Moberg Pharma

Quarterly Report • Feb 7, 2023

Year‐end report 2022

REGISTRATION PROCESS AND THE PHASE 3 STUDY ONGOING

"We remain fully focused on our two most important activities: the registration process for the nail fungus treatment MOB‐015 in Europe and patient enrollment in the North American Phase 3 study. Both the registration process and the clinical study are progressing as planned and we are now intensifying the preparations ahead of expected approval this year," says Anna Ljung, CEO of Moberg Pharma.

THE YEAR (JAN‐DEC 2022)

• EBITDA SEK ‐17.6 million (‐17.1) *
• Operating profit (EBIT) ‐20.2 million (‐19.7) *
• Profit after tax SEK ‐15.7 million (‐16.2) *
• Total profit SEK ‐15.7 million (7.4)**
• Diluted earnings per share SEK ‐0.21 (0.17)**
• Cash and cash equivalents amounted to SEK 125.6 million (102.7)

FOURTH QUARTER (OCT‐DEC 2022)

• EBITDA SEK ‐3.9 million (‐4.2) *
• Operating profit (EBIT) SEK ‐4.6 million (‐4.9) *
• Profit after tax SEK ‐3.1 million (‐4.0) *
• Total profit SEK ‐3.1 million (‐4.0)
• Diluted earnings per share SEK ‐0.03 (‐0.09)
• Cash and cash equivalents amounted to SEK 125.6 million (102.7)

* These comparative figures refer to continuing operations

**Note that the spin‐off of BUPI had a positive effect on earnings of SEK 24 million, which affects total profit and earnings per share for the period

SIGNIFICANT EVENTS IN THE FOURTH QUARTER

• Anders Bröijersén was appointed the new Chief Medical Officer as well as a member of the management team.
• Progress according to plan for regulatory interactions in the EU
• The North American study is progressing as planned.

SIGNIFICANT EVENTS AFTER THE FOURTH QUARTER

The management team added Jesper Lind, Head of Supply.

STATEMENT FROM THE CEO

We remain fully focused on our two most important activities: the registration process for the nail fungus treatment MOB‐015 in Europe and patient enrollment in the North American Phase 3 study. Both the registration process and the clinical study are progressing as planned and we are now intensifying the preparations ahead of expected approval this year.

A dialogue is now underway with the Medical Products Agency in Sweden, which is the reference member state for the registration application in Europe for MOB‐015. Moberg Pharma had previously received the preliminary assessment report from the Medical Products Agency in Sweden and all the comments from other countries in the registration process. Moberg Pharma has submitted a full registration application through the decentralized process, which offers the possibility of data exclusivity in Europe for up to 10 years following market approval. Our goal is to receive the first market approval and initiate launch of MOB‐015 in 2023.

Our work managing regulatory issues and pre‐launch preparations are fully underway. In addition to interactions with our commercial partners, the collaboration with our primary manufacturer in Germany is intensifying and we are also closely dialoguing with component and raw material manufacturers. In connection with the company's preparations for the commercial phase, we strengthened the management team by adding Jesper Lind, Head of Supply, and also welcomed Anders Bröijersén as the new Chief Medical Officer and member of the management team.

The North American Phase 3 study with MOB‐015 is progressing as planned. The randomized, vehicle‐controlled, multicenter study will include a total of 350 patients with nail fungus. 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 North American study.

In 2022, we took important steps towards the commercial phase, including the submission of the registration application in Europe and the start of the North American study to enable registration in the U.S. market. We have also added another commercial partner through the collaboration with Perrigo for the Israeli market. All in all, we are advancing towards the company's goal to create the future market leader in the treatment of nail fungus, and I look forward with confidence to 2023 with approval expected later in the year.

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 in‐ house 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, Japan, Canada, Israel and the Republic of Korea for MOB‐015. The 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 annual sales potential USD 250-500 million · Partners in Europe, Japan, Canada, Israel and the Republic of Korea
Goal to receive the first market approval and launch MOB-015 in 2023 · European marketing authorization application submitted in March 2022 through the decentralized process. Market approval is expected in 2023. · Phase 3 studies completed in North America, n=365, and Europe, n=452. Primary endpoints reached without serious side effects · New Phase 3 study for North America initiated 2022, plan to include 350 patients
Patent protection until 2032 · 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

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

RESULTS FROM THE 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 recently 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.

