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Moberg Pharma

Annual Report Feb 13, 2024

3174_10-k_2024-02-13_f2aa91b5-1eec-45e4-9221-d79299986a2c.pdf

Annual Report

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Year‐end report 2023

LAUNCH INITIATED IN SWEDEN

"MOB-015 is now on the shelves of pharmacies around Sweden under the brand name Terclara® – a milestone we have been working towards at Moberg Pharma for some time. It is especially gratifying to see the great interest in the product among the pharmacies," says Anna Ljung, CEO of Moberg Pharma.

THE YEAR (JAN-DEC 2023)

  • EBITDA SEK -25.4 million (-17.6)
  • Operating profit (EBIT) SEK -27.5 million (-20.2)
  • Profit after tax SEK -21.1 million (-15.7)
  • Total profit SEK -21.1 million (-15.7)
  • Diluted earnings per share SEK -1.33 (-2.07)
  • Cash and cash equivalents amounted to SEK 60.6 million (125.6)

FOURTH QUARTER (OCT-DEC 2023)

  • EBITDA SEK -8.0 million (-4.0)
  • Operating profit (EBIT) SEK -8.2 million (-4.6)
  • Profit after tax SEK -6.4 million (-3.1)
  • Total profit SEK -6.4 million (-3.1)
  • Diluted earnings per share SEK -0.23 (-0.32)
  • Cash and cash equivalents amounted to SEK 60.6 million (125.6)

SIGNIFICANT EVENTS IN THE FOURTH QUARTER

  • Enrollment to the North American study is completed by a wide margin in 2023; 384 patients have been randomized at 33 study centers in the U.S. and Canada. Topline results are expected in January 2025.
  • Management changes where Robert Ehrl succeeds Jesper Lind as Head of Supply and Christina Erixon succeeds Agneta Larhed as Vice President Vice President Pharmaceutical Innovation & Development.
  • Manufacture and transport of MOB-015 ahead of launch has been completed according to schedule.

SIGNIFICANT EVENTS AFTER THE QUARTER

• The sale of MOB-015 in Sweden under the brand name Terclara® has begun and the product is now available at the majority of pharmacies around the country.

STATEMENT FROM THE CEO

MOB-015 is now on the shelves of pharmacies around Sweden under the brand name Terclara® – a milestone we have been working towards at Moberg Pharma for some time. It is especially gratifying to see the great interest in the product among the pharmacies.

We are now in the midst of the rollout to pharmacies of Terclara®, the brand name that MOB-015 is being launched under in Sweden by our partner Allderma. Production and inselling to pharmacy chains has been completed on schedule, so that the pharmacies can get the product now during the "February window," one of three times during the year when the chains reset their shelves. At the same time as pharmacies fill up the shelves, work is ongoing to inform doctors and pharmacy staff about the unique advantages of Terclara®. We're also conducting tests and fine-tuning marketing materials to ensure that it effectively communicates the product's superior features to our target groups. This is followed by targeted marketing to consumers, including digital marketing starting from March and TV commercials from April onwards. This means that MOB-015 is now available to Swedish patients ahead of high season in Q2 for those who want to begin the journey towards attractive, fungus-free nails before sandal season and the summer holiday.

We have received national approvals in a total of ten countries to date and are awaiting approvals in the remaining three countries included in the DCP process. We are dialoguing with the countries - Italy, Belgium and the Netherlands - that have not yet approved the product, where the approval decisions are taking time mainly due to the limited resources and heavy workload of the regulatory authorities. It is worth noting that all the countries have approved the product within the DCP process. National approvals affect only national adjustments, such as the translation of the product literature to the national language and whether the product will be approved for over-the-counter (OTC) or prescription (Rx) sales in each country.

Sweden is the priority market for Moberg Pharma as we have limited access to terbinafine in the near term. We have made progress in our efforts to secure a long-term supply of terbinafine ahead of the planned pan-European rollout together with our partner Bayer. We continue to work together with our intended terbinafine supplier, with an anticipated application submission expected shortly. In addition, we are actively working to secure another terbinafine supplier and have ordered terbinafine from alternative manufacturers. Upon delivery, we will have a small batch of MOB-015 manufactured for the stability studies required for the regulatory process to include a new terbinafine manufacturer. We thus have two parallel tracks to ensure a stable supply of terbinafine.

An important event during the quarter was the conclusion of patient enrollment in North America in early October by a wide margin thanks to the outstanding efforts of the team and engaged investigators. A total of 384 patients have been randomized at 33 study centers in the U.S. and Canada. The completion of the recruitment has also resulted in an outflow of cash linked to this milestone and we expect lower expenses for the study going forward. The timing when the last patient is enrolled in the study determines the timeline when data can be presented, and thanks to the fact that enrollment was completed in October, we expect to be able to present topline results as soon as January 2025. Maintaining a dialogue with the investigators in the study and key opinion leaders is important to both our ongoing clinical work and so that medical personnel will receive the product in the best way, and we look forward to again meeting many of our investigators at the annual meeting of the American Academy of Dermatology (AAD) in March.

