Meda AB (publ) - Interim report, January-March 2011

Meda AB (publ) - Interim report, January-March 2011


  · Group sales reached SEK 2,944 million (2,943). At a fixed currency
rate, sales increased 10%.

  · EBITDA amounted to SEK 1,119 million (1,059), corresponding to a
38.0% margin (36.0).

  · Operating profit amounted to SEK 650 million (660).

  · Profit after tax increased to SEK 373 million (360).

  · Earnings per share rose to SEK 1.23 (1.19).

  · Cash earnings per share reached SEK 1.99 (2.07).

 

Highlights

Acquisition of Antula complete

  · The acquisition of Antula announced in February 2011 was completed
at the end of April.

  · The purchase price amounted to SEK 1,800 million on a debt-free
basis.

  · This acquisition is a consistent step in Meda's strategy to grow in
OTC products.

Acquisition of Elidel

  · The acquisition of global rights to Elidel (pimecrolimus 1% cream)
is a patent protected pharmaceutical for the treatment of atopic
dermatitis.

  · Elidel strengthens Meda's position in the dermatology therapy area.

  · The acquisition price is USD 420 million (about SEK 2,650 million)
which equals an EBITDA multiple of about 5.

  · The closing of the acquisition is dependent on antitrust approvals,
which are expected during the second quarter 2011, and other customary
closing conditions.

Dymista filed in the US  

  · A new drug application for Dymista, a new formulation of azelastine
and fluticasone, was submitted to the US FDA.

  · Dymista is indicated for patients with seasonal allergic rhinitis. 

  · Dymista has been documented in many studies involving over 4,000
patients, including a long-term study with more than 600 patients.

 

CEO'S COMMENTS

The year is off to a positive start. There is underlying growth in our
product range, and we have ensured access to several important growth
opportunities. Fluctuations between our key currencies, however,
affected both sales and profit negatively as compared year-on-year. It
will also take a few more quarters before the comparison effect with
Astelin, which received generic competition last year, has completely
disappeared from the income statement.

As explained in the year-end report and the annual report, Meda's growth
will come from the launch of new, patented products and continued
efforts in emerging markets and with OTC products. The launch of new
products has so far only begun on individual markets, and it will take
some time before it returns significant effects. Growth, however, has
been faster within the other two areas, emerging markets and OTC
products, which increased in the quarter by 27% and 33% respectively
calculated in local currency. Even excluding the acquisitions made
during the year past, growth was very good.

Several acquisitions were completed, and key steps forward were taken in
early 2011. The acquisition of Antula will strengthen growth
opportunities in the OTC area. A new drug application for Dymista was
submitted to the FDA and Trobalt (retigabine) was approved in Europe. We
have also announced the acquisition of Elidel.

We are looking forward to an exciting, successful year.

Anders Lönner

Group President and CEO

For more information, contact

Anders Larnholt,            
                                                                        
Phone       +46 8-630 19 62
VP Corporate Development and Investor
Relations                                                     +46
709-458 878

The company's auditors did not review this interim report.