FIRST LAUNCH PLANNED IN 2023

In March 2022, Moberg Pharma submitted the registration application for MOB‐015 to the Medical Products Agency in Sweden, which has agreed to be reference member state for the application. The company has submitted the registration application in Europe through the decentralized process, and market approval is expected in 2023. Moberg Pharma has submitted a full application, which offers the possibility of data exclusivity in Europe for up to 10 years following market approval. The company's goal is to receive its first market approval and initiate launch MOB‐015 in 2023.

NORTH AMERICAN PHASE 3 STUDY UNDERWAY

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 now being implemented to enable registration in the U.S. market. Moberg Pharma submitted documentation on the new study to the FDA in March 2022 and the first patient was enrolled in May. The randomized, vehicle‐controlled, multicenter Phase 3 study will include a total of 350 patients in North America. The patients will be 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 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, six agreements are in place with commercial partners for MOB‐015: with Cipher Pharmaceuticals for Canada; Taisho in Japan; 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 assumes production and supply responsibility. Within the framework of the agreements Moberg Pharma can receive milestone payments of up to a total USD 120 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 therefore has 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.

PROVEN COMMERCIAL MODEL

Moberg Pharma commercialized its first‐generation nail fungus product – Kerasal Nail® ‐ and built an OTC business with 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.

SEK 121 MILLION IN FINANCING FOR MOB‐015

In April 2022, the Board of Directors resolved to carry out a fully guaranteed issue of new ordinary shares with preferential rights for existing shareholders of approximately SEK 121 million before transaction costs. The Board's decision on the rights issue was approved by the Extraordinary General Meeting on May 3, 2022, and the net proceeds are being used for registration activities and clinical work for MOB‐015.

COMPANY EVENTS

Anders Bröijersén took over after the turn of the year as the new Chief Medical Officer at Moberg Pharma and became a member of the company's management team. He comes most recently from a position as CMO at InDex Pharmaceuticals and has extensive experience from previous senior positions at Sobi AB (Swedish Orphan Biovitrum), Boehringer Ingelheim and MSD. He succeeds Cindy Wong, who is retiring after three years' work and valuable contributions to the company. Cindy will remain in the role of senior advisor for Moberg Pharma.

The management team was also expanded to include Jesper Lind, Head of Supply, after the turn of the year. He has 35 years of experience in Life Science, of which 30 years is global experience from the pharmaceutical industry, in Production, Supply, Supply Chain, Procurement, External sourcing, New product introduction and Pharmaceutical development from companies such as Orexo, AstraZeneca, Astra, and Pharmacia.

FINANCIAL OVERVIEW

REVENUES AND PROFIT

Fourth quarter (October ‐ December 2022)

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 5.1 million (4.6), followed by research and development expenses of SEK 0.2 million (0.7). Other operating income and other operating expenses mainly relate to invoiced expenses and currency adjustments.

Full‐year (January ‐ December 2022)

Net revenue amounted to SEK 0.2 million (0) in the period. The income relates in its entirety to milestones. Operating profit for the full‐year was SEK ‐20.2 million (‐19.7), where the largest expense item during the year was business development and administrative expenses of SEK 20.1 million (18.4). The comparative figures in the consolidated income statement show the impact on earnings of the divested BUPI project as a separate item in the consolidated financials. For the parent company, on the other hand, amounts reported in the income statement have not been separated for continuing operations. A profit and loss account for discontinued operations is presented in Note 2.

CASH FLOW

Fourth quarter (October ‐ December 2022)

Cash flow from operating activities was SEK ‐3.3 million (‐0.4). Cash flow from investments was SEK ‐13.6 million (‐6.6) and relates to capitalized expenditure for the North American Phase 3 study. Cash flow from financing activities relates to payments of leasing assets. The total change in cash and cash equivalents in the quarter was SEK ‐16.9 million (‐8.8). Cash and cash equivalents amounted to SEK 125.6 million (102.7) at the end of the period.

Full‐year (January ‐ December 2022)

Cash flow from operating activities was SEK ‐16.8 (‐15.3) million. Cash flow from investing activities was SEK ‐68.1 million (‐41.3). Cash flow from financing activities was SEK 107.8 million (130.0) and mainly relates to the rights issue in May and to a lesser degree leasing payments. The total change in cash and cash equivalents in the year was SEK 22.9 million (73.4).

