Moberg Pharma enters into a definitive agreement to acquire three U.S. OTC brands from Prestige Brands

STOCKHOLM, June 30, 2016. Moberg Pharma AB (OMX: MOB) has signed an agreement to
acquire New Skin®, Fiber Choice® and PediaCare®, three well-established Over-The
-Counter brands in the U.S. from Prestige Brands, Inc. In the latest 12 months
ending March 31, 2016, the Net sales of these brands was approximately $24.4
million. The purchase price is $40 million and Moberg Pharma expects the
acquired brands to contribute to its EBITDA with approximately $5 million for
the 12 months following closing of the transaction. The acquisition is financed
by available cash resources and a tap issue to Moberg’s outstanding bond loan.
The acquired brands will be sold through Moberg’s current OTC channel in the
U.S, primarily in chain drugstores, such as CVS, Walgreens and Rite Aid and in
mass retailers, such as Walmart and Target.

New Skin® is the main profitability contributor in the acquired portfolio and is
well aligned with Moberg’s strategic focus on topical dermatology. New Skin is
the #1 OTC liquid bandage brand in the U.S. It is an antiseptic which kills
germs and dries rapidly to form a clear protective cover.

In addition to New Skin®, the acquired portfolio also contains two mature
brands, Fiber Choice® and PediaCare®. Fiber Choice® is focusing on digestive
health with a compelling line up of product options for daily fiber
supplementation. PediaCare® has a strong equity amongst moms based on highly
effective products for children, primarily within cough cold and analgesics
segments.

Based on Moberg Pharma’s cost structure and accounting principles, the purchase
price corresponds to approximately 8 times expected EBITDA for the three
acquired brands for the 12 months following the closing of the transaction. The
transaction is expected to be completed in July 2016.

Moberg finances the acquisition through available cash and a tap issue to its
outstanding bond loan. The outstanding bond loan has a framework amount of SEK
600 million, out of which SEK 300 million was utilized through an initial issue
in January 2016. The nominal amount of the tap issue in conjunction with the
acquisition is expected to amount to a maximum of SEK 85 million. The bond loan
is listed on Nasdaq Stockholm.

“This acquisition is in line with our strategy to add critical mass to Moberg’s
U.S. operations as well as a leading topical brand to our core dermatology
franchise. This transaction is an excellent use of the proceeds from the bond
loan issue earlier this year and the funds released in the recent divestment of
non-core brands to Strides Pharma Inc. The acquired brands will immediately
contribute significantly to our sales and earnings and also to our long term
financial goal of delivering profitable growth and an EBITDA margin of 25%. In
three recent transactions, we have established relationships with major OTC
players - Bayer, Chattem and now Prestige - which also will facilitate future
transactions”, said Peter Wolpert, CEO of Moberg Pharma AB.

“We see excellent opportunities to build on the brand equity of New Skin.  This
a market leading brand with exciting prospects for growth.  We will leverage our
Innovation Engine to further strengthen the future value proposition of this
brand as well as Fiber Choice and PediaCare to consumers and retailers”, said
Jeff Vernimb, GM of Moberg Pharma North America.

Hansen Law has been engaged as legal advisor for the acquisition. Carnegie
Investment Bank and Swedbank have been engaged as financial advisors and
Gernandt & Danielsson as legal advisor in conjunction with the tap issue.

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 a.m. (CET) on June 30, 2016.
For additional information contact:
Peter Wolpert, CEO, Phone: +46 (0)70 - 735 7135, E-mail:
peter.wolpert@mobergpharma.se
Anna Ljung, CFO, Phone: +46 (0)70 - 766 60 30, E-mail:
anna.ljung@mobergpharma.se
Jeff Vernimb, GM Moberg Pharma North America, Phone: +1 (908) 420 9492, E-mail:
jvernimb@mobergpharma.com
About Moberg Pharma, www.mobergpharma.com
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® and Domeboro®. 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 clinical stage assets, MOB-015 (onychomycosis) and BUPI (pain
management in 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).