Moberg Pharma AB Providing Unique Products in Underserved Niches through Commercial and Innovation Excellence Presentation at Jefferies Global Healthcare Conference, November 20, 2014 Peter Wolpert, CEO & Founder 0 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’s interim or annual reports, prospectuses or press releases. 1 1 2014 TV commercial in the Nordics 2 2 Moberg Pharma PROVIDING UNIQUE PRODUCTS IN UNDERSERVED NICHES Vision Strategic plan  Build a mid-size Pharma/Consumer Health company with direct Sales in: - U.S. and select countries - OTC and select specialty areas  Growth strategy - Organic growth - M&A/Innovation engine  Build value through Brand Equity and IP Equity  No 1 in Onychomycosis in key regions  Strong focus on shareholder value and achieving EBITDA target Financial goal  25% EBITDA margin with healthy growth from 2016 3 3 Moberg Pharma PROVIDING UNIQUE PRODUCTS IN UNDERSERVED NICHES  Net Sales grew to 185 MSEK ($25m) - U.S. OTC Sales operations - Products sold in 40+ countries - 30 employees in Stockholm and NJ  Focus in OTC/Dermatology/Topicals - Leading U.S. OTC SKU in Nail Fungus - Superior PII data for MOB015  3 acquisitions in last 24 months - Nov 2012, Alterna LLC - Dec 2013, OTC brands from Bayer - Apr 2014, BUPI, Ph ll for oral pain relief 4  Market Cap 450 MSEK ($ 60m) (OMX:MOB) 4 18 consecutive quarters of Sales growth Product Sales, TTM, MSEK 200 180 160 140 MSEK 120 100 80 60 40 20 0 Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213 Q313 Q413 Q114 Q214 Q314 5 5 Rapid growth in Net Sales and EBITDA Jan – Sep 2013 Jan - Sep 2014 Net Sales, MSEK EBITDA, MSEK EBITDA Commercial Operations, MSEK 156 (+29%) 121 Neg 14% 9% 22% 34 (+240%) 22 10 -10 6 NOTE: Commercial EBITDA does not include R&D and Business Development expenses for future products outside existing brands, e.g. Phase II assets 6 Launch of Emtrix® in Malaysia Strong Q3  35% sales growth – US main driver – US grew by 40% - Organic growth and contributions from acquired brands – European sales grew 7% – Excellent sales and >50% market share (OTC) in Canada – SE Asia launch kicked off with Emtrix® in Malaysia  Excellent Phase ll results for MOB-015 – Mycological cure rate of 54%, exceeded expectations  BUPI Phase ll study initiated  Strong EBITDA improvement – EBITDA for Commercial Operations1) of 23% for Q3 and 22 % for the past 12 months – Expanded cooperation with Emerson Group has potential to further increase efficiency  Gross margins remained strong at 72% 1) 7 EBITDA Commercial Operations include R&D for marketed products/ line extensions, but not R&D or BD for new products 7 Majority of revenue from direct OTC sales, RoW growth starting Distribution of revenue, Jan – September 2014 Sales via distributors 29% Direct OTC Sales 71% Channels JointFlex 14% Other 13% RoW 7% Europe 18% Kerasal 15% Nalox/ Kerasal Nail 58% Products 8 8 Americas 75% Geography Commercial Operations & Innovation Engine U.S. retail sales of Kerasal Nail increased 31% in Q314 No 1. SKU in the U.S. Kerasal Nail™ – U.S. market share1)  From 0  23% market share in 3 years  Available at all major retailers >30 000 stores  On Top-50 list of ”Most Innovative New Products” - Drug Store News, 2012 1)Retail Q3 2013 sales of nail fungus products excluding private label in Multioutlet Stores over the last 52 weeks ending September 7, 2014 as reported by SymphonyIRI 10 10 Q3 2014 Efficient U.S infrastructure for building brand equity CMOs Sales Force Retailers/Wholesalers Sales and marketing/Brand Management Logistics Emerson Healthcare 11 11 Outperforming the market through combining Brand and IP equity Organic growth YTD (Value), % Strategic brands • Kerasal® - Foot care Emtrix® 17% • Domeboro® - Derma/Skin irritation Mature brands 5% • Jointflex® - Ext. analgesic • Vanquish® - Int. analgesic Moberg U.S. U.S. OTC market • Fergon® - Iron supplement 12 12 ® Distributor Sales well positioned for further growth Nalox™/Kerasal Nail®  Sales in >40 markets  Stronger claims recently approved  Potential for further growth  Strong sales in Canada as response to launch of consumer advertising,  Market leader with >50% of OTC sales (value) and 30% of all Rx/OTC units1)  