Moberg Pharma ABd1q0gh225dp9f5.cloudfront.net/sites/default/files/moberg_pharma... · (>600 patients in clinical trials and >5 million units sold to date): Superior cure rates –

Corporate presentation, June 8 2015

Peter Wolpert, CEO & Founder

Moberg Pharma AB PROVIDING UNIQUE PRODUCTS IN UNDERSERVED NICHES

Disclaimer

1

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 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.

TV commercial in China – aired from May 2015

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3

Strategic elements

Growth strategy

- Organic growth

- M&A/Innovation engine

Build value through combining

Brand/IP Equity

Strong focus on shareholder

value and achieving EBITDA

target

Vision

Build a leading niche player in

strategic focus areas, such as:

- Topical Foot Care/Dermatology

- Topical Pain Management

- Additional areas to be added

No 1 in Onychomycosis in key

regions

Outlook

Profitable growth, targeting a long-

term EBITDA margin of at least 25%

from 2016 and onwards

Moberg Pharma PROVIDING UNIQUE PRODUCTS IN UNDERSERVED NICHES

Q1 2015 – Excellent start of the year

5

Net sales grew by 53% to MSEK 73

– Growth across all areas, very strong distribution sales (+102%)

– 27% growth at fixed rates

– Maintaining strong gross margin at 77%

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

2015 Q1 - Highlights

NOTE: EBITDA Commercial Operations does not include R&D and Business Development expenses

for future products outside existing brands

Growth driving significant improvement in profitability

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Net Sales, MSEK

73.1 (+53%)

47.4

EBITDA, MSEK

EBITDA Commercial

Operations, MSEK

Q1 2014

Q1 2015

NOTE: EBITDA Commercial Operations does not include R&D and Business Development expenses

for future products outside existing brands

7.5

17.4 (+131%)

16%

24%

24%

35%

25.6 (+121%)

11.6

20 consecutive quarters of Sales growth

Product Sales, TTM, MSEK

7

0

50

100

150

200

250

MS

EK

8

-2% -7% -5%

1%

8% 13% 13%

16%

-10%-5%0%5%

10%15%20%

Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015

EBITDA margin, rolling 12 months, %

128 141 153 160 173 186 198 223

0

50

100

150

200

250

Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015

Product Sales, rolling 12 months, MSEK

Rapid increase in sales and profitability

Other 12%

Nalox/ Kerasal Nail

59%

Kerasal 13%

JointFlex 17%

RoW 14%

Europe 19% Americas

67%

Sales via distributors

35%

Direct OTC Sales 65%

Majority of revenue from direct OTC sales

RoW product sales tripled Q115 (Y/Y)

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Channels Products Geography

Distribution of revenue, January – March 2015

Progress in Commercial Operations

Organic growth Q1 15 (Value), %

5%

7%

U.S. OTC market

Moberg U.S.

Outperforming the market through

focus on strategic brands

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Strategic brands

• Kerasal® - Foot care

Emtrix®

• Domeboro® - Derma/Skin irritation

• Balmex

Mature brands

• Jointflex® - Ext. analgesic

• Vanquish® - Int. analgesic

• Fergon® - Iron supplement

®

Launches of new Kerasal Nail line extensions in line with

strategic goal of leadership position in nail fungus

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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

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

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

Closed Balmex acquisition on April 24

13

Distributor Sales key growth driver in Q1 15 with 102% growth

Note: Four largest distributors only,

not an all inclusive list.

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1)CDH units, IMS. Market share of OTC and Rx products

for onychomycosis.

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%

Agreement with Menarini for Russia

ROW sales tripled

- Initial launch successes in Malaysia,

Hong Kong and Singapore.

- Progress in launch preparations in

China and additional markets

Launches in Asia a key growth driver

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Malaysia

45% market share 2014

and continued strong sales in Q1

Hong Kong

Excellent start of sales and reorders

Singapore

Launch started, to be ramped up

China

TV Commercials start week of May

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Other markets

Launch preparations ongoing

Innovation Engine

Innovation Engine

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Organic growth

Current products growing, adding new markets

Line extensions adding incremental growth

- Focus on strategic brands

5 patent families enable additional products

- MOB-015, K-Nail+ patents granted

4 ACQUISITIONS LAST 30 MONTHS

3 PATENTS APPROVED Q1 2015

Acquisitions/inlicensing

Brands - Focus on US OTC market

Pipeline assets enabling new products

Completed Acquisitions

Alterna LLC, Nov 2012, $20m (1.8x Sales)

Bayer brands, Dec 2013, $4.8 m (1.6x Sales)

Bupizenge, April 2014, dev. project,$1m

Balmex, April 2015, $3.9m (<1x Net Sales)

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 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)

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MOB-015 Strategy and Status update - Phase II results enable a superior target profile vs U.S. Rx lead competitor (Jublia)

- US and EPO patents granted

- Phase III preparations progressing to enable start in 2016

- Ongoing discussions with potential industrial/development 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

Jublia U.S. launch confirms the potential

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Source: Valeant Investor Presentation AGM, May 2015

Kerydin trend is following Jublia

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Source: Wolters Kluwer, Note: Gross Dollars

Example of successful treatment with MOB-015

Before After

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MOB-015 – Target to become the superior topical treatment

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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):

Superior cure rates – Mycological and Clinical

Shorter treatment time – potentially 6 months

First visible improvement within 2-4 weeks

Strategy Prepare Phase III to start in 2016

Ongoing discussions with partners. Objective to maintain control of asset

in key territories through phase III

1

2

3

BUPI targets to provide 2-3 hours of pain relief

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Product & Indication

BUPI (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. Long-term also OTC potential

Value and Next steps

Peak Sales potential $50-100m, whereof the OM indication is $20-25m

Phase II ongoing, ca 20 patients recruited (target ca 40), results expected H2 2015

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Focus next 12 months PROVIDING UNIQUE PRODUCTS IN UNDERSERVED NICHES

Drive growth and EBITDA improvements

Continue drive U.S growth

- Focus on strategic brands

- Launch of Kerasal Nail Line extensions

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 data, Orphan Drug designation and

initiate sales as unlicensed drug

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.