CREATING A FOOTPRINT IN UNDERSERVED NICHES

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1 Moberg Pharma AB CREATING A FOOTPRINT IN UNDERSERVED NICHES Presentation at Swedbank September 8, 2016 Peter Wolpert, CEO/Founder and Anna Ljung, CFO 0

2 Disclaimer Statements included herein that are not historical facts are forward-looking statements. Such forwardlooking 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 AB s interim or annual reports, prospectuses or press releases. 1 1

3 Moberg Pharma CREATING A FOOTPRINT IN UNDERSERVED NICHES Trending at ca 450 MSEK/$55m (incl Q316 deal) - U.S. OTC Sales operations - Products sold in 40+ countries - 35 FTEs in Sthlm and NJ Focus in OTC/Dermatology/Topicals - Leading OTC SKU in Nail Fungus - MOB-015 in Ph 3, $ m potential - BUPI in Ph 3 preparation, $50-100m potential Market Cap ~630 MSEK (OMX:MOB) 2 2

4 Moberg Pharma PROVIDING UNIQUE PRODUCTS IN UNDERSERVED NICHES Outlook Profitable growth, targeting a long-term EBITDA margin of at least 25% Strategic elements Growth strategy - Organic growth - M&A/Innovation engine Build value through combining Brand/IP Equity 3 3

Recent highlights Acquisition doubles operations in U.S. Acquisition of three brands from Prestige Brands in the U.S. for $40 million (transaction completed July 7 th ) In the 12m ending March 31, 2016, Net sales of the brands was approximately $24.

5 Recent highlights Acquisition doubles operations in U.S. Acquisition of three brands from Prestige Brands in the U.S. for $40 million (transaction completed July 7 th ) In the 12m ending March 31, 2016, Net sales of the brands was approximately $24.4 million. The acquired brands are expected to contribute to EBITDA with approximately $5 million for the 12 months following closing of the transaction. Financed by bond loan (incl. Q2 tap issue of SEK 85m) and divestment of non-core brands for $10m, incl. SEK 41m cap. gain MOB-015 advances approval to start Phase 3 in North America Phase 3 applications submitted to the U.S. FDA and authorities in Germany, Poland and Canada. Patient enrollment starts in Q3 Patents granted in several territories, including the U.S., Canada, the EU and Japan 4 4

6 The rapid growth continues fuelled by the acquisition from Prestige Brands closed on July 7 Net Sales, MSEK

7 Majority of revenue from direct OTC sales Launches in Asia drive RoW product sales Distribution of revenue, January June 2016 Sales via distributors 27% Divested products 12% Other 31% RoW 17% Europe 9% Direct OTC Sales 73% Nalox / Kerasal Nail 58% Americas 74% Channels Products Geography 6 6

8 P&L summary P&L Summary Apr-Jun Apr-Jun Jan-Jun Jan-Jun Full-year (MSEK) Revenue Gross profit % 72% 78% 71% 78% 75% SG & A R&D - existing product portfolio 1) Other operating income/operating expenses 41 3) ) 3 4 EBITDA Commercial Operations % 51% 18% 31% 25% 24% R&D & BD - future products 2) EBITDA % 47% 12% 26% 17% 16% Depreciation/amortization Operating profit (EBIT) ) Research and development expenses existing product portfolio includes R&D expenses for new product variants under existing brands, regulatory work and quality. 2) Research and development expenses - future products includes R&D expenses for new product candidates, for example MOB ) Including a capital gain on divested brands of 41 MSEK 7 Due to the rounding component, totals may not tally. 7

9 Balance Sheet effects of the acquisition CONFIDENTIAL (KSEK) Jun 30, 2016 Assets Intangible fixed assets 241,776 Property, plant and equipment 802 Financial assets 1 Deferred tax asset 10,118 Total non-current assets 252,697 Inventories 17,209 Trade receivables and other receivables 59,656 Current financial assets 200,388 Cash and bank balances 196,145 Total current assets 473,398 Will increase by product rights of ca $40 million Will increase, ca 3 month inventory, GM ca 60% Will increase Acc receivable, ca 3 months payment terms Newskin, PediaCare and Fiber Choice acquired for $40 million + inventory reduces cash, bond tap issue added cash TOTAL ASSETS 726,095 Equity and liabilities Equity 380,615 Long-term interest-bearing liabilities 293,986 Current interest-bearing liabilities - Current non-interest-bearing liabilities 51,494 Bond tap issue, ca 85 MSEK Increased Acc payable, ca 2-3 months payment terms (COGS and M&S expenses) TOTAL EQUITY AND LIABILITIES 726,

10 Commercial Operations and Innovation Engine

Acquisition of brands from Prestige closed on July 7 Three brands acquired for $40 million Expected contribution of ca $5 million to EBITDA for 12 months following closing Expected to double sales of

11 Acquisition of brands from Prestige closed on July 7 Three brands acquired for $40 million Expected contribution of ca $5 million to EBITDA for 12 months following closing Expected to double sales of our U.S. franchise Non-dilutive financing. Financed by available cash resources and bond loan Sold through our established sales channels in the U.S, primarily through chain drugstores and mass retailers, such as: New Skin is the #1 OTC liquid bandage brand in the U.S. An antiseptic which kills germs and dries rapidly to form a clear protective cover Fiber Choice is focusing on digestive health with many product options for daily fiber supplementation PediaCare has a strong equity amongst moms based on highly effective products for children, primarily within cough cold and analgesics segments 10 10

12 Focus on strategic brands in the U.S. Strategic brands Kerasal and Emtrix - Foot care New Skin - Antiseptic liquid Balmex - Diaper rash Domeboro - Derma/Skin irritation Mature brands PediaCare - Pediatric cough cold Fiber Choice - Prebiotic fiber supplements 11 11

13 Scalable infrastructure for marketing U.S OTC brands Contract Manufacturers Sales Force Retailers/ Wholesalers Sales and marketing/brand Management Logistics Note: Largest retailers and wholesalers only, not an all inclusive list.

