MEDIVIR AB – INTERIM REPORT, SECOND QUARTER 2015


Financial summary
Second quarter 2015 (2014)

  · Net turnover totalled SEK 245.8 million (564.0 m), of which SEK 165.6
million (500.7 m) comprised second quarter royalties for simeprevir.
  · Revenues from Medivir’s own pharmaceutical sales totalled SEK 55.1 million
(62.9 m), of which SEK 13.2 million (21.7 m) derived from sales of OLYSIO® and
SEK 41.9 million (41.2 m) from sales of other pharmaceuticals.
  · The profit after tax was SEK 64.1 million (327.8 m).
  · Basic and diluted earnings per share totalled SEK 2.21 (10.49) and SEK 2.19
(10.28), respectively.
  · The cash flow from operating activities amounted to SEK 64.3 million (88.7
m).

Six months 2015 (2014)

  · Net turnover totalled SEK 461.7 million (772.2 m), of which SEK 294.2
million (662.4 m) comprised the first six months royalties for simeprevir.
  · Revenues from Medivir’s own pharmaceutical sales totalled SEK 141.9 million
(109.2 m), of which SEK 47.4 million (21.7 m) derived from sales of OLYSIO® and
SEK 94.5 million (87.5 m) from sales of other pharmaceuticals.
  · The profit after tax was SEK 130.7 million (611.7 m).
  · Basic and diluted earnings per share totalled SEK 4.50 (19.57) and SEK 4.46
(19.18), respectively.
  · The cash flow from operating activities amounted to SEK 269.6 million (31.0
m).

+------------------------------+-------+-----+-------+-----+---------+
|Summary of the Group’s        |     Q2      |    Q1-Q2    |Full year|
|figures, continuing operations|             |             |         |
|(SEK m)                       |             |             |         |
+------------------------------+-------+-----+-------+-----+---------+
|                              | 2015  |2014 | 2015  |2014 |  2014   |
+------------------------------+-------+-----+-------+-----+---------+
|Net turnover                  |  245.8|564.0|  461.7|772.2|  1 767.0|
+------------------------------+-------+-----+-------+-----+---------+
|Gross profit                  |  214.9|518.8|  397.7|700.9|  1 593.0|
+------------------------------+-------+-----+-------+-----+---------+
|Operating profit before       |  104.9|424.4|  189.6|521.2|  1 221.9|
|depreciation and amort.       |       |     |       |     |         |
|(EBITDA)                      |       |     |       |     |         |
+------------------------------+-------+-----+-------+-----+---------+
|Operating profit (EBIT)       |   96.1|416.2|  172.2|504.9|  1 188.7|
+------------------------------+-------+-----+-------+-----+---------+
|Profit/loss before tax        |   85.4|418.4|  168.2|508.7|  1 192.7|
+------------------------------+-------+-----+-------+-----+---------+
|Profit/loss after tax         |   64.1|327.8|  130.7|611.7|  1 132.7|
+------------------------------+-------+-----+-------+-----+---------+
|Operating margin, %           |   39.1| 73.8|   37.3| 70.0|     67.3|
+------------------------------+-------+-----+-------+-----+---------+
|Basic earnings per share, SEK |   2.21|10.49|   4.50|19.57|    36.24|
+------------------------------+-------+-----+-------+-----+---------+
|Diluted earnings per share,   |   2.19|10.28|   4.46|19.18|    35.90|
|SEK                           |       |     |       |     |         |
+------------------------------+-------+-----+-------+-----+---------+
|Net worth per share, SEK      |   55.7| 46.9|   55.7| 46.9|     63.4|
+------------------------------+-------+-----+-------+-----+---------+
|Return on equity              |    5.8| 32.2|    9.7| 43.9|     84.1|
+------------------------------+-------+-----+-------+-----+---------+
|Cash flow from operating      |   64.3| 88.7|  269.6| 31.0|  1 014.4|
|activities                    |       |     |       |     |         |
+------------------------------+-------+-----+-------+-----+---------+
|Liquid assets and short-term  |1 043.4|430.4|1 043.4|430.4|  1 395.6|
|investments at period end     |       |     |       |     |         |
+------------------------------+-------+-----+-------+-----+---------+
|R&D spending/total opex, %    |   60.2| 62.8|   61.1| 59.4|     60.8|
+------------------------------+-------+-----+-------+-----+---------+

Conference call for investors, analysts and the media
The Interim Report for the second quarter of 2015 will be presented by Medivir’s
President & CEO,
Niklas Prager, and members of Medivir’s management group.
Time: Thursday, 20 August 2015, at 14.00 (CET).

