Moberg Pharma Ab · OMXSTO:MOB
Moberg Pharma Ab — Q3 2015 Earnings Presentation
20 slides from Moberg Pharma Ab's earnings presentation, Nov 10, 2015
Slide 1: Interim Report Jan-Sep 2015
MOBERG PHARMA AB (PUBL) Interim Report Jan-Sep 2015 Combining Commercial and Innovation Excellence to Develop Unique Products for Underserved Niches Press conference, November 10, 2015 at 3:00 p.m. (CET) Dial-in number: SE: +46 85 664 27 00, US: +1 855 831 5945 Peter Wolpert, CEO and Founder 0
Slide 2: Disclaimer
Disclaimer Statements included herein that are not historical facts are forward-looking statements. Such forward- looking 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
Slide 3: Highlights – Q315
Highlights — Q315 —_<.! Sl
Slide 4: 2015 Q3 Highlights
2015 Q3 Highlights Net sales grew by 32% to MSEK 67 (8% at fixed exchange rates) – Distribution sales in Asia key driver – Acquisition of Balmex progressing well and contributing to growth Doubling of profit – EBITDA margin of 21%, EBITDA increased 95% – EBITDA Commercial Operations of 27% – 12 MSEK
Slide 5: Growth driving significant improvement in profitability
Growth driving significant improvement in profitability 2015 9m 2014 9m Net Sales, MSEK EBITDA, MSEK EBITDA Commercial Operations, MSEK 232 (+49%) 156 14% 18% 22% 26% 60 (+76%) 42 (+95%) 34 22 NOTE: EBITDA Commercial Operations does not include R&D and Business Development expenses 4 for future prod
Slide 6: 22 consecutive quarters of Sales growth
22 consecutive quarters of Sales growth Product Sales, TTM, MSEK 300 250 200 150 100 50 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2010 2010 2010 2010 2011 2011 2011 2011 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 2015 2015 2015 5 5
Slide 7: Progress in Commercial Operations and Innovation Engine
Progress in Commercial Operations and Innovation Engine
Slide 8: Focus on strategic brands
Focus on strategic brands Strategic brands Kerasal® - Foot care Emtrix® Balmex® - Diaper rash Domeboro® - Derma/Skin irritation Mature brands Jointflex® - External analgesic Vanquish® - Internal analgesic Fergon® - Iron supplement 7 7
Slide 9: Distributor Sales well positioned for further growth
Distributor Sales well positioned for further growth Sales in >40 markets Decline in Europe in Q3, 9m is flat (+1%) - Emtrix® rights taken back for UK, Poland, Czech Republic and the Baltics Canada: Emtrix get top score in survey* with 89% brand satisfaction, ahead of all competitors including Jubli
Slide 10: Pipeline assets - Building on Topical drug delivery know how
Pipeline assets - Building on Topical drug delivery know how Peak sales Pipeline Indication Status potential, m$ USP asset MOB-015 Onychomycosis Ph III 250-500 Topical terbinafine with fast visible preparation improvement and superior cure rates BUPI Oral Mucositis Phase II 50-100 Lozenge formulatio
Slide 11: MOB-015 – USPs, Strategy and market update
MOB-015 – USPs, Strategy and market update USPs Targets a superior profile, in mild to moderate onychomycosis based on phase II data and experience from the OTC product (>600 patients in clinical trials and >5 million units sold to date): 1 Superior cure rates – Mycological and Clinical 2 Shorter tr
Slide 12: Supply agreement secured with Colep
CONFIDENTIAL Supply agreement secured with Colep Colep agreement Colep invests in scale-up, stability studies and clinical trial material for Ph III Moberg appoints Colep as the exclusive manufacturer for MOB-015 for EU and U.S. Leverages synergies between existing products and MOB-015 - Purchasing
Slide 13: Financials
Financials
Slide 14: P&L - Sales growth and doubling of profit
P&L - Sales growth and doubling of profit Jul-Sep Jul-Sep Jan-Sep Jan-Sep Full-year P&L Summary (MSEK) 2015 2014 2015 2014 2014 Revenue 67 50 232 156 200 Gross profit 49 36 177 119 151 % 73% 72% 76% 76% 75% SG & A -31 -24 -116 -81 -106 R&D - existing product portfolio1) -1 -2 -5 -6 -7 Other operatin
Slide 15: Majority of revenue from direct OTC sales
Majority of revenue from direct OTC sales – Launches in Asia drives RoW product sales Distribution of revenue, January – September 2015 Other RoW JointFlex 19% 15% 12% Sales via distributors 29% Kerasal Europe 11% Americas 12% Direct OTC Nalox/ 73% Sales 71% Kerasal Nail 58% Channels Products Geogra
Slide 16: Revenue growth was 32% in Q3, Asia and new products main growth drivers
Revenue growth was 32% in Q3, Asia and new products main growth drivers Revenue by channel Jul-Sep Jul-Sep Jan-Sep Jan-Sep Full-year (KSEK) 2015 2014 2015 2014 2014 Direct sales 52 37 165 109 139 Sales of products to distributors 15 13 64 45 59 Milestone payments 0 - 3 2 2 TOTAL 67 50 232 156 200 Re
Slide 17: Solid cash position, positive cash flow and low debt
Solid cash position, positive cash flow and low debt Jul-Sep 2015 Jul-Sep 2014 Operative cash flow +12 MSEK +7 MSEK Cash position 43 MSEK 61 MSEK Cash position includes Balmex acquisition in April, consideration 33 MSEK (3.9 MUSD) financed with existing funds 16 16
Slide 18: Focus next 12 months
Focus next 12 months —_<.! Sl
Slide 19: Focus next 12 months
Focus next 12 months PROVIDING UNIQUE PRODUCTS IN UNDERSERVED NICHES Drive growth and EBITDA improvements Fuel U.S growth - Execution of Kerasal brand strategy Long-term target - Integration of Balmex Create shareholder value Grow Distributor Sales through a focus on - Asia is key growth driver, add
Slide 20: Why invest in Moberg Pharma
Why invest in Moberg Pharma Commercial niche strategy enables a growing and profitable base business Pipeline with large potential and at reasonable risk - Proven molecules limit development risk, cost and TTM Acquisition strategy with substantial value potential - 4 acquisitions in 36 months - Team