Now in the first quarter we see that the preconditions for a successful launch are in place, with pharmacies filling up their shelves, and we look forward to launching our marketing to the consumer when high season is approaching and interest in treating nail fungus peaks. The Swedish launch is an important springboard to realize our vision – to make MOB-015 the leading nail fungus treatment worldwide.

Anna Ljung, CEO of Moberg Pharma

ABOUT MOBERG PHARMA AND MOB-015

Moberg Pharma's goal is to make MOB-015 the world's leading treatment for nail fungus and to build a specialty pharmaceutical company with its own sales in the U.S. and sales through partners in other markets. With MOB-015 as an anchor, the company intends to expand the product portfolio with additional products in adjacent areas either developed inhouse or acquired.

MOB-015 is a next-generation treatment for onychomycosis (nail fungus), and the high antifungal effect shown in clinical Phase 3 studies with more than 800 patients indicates that the product has the potential to become the future market leader in nail fungus. Moberg Pharma has signed license agreements with partners in Europe, Canada, Israel and the Republic of Korea for MOB-015, and the product is approved in ten European countries with approvals expected in three additional European countries. The global annual sales potential for MOB-015 is estimated at USD 250–500 million.

MOB-015
Nail fungus affects 10%, more common among older people
Topical terbinafine for treatment of nail fungus
Target profile: Rapid, visible improvement, superior cure rate and shorter treatment time
World-leading anti-fungal effect
76% mycological cure in Phase 3
1000x higher concentration of terbinafine in the nail compared to oral terbinafine
40x higher concentration of terbinafine in the nail bed compared to oral terbinafine
Negligible systemic levels of terbinafine
Estimated global sales potential
USD 250-500 million per annum
Partners in Europe, Canada, Israel and the Republic of Korea
Two-step launch plan, beginning in Scandinavia followed by pan-European launch
Launch initiated in Sweden under brand name Terclara®
National marketing authorization approvals received in 10 European countries,
recommended for approval in additional 3 EU countries
Phase 3 studies completed in North America, n=365, and Europe, n=452. Primary
٠
endpoints reached without serious side effects
New Phase 3 study for North America ongoing, n=384, topline results expected Jan 2025
Patent protection until 2032 and additional ongoing patent applications
Patents granted in major markets, including the U.S., the EU, Canada, Japan and China
Patents include new topical formulations of allylamines (including terbinafine) and
treatment methods for nail fungus using the new formulations

SIGNIFICANT MEDICAL NEED – MORE THAN 100 MILLION PATIENTS IN THE EU AND U.S. HAVE NAIL FUNGUS

Despite that one out of every ten people suffers from nail fungus, there currently aren't any good treatment alternatives available. The most effective treatment is oral terbinafine, which is associated with the risk of liver damage and interaction with other drugs. Dermatologists around the world agree on the great need for better topical treatments without the risk of systemic side effects. In a survey in the U.S., 72% of responding physicians avoid prescribing oral terbinafine due to their

patients' concern about side effects, and 62% would prefer a product with MOB-015's intended target profile to current topical treatments. Only 6-15% of responding physicians would continue to prescribe current topical treatments. 1

RESULTS FROM TWO PHASE 3 STUDIES SHOW THAT MOB-015 HAS UNIQUE ANTIFUNGAL EFFECT

In December 2019, the results were presented from the first of two clinical studies in the Phase 3 program for MOB-015, followed by the results of the European study in June 2020. Both studies met the primary endpoint. Mycological cure (eradicating the fungal infection) was achieved in 76 percent of the patients (70 percent of the patients in the North American study and 84 percent of the patients in the European study), which is substantially higher than reported for other topical treatments (30-54 percent). Furthermore, the onset of the antifungal effect is more rapid than for oral terbinafine, with MOB-015 delivering 55–78 percent mycological cure at 6 months (vs 40 percent for oral terbinafine) and 37–46 percent already at 3 months (vs 15 percent for oral terbinafine).

MOB-015 is the first topical treatment with a mycological cure rate at the same level as oral terbinafine, the current gold standard for treatment of onychomycosis. Before the completed clinical Phase 3 studies with MOB-015, it appeared unrealistic that a topical treatment would achieve a mycological cure rate of 70 percent. Furthermore, the concentration of terbinafine has been shown to be 1000X higher in the nail, 40x higher in the nail bed and 1000X lower in plasma compared to oral terbinafine – ideal characteristics for an effective tropical treatment without systemic exposure.

