Interim report January September 2016

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1 Interim report January September 2016 Conference call, November 8, 2016 at 3:00 p.m. (CET) Dial-in number: SE: , US: Peter Wolpert, CEO & Founder Anna Ljung, CFO

2 Disclaimer The purpose of this presentation (the "Presentation") is to provide an overview of Moberg Pharma AB (publ) (the "Company"). For the purposes of this notice, "Presentation" means this document, its contents or any part of it, any oral presentation, any question or answer session and any written or oral material discussed or distributed during the Presentation meeting. This Presentation is not a prospectus or similar offer document. This Presentation does not purport to contain comprehensive or complete information about the Company and is qualified in its entirety by the business, financial and other information the Company is required to publish in accordance with the rules, regulations and practices applicable to companies listed on Nasdaq Stockholm (the "Exchange Information"). Any decision to invest in any securities of the Company should only be made on the basis of a thorough examination of the Exchange Information and an independent investigation of the Company itself and not on the basis of this Presentation. Neither this Presentation nor any of the Exchange Information has been independently verified by any other person unless expressly stated therein. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy or completeness of the information or opinions contained in this Presentation. Except where otherwise indicated in this Presentation, the information provided herein is based on matters as they exist at the date of preparation of this Presentation and not as of any future date. All information presented or contained and any opinions expressed in this Presentation are subject to change without notice. None of the Company or any of its directors, officers, employees, agents, affiliates or advisers is under any obligation to update, complete, revise or keep current the information contained in this Presentation to which it relates or to provide the recipient of with access to any additional information that may arise in connection with it. This Presentation contains "forward-looking" statements. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. In particular, forward-looking statements include all statements that express forecasts, expectations, plans, outlook and projections with respect to future matters, including trends in results of operations, margins, growth rates, overall market trends, the impact of interest or exchange rates, the availability or cost of financing, anticipated cost savings or synergies, the completion of strategic transactions and restructuring programmes, anticipated tax rates, expected cash payments, and general economic conditions. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and they are subject to change at any time. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements, including 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, the Company s ability to secure new products for commercialization and/or development and other risks and uncertainties detailed from time to time in the Company s interim or annual reports, prospectuses or press releases and other factors that are outside the Company's control. Any forward-looking statements made by or on behalf of the Company speak only as of the date they are made. The Company does not undertake to update forward-looking statements to reflect any changes in the Company's expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based. 2

Q3 2016 - Highlights Commercial Operations

3 Q Highlights Commercial Operations and Innovation Engine Focus next 12 months

4 Q Significant growth in Sales & Profitability 104.1MSEK NET SALES 56% GROWTH 61% DIRECT SALES 42% DISTRIBUTOR SALES 29MSEK 110% 28% EBITDA GROWTH EBITDA MARGIN 4

5 Q Excellent Progress Commercial 29% market share for Kerasal Nail in the U.S (L26W*) - All-Time High Growth in all distribution channels Acquired brands contributed significantly to sales and profitability Integration progressing according to plan Innovation engine Phase 3 enrollment initiated for MOB-015 in North America & Europe EU patent for BUPI Financial Initiated process to gain increased flexibility in debt financing for additional acquisitions Source: Symphony IRI, U.S. retail sales of nail fungus products excluding private label in Multi Outlet Stores *L26W/E 10/2/16 vs YAGO 5

for $40 million (transaction completed July 7th) Integration is progressing according to plan and is expected to be finalized Q4 2016 Net sales (12m ending March 31, 2016) was $24.

6 Recent achievements Acquisition doubles operations in U.S. Acquisition of three brands from Prestige Brands in the U.S. for $40 million (transaction completed July 7th) Integration is progressing according to plan and is expected to be finalized Q Net sales (12m ending March 31, 2016) was $24.4m Expected EBITDA contribution ca $5m for 12m postclosing Non-dilutive financing, bond loan and divestment of non-core brands for $10m (resulting in $5m capital gain) MOB-015 Phase 3 started in September All Health Authority approvals received Two Phase 3 trials initiated enrollment in North America and Europe Targeting ca 700 patients by Q Data expected mid 2018 Patents with term to 2032 granted in all major territories, including U.S., Canada, EU and Japan 6

Acquisition of brands from Prestige Closed on July 7 Three brands acquired for

Expected to double sales of our U.S. franchise Non-dilutive financing.

