MOBERG PHARMA AB (PUBL)
Interim Report Jan-Mar 2015
Combining Commercial and Innovation Excellence to Develop Unique
Products for Underserved Niches
Press conference, May 11, 2015 at 10:30 a.m. (CET)
Dial-in number: Sweden +46 8-566 426 63, U.S. +1 855 8753 22 35
Peter Wolpert, CEO and Founder
Anna Ljung, CFO
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Disclaimer
Statements included herein that are not historical
facts are forward-looking statements. Such forwardlooking statements involve a number of risks and
uncertainties and are subject to change at any time.
In the event such risks or uncertainties materialize,
Moberg Pharma’s results could be materially
affected.
The risks and uncertainties include, but are not
limited to, risks associated with the inherent
uncertainty of pharmaceutical research and product
development, manufacturing and commercialization,
the impact of competitive products, patents, legal
challenges, government regulation and approval,
Moberg Pharma’s ability to secure new products for
commercialization and/or development and other
risks and uncertainties detailed from time to time in
Moberg Pharma AB’s interim or annual reports,
prospectuses or press releases.
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Highlights – Q115
2015 Q1 Highlights
 Net sales grew by 53% to MSEK 73
– Growth across all areas, very strong distribution sales
– Favorable exchange rate development, 27% growth at fixed rates.
 Significant profitability improvement
– EBITDA margin of 24%
– EBITDA Commercial Operations of 35%
 Acquisition of Balmex (diaper rash) for $3.9 million
 Expanded distribution enables future growth
– Agreement with Menarini expanded to Russia.
– Approval in China and launch progress in SE Asia
– Launch of two Kerasal Nail line extensions at CVS / Walgreens
 Innovation engine progress
– MOB-015 U.S. and EU patents granted
– Kerasal Nail U.S. patent granted
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NOTE: EBITDA Commercial Operations does not include R&D and Business Development expenses
for future products outside existing brands
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Growth driving significant improvement in profitability
Q1 2014
Q1 2015
Net Sales, MSEK
EBITDA, MSEK
EBITDA Commercial
Operations, MSEK
73.1 (+53%)
47.4
16%
24%
24%
25.6 (+121%)
17.4 (+131%)
11.6
7.5
4
NOTE: EBITDA Commercial Operations does not include R&D and Business Development expenses
for future products outside existing brands
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35%
20 consecutive quarters of Sales growth
Product Sales, TTM, MSEK
250
200
MSEK
150
100
50
0
5
5
Progress in Commercial Operations and Innovation Engine
Outperforming the market through
focus on strategic brands
Organic growth Q1 15 (Value), %
Strategic brands
• Kerasal® - Foot care
Emtrix®
• Domeboro® - Derma/Skin irritation
7%
• Balmex
5%
Mature brands
• Jointflex® - Ext. analgesic
• Vanquish® - Int. analgesic
Moberg U.S.
U.S. OTC market
• Fergon® - Iron supplement
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Launches of new Kerasal Nail line extensions in line with
strategic goal of leadership position in nail fungus
 No 1 selling product with 22% market share in 20141)
 Available at >30 000 points of sale, 2014 expansion into food retail segment
 Two new line extensions drive additional growth
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1)Retail
sales of nail fungus products excluding private label in Multioutlet Stores over the last 52 weeks
ending December 28, 2014 as reported by SymphonyIRI
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Closed Balmex acquisition on April 24
 Acquired from Chattem (Sanofi) for $3.9 million
– Sales trending above $4 million annually
– Deal financed with existing funds
 Strong heritage in baby diaper rash with broad
distribution in major chains:
 Brand integration fully underway. New
consumer campaigns slated for Q3/Q4
 Brand Extended into Adult Care in 2013, a small
but high potential market for treatment of rash
associated with adult incontinence
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Distributor Sales key growth driver in Q1 15 with 102% growth
 Sales in >40 markets
 Continued growth in Canada
 Market leader with >50% of OTC sales
(value) and 30% of all Rx/OTC units1)
 Strong sales in Europe, +55%
 ROW sales tripled!
- Initial launch successes in Malaysia,
Hong Kong and Singapore.
- Progress in launch preparations in
China and additional markets
 Agreement with Menarini for Russia
1)CDH
units, IMS. Market share of OTC and Rx products
for onychomycosis.
Note: Four largest distributors only,
not an all inclusive list.