MARKET APPROVAL IN THE EU

In March 2022, Moberg Pharma submitted the registration application for MOB-015 in Europe through the decentralized process. In June 2023, the Decentralized Procedure ended with a positive outcome and MOB-015 recommended for national approval in 13 European countries for the treatment of mild to moderate fungal infections of the nails in adults. The following EU countries are included: Austria, Belgium, Czech Republic, Denmark, Finland, France, Hungary, Ireland, Italy, Netherlands, Norway, Spain and Sweden. Next steps include national implementation in each country and OTC approvals when applicable. The national approvals are expected to follow in the upcoming months and timelines may vary between countries. As at the date of this report, Moberg Pharma has received national approvals in the following countries: Austria (OTC), Czech Republic (Rx), Denmark (Rx), Finland (Rx), France (Rx), Hungary (OTC), Ireland (Rx), Norway (OTC), Spain (Rx) and Sweden (OTC).

TWO-STEP ROLLOUT

Our commercialization rollout will be a two-step process and has now begun in our home market. As of February 2024, MOB-015 is available in pharmacies under the brand name Terclara®, and at the present time the majority of pharmacies around Sweden have decided to sell Terclara®. This early launch in Sweden enables us to gain valuable insights into consumer behavior, collect patient feedback and provide user data to support a direct Rx to OTC switch in more countries. The launch is taking place in collaboration with our partner Allderma, managed by the commercial leaders who were responsible for the successful Nordic launch of Nalox®, Moberg Pharma's first-generation nail fungus product. Step 2 of the launch will be a pan-European rollout together with our partner Bayer, following the results of the ongoing North American study, which we believe has the potential to strengthen product claims further, including a shorter dosing regimen. The timing is also driven by our need to secure sufficient API (active pharmaceutical ingredient) for a pan-European launch.

ENROLLMENT COMPLETED FOR NORTH AMERICAN PHASE 3 STUDY

For market approval in the U.S., the FDA normally requires two studies that demonstrate superiority (statistically superior to the comparator) for the primary endpoint. An additional North American study is ongoing to enable registration in the U.S. market. Moberg Pharma submitted documentation on the new study to the FDA in March 2022, the first patient was enrolled in May 2022 and the enrollment of 384 patients was completed in October 2023. Topline results are expected in January 2025. The randomized, vehicle-controlled, multicenter Phase 3 study is being conducted at 33 study centers in the U.S. and Canada. The patients are being evaluated over 52 weeks and the primary endpoint will be the proportion of subjects achieving complete cure of their target nail. The study design builds on the experience gained from the previous Phase 3 studies and Moberg Pharma is cooperating with the same CRO, same lead investigator and high-performance clinics from the previous

1 Survey of 89 U.S. physicians (dermatologists and podiatrists), LifeSci Physician Survey, April 4, 2017

North American study. The purpose of the new study is to facilitate market approval in the U.S. as well as strengthen the product's clinical evidence and marketing claims globally.

AGREEMENTS WITH STRONG PARTNERS IN PLACE – U.S. RIGHTS RETAINED

In total, five agreements are in place with commercial partners for MOB-015: Cipher Pharmaceuticals for Canada; DongKoo, the market leader in dermatology in the Republic of Korea; Allderma in Scandinavia; Padagis in Israel; and the Consumer Health division of Bayer AG, a world leader in OTC fungus treatments with the brand Canesten, for Europe.

The agreements give these partners exclusive rights to market and sell MOB-015 in each respective market, while Moberg Pharma is responsible for production and supply. Within the framework of the agreements Moberg Pharma can receive milestone payments of up to a total USD 70 million upon successful development and commercialization, in addition to royalties and compensation for delivered products.

Previously, Moberg Pharma has successfully commercialized products in the U.S. and retained the rights to MOB-015 for the U.S. market. The aim is to repeat the journey taken with Kerasal Nail®, where Moberg Pharma combined direct sales in the U.S. with strategic collaborations in other major territories. The most important markets for MOB-015 are expected to be the U.S., EU, Japan, Canada and China, all with patent protection until 2032. In addition to granted patents, the company also has ongoing patent applications which, if approved, could provide significantly longer patent protection.

PROVEN COMMERCIAL MODEL

Moberg Pharma commercialized its first-generation nail fungus product – Kerasal Nail® – and built an OTC business with an annual revenue of SEK 440 million, a 30% market share in the U.S. and more than 30,000 sales locations, including the major chains CVS, Walgreens and Walmart. In 2019, the OTC business was successfully divested for SEK 1.4 billion. The company's aim is now to repeat this journey with MOB-015, a product with much greater potential.

COMPANY EVENTS

The Annual General Meeting on May 16 elected Håkan Wallin to the Board of Directors. Håkan has many years of both operative and financial experience from advisory positions as well as from board and management positions in both listed and non-listed life science companies. Previous positions include responsible partner on the corporate finance side for the life science sector at ABG Sundal Collier, EVP Corporate Development at Medivir and Chairman of the Board of Palette Life Sciences (previously PharmanestAB). Håkan is today CFO at NP3 Fastigheter AB.

