Moberg Pharma AB (Publ) Interim report January – March 2015

RAPID GROWTH IN SALES AND PROFITABILITY
FIRST QUARTER

  · Revenue MSEK 73.1 (47.4)
  · EBITDA MSEK 17.4 (7.5)
  · EBITDA for Commercial Operations MSEK 25.6 (11.6)
  · Operating profit (EBIT) MSEK 14.9 (5.7)
  · Net profit after tax MSEK 10.9 (4.1).
  · Earnings per share SEK 0.75 (0.34)
  · Operating cash flow per share negative SEK 0.35 (neg: 0.24)

SIGNIFICANT EVENTS DURING THE FIRST QUARTER

  · Moberg Pharma and Menarini Group expand Emtrix collaboration to include
Russia and Ukraine
  · Approval in China and launch activities initiated in Malaysia, Singapore and
Hong Kong
  · New product variants of Kerasal Nail launched in the U.S.
  · Patents approved in the U.S. and EU for MOB-015 and for Kerasal Nail in the
U.S.
  · Expanded distribution for Domeboro® with a launch at Walmart

SIGNIFICANT EVENTS AFTER THE QUARTER

  · Moberg Pharma acquired product rights for Balmex® in the U.S. for $3.9
million from Chattem, a subsidiary of Sanofi.

CEO COMMENTARY
A successful first quarter jump-started the year with strong operational
performance across all areas of the business and especially for our distributor
sales. For the first quarter we delivered 53% growth in Net Sales (27%, at fixed
exchange rates) and a significant improvement in EBITDA, which grew 131% versus
Q1 of last year and represented an EBITDA margin of 24%. The gross margin
remains strong at 77% (79%). EBITDA for our commercial operations (excluding R&D
and business development costs related to future products) was 25,6 MSEK (12,2)
in the first quarter, equaling 35% Commercial EBITDA margin.

Growth in U.S. direct sales fuelled by a favorable exchange rate
U.S. sales grew by 38% in the first quarter (7%, at fixed exchange rates) with
Kerasal Nail® as the key growth driver and a U.S. market share exceeding
20%[1] (http://connect.ne.cision.com#_ftn1). The launch of two new line
extensions - Kerasal Nail Fungal Nail Repair and Kerasal Nail Complete Care –
have commenced according to plan and the products are now on the shelves at CVS,
Walgreens and most recently Walmart. We also succeeded in expanding the
distribution of Domeboro® to Walmart. We have made several enhancements to our
media strategy and planning and look forward to evaluating the benefits of these
changes as we approach the peak season for our main brands.

The recent acquisition of Balmex®, with products for diaper rash, fits well in
our U.S. portfolio. It is immediately accretive and brings economies of scale to
our operations as we fully leverage our infrastructure and the integration model
we established following our previous brand acquisition. While the Balmex brand
has a lower gross margin than our current business, it is expected to contribute
positively to our long term goal of profitable growth and 25% EBITDA margin.

Rapid growth in distributor sales
Distributor sales grew by 102% in the first quarter excluding milestone payments
(85%, at fixed exchange rates) with Asia, Europe and Canada all contributing to
the sales growth. Accelerating growth in RoW markets - where the sales tripled
compared to the first quarter last year - was a key contributor and Asia is
expected to be a main growth driver in 2015. To date, launches have been
initiated in three markets in the region; Singapore, Hong Kong and Malaysia. In
the six months after launch in Malaysia, Emtrix has established a market leading
position with 45% market share for the full year of 2014. Sales continued
strongly in the first quarter of this year. In Europe, strengthened claims and
new marketing campaigns have been implemented ahead of the peak season starting
in Q2 2015. In the first quarter, sales to European distributors grew by 55%.
One year after the launch in Canada, Emtrix® has achieved well above 50% market
share and continues to drive growth. We are continuously evaluating
opportunities to expand our distribution to new markets. As always in a
distributor business there are fluctuations between quarters - we had lower
volume in Q4 2014, with sales shifting to Q1 2015 for Emtrix/Nalox as well as
Jointflex.

Innovation engine – patent approvals strengthens portfolio
Our innovation engine delivered key milestones during the first quarter with
patent approvals for MOB-015 in U.S. and Europe as well as for Kerasal Nail in
the U.S. Discussions with potential financial and industrial partners for MOB
-015 continue, including alternatives in which Moberg Pharma can retain rights
in key territories through Phase III. For BUPI, patient recruitment to the
clinical study has been slower than expected. The latest timeline indicates that
topline results will be available in the fall.

Excellent position to drive further growth and value creation
Through strong operational performance and the recent acquisition of Balmex, we
strengthen our base business and are trending towards our long-term financial
goal (25% EBITDA margin under profitable growth). We continue to focus on
becoming the number one player in nail fungus and to drive growth organically as
well as through targeted acquisitions.

Peter Wolpert, CEO Moberg Pharma

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[1] (http://connect.ne.cision.com#_ftnref1) U.S. retail sales of nail fungus
products excluding private label in Multioutlet Stores over the last 52 weeks
ending March 22 , 2015 as reported by SymphonyIRI

TELEPHONE CONFERENCE
CEO Peter Wolpert will present the report at a teleconference on Monday, May 11,
2015 at 10:30 a.m. CET. Telephone: SE: +46 8 566 426 63, US: +1 855 753 22 35

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 May 11, 2015.

For more information about Moberg Pharma’s operations, please visit the
company’s website at www.mobergpharma.com
FOR MORE INFORMATION, PLEASE CONTACT
Peter Wolpert, CEO, tel. +46 (0)8-522 307 00,
peter.wolpert@mobergpharma.se (peter.wolpert@mobergderma.se)
Anna Ljung, CFO, tel. 08-522 307 01, anna.ljung@mobergpharma.se