Preparations for launches in China and SE Asia progressing well  Malaysia 1st to launch in Nov 2014  Large potential for 2015 and beyond 1)CDH units, IMS. Market share of OTC and Rx products for onychomycosis. Note: Four largest distributors only, not an all inclusive list. 13 13 Asian launch initiated in Malaysia under our Emtrix® brand 14 14 Distribution in >1000 pharmacies in Malaysia (97%) 15 15 Counter Top 16 16 Window stickers in pharmacy 17 17 Pharmacy training 18 18 Kerasal Nail ® / Emtrix® – Clinically proven efficacy in 600 patients Clinical and non-clinical trials:  Efficacy documented in In vitro study. Hultenby et al. Mycoses 2014, Volume 57:630-638  Efficacy and safety confirmed in Post Marketing Study (n=73). Faergemann et al. Journal of Cosmetics, Dermatological Sciences and Applications 2011, Volume 1:59-63  Efficacy and safety confirmed in Phase III trial (n=493) Emtestam et al. Mycoses 2012, Volume 55:532-540  Efficacy and safety demonstrated in Phase II trial SM13 (n=18, 58 nails) 19 19 Kerasal Nail ® / Emtrix® – an efficacious topical treatment for fungal nails & nail psoriasis Properties  Penetrates nail  Keratolytic  Antifungal – physical mode of action Before treatment After 2 weeks of treatment After 2 months of treatment After 3 months of treatment Excellent safety profile  GRAS listed compounds Competitive positioning  Unique rapid visible improvement (2-4 weeks)  First-line, efficacious topical  Potential to treat severely affected nails  Once-daily  Compliance friendly  High safety margin Patient history: Onychomycosis since 3 years Previously treated during 1 year with topical azolderivate without any effect Source: Study SM13 20 20 Post-marketing study shows quick visible improvement Number of patients reporting an improvement, per cent 100% 88% 90% 80% 92% Design  Open clinical study with the purpose to document early visible effects of Emtrix  75 patients with 25 – 75% affected nail in big toe or thumb 77% 70% Result 60%  Primary efficacy variable: number of patients experiencing improvement after 8 weeks treatment: 92% (CI: 83% - 97%)  52% of the patients reported large or very large improvement*  Other secondary efficacy variables also improved with 45 – 75% of the patients  No product related side affects 50% 40% 30% 20% 10% 0% 2 weeks 4 weeks 8 weeks * The patients estimation was graded in four steps: no improvement, some improvement, large improvement and very large improvement 21 Source; Journal of Cosmetics, Dermatological Sciences and Applications, 2011, Vol. 1: 59-63 21 Pipeline assets in phase II Building on Topical drug delivery know how and IP portfolio Pipeline asset Indication Status Peak sales potential, m$ USP MOB-015 Onychomycosis Phase II 250-500 completed Topical terbinafine with fast visible improvement and superior cure rates BUPI Lozenge formulation with effective pain relief for 2-3 hrs(vs 0,5 hrs for competition) Oral Mucositis and oral pain Phase II started 50-100 22 22 MOB-015 Excellent Phase II results Study design  Open label, n=25, 24 patients completed  Once daily for 48w Last follow-up at 60w  Severely affected nails, 60% mean nail involvement 54% 29% MYCOLOGICAL CURE AT 15 MONTHS MYCOLOGICAL CURE AND EXCELLENT CLINICAL IMPROVEMENT OR CURE* Well tolerated 23 * Means 10% or less clinical involvement Source: Moberg Pharma data on file from MOB-015 phase II study 23 Phase II results indicate that MOB015 have potential to become best in class (topical drug for Onychomycosis) Mycological cure Active Product Company Form at 6 months at 12/15 months Comment Terbinafine MOB-015 Moberg Pharma Topical 40%1) 54% 25-75% affected* Efinaconazole Jublia Valeant Topical - 54% 20-50% affected** Tavaborole Kerydin Anacor/Sandoz Topical - 31-36% 20-60% affected Ciclopirox Penlac Valeant Topical - 29-36%2) 20-65% affected Amorolfin Loceryl Galderma Topical - n/a3) Terbinafine Lamisil Novartis Oral 40%4) 75%4) Itraconazole Sporanox J&J Oral 25-30%4) 40-50%4) *Mean affected nail area was 60% **Mean affected nail area was 36% 24 Source: 1)Moberg Pharma data on file from ongoing phase II study; 2) Gupta AK, Fleckman P, Baran R. Ciclopirox nail lacquer topical solution 8% in the treatment of toenail