Moberg Pharma AB (Publ) Interim Report January – September 2013

KERASAL NAIL IS MARKET LEADER IN U.S.
NINE-MONTH PERIOD (JAN-SEPT 2013)

  · Revenue MSEK 120.5 (82.3, 62.8 excluding milestones)
  · EBITDA MSEK -10.3 (13.4, -6.1 excluding milestones), loss of MSEK 7.3,
excluding acquisition-related costs
  · Operating loss (EBIT) MSEK 14.9 (profit: 13.3)
  · Net loss after tax MSEK 10.9 (profit: 42.1)
  · Loss per share SEK 0.99 (earnings: 4.40)
  · Operating cash flow per share negative SEK 0.36 (pos: 1.27)

THIRD QUARTER (JUL-SEPT 2013)

  · Revenue MSEK 37.2 (26.7, 24.2 excluding milestones)
  · EBITDA MSEK -3.0 (4.0, 1.5 excluding milestones), loss of MSEK 3.0,
excluding acquisition-related costs
  · Operating loss (EBIT) MSEK 4.6 (profit: 4.0)
  · Net loss after tax MSEK 3.9 (profit: 2.8)
  · Loss per share SEK 0.34(earnings: 0.29)
  · Operating cash flow per share negative SEK 0.26 (pos: 0.66)

SIGNIFICANT EVENTS DURING THE THIRD QUARTER

  · Private placement of MSEK 36 to Bure Equity to finance continued growth
  · Distribution agreement with Menarini for Kerasal Nail expanded to China
  · Kerasal® NeuroCream launched at Walmart and major drugstores in the U.S.

SIGNIFICANT EVENTS AFTER THE THIRD QUARTER

  · Distribution agreement with Leosons International for Kerasal Nail in the
Middle East and North Africa

CEO COMMENTARY
Moberg Pharma is continuing to grow. Product sales in the third quarter of the
year rose 53 percent compared with the year-earlier period. In the U.S, the
strong sales trend continued. Kerasal Nail™ strengthened its position as the
best-selling product in its segment in the U.S. with a market share of 19
percent, compared with 11 percent in the year-earlier
period[1] (http://connect.ne.cision.com#_ftn1). A higher proportion of
proprietary sales improved our gross
margin[2] (http://connect.ne.cision.com#_ftn2), from 72 percent to 77 percent
for the first nine months.

The U.S. is a growth driver
Kerasal Nail™ is now available at more than 30,000 retail outlets throughout the
U.S. and our distribution has gradually increased. During the third quarter, we
made our first deliveries to Target, Meijer and Kmart. In addition, Kerasal
Nail™ is now the best-selling product for nail fungus online – through Amazon
and Drugstore.com. Our assessment is that the product will continue to grow in
the U.S. The market is less developed than in Europe with lower per-capita sales
and less competition. Kerasal® Neurocream was launched in September, a new
product for foot pain relief. Neurocream is already available at 15,000 retail
outlets, including all Walmart, Rite-Aid and CVS stores and selected Walgreens.
All in all, our acquisition of Alterna in the U.S. in November 2012 has
developed very well. Organic growth for our American subsidiary was 26 percent
for the third quarter year by year, compared to 2-3 percent growth of the total
U.S. OTC market.

Decline in sales to distributors in Europe – new distributors in important
markets
Sales of Nalox to our main distributor in Europe declined sharply during the
quarter, due to high inventory levels. However the underlying sales in Europe
for the nine month period are higher than the previous year. Our sales to
distributors varies between quarters and do not always reflect the underlying
sales to pharmacies and consumers. The expansion of our distributor network in
other parts of the world continues. We recently signed agreements with Leosons
for the Middle East and North Africa and are working intensively with Menarini
to prepare our market approval application in China. Launches in Canada, Mexico,
the Middle East, several European countries and eventually in Asia, are expected
to bolster the continued growth of our distribution sales in 2014.

Development of our product portfolio
Kerasal Neurocream is a valuable addition to our product portfolio and addresses
an unmet need for more than 30 million Americans. It is our first new launch
through the U.S. marketing company that we acquired one year ago and will
contribute to the development of Kerasal as a leading brand in foot care. The
clinical trial with MOB-015 is progressing according to plan. The results of the
trial are expected to be announced in the second half of 2014. Business
development activities to strengthen our pipeline are advancing. We are
continuously evaluating acquisition and in-licensing opportunities, with a focus
on OTC products for the U.S. market. The intention is to acquire products that
will improve our cash flow and profitability.

The company’s long-term objective remains unchanged
To date, the results for 2013 are weaker than expected. During 2013, we have
made substantial investment in both marketing and the development portfolio.
Combined with lower sales than expected in Europe, we now expect a negative
EBITDA for the full-year 2013. However, the company’s long-term objective
remains firm – to achieve a sustainable EBITDA margin of at least 25 percent
within the coming three-year period under continued healthy growth. Growth
potential in both established and new markets, progress in our development
projects and business development activities continue to provide favorable
conditions for developing a different kind of pharmaceutical company.

Peter Wolpert, CEO Moberg Pharma

[1] (http://connect.ne.cision.com#_ftnref1) SymphonyIRI, retail sales in food,
drug, mass stores including Walmart, for 12-week period ending September 8, 2013
[2] (http://connect.ne.cision.com#_ftnref2) Excluding acquisition-related costs

TELEPHONE CONFERENCE
CEO Peter Wolpert will present the report at a teleconference today at 10:30
a.m., November 5, 2013. Phone: +46 (0)8-50626900, and enter the code 409017

ABOUT THIS INFORMATION
Moberg Pharma discloses the information provided herein pursuant to the
Securities Markets Act and/or the Financial Instruments Trading Act. The
information was submitted for publication at 8:00 am (CET) on November 5th,
2013.
FOR MORE INFORMATION, PLEASE CONTACT
Peter Wolpert, CEO, tel. +46 (0)8-522 307 00
E-mail: peter.wolpert@mobergpharma.se (peter.wolpert@mobergderma.se)

Peter Östling, Head of Investor Relations, tel. +46 8- 522 807 32
E-mail: peter.ostling@mobergpharma.se

For more information about Moberg Pharma’s operations, please visit the
company’s website at www.mobergpharma.com