14 All-Time High market share in U.S. for Kerasal Nail following successful relaunch New packaging, commercial and website launched in March Very positive reception from consumers and trade, ATH market share 23% 28% 25% +2% MARKET SHARE* VALUE GROWTH* CATEGORY GROWTH* Note: there is a lag of at least one month between growth in consumer sales and effects on net sales 13 * Last 12 weeks ending June 15, 2016 vs same period 2015 Source: Symphony IRI, U.S. retail sales of nail fungus products excluding 13 private label in Multi Outlet Stores

progresses well - 20% volume growth H116 - Volume discounts provided to support further growth

15 Growth potential in Asia for Distributor Sales Sales in >40 markets Market leader or top 3 position in Nordics, several EU and Asian countries Europe expecting lower level vs 2015 Asian launches progresses well - 20% volume growth H116 - Volume discounts provided to support further growth Launches initiated in Japan and Taiwan Note: Three largest distributors only, not an all inclusive list

16 Pipeline assets - Building on Topical drug delivery know how Pipeline asset Indication Status MOB-015 Onychomycosis Phase 3 starts Q316 BUPI Oral Mucositis and oral pain Phase 3 preparation Peak sales potential, m$ USP Topical terbinafine with fast visible improvement and superior cure rates Lozenge formulation with effective pain relief for 2-3 hrs(vs 0,5 hrs for competition) MOB-015 Phase 3 enrollment starts Q IND approved by the FDA and CTA by Health Canada. Applications submitted in Europe - Patent granted in multiple territories, incl U.S., EU, Japan and Canada BUPI Phase 3 preparations ongoing - Positive Phase 2 results for BUPI in Q116 - License/Dev Agreement with Cadila. Cadila conducts a Phase 3 trial in India, rights in India/Africa - Moberg sponsors one Phase 3 trial in Europe, co-financed by Eurostars grant 15 15

17 MOB-015 Potential to become the leader in onychomycosis Concept Builds on Emtrix/Kerasal nail, adds terbinafine Phase 2 demonstrated efficacy and safety: - Delivers high μg-levels of terbinafine into nail bed and nail - 54% mycological cure in severe nails and ca 4-5 mm of clear nail growth 16 Progress Patents approved in EU, US, CA and several other territories. Term to at least June 2016: Submitted IND in U.S. and CTAs to start Phase 3 in DE, PL and CA. Approval to start in US and CA in August Clinical Trial Material produced by Colep, who co-invests in MOB-015 Phase 3 Leading Derm CROs manage Phase 3 studies: - ProInnovera (EU) and - TKL (US/CA) Design/Timeline: - Primary endpoint: Complete Cure after 52w - Start enrollment in Q3 2016, targeting a total of ca 700 patients 16

BUPI Providing better pain relief in the oral cavity Product & Indication BUPI (bupivacaine lozenge) for oral pain relief (mouth and throat) 1 st indication: Oral Mucositis in cancer patients.

18 BUPI Providing better pain relief in the oral cavity Product & Indication BUPI (bupivacaine lozenge) for oral pain relief (mouth and throat) 1 st indication: Oral Mucositis in cancer patients. Large unmet need. In Phase 2, BUPI provided 50% better pain relief in the mouth than standard pain treatment Potential for other indications: Burning Mouth, Sjögren s, Endoscopy Sales potential and Next steps Peak Sales potential estimated to $50-100m (whereof OM $20-25m) Phase 3 preparations in Europe (Moberg) and India (Cadila Pharmaceuticals) 17 17

19 Focus next 12 months

20 Focus 2016 PROVIDING UNIQUE PRODUCTS IN UNDERSERVED NICHES Making significant investments in 2016 Acquiring/integrating additional brands/products Initiating phase 3 studies for MOB-015 Strengthening strategic brands in U.S. Broadening international distribution U.S: Execution of Kerasal brand strategy Asia key growth driver, additional launches Long-term target Create shareholder value through profitable growth targeting a long-term EBITDA margin of at least 25% BD/Innovation Engine - M&A focus on US OTC products - MOB-015 Initiating Phase 3 - BUPI: Preparations for Phase

21 Why invest in Moberg Pharma Strategy for Shareholder value Commercial niche strategy enables a growing and profitable base business Pipeline with large potential and at reasonable risk - Proven molecules limit development risk, cost and TTM Acquisition strategy with substantial value potential - 6 transactions in last 40 months - Team, systems and infrastructure in place to enable scale-up - Capacity to finance deals Strong Team and track record 20 20

Moberg Pharma AB CREATING A FOOTPRINT IN UNDERSERVED NICHES. Presentation at Redeye Investor Forum September 6, 2016 Anna Ljung, CFO

Moberg Pharma AB CREATING A FOOTPRINT IN UNDERSERVED NICHES Presentation at Redeye Investor Forum September 6, 2016 Anna Ljung, CFO 0 Disclaimer Statements included herein that are not historical facts