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Successful start of launch in Malaysia and Hong Kong
 Excellent distribution and sell-in to
pharmacies
 Positive response from consumers
on TV commercials and advertising
 Good reorders
 Malaysia: 45% market share 2014
and continued strong sales Q1 15
 Hong Kong: Excellent start of sales
and reorders
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Pipeline assets in phase II Building on Topical drug delivery know how and IP portfolio
Pipeline
asset
Indication
Status
Peak sales
potential, m$
MOB-015
Onychomycosis
Phase II
250-500
Topical terbinafine with fast visible
improvement and superior cure rates
BUPI
Oral Mucositis
and oral pain
Phase II
50-100
Lozenge formulation with effective
pain relief for 2-3 hrs(vs 0,5 hrs for
competition)
USP
 MOB-015 Strategy and Status update
- Superior Target Profile developed vs newly launched US Rx lead competitor (Jublia)
- Phase III preparations ongoing to enable start in 2016
- US patent granted
- Discussions ongoing with potential industrial and financial partners
- Objective to maintain control of significant rights/value of the asset
 BUPI status update
- Ca 20 patients included in Phase II
- Expect study results in H2 2015
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MOB-015 vs Jublia – Target Product Profile for mild-moderate
affected nails
Product
Mycological cure
Complete
cure
Almost
cured or
cured
Clear nail
growth
% of patients
experiencing visual
improvement after 1
month
at 6
months
at 12/15
months
at 12/15
months
at 12/15
months
at 1 month
at 12/15
months
In severely affected nails, 50-75% affected nail area
MOB-015
40%1)
54%
0%
28%*
4.5 mm
>50%
In mild/moderately affected nails, 20-50% affected nail area
MOB-015
(Target)
Jublia
>50%
-
60-70%
20-30%
>40%
>5 mm
>50%
54%
15-18%
23-26%
3.8-5 mm
?
Source: 1)Moberg Pharma data on file from phase II study;
* Proportion of patients with negative fungal culture, negative direct KOH microscopy and physician’s GES=4 (excellent improvement)
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Financials
P&L summary – Sales growth and increased profitability
(MSEK)
Revenue
Gross profit
%
Q1 2015
73
57
78%
Q1 2014
48
38
79%
FY 2014
200
151
75%
SG & A
R&D - existing product portfolio1)
Other operating income/operating expenses
EBITDA Commercial Operations
%
-34
-1
4
26
35%
-25
-2
0
12
24%
-107
-7
6
43
22%
R&D & BD - future products2)
EBITDA
%
-8
17
24%
-4
8
16%
-18
25
13%
-2
15
-2
6
-8
17
Depreciation/amortization
Operating profit (EBIT)
1) Research and development expenses – existing product portfolio includes R&D expenses for new product variants under
existing brands, regulatory work and quality.
2) Research and development expenses - future products includes R&D expenses for new product candidates, for example MOB-015.
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Due to the rounding component, totals may not tally.
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Majority of revenue from direct OTC sales - RoW product sales
tripled Q115 (Y/Y)
Distribution of revenue, January – March 2015
Sales via
distributors
35%
Direct OTC
Sales 65%
Channels
Other
12%
JointFlex
17%
Kerasal
13%
Nalox/
Kerasal Nail
59%
Products
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16
RoW
14%
Americas
67%
Geography
Europe
19%
Revenue growth was 53% in Q1
Revenue by source
Jan-Mar
2015
Jan-Mar
2014
Jan-Mar
Index
Full-year
2014
Direct sales
47
34
138
139
Sales of products to distributors
24
12
202
59
2
2
120
2
73
48
153
200
(MSEK)
Milestone payments
TOTAL
Revenue by product category
Jan-Mar
2015
Jan-Mar
2014
Jan-Mar
Index
Full-year
2014
41
26
159
113
Nalox™/Kerasal Nail®, milestone payments
2
2
120
2
Kerasal®
9
9
100
29
JointFlex®
12
6
212
31
9
5
165
25
73
48
200
200
(MSEK)
Nalox™/Kerasal Nail®, sales of products
Other products
TOTAL
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Significant improvement in cash position
Q1 2015
Q1 2014
Operative cash flow
- 5 MSEK
- 3 MSEK
Cash position
53 MSEK
19 MSEK
Note: Many orders in March led to increase in operating receivables to 30 MSEK (5 MSEK)
Cash position exclusive of Balmex acquisition in April, consideration 3.9 MUSD, financed
with existing funds
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Focus next 12 months
Focus next 12 months
PROVIDING UNIQUE PRODUCTS IN UNDERSERVED NICHES
 Drive growth and EBITDA improvements
 Fuel strong U.S growth
- Line extensions and new SKUs
- Balmex integration
 Grow Distributor Sales
- EU: Extended indication
- Launches in China/SE Asia, Mena
 BD/Innovation Engine
- M&A focus on US OTC products
- MOB-015 partnering/ Phase III preparations
- BUPI: Pll study, pursue sales as unlicensed
drug/partner and Orphan Drug designation
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Long-term target
Create shareholder value
through a focus on
profitable growth, targeting
a long-term EBITDA
margin of at least 25%
from 2016 and onwards.