Phone numbers for participants from:
Sweden +46 (0)8 566 426 62
Europe +44 20 342 814 09
USA +1 855 831 5945
The conference call will also be streamed via a link on the website:
www.medivir.com
The presentation will be available on Medivir’s website after completion of the
conference.
CEO’s comments
Q2 saw us continuing to both build our research portfolio’s value and to
increase our focus on the core areas of infectious diseases and oncology.
We strengthened the oncology component of our research portfolio by initiating a
partnership with Cancer Research Technology (CRT) and The University of Marburg
to develop a new class of drugs to treat cancer. The collaboration aims to
develop molecules that target the ADAM8 protein, which is linked to tumour
survival, cell invasion and metastasis. CRT has an excellent reputation in the
international cancer research community and the partnership not only
demonstrates the strength of Medivir’s technology platform, but also validates
its potential in the field of cancer research.
The progress being made by our in-house oncology projects was evidenced by the
announcement to progress the development of the HCC project for the treatment of
hepatocellular carcinoma with already identified promising lead molecules. The
aim is to develop specifically liver targeted nucleotide prodrugs using our
expertise in nucleotide and nucleoside science.
Medivir elected to end its development of the MIV-247 cathepsin S inhibitor
after the preclinical safety studies produced unfavourable findings, and which
constituted a further step in focusing on our core areas. This decision marked
our withdrawal from research into neuropathic pain.
The preparations for a clinical phase II trial with MIV-711 in osteoarthritis by
the year-end are proceeding according to plan with ongoing preclinical
regulatory safety studies.
Partnership discussions are continuing with a number of potential partners with
regard to our internal hepatitis C project, MIV-802.
After the quarter end, we announced that our outlicensed projects partnered with
Janssen have also made progress: The AL-704 HCV nucleotide, also known as JNJ
-54257099, entered clinical phase I development in early July. In addition, a
phase I trial with a triple combination product, where the primary objective is
to investigate the effect of the combination of simeprevir and odalasvir on the
pharmacokinetics of AL-335 (a nucleotide-based HCV polymerase inhibitor) was
initiated.
We conducted a reorganisation of our research operations as part of our ongoing
work with operational optimisation, and entered into a partnership with GVK BIO,
as part of this change. All of our external synthetic chemistry activities will
now be concentrated within a single research unit at GVK, and the addition there
of a further 20 or so research staff will enable us to accelerate our synthesis
work. The aim is to enhance the efficiency and improve the quality of our
research projects, but also, in the longer term, to cut research costs and
increase flexibility. These changes meant that around 10 employees at Medivir’s
research units in Sweden and the UK were made redundant.

Royalty income attributable to the hepatitis C drug, OLYSIO® (simeprevir)
totalled SEK 166 million in the second quarter. Increased competition resulted
in a fall in global net sales of OLYSIO® in comparison with the corresponding
quarter of the previous year.
Our Nordic pharmaceutical sales organisation with its two arms, Innovative
Specialty Care and Nordic Brands, posted combined sales of SEK 55 million during
the quarter. Sales of OLYSIO® accounted for SEK 13 million of this total, while
Nordic Brands posted a year-on-year increase in sales of 1 per cent. OLYSIO® has
established a niche position in the Nordic region, with the drug primarily
prescribed for those patients who have proved most difficult to treat.
Overall, the second quarter has delivered progress in both our partnered
projects and our in-house projects at the same time as we broadened our pipeline
through external partnerships. This is all according to plan and I am convinced
that the ongoing progress of our projects will ensure that we continue to build
long-term value within Medivir.
Niklas Prager
President and CEO
Upcoming reporting dates:
Interim Report Q3 (January–September)
20 November 2015
Full year report 2015
18 February 2016
For further information, please contact:
Niklas Prager, President & CEO, phone: +46 (0) 8 407 64 30
Ola Burmark, CFO, mobile: +46 (0)725-480 580.
Medivir is required under the Securities Markets Act to make the information in
this press release public.
The information was submitted for publication at 08.30 CET on 20 August 2015.
About Medivir
Medivir is a research based pharmaceutical company with a research focus on
infectious diseases and oncology. We have a leading competence within protease
inhibitor design and nucleotide/nucleoside science and we are dedicated to
develop innovative pharmaceuticals that meet great unmet medical need. Our
commercial organization provides a growing portfolio of specialty care
pharmaceuticals on the Nordic market. Medivir is listed on the Nasdaq Stockholm
Mid Cap List.

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