STOCKHOLM, Feb. 11, 2019 /PRNewswire/ -- This year-end
report 2018 is made public in advance due to the transaction press
release announced earlier today regarding the divestment of Moberg
Pharma's OTC-business.
PERIOD (FULL YEAR 2018)
- Net revenue SEK 439.0 million
(439.0, current portfolio 369.2). Current portfolio growth of
16%*
- EBITDA SEK 101.7 million (89.4)
including, and SEK 96.7 million
(76.4) excluding, capital gains**
- EBITDA margin 23% (20)
- EBITDA for commercial operations SEK
123.1 million (106.0)
- Operating profit (EBIT) SEK 64.8
million (51.1)
- Net profit after tax SEK 19.8
million (11.1)
- Diluted earnings per share SEK
1.14 (0.64)
- Operating cash flow per share SEK
4.23 (3.07)
- The Board of Directors proposes that no dividend be paid for
the 2018 financial year
FOURTH QUARTER (OCT-DEC
2018)
- Net revenue SEK 97.1 million
(90.1, current portfolio 82.1) Current portfolio growth of
18%*
- EBITDA SEK 31.8 million
(27.0)
- EBITDA margin 33% (30)
- EBITDA for commercial operations SEK
37.1 million (30.7)
- Operating profit (EBIT) SEK 22.5
million (17.6)
- Net profit after tax SEK 11.0
million (9.6)
- Diluted earnings per share SEK
0.62 (0.55)
- Operating cash flow per share SEK
0.95 (1.68)
* In fixed rates excluding milestones
* Capital gains of SEK 5 million in
Q2 2018 from the divestment of Balmex® and SEK 13 million in Q3 2017 of Fiber
Choice®.
SIGNIFICANT EVENTS IN THE FOURTH QUARTER
- Moberg Pharma signed an agreement with Mundipharma to
commercialize Emtrix® in the Middle
East and Africa.
- Moberg Pharma was granted patent in China for MOB-015 until 2032, expanding the
global patent scope.
SIGNIFICANT EVENTS AFTER THE END OF THE QUARTER
- Today, Moberg Pharma entered into an agreement with RoundTable
Healthcare Partners and Signet Healthcare Partners to divest the
entire commercial operation for a cash consideration of
USD 155 million and an additional
cash consideration of USD 5 million,
providing funding for development and commercialization of
MOB-015.
- Moberg Pharma signed a license agreement with Bayer AG to
commercialize MOB-015 in Europe.
Moberg Pharma is eligible to receive milestones payments up to
EUR 50 million, including
EUR 1.5 million paid at signing, upon
achieving development, regulatory and commercial milestones, as
well as supply fees including royalties.
STATEMENT FROM THE CEO
Today we announce the divestment of Moberg Pharma's
commercial business, realizing a premium value for our OTC business
while indicating the significant value of MOB-015. This
transformative event is the result of great work by our team over
the past years, all leading up to the strong progress in 2018 when
EBITDA exceeded 100 MSEK for the first time. As for MOB-015,
patient screening for the European Phase 3 study was recently
finalized along with the second major license agreement, for
Europe, marking the start of a
very exciting year for our main pipeline asset.
Continued momentum in the commercial operations
U.S. sales were strong in the fourth quarter,
contributing to double-digit growth for the full year. Our three
major brands – Kerasal Nail®, Dermoplast® and New Skin® –
strengthened their category leading positions, behind execution of
the brand-specific growth plans. Kerasal Nail® in particular,
stands out with a third consecutive year of double-digit growth in
the U.S. and in 2018 became ranked as the #1 individual product, in
the nail fungus segment as well as in the entire Foot Care
category. The entire portfolio continues to benefit from successful
positioning, compelling advertising and optimization of marketing
investment. This spring we are launching a number of initiatives to
further progress the growth plan of the business.