INVESTMENTS

Investments in intangible assets relate to capitalized expenses for development work on MOB‐015 of SEK 26.6 million (6.6) in the quarter and SEK 81.1 million (31.3) during the year. The increase in investments is due to the North American Phase 3 study initiated in the spring.

R&D expenses (costs and investments)	Oct‐Dec	Oct‐Dec	Jan‐Dec	Jan‐Dec
(SEK thousand)	2022	2021	2022	2021
R&D expenses (in statement of comprehensive income)	‐225	‐706	‐1,177	‐3,449
Capitalized R&D investments	‐26,612	‐6,636	‐81,062	‐31,309
Depreciation/amortization booked to R&D expenses	430	452	1,683	1,696
Change in R&D investments (in statement of financial position)	‐26,182	‐6,184	‐79,379	‐29,613
Total R&D expenditure	‐26,407	‐6,890	‐80,556	‐33,062

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 10,085,933.50, where the total number of shares outstanding was 100,859,335 ordinary shares with a quotient value of SEK 0.10. Moberg Pharma holds 2,589,746 repurchased ordinary shares at the end of the period.

In March 2022, the number of shares and votes increased due to the addition of 1,169,698 ordinary shares after the exercise of warrants within the framework of Moberg Pharma's rights issue from January 2021.

In April 2022, the Board of Directors resolved to carry out a fully guaranteed issue of new ordinary shares with preferential rights for existing shareholders. The Board's decision on the rights issue was approved by the Extraordinary General Meeting on May 3, 2022. Moberg Pharma thereby received approximately SEK 121 million before transaction costs. The rights issue was registered in June 2022 and increased the number of shares and votes by 52,516,260. The Board of Directors also resolved on a directed issue to the guarantors in the rights issue, which was also registered in June 2022 and increased the number of shares and votes by 536,952.

In June 2022, 1,125,000 class C shares were issued to ensure that the company can fulfil its commitments under the long‐term incentive program LTI 2022 resolved by the Annual General Meeting on May 16, 2022. The shares are intended to be used to secure the commitments under the incentive program and are owned by Moberg Pharma.

The above‐mentioned events increased the number of shares and votes by 54,178,212 in the period, from 46,681,123 to 100,859,335 at the time of this report's publication.

SHARE‐BASED COMPENSATION PLANS

As at the reporting date, the number of outstanding instruments was 1,902,000 performance share units, with a maximum potential dilution of 4.4%. Performance share units are issued and held in trust, where the actual number of shares that can be transferred varies depending on the share's performance and whether the company meets its business goals over several years. For detailed information on the incentive programs, see the 2021 Annual Report. Detailed information on incentive

program LTI 2022 can be found in the notice of the Annual General Meeting on May 16, 2022; the program was subsequently approved, as noted in the minutes of the meeting.

SHAREHOLDER INFORMATION

The company's largest shareholders per December 31, 2022:

Shareholder	Number of shares	% of votes and capital
ÖSTERSJÖSTIFTELSEN	10,028,503	9.9
AVANZA PENSION	7,989,414	7.9
ABN AMRO GLOBAL CUSTODY SERVICES NV, W8IMY	6,840,749	6.8
NORDNET PENSIONSFÖRSÄKRING AB	3,386,233	3.4
MOBERG PHARMA AB (PUBL)	2,589,746	2.6
BANQUE CANTONALE VAUDOISE, W8IMY	1,612,800	1.6
GUNNARSSON, MIKAEL	1,523,592	1.5
ÅSBERG, FREDRIK ERIK	1,306,875	1.3
KJELSMARK HOLDING APS	1,161,382	1.2
CLEARSTREAM BANKING S.A., W8IMY	1,008,869	1.0
LUNDMARK, SVEN ANDERS	1,001,561	1.0
IVELAND, BEATRICE	1,000,000	1.0
OLELIND, ÖRJAN	1,000,000	1.0
TRAPPGATAN INVEST AB	982,416	1.0
ÖHRN, MARTIN LENNART	918,099	0.9
LUNDBERG, GÖRAN	855,336	0.9
SWEDBANK FÖRSÄKRING	819,291	0.8
IBKR FINANCIAL SERVICES AG, W8IMY	709,810	0.7
NORDEA LIVFÖRSÄKRING SVERIGE AB	708,108	0.7
SAXO BANK A/S CLIENT ASSETS	643,863	0.6
TOTAL, 20 LARGEST SHAREHOLDERS	46,086,647	45.7
Other shareholders	54,772,688	54.3
TOTAL	100,859,335	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 October to December 2022, the parent company's operating profit was SEK ‐4.6 million (‐4.9), while profit after financial items was SEK ‐3.8 million (‐4.9). Cash and cash equivalents amounted to SEK 125.6 million (102.7) at the end of the period.