7 Acquisition of brands from Prestige Closed on July 7 Three brands acquired for $40 million Expected EBITDA contribution ca $5 million (12m post-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 a line of fiber supplements PediaCare has strong equity for pediatric products, in cough cold/analgesics 7

8 Additional acquisition opportunities - Several attractive acquisition opportunities are under evaluation Option to acquire Dermoplast from Prestige Brands Moberg has secured an exclusive option, to the end of 2017, to acquire Dermoplast, an attractive dermatology brand from Prestige Brands Currently the no. 2 brand and no 1. pharmacist recommended brand, in the $33.7 million U.S. retail pain relief sprays market. Dermoplast holds 21% market share in retail, and is growing L52W. Additional Hospital business Total net sales ca $12m Moberg has called for a bondholders meeting through written procedure to gain additional flexibility in debt-financing of acquisitions Proposed a one-time adjustment of the debt incurrence test which aims to increase the company s flexibility in conjunction with a potential acquisition Received irrevocable undertakings to vote in favor of the proposal from institutional investors comprising 33% of the outstanding bonds 2/3 majority is required Outcome of the bondholders meeting will be announced on or about November 25th, 2016 Source: Symphony IRI, Brand ranking according to Pharmacy Times Prestige Brands Earnings call, Nov 3,

9 P&L summary Q316 P&L Summary Jul-Sep Jul-Sep Jan-Sep Jan-Sep Full-year (MSEK) Revenue Gross profit % 69% 73% 70% 76% 75% SG & A R&D - existing product portfolio 1) Other operating income/operating expenses EBITDA Commercial Operations % 31% 27% 31% 26% 24% R&D & BD - future products 2) EBITDA % 28% 21% 27% 18% 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-015. Due to the rounding component, totals may not tally. 9

10 Majority of revenue from direct OTC sales Launches in Asia drive RoW product sales Channel Product Geographies Distributors 24% Direct 76% Other 40% Divested 7% Nalox / Kerasal Nail 53% Europe 7% ROW 15% Americas 78% Distribution of revenue, January September

11 Revenue segmentation Growth in all distribution channels Q3 Direct sales increased by 61% (12% excluding acquisitions and divestments) Distributor sales increased by 42% (88% excluding divested brands) Revenue by channel Jul-Sep Jul-Sep Jan-Sep Jan-Sep Full-year (MSEK) Direct sales Sales of products to distributors Milestone payments TOTAL Revenue by product category Jul-Sep Jul-Sep Jan-Sep Jan-Sep Full-year (MSEK) Nalox/Kerasal Nail, sales of products Nalox/Kerasal Nail, milestone payments JointFlex, Fergon, Vanquish (divested April ) Other products TOTAL Due to the rounding component, totals may not tally. 11

12 Balance Sheet (MSEK) June 30, 2016 Sep 30, 2016 Assets Intangible fixed assets Property, plant and equipment 1 1 Financial assets 0 11 Deferred tax asset 10 6 Total non-current assets Inventories Trade receivables and other receivables Current financial assets Cash and bank balances Total current assets Significant changes during Q3: Product rights bought for $40 million Dermoplast option Increased by ca 3 month inventory of acquired products, GM ca 60% Acc receivable increased, ca 3 months payment terms for acquired products Newskin, PediaCare and Fiber Choice acquired for $40 million + inventory reduces cash, bond tap issue added cash TOTAL ASSETS Equity and liabilities Equity Long-term interest-bearing liabilities Long-term non-interest-bearing liabilities - 19 Current non-interest-bearing liabilities Bond tap issue, ca 85 MSEK Holdback TOTAL EQUITY AND LIABILITIES

