0 Investor presentation, January 18, 2015 Peter Wolpert, CEO & Founder Moberg Pharma AB Providing Unique Products in Underserved Niches through Commercial and Innovation Excellence
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Investor presentation, January 18, 2015
Peter Wolpert, CEO & Founder
Moberg Pharma AB Providing Unique Products in Underserved Niches through
Commercial and Innovation Excellence
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Disclaimer
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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.
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2014 TV commercial in the Nordics
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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
Financial goal
25% EBITDA margin with healthy
growth from 2016
Moberg Pharma PROVIDING UNIQUE PRODUCTS IN UNDERSERVED NICHES
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Net Sales grew to 185 MSEK ($25m, TTM)
- U.S. OTC Sales operations
- Products sold in 40+ countries
- 30 employees in Stockholm and NJ
Focus in OTC/Dermatology/Topicals
- Leading U.S. OTC SKU in Nail Fungus
- Superior PII data for MOB015
3 acquisitions in last 24 months
- Nov 2012, Alterna LLC
- Dec 2013, OTC brands from Bayer
- Apr 2014, BUPI, Ph ll for oral pain relief
Market Cap 530 MSEK ($ 70m) (OMX:MOB)
Moberg Pharma PROVIDING UNIQUE PRODUCTS IN UNDERSERVED NICHES
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18 consecutive quarters of Sales growth
Product Sales, TTM, MSEK
5
0
20
40
60
80
100
120
140
160
180
200
Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213 Q313 Q413 Q114 Q214 Q314
MSE
K
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Rapid growth in Net Sales and EBITDA
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NOTE: Commercial EBITDA does not include R&D and Business Development expenses
for future products outside existing brands, e.g. Phase II assets
Net Sales, MSEK
156 (+29%)
121
34 (+240%)
10
-10
22
EBITDA, MSEK
EBITDA Commercial
Operations, MSEK
Jan – Sep 2013
Jan - Sep 2014
Neg
14%
9%
22%
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35% sales growth – US main driver
– North America grew by 40% - Organic growth and
contributions from acquired brands.
Rapid growth and >50% market share (OTC) in Canada
– European sales grew 7%
– 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%
Strong Q3
1) EBITDA Commercial Operations include R&D for marketed products/
line extensions, but not R&D or BD for new products
Launch of Emtrix® in Malaysia
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Majority of revenue from direct OTC sales,
RoW growth starting to pick up
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Sales via distributors
29%
Direct OTC Sales 71%
Other 13%
Nalox/ Kerasal Nail
58%
Kerasal 15%
JointFlex 14%
RoW 7%
Europe 18%
Americas 75%
Channels Products Geography
Distribution of revenue, Jan – September 2014
Commercial Operations & Innovation Engine
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U.S. retail sales of Kerasal Nail increased 31% in Q314
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Q3 2013 Q3 2014
Kerasal Nail™ – U.S. market share1) No 1. SKU in the U.S.
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
Three clinical studies
supporting efficacy and
safety (n = ca 600)
1)Retail sales of nail fungus products excluding private label in Multioutlet Stores over the last 52 weeks
ending September 7, 2014 as reported by SymphonyIRI
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Efficient infrastructure for building OTC brands in the U.S.
Retailers/Wholesalers Sales Force CMOs
Logistics
Sales and marketing/Brand Management
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Emerson Healthcare
http://www.google.com/imgres?imgurl=http://hunt4freebies.com/coupons/wp-content/uploads/2009/08/meijer.gif&imgrefurl=http://hunt4freebies.com/coupons/meijers-free-danimal-yougurt/&usg=__NMcoOsxrpz4cCK_lPT--H9rfjSs=&h=255&w=575&sz=5&hl=en&start=2&um=1&itbs=1&tbnid=NE0UgnU6b047uM:&tbnh=59&tbnw=134&prev=/images?q=meijer&um=1&hl=en&sa=N&rlz=1T4GFRB_enUS240US241&tbs=isch:1http://images.google.com/imgres?imgurl=http://www.listphile.com/Fortune_500_Logos/Rite_Aid/image/Rite_Aid.png&imgrefurl=http://www.listphile.com/Fortune_500_Logos/Rite_Aid&h=375&w=375&sz=7&hl=en&start=2&sig2=He858RgNAgGQ9ZznpSZ1Uw&usg=__0_-0kCd1tTZVSob98k39lYZh4V0=&tbnid=gvM3pueYwpiRVM:&tbnh=122&tbnw=122&ei=6bvaSPLgJ6DAeoq7tb4G&prev=/images?q=Rite+Aid+company+logo&gbv=2&hl=enhttp://www.publix.com/Home.dohttp://www.google.se/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=ug_LQtdybz_IAM&tbnid=aLZoskAwn_rezM:&ved=0CAUQjRw&url=http://www.ecodesk.com/sustainability/mckesson&ei=c7A4UYrgHOuO4gTinIC4Bg&bvm=bv.43287494,d.bGE&psig=AFQjCNHa3hGGLYmVtVFeH7bUuTeVUm3f1g&ust=1362756078124735http://www.google.se/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=WRv0kMFapnrLqM&tbnid=cE3yubxAZJhbLM:&ved=0CAUQjRw&url=http://westchesternewsonline.com/elmsford-company-receives-750k-grant-expansion-and-job-creation&ei=-7A4UcDiH8WI4AT5rIG4BQ&bvm=bv.43287494,d.bGE&psig=AFQjCNGwd-szUiHlKXbijSkxw14EbjqRpg&ust=1362756213754673
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Organic growth YTD (Value), %
5%
17%
U.S. OTC market
Moberg U.S.
