] of 3% compared to the previous year.
  · EBITDA was SEK 1,010 million (923), yielding a 30.0% margin (28.9).
  · Operating profit totaled SEK 462 million (384).
  · Profit after tax amounted to SEK 260 million (208).
  · Earnings per share reached SEK 0.86 (0.70).
  · Cash earnings per share amounted to SEK 1.97 (1.77).

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CEO statement

Meda has seen a positive start to the year. With an increase in net sales of 5%
in the first quarter we are continuing to deliver organic growth of 3% and we
are noticing an improvement in the EBITDA margin to 30.0%, despite the strong
end to 2013.

Dymista was the growth engine during the first quarter and we are continuing to
focus considerable effort on this launch. In addition to increased sales in the
US we are now seeing rising market share in Europe, where the allergy season has
started early this year. Dymista has now been launched on most of the markets in
Europe and is performing well.

In the first quarter, emerging markets displayed organic growth of 2%. We expect
the rate of growth on these markets to continue to fluctuate and vary between
regions and markets. Several markets, including Turkey and Brazil, performed
well during the quarter, while developments in Russia and Ukraine were weaker as
a result of unrest in the region.

The OTC business area showed negative growth of -1% in the first quarter. The
base business is showing stable numbers. As previously mentioned, we have
initiated measures to improve the trend for the more recently launched products
within the OTC area. We have come a long way, and we are in a phase where we are
building brand awareness and shaping the position. However, it takes time to
build brands and to see the impact of the programs that have been implemented.

Organic growth for Western Europe amounted to 2%. The region displayed positive
growth apart from Germany, which was negatively impacted by strong sales at the
end of 2013. We have mentioned before that we have seen an improvement in the
market climate in Southern Europe, and both Spain and Italy have now shown
positive growth for several consecutive quarters, albeit from low levels.

With organic growth of 14% in the first quarter, the US is the region that
contributed the most to Meda’s growth. This was mainly fueled by Dymista and the
launch of Aerospan. The response from asthma specialists is positive. During the
early launch phase we will focus on specialists and experts within the field of
asthma.

The EBITDA margin strengthened for the quarter compared with the full year 2013
and Q4, which is consistent with our objective for the full year. However, I
would like to clarify that we will see variations between the quarters.

Meda’s ambition is to develop into a world-leading specialty pharma company. I
believe that Meda is well-positioned to meet this challenge. Meda has broad
geographic coverage of the global market and a well-established product
portfolio, which combined with continuing product launches offers us excellent
opportunities to grow organically going forward. Intensifying our focus on
acquisitions will be even more important if the company is to achieve its goals.
Meda has both financial and organizational capacity for growth through major
acquisitions as well as a good track-record. I look forward to taking Meda to
the next level, together with my colleagues.

We remain committed to previously announced objectives for the full year on
continued healthy organic growth at the same level as 2013, and an improved
EBITDA margin.

Jörg-Thomas Dierks

CEO

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|1) Organic growth: Sales growth adjusted for currency effects, acquisitions,  |
|disposed operations and revenues from the cooperation agreement with Valeant. |
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|Webcasted presentation of the report on May 7 at 10.30 a.m.                   |
|The presentation can be accessed at www.meda.se/financial                     |
|-information/ (http://www.meda.se/sv/finansiell-information), where a recorded|
|version will also be available until the next interim report is presented.    |
|For further inquiries, please contact:                                        |
|Paula Treutiger, Investor Relations, paula.treutiger@meda.se, +46 733-666 599.|
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