Moberg Pharma is contemplating a potential bond issue and updates financial targets

STOCKHOLM, January 21st, 2016. Moberg Pharma AB (OMX: MOB) announces that the
company intends to issue a bond and has engaged Carnegie Investment Bank and
Swedbank as financial advisors. The issue proceeds are intended to be used for
general corporate purposes, including accretive add-on acquisitions.
Moberg Pharma’s strategy is to generate returns to shareholders by profitable
growth of strategic brands, value creating acquisitions and commercialization of
pipeline assets. Moberg Pharma’s long-term financial goal is to achieve an
EBITDA margin of at least 25 percent.

To enable future growth, Moberg Pharma intends to make significant investments
during 2016, focusing on strengthening brand platforms for the company’s
strategic brands in the U.S., increased international distribution, acquiring
additional brands and initiating Phase III studies for MOB-015. As a consequence
of decided investments and initiatives, the EBITDA margin in 2016 will be lower
than the previously communicated margin of at least 25 percent. The long-term
financial goal of achieving an EBITDA margin of at least 25 percent remains.

Moberg Pharma’s North American subsidiary markets and sells several strategic
brands through its access to all major retailers and the company’s products are
available at more than 30,000 points-of-sale in the U.S. In 2016, Moberg Pharma
plans to invest in these brands through strengthened positioning and new
marketing campaigns based on comprehensive market research.

In the last few years, Moberg Pharma has completed four acquisitions, primarily
in the U.S., with a total acquisition volume of approximately $35 million. The
company continuously evaluates potential acquisitions and intends to increase
its acquisition activities going forward focusing on brands and products for
which existing infrastructure and sales channels can be utilized.

In addition to its commercial operations, Moberg Pharma sees significant
potential for value creation by developing MOB-015 through Phase III. MOB-015
peak sales potential is estimated to $250–500 million annually in the rapidly
growing market for nail fungus drugs.

“Moberg Pharma has in five years grown from zero to close to SEK 300 million in
revenue and created a profitable business. We are in a position to strengthen
the company and create considerable value for our shareholders. Short-term, we
make significant investments while maintaining our long-term financial goal of
achieving an EBITDA margin of at least 25 percent”, says Peter Wolpert, CEO
Moberg Pharma.

As a part of this development, Moberg Pharma evaluates the possibility to
utilize its strong balance sheet and diversify its financing by turning to the
Nordic corporate bond market as a potential financing source. The issue proceeds
from a potential bond issue will be used for general corporate purposes,
including accretive add-on acquisitions.

Carnegie Investment Bank and Swedbank have been engaged as financial advisors
and Gernandt & Danielsson as legal advisor to evaluate the Company’s potential
issuance of a corporate bond on the Nordic corporate bond market.

About this information
Moberg Pharma discloses this information pursuant to the Swedish Securities
Markets Act and/or the Financial Instruments Trading Act. The information was
submitted for publication at 8:00 am (CET) on January 21, 2016.
For additional information contact:
Peter Wolpert, CEO, Telephone: +46 707 35 71 35, E-mail:
peter.wolpert@mobergpharma.se
Anna Ljung, CFO, Telephone: +46 707 66 60 30, E-mail: anna.ljung@mobergpharma.se
About Moberg Pharma AB (publ)
Moberg Pharma AB (publ) is a rapidly growing Swedish pharmaceutical company with
OTC sales operations in the U.S. and a distributor network in more than 40
countries. The company’s portfolio includes the OTC brands Kerasal®, Kerasal
Nail®, Balmex®, Domeboro®, Jointflex®, Vanquish®, and Fergon®. Kerasal Nail®
(Emtrix® or Nalox™ in certain markets) is a leading OTC treatment of nail
disorders in the U.S., Canada and several EU markets and is currently being
launched in Southeast Asia. The company is growing organically as well as
through acquisitions. Internal development programs focuses on innovative drug
delivery of proven compounds and include two phase II assets, MOB-015
(onychomycosis) and BUPI (oral mucositis). Moberg Pharma has offices in
Stockholm and New Jersey and the company’s shares are listed on the Small Cap
list of the NASDAQ OMX Nordic Exchange Stockholm (OMX: MOB). For further
information, please visit: www.mobergpharma.com.