13 Q Highlights Commercial Operations and Innovation Engine Focus next 12 months

14 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 14

15 All-Time High market share in 2016 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 Note: there is a lag of at least one month between growth in consumer sales and effects on net sales 24% 29% 29% +2% MARKET SHARE* VALUE GROWTH* CATEGORY GROWTH* Source: Symphony IRI, U.S. retail sales of nail fungus products excluding private label in Multi Outlet Stores *L26W/E 10/2/16 vs YAGO 15

88% Europe growth 158% Asian launches progress well Launches initiated in Japan and Taiwan

16 Growth potential in Asia for Distributor Sales Sales in ca 40 markets Market leader or top 3 position in Nordics, several EU and Asian countries Growth in all markets Q3 2016: RoW growth 88% Europe growth 158% Asian launches progress well Launches initiated in Japan and Taiwan Direct sales launch initiated in the UK Note: Three largest distributors only, not an all inclusive list. 16

17 Pipeline assets target leadership in two niches Building on Topical drug delivery know how Pipeline Asset Indication Status MOB-015 Onychomycosis Phase 3 started 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) Source: Moberg Pharma analysis and estimate 17

18 MOB-015 target: Market leadership in Nail Fungus MOB-015 builds on Emtrix/Kerasal nail, adds terbinafine Phase 3: Managed by leading Derm CROs ProInnovera (EU) and TKL (US/CA) Primary endpoint: Complete Cure after 52w Manufacturing partner Colep co-invests in MOB-015 Phase 2 demonstrated efficacy and safety 54% MYCOLOGICAL CURE 1000X MORE TERB IN NAIL VS ORAL 40X MORE TERB IN NAIL BED VS ORAL Source: An open, single center pilot study of efficacy and safety of topical MOBO15B in the treatment of distal subungual onychomycosis, Faergemann et al, poster presentation at American Academy of Dermatology, March 2016; 54% of the patients completing the study were mycologically cured. Mycological cure for FAS was 52% and for PPAS 60% 18

19 Target Product Profile for mild-moderate nails vs Jublia - Jublia reached $400m sales in 18 months after launch MOB-015 Target Myc. Cure Complete cure Visual improvement 24W 52W 52W 4W >50% 60-70% 20-30% >50% Jublia - 54% 15-18% N/A Current OTCs* Ca 30% 6-8% or less N/A Superior Cure Rates Rapid Visible Improvement Note: For MOB-015, the above describes the outcome Management targets in ongoing Phase 3 trials. Source for Jublia data is Jublia Prescriber Information, Rev 09/2016 * Refers to publications on ciclopirox and amorolfine. Many other OTC products have not conducted or published 52w trials Potential for Shorter Treatment 19

20 BUPI - Providing better pain relief in the oral cavity Product & Indication BUPI (bupivacaine lozenge) for oral pain relief (mouth and throat) 1st indication: Oral Mucositis in cancer patients. Large unmet need. Potential for other indications: Burning Mouth, Sjögren s, Endoscopy EU patent with term to 2031, pending in U.S. and Canada 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) In Phase 2, BUPI provided 50% better pain relief in the mouth than standard pain treatment Source: Poster presentation at International Association for the Study of Pain (IASP), Japan, September Moberg Pharma analysis and estimate 20

21 Q Highlights Commercial Operations and Innovation Engine Focus next 12 months

Positive momentum in 2016-2016 was an investment year

22 Positive momentum in was an investment year Targets for 2016 Acquire additional brands Initiate phase 3 studies for MOB-015 Strengthen lead brand Kerasal Nail - in U.S. Broaden international distribution 22

23 The rapid growth continues - fueled by a major brand acquisition in July and strong Q3 results Product Sales, MSEK

24 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 TTM, cost and risk Acquisition strategy with substantial value potential - 6 transactions since 2012 Strong Team and track record 24

25 Moberg Pharma AB (Publ) Gustavslundsvägen 42, 5 tr Bromma mobergpharma.se

Year-end report January December 2016

Year-end report January December 2016 Presentation at Pareto Securities, February 14 th, 2017 Peter Wolpert, CEO & Founder Mark Beveridge, Business Controller Disclaimer The purpose of this presentation