Outperforming the market through
combining Brand and IP equity
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Strategic brands
• Kerasal® - Foot care
Emtrix®
• Domeboro® - Derma/Skin irritation
Mature brands
• Jointflex® - Ext. analgesic
• Vanquish® - Int. analgesic
• Fergon® - Iron supplement
®
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Distributor Sales well positioned for further 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.
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 launch in Nov 2014
Large potential for 2015 and beyond
http://meda.se/english/http://www.leosonsinternational.com/default.asp
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Asian launch initiated in Malaysia under our Emtrix® brand
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2014 H2 TV commercial in Malaysia
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Distribution in >1000 pharmacies in Malaysia (97%)
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Counter Top
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Window stickers in pharmacy
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Pharmacy training
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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$
USP
MOB-015 Onychomycosis Phase II
completed
250-500 Topical terbinafine with fast
visible improvement and
superior cure rates
BUPI Oral Mucositis
and oral pain
Phase II
started
50-100 Lozenge formulation with
effective pain relief for 2-3
hrs(vs 0,5 hrs for
competition)
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54%
29%
Well tolerated
MOB-015
Excellent Phase II results
Source: Moberg Pharma data on file, MOB-015 phase II study
MYCOLOGICAL CURE AT 15 MONTHS*
MYCOLOGICAL CURE AND EXCELLENT CLINICAL IMPROVEMENT OR CURE**
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% of patients completing the treatment (13 of 25), 52% of FAS (13 of 24) and 60% of PPAS
** Means 10% or less clinical involvement
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Phase II results indicate that MOB015 has potential to become
best in class (topical drug for Onychomycosis)
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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)
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;
*Mean affected nail area was 60%
**Mean affected nail area was 36%
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Rationale for the superiority of MOB-015
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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) 40x Oral TBF
- In nail: 1610 µg/g (median value) 1000x Oral TBF
Safe – low plasma levels of TBF 1/1000 Oral TBF
A reasonable assumption is that a Phase III strategy to include patients with only
20-50% nail involvement, will increase mycological and clinical cure rates, supported by:
– Experience from previous trial with K101 (Nalox) (n=493) indicated a 40% higher
mycological cure rate in stratum with 25-50% affected nail area (27,1%) vs stratum
with 50-75% affected nail area (19,1%).
– In the MOB-015B trial: Significantly higher myc cure (70%) in the 10 patients with
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MOB-015 vs Jublia – Target Product Profile for mild-moderate
affected nails
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CONFIDENTIAL
Mycological cure Complete
cure
Almost
cured or
cured
Clear nail
growth
% of patients
experiencing visual
improvement after 1
month
Product at 6
months
at 12/15
months
at 12/15
months
at 12/15
months
at 12/15
months
at 1 month
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)
>50% 60-70% 20-30% >40% >5 mm >50%
Jublia - 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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Example of successful treatment with MOB-015
Before After
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Example of successful treatment with MOB-015
Before After
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Example of successful treatment with MOB-015
Before After
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MOB-015 – Next steps
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Dual track – Discussion with industrial/financial partners ongoing
Refine Ph III program and CMC preparations
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BUPI – Long-acting lozenge with bupivacaine
- Phase II started Oct 2014
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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
Team
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Management and Board with strong track record
Management experience McKinsey, AZ, Q-Med, Biogen Idec,
Insight, Pfizer
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Anna Ljung
CFO Thomas Thomsen Torbjörn Koivisto
Board experience Pharmacia/Pfizer, Lundbeck, Genmab, Quintiles, J&J,
Barrier Therapeutics, NCH
Peter Wolpert
CEO and Founder Mats Pettersson
(Chair)
Wenche Rolfsen Geert Cauwenbergh
Kjell Rensfeldt
VP R&D
Martin Ingman
VP Sales &
marketing, ROW
Jeff Vernimb
GM North America
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Increasing high quality institutional investors (SW, US, FR)
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Shareholders No of shares Capital and votes, %
ÖSTERSJÖSTIFTELSEN 2 245 179 16,1
HANDELSBANKEN FONDER 834 477 6,0
JPM CHASE NA (Altaris Capital Partners) 825 652 5,9
FÖRSÄKRINGSAKTIEBOLAGET, AVANZA PENSION 798 417 5,7
GRANDEUR PEAK 720 680 5,2
TREDJE AP-FONDEN 656 000 4,7
WOLCO INVEST AB (Peter Wolpert, CEO) 600 000 4,3
SIX SIS AG, W8IMY 580 386 4,2
GOLDMAN SACHS INTERNATIONAL LTD, W8IMY 512 419 3,7
BANQUE CARNEGIE LUXEMBOURG S A (FUNDS) 326 494 2,3
DEUTSCHE BANK AG LDN-PRIME BROKER, AGE FULL TAX 281 633 2,0
SOCIETE GENERALE 258 621 1,9
STATE STREET BANK & TRUST COM, BOSTON 225 000 1,6
ML, PIERCE, FENNER & SMITH INCH 172 414 1,2
SYNSKADADES STIFTELSE 172 201 1,2
AB TRACTION 165 000 1,2
MATTSSON, MICHAEL 154 708 1,1
J P MORGAN CLEARING CORP, WP 149 896 1,1
LUNDMARK, ANDERS 135 000 1,0
DEUTSCHE BANK AG, LONDON BRANCH, W-8BEN 133 396 1,0
SUMMA, 20 STÖRSTA ÄGARNA 9 947 573 71,2
Övriga aktieägare 4 014 964 28,8
TOTAL 13 962 537 100
Source: Euroclear Sweden AB per 2014-09-30
Stock options to Management
Outstanding stock options correspond to 8.1% of shares (6% to Management/Employees)
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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 partnering/ Phase III preparations
- BUPI: Pll study, pursue sales as unlicensed
drug/partner and Orphan Drug designation