MEDIVIR AB – INTERIM REPORT, JANUARY – JUNE 2016

Financial summary

Second quarter 2016

  · Net turnover totalled SEK 81.3 million (245.8 m), of which SEK 24.2 million
(165.6 m) comprised royalties for simeprevir.
  · Revenues from Medivir’s own pharmaceutical sales totalled SEK 50.1 million
(55.1 m), of which SEK 5.6 million (13.2 m) derived from sales of OLYSIO® and
SEK 44.5 million (41.9 m) from sales of other pharmaceuticals.
  · The profit after tax was SEK -39.8 million (64.1 m).
  · Basic and diluted earnings per share totalled SEK -1.48 (2.21) and SEK -1.47
(2.19), respectively.
  · The cash flow from operating activities amounted to SEK -37.1 million (64.3
m).

Six months 2016

  · Net turnover totalled SEK 156.3 million (461.7 m), of which SEK 42.3 million
(294.2 m) comprised the first six months´ royalties for simeprevir.
  · Revenues from Medivir’s own pharmaceutical sales totalled SEK 106.4 million
(141.9 m), of which SEK 7.4 million (47.4 m) derived from sales of OLYSIO® and
SEK 99.0 million (94.5 m) from sales of other pharmaceuticals.
  · The profit after tax was SEK -80.2 million (130.7 m).
  · Basic and diluted earnings per share totalled SEK -2.98 (4.50) and SEK -2.97
(4.46), respectively.
  · The cash flow from operating activities amounted to SEK -73.5 million (269.6
m).




Summary of the Group’s figures,         Q2             Q1-Q2       Full year
continuing operations (SEK m)
                                    2016     2015   2016     2015       2015
Net turnover                        81.3    245.8  156.3    461.7      657.9
Gross profit                        55.7    214.9  110.4    397.7      548.6
Operating profit before            -40.1    104.9  -72.4    189.6      155.0
depreciation and amortisation
(EBITDA)
Operating profit (EBIT)            -48.1     96.1  -88.9    172.2      114.8
Profit/loss before tax             -43.6     85.4  -81.7    168.2      102.0
Profit/loss after tax              -39.8     64.1  -80.2    130.7       75.1
Operating margin, %                -59.2     39.1  -56.9     37.3       17.4
Basic earnings per share, SEK      -1.48     2.21  -2.98     4.50       2.59
Diluted earnings per share, SEK    -1.47     2.19  -2.97     4.46       2.56
Net worth per share, SEK            50.8     55.7   50.8     55.7       53.8
Return on equity                    -3.1      5.8   -5.8      9.7        5.9
Cash flow from operating           -37.1     64.3  -73.5    269.6      307.4
activities
Liquid assets and short-term       997.5  1 043.4  997.5  1 043.4    1 077.9
investments at the period end
R&D spending/total opex, %          71.5     60.2   73.0     61.1       64.2


Conference call for investors, analysts and the media
The Interim Report, January – June 2016 will be presented by Medivir’s President
& CEO,
Niklas Prager, and members of Medivir’s management group.

Time: Wednesday, 17 August 2016, at 14.00 (CEST).

Phone numbers for participants from:
Sweden + 46 8 566 426 96
Europe + 44 20 3008 9817
USA + 1 855 831 5946

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

An important event in Q2 was the decision to investigate the possibility of
dividing Medivir’s operations into two independent companies – a dedicated
research and development company and a commercial pharmaceutical company. The
separation of the businesses would enable the existing operations to be
conducted by two clearly focused, specialised companies where both companies’
potential can be maximised in line with their different objectives and
capabilities. This aims to highlight shareholder values of both the commercial
operations and the pharmaceutical projects that make up the R&D portfolio.

Our in-house research portfolio is based on our established and successful
technology platform, and all of the projects developed according to plan during
the quarter. The MIV-711 osteoarthritis project continued its recruitment of
patients according to plan and our previous estimate that we will be able to
report the results of the study in the second half of 2017 remains unchanged.
Negotiations with potential partners on the MIV-802 project for the treatment of
hepatitis C also continued during the quarter.

We are also delighted to note that our partner, Janssen Research & Development,
has decided to initiate a phase IIb study investigating the efficacy, safety and
pharmacokinetics of different treatment regimens of a triple combination using
simeprevir together with AL-335 and odalasvir in patients with chronic Hepatitis
C virus.

Royalties attributable to the hepatitis C pharmaceutical, OLYSIO® (simeprevir),
totalled SEK 24.2 million during the quarter, reflecting the lower level of
global net sales of OLYSIO® that we are also seeing in the Nordic region.

The Xerclear (Zoviduo) product has been registered by GlaxoSmithKline in Spain,
triggering milestone revenues of SEK 6.5 million in the quarter.

Our Nordic pharmaceutical sales saw the Nordic Brands portfolio continue to grow
with sales reaching SEK 44 million during the quarter, corresponding to an
increase of 6.7 per cent in comparison with the same period in 2015.

Administrative costs are continuing to decrease as a result of the efficiency
enhancing measures that we have implemented, in spite of the increased
investments in the phase IIa study of MIV-711.

The corporate separation investigation, coupled with the ongoing progress of our
projects and continued commercial development, give me every confidence in our
efforts to continue creating long-term value.


Niklas Prager
President and CEO


Upcoming reporting dates:
Interim Report (January – September 2016)
10 November 2016
Financial Statement (January – December 2016)
17 February 2017
Interim Report (January – March 2017)
28 April 2017



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 17 August 2016.

About Medivir
Medivir is a research based pharmaceutical company with a research focus on
oncology and infectious diseases. 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 portfolio of specialty care pharmaceuticals
on the Nordic market.
Medivir is listed on the Nasdaq Stockholm Mid Cap List.