CONTINUED STRONG GROWTH AND ACQUISITION IN THE U.S.
NINE-MONTH PERIOD (JAN-SEPT 2012)
- Revenue MSEK 82.3 (35.4)
- Research and development expenses MSEK 23.4 (19.5)
- Operating profit MSEK 13.3 (-11.4)
- Net profit after tax MSEK 42.1 (-10.8)
- Earnings per share SEK 4.40 (-1.47)
- Operating cash flow per share SEK 1.27 (-2.84)
THIRD QUARTER (JUL-SEPT 2012)
- Revenue MSEK 26.7 (21.9)
- Research and development expenses MSEK 7.6 (5.8)
- Operating profit MSEK 4.0 (4.9)
- Net profit after tax MSEK 2.8 (5.4)
- Earnings per share SEK 0.29 (0.59)
- Operating cash flow per share SEK 0.66 (-1.63)
SIGNIFICANT EVENTS DURING THE THIRD QUARTER
- Moberg Derma towards market leading position in the U.S. - Walmart more than doubles distribution of Kerasal Nail™
- Strong launch start up in Europe - all milestones expected to be attained in 2012
- Recruitment completed for phase II trial on Limtop
SIGNIFICANT EVENTS AFTER THE QUARTER
- Moberg Derma establishes proprietary market presence in the U.S. - acquiring its U.S. distributor Alterna
- Directed share issue of MSEK 31.8 targeting a limited number of Swedish institutional investors
Product sales grew further in the third quarter, enabling us to report profitability for the first time, even when excluding milestone payments from total revenue. Overall, product sales increased by 11 percent compared to the previous quarter and by 178 percent compared with the same period last year. The launch of Kerasal Nail™ (Nalox™ in Sweden) in the U.S. continued successfully, receiving a significant boost in late summer when Walmart expanded distribution from 1,300 to 3,500 stores. This contributed to a sales increase in the U.S. of 11 percent compared to the previous quarter despite seasonal effects that normally make the second quarter the strongest for the product category.
Continued growth and a stronger financial position enable us to invest in proprietary distribution in selected markets as well as additional products. This is a step in our growth strategy aimed at attaining an EBITDA margin of at least 25 percent in three to five years. Having achieved eight consecutive quarters of growth, a positive cash flow, profitability earlier than planned and the successful launch of Kerasal Nail™ in the U.S., the time is right for us to invest in a proprietary distribution organization in a key market.
The acquisition of our U.S. distributor Alterna increases our level of ambition and earning capacity since we will be able to market existing and future products ourselves in the largest pharmaceutical market in the world. All sales revenues from the fast growing product Kerasal Nail™ are now going directly to Moberg Derma and our product portfolio is being expanded with established and growing brands, thereby further strengthening the company's foundation. Furthermore, by direct market access, we will gain greater insight into the needs of our end customers, which will prove valuable in our endeavors to develop and launch new products.
The development of new products progressed according to plan during the quarter. The recruitment of patients with actinic keratosis (sun-damaged skin) for a phase II trial on Limtop was successfully completed, with the results of the trial expected in the first six months of 2013. The results of a phase II trial on MOB-015, a new topical treatment for nail fungus, is expected in the fourth quarter, and as previously announced we expect that further trials will be required before the project can continue to phase III trials.
The financing of the acquisition is structured in a way that retains our strong financial position. On the owner side, the company adds established Swedish institutions, including AP3, the Third Swedish National Pension Fund and Rhenman & Partners, as well as Altaris Capital Partners, a successful U.S.-based private equity fund. A substantial part of the purchase sum was financed by a bank loan from Swedbank and the company's own funds, thus limiting share dilution. Our view remains that the company is well positioned for robust growth and we expect to report a pre-tax profit already for the full year 2012.
Peter Wolpert, CEO
CEO Peter Wolpert will present the report in a press conference at Operaterassen October 25th, 2012 at 11:00. Telephone: +46 (0)8-50685738 webcast: http://financialhearings.nu/121025/pressconference/
ABOUT THIS INFORMATION
Moberg Derma 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 7:00 am (CET) on October 25th, 2012.
For further information about Moberg Derma, please visit: www.mobergderma.com
FOR FURTHER INFORMATION, PLEASE CONTACT:
Peter Wolpert, President and CEO of Moberg Derma
Mobile: +46 70-735 71 35
Magnus Persson, IR
Mobile: +46 73-355 26 01