In November, the organization was strengthened following market approval earlier this year and ahead of the upcoming launch. The management team has added two new members in Christina Erixon, Head of Pharmaceutical Innovation & Operations, who succeeds Agneta Larhed, and Robert Ehrl, Head of Supply, who succeeds Jesper Lind. Both roles have been expanded from part-time consultants to full-time positions. Agneta Larhed is stepping down from the management team but remaining a part-time consultant to the company with unchanged scope. Jesper Lind is remaining for a period as a consultant to the company.

Christina Erixon has extensive experience from development, regulatory issues and pharmaceutical quality within the pharmaceutical industry. Dr. Erixon has held leading positions within the pharmaceutical industry and at regulatory authorities, including roles as the manager of clinical trials at the Swedish Medical Products Agency, senior product developer at AstraZeneca, business manager and associate director for Pharmaceutical Development at APL, and most recently as the director of Drug Development at SDS Life Science. Dr. Erixon is pharmacist with a PhD in Pharmaceutics from Uppsala University.

Robert Ehrl holds a PhD in organic chemistry with over 20 years of experience from the pharmaceutical industry. He has held leadership positions at AstraZeneca and Valneva Sweden AB, primarily in process development, supply, and manufacturing. Dr. Ehrl has worked with both small molecule and biological drugs/vaccines, from active pharmaceutical ingredient (API) to final packed product.

On June 28, the Board of Directors resolved to carry out a new issue of ordinary shares and warrants with preferential rights for existing shareholders of approximately SEK 100 million. The Board of Directors also resolved on a directed issue to guarantors in the rights issue. The Board of Directors' resolutions were approved by the Extraordinary General Meeting on August 8 and the Extraordinary General Meeting on October 9. The rights issue was oversubscribed with a subscription rate of 130% and provided the company with approximately SEK 100 million before transaction costs. The net proceeds will mainly be used for clinical and regulatory activities for MOB-015 and preparations ahead of launch.

FINANCIAL OVERVIEW

REVENUES AND PROFIT

Fourth quarter (October - December 2023)

Moberg Pharma's operations consist of research and development, business development and administrative functions. The majority of the development expenditure incurred is directly attributable to the development project MOB-015 and is capitalized. The largest expense items in the quarter therefore consist of business development and administration expenses of SEK 6.3 million (5.2), pre-launch selling expenses of SEK 1.2 million (0.5), followed by research and development expenses of SEK 1.0 million (0.2). Profit for the quarter was SEK -6.4 million (-3.1).

Full-year (January - December 2023)

Selling expenses increased in pace with the upcoming launch of MOB-015 to SEK 3.3 million (1.0). Business development and administrative expenses increased due to several business development activities tied to the ongoing approvals in several markets to SEK 21.6 million (20.1). Research and development expenses include fees related to market approvals as well as regulatory registrations of SEK 3.7 million (1.2). Profit for the year was SEK -21.1 million (-15.7).

CASH FLOW

Fourth quarter (October - December 2023)

Cash flow from operating activities was SEK -5.6 million (-4.4) before changes in working capital and SEK -7.3 million (-3.3) after changes in working capital. A large share of the total cash flow from operating activities relates to stock procurement ahead of the upcoming launch. Cash flow from investments was SEK -33.2 million (-13.6) and relates to capitalized expenditure for the ongoing North American Phase 3 study. The success in enrolling patients, where the last patient was enrolled during the quarter, has also meant a large cash outflow to pay for enrollment activities and the CRO. This is the main reason for the increase in R&D expenditure during the quarter and we expect lower R&D expenditures going forward. Cash flow from financing activities was SEK -0.3 million (-0.8). The total change in cash and cash equivalents in the quarter was SEK -40.9 million (-16.9). Cash and cash equivalents amounted to SEK 60.6 million (125.5) at the end of the period.

Full-year (January - December 2023)

Cash flow from operating activities before changes in working capital was SEK -21.1 (-15.5) million. Cash flow from investments was SEK -124.1 million (-68.1). Cash flow from financing activities was SEK 92.3 million (107.8). The total change in cash and cash equivalents during the year was SEK -65.0 million (22.9).

INVESTMENTS

Investments in intangible assets relate to capitalized expenses for development work on MOB-015, mainly the ongoing North American Phase 3 study, of SEK 33.2 million (26.6) in the quarter.

R&D expenses (costs and investments) Oct-Dec Oct-Dec Jan-Dec Jan-Dec
(SEK thousand) 2023 2022 2023 2022
R&D expenses (in statement of comprehensive income) -1,037 -225 -3,657 -1,177
Capitalized R&D investments -33,215 -26,612 -124,116 -81,062
Depreciation/amortization booked to R&D expenses 150 430 1,276 1,683
Change in R&D investments (in statement of financial position) -33,065 -26,182 -122,840 -79,379
Total R&D expenditure -34,102 -26,407 -126,497 -80,556

LIABILITIES

As at the balance sheet date, the Group has no interest-bearing liabilities (excluding leasing liabilities).