OTHER INFORMATION

ORGANIZATION

Per December 31, 2022, Moberg Pharma had 7 employees, of whom 100% 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 2021 Annual Report on page 21.

While the war in Ukraine has not had a material economic impact on the financial reports, there is the possibility that it could in the future. We are carefully monitoring the market, where we see rising inflation, higher commodity, component and freight costs, and greater uncertainty about interest rates.

OUTLOOK

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

In the near term, the focus is on registration preparations for MOB‐015 in Europe, where a registration application was submitted to the Medical Products Agency in Sweden in March 2022. The company's goal is to receive its first market approval and launch MOB‐015 in 2023. Moberg Pharma is also conducting a new North American Phase 3 study, where patient enrollment is underway. In parallel with the registration preparations, commercialization preparations are underway to maximize value and create future growth.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

	Oct‐Dec	Oct‐Dec	Jan‐Dec	Jan‐Dec
(SEK thousand)	2022	2021	2022	2021
Continuing operations
Net revenue	‐	‐	207	‐
Cost of goods sold	‐	‐	‐	‐
Gross profit	‐	‐	207	‐
Selling expenses	‐540	‐48	‐1,014	‐70
Business development and administrative expenses	‐5,160	‐4,613	‐20,057	‐18,438
Research and development costs	‐225	‐706	‐1,177	‐3,449
Other operating income	1,326	477	1,815	2,227
Other operating expenses	‐	‐	‐	‐
Operating profit (EBIT)	‐4,599	‐4,890	‐20,226	‐19,730
Interest income and similar items	786	‐	786	‐
Interest expenses and similar items	‐13	‐26	‐72	‐240
Profit after financial items from continuing operations (EBT)	‐3,826	‐4,916	‐19,512	‐19,970
Tax on profit for the period	713	878	3,802	3,748
PROFIT FOR THE PERIOD FROM CONTINUING OPERATIONS	‐3,113	‐4,038	‐15,710	‐16,222
Discontinued operations
Profit after tax for the period from discontinued operations (see Note 2)	‐	‐	‐	23,589
PROFIT FOR THE PERIOD
Continuing operations	‐3,113	‐4,038	‐15,710	7,367
TOTAL PROFIT FOR THE PERIOD	‐3,113	‐4,038	‐15,710	7,367
Continuing operations	‐3,113	‐4,038	‐15,710	‐16,222
Of which total result from continuing operations	‐	‐	‐	23,589
Of which total result from discontinued operations (see Note 2)
Profit for the period attributable to parent company shareholders	‐3,113	‐4,038	‐15,710	7,492
Profit attributable to non‐controlling interests	‐	‐	‐	‐125
Total profit attributable to parent company shareholders	‐3,113	‐4,038	‐15,710	7,492
Total profit attributable to non‐controlling interests	‐	‐	‐	‐125
Basic earnings per share	‐0.03	‐0.09	‐0.21	0.17
Diluted earnings per share 2	‐0.03	‐0.09	‐0.21	0.17
Basic earnings from continuing operations per share	‐0.03	‐0.09	‐0.21	‐0.38
Diluted earnings from continuing operations per share	‐0.03	‐0.09	‐0.21	‐0.38
EBITDA FROM CONTINUING OPERATIONS	‐3,954	‐4,244	‐17,644	‐17,146
Depreciation/amortization	‐645	‐646	‐2,582	‐2,584
Operating profit (EBIT)	‐4,599	‐4,890	‐20,226	‐19,730

