Swedish pharmaceutical company Moberg Pharma this morning reported Q3 2015 revenues of SEK 67m, which marked an increase of 32% y-o-y. The company doubled its profit compared with the same period one year ago and reported an EBITDA margin of 21%.
Moberg’s CEO Peter Wolpert comments in the report:
“Strong performance, with our distributor sales in Asia as a key driver, resulted in a third quarter with topline growth and continued improvement in profitability. Year-on-year, net sales grew 32% (8% at fixed exchange rates) and EBITDA improved by 90%, representing an EBITDA margin of 21% for the quarter and 18% for the first nine months of the year. The gross margin remains strong at 73% (72%). The Commercial EBITDA margin was 27% for the third quarter and 26% for the first nine months. I am pleased to report that our operating profit and our profit after tax have doubled in the third quarter as well as in the first nine months of the year.
Balmex® contributes to growth in U.S. direct sales
U.S. direct sales grew 40% in the third quarter (10% at fixed exchange rates). Kerasal Nail® increased its market share to 24%1. However, the line extensions launched earlier this year have performed below expectations and the category for branded fungal nail OTC products is still being impacted by heavy consumer advertising from prescription onychomycosis drugs. The total nail fungus market (Rx and OTC) continues to increase but the OTC category has declined 8% year-to-date. We are satisfied with the performance of Balmex® and the integration is progressing according to plan.
Asian launch strong growth driver
Distributor sales grew by 12% in the third quarter (2% at fixed exchange rates). The strong growth in RoW markets continues (+47%, 34% at fixed exchange rates), driven by the launches in Asia which continue to perform well. Preparations for launches in additional markets are progressing on or ahead of plan.
Certain rights in Europe regained
Sales to European distributors were down y/y considerably in the third quarter (following a strong Q3 last year) and were flat (+1%) for the first nine months. We see additional potential in Europe for the nail product and have therefore regained rights in some European markets, including UK and Poland. We are evaluating options to launch by ourselves or though other distributors in the released markets to further leverage the potential of Emtrix® in Europe.
Innovation engine – Focus on MOB-015 and M&A opportunities
Phase III preparations for MOB-015 are proceeding at full speed. We closed a risk sharing and development agreement with our supply partner Colep, which is important for the phase III program as well as securing future supply at competitive terms. The agreement will enable significant synergies with our current products in material procurement and manufacturing processes. We recently met with the FDA in a pre-IND meeting and received valuable guidance regarding the development plan to approval for MOB-015. Many of the key items will be further discussed under an IND. During Q4 we expect additional guidance through advisory meetings with three regulatory agencies in Europe.
The phase II trial for BUPI is progressing according to plan. Patient inclusion is almost completed and provided that the last few patients are included in November, we expect to get topline data before the end of the year.
We are continuously working on M&A opportunities and refining financing structures to be able to primarily debt-finance potential acquisitions.
Positioned to drive further growth and value creation
We continue to focus on our long-term goal of becoming the leading player in nail fungus and driving growth organically as well as through targeted acquisitions. We are now entering the low season for our main product but long term, our growing base business, increased profitability and cash flow provide an excellent position to pursue further growth opportunities.”