CHANGES IN EQUITY

SHARES

Share capital at the end of the period was SEK 28,407,452, where the total number of shares outstanding was 28,407,452 ordinary shares with a quotient value of SEK 1. Moberg Pharma holds 445,974 repurchased ordinary shares at the end of the year.

The Annual General Meeting on May 16, 2023 resolved on a reverse share split, through which ten (10) existing shares were consolidated into one (1) new share. The share's quotient value increased from SEK 0.1 to SEK 1.0.

In June 2023, 187,000 class C shares were issued to ensure that the company can fulfil its commitments under the long-term incentive program LTI 2023 resolved by the Annual General Meeting on May 16, 2023. The shares are intended for use in securing the commitments under the incentive program and are owned by Moberg Pharma.

In September 2023, Moberg Pharma completed a rights issue of units, comprised of 17,470,149 ordinary shares and warrants of series 2023:1, as resolved by the Board of Directors on June 28, 2023, as well as a directed issue of units, corresponding to 664,370 ordinary shares and warrants of series 2023:1, to the guarantors in the rights issue who have chosen to receive their guarantee commission in the form of newly issued units. Each warrant of series 2023:1 entitles the holder to subscribe for one (1) new ordinary share in the company during the period June 5, 2024 up to and including June 19, 2024. The subscription price for subscription of ordinary shares with the support of warrants of series 2023:1 will correspond to 70 percent of the volume-weighted average price of the company's ordinary share during the period from and including May 20, 2024 up to and including May 31, 2024. However, the subscription price can at minimum amount to the quota value of the share, corresponding to approximately SEK 1.0 per ordinary share. The rights issue was oversubscribed and Moberg Pharma was provided with proceeds of approximately SEK 100 million before deducting transaction costs.

SHARE-BASED COMPENSATION PLANS

As at the reporting date, the number of outstanding instruments was 1,851,000 performance share units (which entitle holders to not more than 1,522,988 shares), with a maximum potential dilution of 5.1%. Performance share units are issued and held in trust, where the actual number of shares that can be transferred varies depending on the individual targets and whether the company meets its business goals over several years. For detailed information on the incentive programs, see the 2022 Annual Report.

SHAREHOLDER INFORMATION

The company's largest shareholders per December 31, 2023:

Shareholder Number of shares % of votes and capital
Östersjöstiftelsen 3,266,477 11.5
Avanza Pension 1,825,734 6.4
Nordnet Pensionsforsakring AB 656,696 2.3
Kjelsmark Holding ApS 500,000 1.8
Moberg Pharma AB (publ) 445,974 1.6
The Bank of New York Mellon SA/NV, W8IMY 419,232 1.5
Iveland, Beatrice 390,000 1.4
Swedbank Försäkring 358,111 1.3
Clearstream Banking S.A., W8imy 344,383 1.2
IBKR Financial Services AG, W8IMY 335,348 1.2
JS Erhvervs Consult Aps 329,811 1.2
Blom, Fredrik 320,000 1.1
Zachau, Styrbjorn 317,246 1.1
Chen, Chance 307,671 1.1
Nordea Livförsäkring Sweden Ab 296,798 1.0
Asberg, Fredrik Erik 231,345 0.8
Handelsbanken Liv Försäkringsaktiebolag 222,773 0.8
Eriksson, Mats 213,143 0.8
SEB Life International Assurance 211,010 0.7
SEB Investment Management 198,631 0.7
TOTAL, 20 LARGEST SHAREHOLDERS 11,190,383 39.4
Other shareholders 17,217,069 60.6
TOTAL 28,407,452 100

PARENT COMPANY

Moberg Pharma AB (publ), corp. reg. no. 556697-7426, is the parent company of the Group. The operations of the Group are primarily conducted in the parent company and consist of research and development, business development and administrative functions. For the period January to December 2023, the parent company's operating profit was SEK -27.5 million (-20.2), while profit after financial items was SEK -25.4 million (-19.5). Profit after tax was SEK -21.1 million (15.7). Cash and cash equivalents amounted to SEK 60.6 million (125.6) at the end of the period.

OTHER INFORMATION

ORGANIZATION

Per December 31, 2023, Moberg Pharma had 10 employees, of whom 80% were women. All were employees of the parent company.

RISK FACTORS

Commercialization and development of pharmaceuticals are capital-intensive activities exposed to significant risks. Risk factors considered to be of particular significance for Moberg Pharma's future development are linked to the results of clinical trials,

regulatory actions, patents and trademarks, key personnel, sensitivity to economic fluctuations, future capital requirements, and financial risk factors. A description of these risks can be found in the company's 2022 Annual Report on page 21.

OUTLOOK

Moberg Pharma's goal is to create value and provide attractive shareholder returns through the successful commercialization of its pipeline assets.

