Moberg Pharma AB Interim report January - June 2015

CONTINUED SEQUENTIAL GROWTH
FIRST SIX MONTHS (JAN-JUN 2015)*

  · Revenue MSEK 165.3 (105.5)
  · EBITDA MSEK 28.5 (14.4)
  · EBITDA for Commercial Operations MSEK 41.9 (22.6)
  · Operating profit (EBIT) MSEK 23.2 (10.5)
  · Net profit after tax MSEK 16.4 (8.1)
  · Earnings per share SEK 1.13 (0.67)
  · Operating cash flow per share SEK 1.20 (0.28)

SECOND QUARTER (APR-JUN 2015)*

  · Revenue MSEK 92.2 (57.7)
  · EBITDA MSEK 11.1 (6.9)
  · EBITDA for Commercial Operations MSEK 16.3 (10.9)
  · Operating profit (EBIT) MSEK 8.3 (4.8)
  · Net profit after tax MSEK 5.5 (4.1)
  · Earnings per share SEK 0.38 (0.33)
  · Operating cash flow per share SEK 1.52 (0.50)

*Note that the positive share-price trend during the first six months of 2015
resulted in accounting provisions related to incentive schemes being charged to
earnings in the amount of MSEK 4.5 during the first six months of the year and
MSEK 2.7 in the second quarter of 2015.


SIGNIFICANT EVENTS DURING THE SECOND QUARTER

  · Moberg Pharma acquired product rights for Balmex® in the U.S. for MSEK 33.3
from Chattem, a subsidiary of Sanofi.
  · Eurostars awarded a research grant of MSEK 8.4 for further product
development and clinical study of BUPI.
  · The European Patent Office issued patent number 2,777,689 for Kerasal Nail®
  · The company’s partner Menarini Asia-Pacific began the launch of Kerasal
Nail® in China

SIGNIFICANT EVENTS AFTER THE QUARTER

  · No significant events

CEO COMMENTARY

Strong performance across the board, including launches in Asia as a key driver,
resulted in a second quarter with excellent topline growth and improved
profitability. This was our 21st consecutive quarter with sequential growth.
Year-on-year, net sales grew by 60% (40%, at fixed exchange rates) and EBITDA
improved by 62%, representing an EBITDA margin of 12% for the
quarter[1] (http://file///G:/IR%20(AL)/Press/Press%20releases/2015/150911%20Q2/M
o 
berg%20Pharma%20Q2%202015%20DRAFT%20150810%20ENG%20-%20V2.docx#_ftn1) and 17%
for the first six
months[2] (http://file///G:/IR%20(AL)/Press/Press%20releases/2015/150911%20Q2/Mo
b 
erg%20Pharma%20Q2%202015%20DRAFT%20150810%20ENG%20-%20V2.docx#_ftn2) of the
year. The gross margin remains strong at 78% (78%). The Commercial EBITDA margin
of 18% for the second
quarter[3] (http://file///G:/IR%20(AL)/Press/Press%20releases/2015/150911%20Q2/M
o 
berg%20Pharma%20Q2%202015%20DRAFT%20150810%20ENG%20-%20V2.docx#_ftn3) and 25%
for the first six
months[4] (http://file///G:/IR%20(AL)/Press/Press%20releases/2015/150911%20Q2/Mo
b 
erg%20Pharma%20Q2%202015%20DRAFT%20150810%20ENG%20-%20V2.docx#_ftn4) reflect the
seasonality in marketing spend for our brands, which is intensified during the
second quarter.

Growth in U.S. direct sales
U.S. direct sales grew 76% in the second quarter (48% at fixed exchange rates).
Kerasal Nail® was a key growth driver with a U.S. market share slightly
increasing to
23%[5] (http://file///G:/IR%20(AL)/Press/Press%20releases/2015/150911%20Q2/Mober
g 
%20Pharma%20Q2%202015%20DRAFT%20150810%20ENG%20-%20V2.docx#_ftn5), including our
two recent line extensions. However, the category for branded fungal nail OTC
products declined by 11% in the second quarter, impacted by heavy consumer
advertising from prescription onychomycosis drugs and the introduction of
additional store brands. All in all, increased attention and rapid growth of new
prescription drugs have resulted in substantial growth of the total nail fungus
market during the last 12 months.

