Interim Report, January-September 2015

January-September 2015[1]

  · Net sales reached SEK 14,629 million (10,198), corresponding to an increase
of 43%, 34% at constant exchange rates compared to the previous year.
  · EBITDA, excluding non-recurring items, was SEK 4,856 million (2,946),
corresponding to an increase of 65%, and a margin of 33.2% (28.9).
  · Non-recurring items had a SEK 677 million negative impact on earnings before
tax.
  · Profit after tax amounted to SEK 781 million (677).
  · Earnings per share reached SEK 2.14 (2.15)[2]. Excluding non-recurring
items, earnings per share totaled SEK 3.03 (2.17).
  · Cash earnings per share amounted to SEK 4.95 (6.11)[2]. Excluding non
-recurring items cash earnings per share totaled SEK 7.49 (6.21).
  · Full year forecast: “Meda expects sales for full-year 2015 to reach just
below SEK 20 billion with an EBITDA margin around 32% (excluding non-recurring
items)”.

Third quarter 2015[1]

  · Net sales reached SEK 4,894 million (3,356), corresponding to an increase of
46%, 39% at constant exchange rates compared to the previous year.
  · EBITDA, excluding non-recurring items, was SEK 1,673 million (980),
corresponding to an increase of 71%, yielding a 34.2% margin (29.2).
  · Non-recurring items had a SEK 369 million negative impact on earnings before
tax.
  · Profit after tax amounted to SEK 163 million (174).
  · Earnings per share reached SEK 0.45 (0.55)[2]. Excluding non-recurring
items, earnings per share totaled SEK 1.10 (0.69).
  · Cash earnings per share amounted to SEK 3.38 (2.12)[2]. Excluding non
-recurring items cash earnings per share totaled SEK 3.57 (2.22).

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|1)      For information about non-recurring items, see page 7            |
|2)      Recalculation of comparative figures to consider the bonus issue |
|element in the 2014 new share issue.                                     |
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|Webcasted presentation of the report on November 5 at 10:00 AM.          |
|The presentation can be accessed at www.meda.se/eng/investerare, where a |
|recorded version will also be available until the next interim report.For|
|further inquiries, please contact:                                       |
|Paula Treutiger, VP Corporate Communications & Sustainability,           |
|paula.treutiger@meda.se, +46 733-666 599.                                |
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CEO statement

The third quarter reconfirms our strategy focusing on growth products, optimized
base business and acquisitions. Sales rose to SEK 4,894 million in the quarter,
with organic growth of 4%. Increased sales were driven by a strong performance
in our growth business which was up 16% whereas our base business was in line
with last year at constant exchange rates. While the non-prescription products
CB12 and Saugella failed to live up to expectations, several of our prioritized
products showed double digit growth, e.g. Dona (42%), Dymista (26%), and Elidel
(77%).

Despite turbulence and uncertainty in several emerging markets such as Russia,
CIS and to some extent China, Emerging Markets returned to double digit growth
in the quarter. In the short term, I do not foresee major improvements to market
conditions in Russia, while Greater China is expected to continue to perform
well. In addition, the Middle East and our recently added markets in Southeast
Asia showed strong growth in the quarter and we remain confident about the
potential of the Southeast Asian region.

Western Europe had a mixed performance in the quarter. Sales development in
France continues to be hampered by generic competition on Tambocor while market
performance in Italy was weak. The UK was held back by a very strong Q2. On the
positive side, there was strong development in the Nordic markets in particular.
Dymista continues its growth trajectory in the region with improved market
shares resulting in a growth of 86% in the quarter.

We recorded a strong development in the US in the quarter. The negative impact
from generic competition on Astepro that we have seen in previous quarters has
now faded. The US base product portfolio performed well reflecting strong growth
for Felbatol. Felbatol sales were fueled by positive rebate adjustments in
addition to underlying volume growth. Dymista continued to gain market share,
supporting the overall performance in the US.

As communicated previously, the integration of the Rottapharm business into our
operating units has been successfully achieved. We now operate as one Meda in
all markets. As a result, we have seen a boost in EBITDA and improved
profitability of 5 percentage points, leading to an EBITDA margin of 34% in the
quarter, excluding non-recurring items.

Free cash flow generation recorded a quarterly all-time high in Q3. I am pleased
to see that our cash conversion bounced back to a reassuring 78% of EBITDA after
a weaker Q2. This confirms our ability and commitment to deleverage the business
and prepare for the next stage in building Meda.

For the fourth quarter we foresee continued weaker market performance in Italy
than planned. On a group level, we expect sales of just below SEK 20 billion for
the full year 2015. With regards to profitability, the fast achievement of
synergies from the Rottapharm acquisition has translated into strong EBITDA
numbers during the first nine months of the year. This is encouraging and we
therefore plan for an EBITDA margin around 32% for the full year 2015, excluding
non-recurring items.

Jörg-Thomas Dierks

Group President and CEO

Forward-looking statement

This report is not an offer to sell or a solicitation to buy shares in Meda.
This report also contains certain forward-looking statements with respect to
certain future events and Meda’s potential financial performance. These forward
-looking statements can be identified by the fact that they do not relate only
to historical or current facts and may sometimes include words such as “may”,
“will”, “seek”, “anticipate”, “expect”, “estimate”, “intend”, “plan”,
“forecast”, “believe”, or other words of similar meaning. These forward-looking
statements reflect the current expectations on future events of the management
at the time such statements are made, but are made subject to a number of risks
and uncertainties. In the event such risks or uncertainties materialize, Meda’s
results could be materially affected. The risks and uncertainties include, but
are not limited to, risks associated with the inherent uncertainty of
pharmaceutical research and product development, manufacturing and
commercialization, the impact of competitive products, patents, legal
challenges, government regulation and approval, Meda’s ability to secure new
products for commercialization and/or development, and other risks and
uncertainties detailed from time to time in Meda AB’s interim or annual reports,
prospectuses, or press releases. Listeners and readers are cautioned that no
forward-looking statement is a guarantee of future performance and that actual
results could differ materially from those contained in the forward-looking
statement. Meda does not intend or undertake to update any such forward-looking
statements.

Meda AB discloses the information provided herein pursuant to the Securities
Market Act and/or the Financial Instruments Trading Act. This information was
submitted for publication on November 5, 2015 at 8:00 AM.