In June 2023, the Decentralized Procedure ended with a positive outcome and MOB-015 recommended for national approval in 13 European countries for the treatment of mild to moderate fungal infections of the nails in adults. National approvals are now underway in each country, where 10 countries have approved the product to date, as well as OTC approvals when applicable.

Moberg Pharma is also conducting a North American Phase 3 study, where patient enrollment was completed in October 2023 and topline results are expected in January 2025. The study has the potential to enable drug registration in the U.S. and further strengthen the product claims.

The company have initiated the launch in Sweden and as of February 2024, MOB-015 is available at pharmacies under the brand name Terclara®. Pharmacies are now filling their shelves, after which marketing to the consumer will begin ahead of high season – as summer and the sandal season approach, interest in treating nail fungus peaks. The Swedish launch is an important springboard to realize our vision – to make MOB-015 the leading nail fungus treatment worldwide.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Oct-Dec Oct-Dec Jan-Dec Jan-Dec
(SEK thousand) 2023 2022 2023 2022
Net revenue - - - 207
Cost of goods sold - - - -
Gross profit - - - 207
Selling expenses -1,167 -540 -3,257 -1,014
Business development and administrative expenses -6,288 -5,160 -21,603 -20,057
Research and development expenses -1,037 -225 -3,657 -1,177
Other operating income 257 1,326 1,054 1,815
Other operating expenses - - - -
Operating profit (EBIT) -8,235 -4,599 -27,463 -20,226
Interest income and similar items 799 786 2,303 786
Interest expenses and similar items -52 -13 -260 -72
Profit after financial items from continuing operations (EBT) -7,488 -3,826 -25,420 -19,512
Tax on profit for the period 1,043 713 4,327 3,802
PROFIT FOR THE PERIOD -6,445 -3,113 -21,093 -15,710
TOTAL PROFIT FOR THE PERIOD -6,445 -3,113 -21,093 -15,710
Profit for the period attributable to parent company shareholders -6,445 -3,113 -21,093 -15,710
Total profit attributable to parent company shareholders -6,445 -3,113 -21,093 -15,710
Basic earnings per share -0.23 -0.32 -1.33 -2.07
Diluted earnings per share 2 -0.23 -0.32 -1.33 -2.07
EBITDA FROM CONTINUING OPERATIONS -7,975 -3,954 -25,364 -17,644
Depreciation/amortization -260 -645 -2,099 -2,582
Operating profit (EBIT) -8,235 -4,599 -27,463 -20,226

2 In periods when the Group reports a loss, no dilution effect arises. A dilution effect is only recognized when a potential conversion to ordinary shares would result in lower earnings per share.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION IN BRIEF

(SEK thousand) 2023-12-31 2022-12-31
Assets
Intangible non-current assets3 532,220 408,104
Tangible non-current assets 0 0
Right-of-use assets 4,942 5,984
Deferred tax asset 28,077 22,575
Total non-current assets 565,239 436,663
Inventories 7,115 -
Trade receivables and other receivables 1,823 2,210
Cash and cash equivalents 60,555 125,550
Total current assets 69,493 127,760
TOTAL ASSETS 634,732 564,423
Equity and liabilities
Equity attributable to parent company's shareholders 610,725 533,584
Total equity 610,725 533,584
Non-current leasing liabilities 3,467 3,988
Non-current non-interest-bearing liabilities - 65
Total non-current liabilities 3,467 4,053
Current leasing liabilities 1,270 2,117
Current non-interest-bearing liabilities 19,270 24,669
Total current liabilities 20,540 26,786
TOTAL EQUITY AND LIABILITIES 634,732 564,423

3Refers to capitalized development expenses, see note 2.

CONSOLIDATED STATEMENT OF CASH FLOWS IN BRIEF

Oct-Dec Oct-Dec Jan-Dec Jan-Dec
(SEK thousand) 2023 2022 2023 2022
Operating activities
Operating profit before financial items -8,235 -4,599 -27,463 -20,226
Financial items, received and paid 1,788 775 2,006 717
Taxes paid - - - -
Adjustments:
Depreciation/amortization and capital gains 260 645 2,099 2,582
Employee share-based adjustments to equity 4 625 535 2,308 1,458
Cash flow before changes in working capital -5,562 -4,411 -21,050 -15,469
Change in working capital
Increase (-)/Decrease (+) in inventories -7,115 - -7,115 -
Increase (-)/Decrease (+) in operating receivables 778 -792 424 -210
Increase (+)/Decrease (-) in operating liabilities 4,551 155 -5,464 -1,163
OPERATING CASH FLOW -7,348 -3,281 -33,205 -16,842
Investing activities
Net investments in intangible assets -33,215 -13,622 -124,116 -68,072
CASH FLOW FROM INVESTING ACTIVITIES -33,215 -13,622 -124,116 -68,072
Financing activities
Repayment of leases -118 0 -2,425 -1,873
Issue of new shares less transaction costs -268 0 94,751 109,682
CASH FLOW FROM FINANCING ACTIVITIES -386 0 92,326 107,809
Change in cash and cash equivalents -40,949 -16,903 -64,995 22,895
Cash and cash equivalents at the beginning of period 101,504 142,453 125,550 102,655
Cash and cash equivalents at the end of period 60,555 125,550 60,555 125,550