Distributor sales adjusted for milestone payments[1] also grew
in the fourth quarter, in line with our stabilization plan, and for
the full year were at the level of the previous year. We have
submitted an application on Emtrix® registration in Russia and are preparing for an initial launch
in the Middle East/Africa region.
Overall, our strategy to streamline the portfolio and focus on
the key brands has resulted in healthy organic growth as well as
increased profitability. Adjusted for items affecting
comparability[2], net sales increased by 16% for the full year.
EBITDA increased by 15% to the equivalent of SEK 102 million (89) and the gross margin rose to
76% (71). With an EBITDA margin of 23% for 2018, we are approaching
the company's long-term profitability goal.
Today, Moberg Pharma entered into an agreement with RoundTable
Healthcare Partners and Signet Healthcare Partners to divest the
entire commercial operation and realize the value that we have
created in this business over the past years. Additional details on
the transaction are available in today's press release, which also
is enclosed to this year-end report.
Important milestones for the pipeline
In the
beginning of 2019, screening of patients to the European Phase 3
study for MOB-015 was finalized and we expect randomization to be
completed during the first quarter of 2019. This means we can
expect topline results for the U.S. Phase 3 study in late 2019 and
corresponding results from the European Phase 3 study in the second
quarter of 2020.
Commercialization preparations are underway in several
territories. A milestone was reached in November when we were
granted a patent for MOB-015 in China, which means that the product is now
protected in all major markets, including the EU, U.S, Canada and Japan. After last fall's license agreement
with Cipher Pharmaceuticals in Canada, we recently signed another significant
license agreement, this time with the Consumer Health division of
Bayer, a world leader in OTC antifungal treatments. The agreement
with Bayer covers commercialization in Europe and can bring up to EUR 50 million in total milestone payments,
including EUR 1.5 million paid at
signing, as well as supply fees and royalties for delivered
products. Naturally, we are very proud of this progress. We look
forward to further development and intend in the year ahead to
focus the company's development resources on MOB-015.
An exciting year
Our decision to divest the
commercial business is transformational for Moberg Pharma and
enables shareholders to recognize a compelling value for both
components of our business. The upfront cash consideration of
USD 155 million offers near-term
liquidity and the incremental consideration of USD 5 million provides continued funding for
MOB-015 at an attractive implied value. Overall, we are very
excited with the outcome and look forward to continuing to create
value for the shareholders of Moberg Pharma with a more focused
strategy. The upcoming year will be pivotal for the company, with
Phase 3 data for MOB-015 in North
America expected in the fourth quarter and progressing
commercialization plans with current and future partners.
Peter Wolpert, CEO Moberg Pharma
[1] Note that nonrecurring sales amounted to SEK 1.3 million in Q4 18, compared to
SEK 8.0 million in Q4 17.
[2] In fixed currency adjusted for milestone revenues.
PRESS CONFERENCE AND CONFERENCE CALL, FEBRUARY 12, 2019
Press Conference:
9:00
a.m., at Gernandt & Danielsson Advokatbyrå, Hamngatan 2,
Stockholm. Dial-in: SE +46
8 566 427 03; US: +1 646 722 4957
Telephone conference :
3:00 p.m. Telephone: SE
+46-8-505 583 53, US +1 646 722 49 57
ABOUT THIS INFORMATION
This information is information that Moberg Pharma AB is obliged to
make public pursuant to the EU Market Abuse Regulation. The
information was submitted for publication, through the agency of
the contact person set out above on February
11th, 2019.
CONTACT:
FOR ADDITIONAL INFORMATION, PLEASE CONTACT:
Peter Wolpert, CEO, Phone: +46 707
35 71 35, US +1 908 432 22 03, E-mail:
peter.wolpert@mobergpharma.se
Mark Beveridge, VP Finance, Phone: +
46 76 805 82 88, e-post: mark.beveridge@mobergpharma.se
This information was brought to you by Cision
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The following files are available for download:
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Moberg Pharma AB
Year-end report 2018
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SOURCE Moberg Pharma