Balmex®, with products for diaper rash, was acquired at the end of April, and
the brand immediately contributed to sales and earnings. The integration of
Balmex® is progressing according to plan.

Asian launch strong growth driver in distributor sales
Distributor sales grew by 26% in the second quarter excluding milestone payments
(23% at fixed exchange rates). As expected, the strong growth in RoW markets
continues, with a significant contribution coming from Asia. Launch in China
began in May and previously launched Asian markets have continued to perform
well, with excellent sales in Hong Kong and Malaysia.

Sales to European distributors declined slightly in the second quarter but were
up 14% for the first six months. We see further potential in some European
markets. Sales and market shares in Canada remain strong.  Jointflex® sales to
distributors were lower in Q2, reflecting large orders delivered in Q1.

Innovation engine – Significant grant for BUPI
Our innovation engine continues to yield results. In addition to the patents
granted during the first quarter, a European patent was granted in May for an
improved formulation of Emtrix®/Nalox™. We were also pleased to receive a highly
ranked Eurostars grant application for BUPI. The MSEK 8.4 grant provides
excellent co-financing for a future Phase III study, provided that phase II
results expected in Q4 this year are positive. Partner discussions for MOB-015
are also progressing with a continued focus on retaining rights for key
territories through Phase III.

Positioned to drive further growth and value creation
Our base business is profitable and growing. We continue to focus on our long
-term goal of becoming the number one player in nail fungus and driving growth
organically as well as through targeted acquisitions. A solid cash position,
positive cash flow and low debt provide excellent opportunities to use debt as
our primary financing source for additional accretive acquisitions.

Peter Wolpert, CEO Moberg Pharma

----------------------------------------------------------------------

[1] (http://file///G:/IR%20(AL)/Press/Press%20releases/2015/150911%20Q2/Moberg%2
0 
Pharma%20Q2%202015%20DRAFT%20150810%20ENG%20-%20V2.docx#_ftnref1) 15% excluding
accounting provisions related to incentive schemes

[2] (http://file///G:/IR%20(AL)/Press/Press%20releases/2015/150911%20Q2/Moberg%2
0 
Pharma%20Q2%202015%20DRAFT%20150810%20ENG%20-%20V2.docx#_ftnref2) 20% excluding
accounting provisions related to incentive schemes

[3] (http://file///G:/IR%20(AL)/Press/Press%20releases/2015/150911%20Q2/Moberg%2
0 
Pharma%20Q2%202015%20DRAFT%20150810%20ENG%20-%20V2.docx#_ftnref3) 21% excluding
accounting provisions related to incentive schemes

[4] (http://file///G:/IR%20(AL)/Press/Press%20releases/2015/150911%20Q2/Moberg%2
0 
Pharma%20Q2%202015%20DRAFT%20150810%20ENG%20-%20V2.docx#_ftnref4) 28% excluding
accounting provisions related to incentive schemes

[5] (http://file///G:/IR%20(AL)/Press/Press%20releases/2015/150911%20Q2/Moberg%2
0 
Pharma%20Q2%202015%20DRAFT%20150810%20ENG%20-%20V2.docx#_ftnref5) U.S. retail
sales of nail fungus products excluding private label in Multioutlet Stores over
the last 52 weeks ending June 14 , 2015 as reported by SymphonyIRI

TELEPHONE CONFERENCE
CEO Peter Wolpert will present the report at a teleconference today at 3:00 p.m.
CET, August 11, 2015. Telephone: SE: +46 8 566 427 00, US: +1 855 831 59 45

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 August 11, 2015.
FOR ADDITIONAL INFORMATION
Peter Wolpert, CEO Mobile: +46 (0)70 - 735 71 35 Email:
peter.wolpert@mobergpharma.se
Anna Ljung, CFO Mobile: +46 (0)70 - 766 60 30 Email: anna.ljung@mobergpharma.se

For further information about Moberg Pharma, please visit our website,
www.mobergpharma.com