4 Note that revaluation of estimated costs for social security contributions for employee stock options is recognized in change in operating liabilities.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

(SEK thousand) Share capital Other capital
contributions
Accumulated
profit/loss
Total equity
January 1 – December 31, 2023
Opening balance, January 1, 2023 9,827 841,197 -317,440 533,584
Total profit
Profit for the period -21,093 -21,093
Transactions with shareholders
New shares issued 18,134 82,319 100,453
Transaction costs -4,527 -4,527
Share-based incentive program 2,308 2,308
CLOSING BALANCE, DECEMBER 31, 2023 27,961 921,297 -338,533 610,725
(SEK thousand) Share capital Other capital
contributions
Accumulated
profit/loss
Total equity
January 1 – December 31, 2022
Opening balance, January 1, 2022 4,405 731,376 -301,730 434,051
Total profit
Profit for the period -15,710 -15,710
Transactions with shareholders
New shares issued 5,422 124,168 129,590
Transaction costs -15,805 -15,805
Share-based incentive program 1,458 1,458
CLOSING BALANCE, DECEMBER 31, 2022 9,827 841,197 -317,440 533,584

KEY RATIOS FOR THE GROUP

Oct-Dec Oct-Dec Jan-Dec Jan-Dec
(SEK thousand) 2023 2022 2023 2022
Net revenue 0 0 0 207
EBITDA -7,975 -3,954 -25,364 -17,644
Operating profit (EBIT) -8,235 -4,599 -27,463 -20,226
Total profit -6,445 -3,113 -21,093 -15,710
Cash and cash equivalents 60,555 125,550 60,555 125,550
Balance sheet total 634,732 564,423 634,732 564,423
Equity/assets ratio 96% 95% 96% 95%
Return on equity -1% -1% -3% -3%
Diluted earnings per share, SEK -0.23 -0.32 -1.33 -2.07
Equity per share, SEK 21.84 54.30 21.84 54.30
Basic average number of shares 27,961,478 9,826,959 15,871,799 7,587,166
Diluted average number of shares 46,640,128 10,179,997 34,550,449 7,752,320
Number of shares at the end of the period excluding
repurchased own shares
27,961,478 9,826,959 27,961,478 9,826,959

DEFINITIONS OF KEY RATIOS

Moberg Pharma presents certain financial performance measurements in the interim report that are not defined in accordance with IFRS. In Moberg Pharma's opinion, these performance measurements provide valuable additional information to investors and company management as they enable an evaluation of the company's performance. These financial performance measurements are not always comparable with those used by other companies since not all companies calculate them in the same manner. Accordingly, these financial measurements are not to be regarded as a substitute for the performance measurements defined in accordance with IFRS.

EBITDA Operating profit before depreciation/amortization and impairment of intangible
assets and property, plant, and equipment
Equity/assets ratio Equity at the end of the period in relation to balance sheet total
Return on equity Profit for the period divided by closing equity
Earnings per share* Profit after tax divided by the diluted average number of shares
Equity per share Equity divided by the number of shares outstanding at the end of the period

* Defined in accordance with IFRS

PARENT COMPANY INCOME STATEMENT SUMMARY

Oct-Dec Oct-Dec Jan-Dec Jan-Dec
(SEK thousand) 2023 2022 2023 2022
Net revenue - - - 207
Cost of goods sold - - - -
Gross profit - - - 207
Selling expenses -1,167 -540 -3,257 -1,014
Business development and administrative expenses -6,288 -5,160 -21,603 -20,057
Research and development expenses -1,037 -225 -3,657 -1,177
Other operating income 257 1,326 1,054 1,815
Other operating expenses - - - -
Operating profit -8,235 -4,599 -27,463 -20,226
Interest income 799 786 2,303 786
Interest expenses -52 -13 -260 -72
Profit after financial items -7,488 -3,826 -25,420 -19,512
Tax on profit for the period 1,043 713 4,327 3,802
PROFIT -6,445 -3,113 -21,093 -15,710

PARENT COMPANY BALANCE SHEET SUMMARY

(SEK thousand) 2023-12-31 2022-12-31
Assets
Intangible non-current assets 532,220 408,104
Tangible non-current assets - -
Right-of-use assets 4,942 5,984
Non-current financial assets 100 100
Deferred tax asset 28,077 22,575
Total non-current assets 565,339 436,763
Inventories 7,115 -
Trade receivables and other receivables 1,823 2,210
Cash and cash equivalents 60,555 125,550
Total current assets 69,493 127,760
TOTAL ASSETS 634,832 564,523
Equity and liabilities
Equity 610,726 533,585
Non-current leasing liabilities 3,467 3,988
Non-current non-interest-bearing liabilities - 65
Total non-current liabilities 3,467 4,053
Liabilities to Group companies 99 99
Current leasing liabilities 1,270 2,117
Current non-interest-bearing liabilities 19,270 24,669
Total current liabilities 20,639 26,885
TOTAL EQUITY AND LIABILITIES 634,832 564,523