onychomycosis. J Am Acad Dermatol 43(4 Suppl):S70-80 (2000 Oct); 3) Mycological cure rates have not been published for Loceryl using the standard definition, which is the combination of negative fungal culture and KOH microscopy; 4) Double blind, randomized study of continous terbinafine compared with intermittent itraconazole in the treatment of toenail Onychomycosis, BMJ 1999; 24 Example of successful treatment with MOB-015 Before After 25 25 Example of successful treatment with MOB-015 Before After 26 26 Example of successful treatment with MOB-015 Before After 27 27 Phase II results provide evidence of efficacy and safety  54% mycological cure, in patients with severe onychomycosis (60% mean involvement)  Excellent clinical improvement, full photo documentation  High terbinafine levels in patients: - In nail bed: 45 µg/g (median value) - In nail: 1610 µg/g (median value) 40x Oral TBF 1000x Oral TBF  Safe – low plasma levels of TBF 1/1000 Oral TBF Target Product Profile in mild/moderate Onychomycosis (25-50% nail involvement)  > 60% mycological cure  20-30% complete cure  >50% of patients report visible improvement after 1 month Next Steps  Dual track – Discussion with industrial/financial partners ongoing  Refine Ph III program and CMC preparations 28 28 BUPI – Long-acting lozenge with bupivacaine - Phase II started Oct 2014 Product & Indication  Bupivacaine lozenge for oral pain relief (mouth and throat)  1st indication: Oral Mucositis in cancer patients. Large unmet need  Other indications: Burning Mouth Syndrome, Sjögren’s syndrome, Upper gastrointestinal endoscopy. Phase II study started – data expected H1 2015  Up to 40 patients in radiation therapy for Head-Neck Cancer  Controlled study – Standard pain treatment with/without BUPI lozenge  VAS scale  Target: Demonstrate 2-3 hours of pain relief and superior to control 29 29 Share, Shareholders, Team The Share last 3 years (Nov 19, 2014) Analysts  Klas Palin, Redeye  Christian Lee, Remium  Additional coverage expected H2 2014 31 31 Increasing high quality institutional investors (SW, US, FR) Shareholders ÖSTERSJÖSTIFTELSEN HANDELSBANKEN FONDER JPM CHASE NA (Altaris Capital Partners) FÖRSÄKRINGSAKTIEBOLAGET, AVANZA PENSION GRANDEUR PEAK TREDJE AP-FONDEN WOLCO INVEST AB (Peter Wolpert, CEO) SIX SIS AG, W8IMY GOLDMAN SACHS INTERNATIONAL LTD, W8IMY BANQUE CARNEGIE LUXEMBOURG S A (FUNDS) DEUTSCHE BANK AG LDN-PRIME BROKER, AGE FULL TAX SOCIETE GENERALE STATE STREET BANK & TRUST COM, BOSTON ML, PIERCE, FENNER & SMITH INCH SYNSKADADES STIFTELSE AB TRACTION MATTSSON, MICHAEL J P MORGAN CLEARING CORP, WP LUNDMARK, ANDERS DEUTSCHE BANK AG, LONDON BRANCH, W-8BEN SUMMA, 20 STÖRSTA ÄGARNA Övriga aktieägare TOTAL No of shares Capital and votes, % 2 245 179 834 477 825 652 798 417 720 680 656 000 600 000 580 386 512 419 326 494 281 633 258 621 225 000 172 414 172 201 165 000 154 708 149 896 135 000 133 396 9 947 573 4 014 964 13 962 537 16,1 6,0 5,9 5,7 5,2 4,7 4,3 4,2 3,7 2,3 2,0 1,9 1,6 1,2 1,2 1,2 1,1 1,1 1,0 1,0 71,2 28,8 100 Source: Euroclear Sweden AB per 2014-09-30 Stock options to Management 32  Outstanding stock options correspond to 8.1% of shares (6% to Management/Employees) 32 Management and Board with strong track record Management experience Board experience McKinsey, AZ, Q-Med, Biogen Idec, Insight, Pfizer Pharmacia/Pfizer, Lundbeck, Genmab, Quintiles, J&J, Barrier Therapeutics, NCH Peter Wolpert Martin Ingman CEO and Founder VP Sales & marketing, ROW Kjell Rensfeldt VP R&D Anna Ljung CFO Steve Cagle VP North America (to Dec 31) Mats Pettersson (Chair) Wenche Rolfsen Jeff Vernimb joining Dec 15 as new GM for US operations (Ex Insight, Pfizer/Warner Lambert) Thomas Thomsen Torbjörn Koivisto 33 33 Geert Cauwenbergh Focus next 12 months PROVIDING UNIQUE PRODUCTS IN UNDERSERVED NICHES  Drive growth and EBITDA improvements  Fuel strong U.S growth - K-Nail and Neurocream launch - Line extensions and new SKUs  Grow Distributor Sales - EU: Extended indication - Launches in China/SE Asia, Mena  BD/Innovation Engine - M&A focus on US OTC products - MOB-015 partner process and Phase III preparations - BUPI: Pll study, evaluate/pursue sales as unlicensed drug/partner and Orphan opps 34 34