PARENT COMPANY CASH FLOW STATEMENT SUMMARY

Oct-Dec Oct-Dec Jan-Dec Jan-Dec
(SEK thousand) 2023 2022 2023 2022
Operating activities
Operating profit before financial items -8,235 -4,599 -27,463 -20,226
Financial items, received and paid 1,788 775 2,006 717
Adjustments:
Depreciation/amortization and capital gains 260 645 2,099 2,582
Expenses for share-based incentive program 625 535 2,308 1,458
Cash flow before changes in working capital -5,562 -2,644 -21,050 -15,469
Change in working capital
Increase (-)/Decrease (+) in inventories -7,115 - -7,115 -
Increase (-)/Decrease (+) in operating receivables 778 -792 424 -210
Increase (+)/Decrease (-) in operating liabilities 4,551 155 -5,464 -1,163
OPERATING CASH FLOW -7,384 -3,281 -33,205 -16,842
Investing activities
Net investments in intangible assets -33,215 -13,622 -124,116 -68,072
CASH FLOW FROM INVESTING ACTIVITIES -33,215 -13,622 -124,116 -68,072
Financing activities
Repayment of leases -118 - -2,425 -1,873
Issue of new shares less transaction costs -268 - 94,751 109,682
CASH FLOW FROM FINANCING ACTIVITIES -386 - 92,326 107,809
Change in cash and cash equivalents -40,949 -16,903 -64,995 22,895
Cash and cash equivalents at the beginning of the period 101,504 142,453 125,550 102,655
Cash and cash equivalents at the end of the period 60,555 125,550 60,555 125,550

NOTE 1 ACCOUNTING POLICIES AND MEASUREMENT PRINCIPLES

The year-end report was prepared in accordance with IAS 34 and the Swedish Annual Accounts Act. The consolidated financial statements were, like the annual accounts for 2022, prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted by the EU and the Swedish Annual Accounts Act. The parent company financial statements were prepared in accordance with Swedish Annual Accounts Act and Recommendation RFR 2 of the Swedish Financial Reporting Board, Financial Statements for Legal Entities.

Amounts are presented in Swedish kronor and rounded to the nearest thousand unless otherwise stated. Rounding to the nearest thousand may mean that certain amounts do not match when added up. Amounts and figures in parentheses refer to comparable figures for the corresponding period in 2022.

NOTE 2 SPECIFICATION OF MAJOR INTANGIBLE NON-CURRENT ASSETS

(SEK thousand) 2023-12-31 2022-12-31
Capitalized expenditure for MOB-015 532,220 408,104
TOTAL CAPITALIZED EXPENDITURE FOR DEVELOPMENT WORK 532,220 408,104

NOTE 3 SEGMENT REPORTING

Moberg Pharma's operations comprise only one area of operation: the commercialization and development of medical products. The statement of comprehensive income and statement of financial position as a whole therefore comprise one operating segment.

NOTE 4 RELATED PARTY TRANSACTIONS

No material changes have occurred in the nature and scope of transactions with related parties compared to disclosures in the Annual Report.

INFORMATION AND FINANCIAL CALENDAR

This information is such that Moberg Pharma AB (publ) is obliged to disclose pursuant to the EU Market Abuse Regulation and the Securities Market Act.

Interim report for January–March 2024 May 7, 2024 Interim report for January–June 2024 August 13, 2024 Interim report for January–September 2024 November 12, 2024

The Annual General Meeting of Moberg Pharma will be held on May 14, 2024. The last date for shareholders to request to have a matter considered at the Annual General Meeting is March 26, 2024. The Annual Report will be available no later than April 16, 2024 on the company's website at www.mobergpharma.se

FOR FURTHER INFORMATION, PLEASE CONTACT

Anna Ljung, CEO, tel. 08-522 307 01, [email protected] Mark Beveridge, VP Finance, tel. 076 - 805 82 88, [email protected]

For more information on Moberg Pharma's business, please see the company's website, www.mobergpharma.com.

The year-end report has not been reviewed by the Company's auditors.

DECLARATION

The undersigned hereby declare that the year-end report provides a true and fair overview of the operations, financial position, and results of the parent company and Group, as well as a fair description of significant risks and uncertainties faced by the parent company and Group companies

Bromma, February 13, 2024

Kerstin Valinder Strinnholm Chairman

Anders Lundmark Board member

Nikolaj Sörensen Board member

Håkan Wallin Board member Anna Ljung CEO

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