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)	2022‐12‐31	2021‐12‐31
Assets
Intangible assets	408,104	327,042
Capitalized development 3	408,104	327,042
Tangible non‐current assets	0	0
Right‐of‐use assets	5,984	4,519
Deferred tax asset	22,575	14,673
Total non‐current assets	436,663	346,234
Trade receivables and other receivables	2,210	2,000
Cash and cash equivalents	125,550	102,655
Total current assets	127,760	104,655
TOTAL ASSETS	564,423	450,889
Equity and liabilities
Equity attributable to parent company's shareholders	533,584	434,051
Total equity	533,584	434,051
Non‐current leasing liabilities	3,988	1,235
Non‐current non‐interest‐bearing liabilities	65	65
Total non‐current liabilities	4,053	1,300
Current leasing liabilities	2,117	2,696
Current non‐interest‐bearing liabilities	24,669	12,842
Total current liabilities	26,786	15,538
TOTAL EQUITY AND LIABILITIES	564,423	450,889

³ For further details, see note 3.

CONSOLIDATED STATEMENT OF CASH FLOWS IN BRIEF

	Oct‐Dec	Oct‐Dec	Jan‐Dec	Jan‐Dec
(SEK thousand)	2022	2021	2022	2021
Operating activities
Operating profit before financial items from continuing operations	‐4,599	‐4,890	‐20,226	‐19,730
Operating profit before financial items from discontinued operations	‐	‐	‐	‐390
Operating profit before financial items	‐4,599	‐4,890	‐20,226	‐20,120
Financial items, received and paid	775	‐26	717	‐240
Taxes paid	‐	‐	‐	‐
Adjustments:
Depreciation/amortization and capital gains	645	646	2,582	2,584
Employee share‐based adjustments to equity 4	535	553	1,458	631
Cash flow before changes in working capital	‐2,644	‐3,717	‐15,469	‐17,145
Change in working capital
Increase (‐)/Decrease (+) in operating receivables	‐792	778	‐210	6,836
Increase (+)/Decrease (‐) in operating liabilities	155	2,498	‐1,163	‐4,987
OPERATING CASH FLOW	‐3,281	‐441	‐16,842	‐15,296
Investing activities
Net investments in intangible assets	‐13,622	‐6,636	‐68,072	‐31,309
Net investments in and divestment of subsidiaries	‐	‐	‐	‐9,999
CASH FLOW FROM INVESTING ACTIVITIES	‐13,622	‐6,636	‐68,072	‐41,308
Financing activities
Repayment of leases	‐	‐1,487	‐1,873	‐3,464
Issue of new shares less transaction costs	‐	‐188	109,682	133,438
CASH FLOW FROM FINANCING ACTIVITIES	‐	‐1,675	107,809	129,974
Change in cash and cash equivalents	‐16,903	‐8,752	22,895	73,370
Cash and cash equivalents at the beginning of period	142,453	111,407	102,655	29,285
Cash and cash equivalents at the end of period	125,550	102,655	125,550	102,655

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	Non‐ controlling interest	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

(SEK thousand)	Share capital	Other capital contributions	Accumulated profit/loss	Non‐ controlling interest	Total equity
January 1 – December 31, 2021
Opening balance, January 1, 2021	3,814	693,278	‐309,222	7,707	395,577
Total profit
Profit for the period			7,492	‐125	7,367
Transactions with shareholders
Distribution OncoZenge AB				‐7,582	‐7,582
New shares issued	682	37,620			38,302
Transaction costs		‐153			‐153
Repurchase of own shares	‐91				‐91
Share‐based incentive program		631			631
CLOSING BALANCE, DECEMBER 31, 2021	4,405	731,376	‐301,730	‐	434,051

KEY RATIOS FOR THE GROUP

	Oct‐Dec	Oct‐Dec	Jan‐Dec	Jan‐Dec
(SEK thousand)	2022	2021	2022	2021
Net revenue *	‐	‐	207	‐
EBITDA *	‐3,954	‐4,244	‐17,644	‐17,146
Operating profit (EBIT) *	‐4,599	‐4,890	‐20,226	‐19,730
Total profit	‐3,113	‐4,038	‐15,710	7,367
Cash and cash equivalents	125,550	102,655	125,550	102,655
Balance sheet total	564,423	450,889	564,423	450,889
Equity/assets ratio	95%	96%	95%	96%
Return on equity	‐1%	‐1%	‐3%	2%
Diluted earnings per share, SEK	‐0.03	‐0.09	‐0.20	0.17
Equity per share, SEK	5.43	9.85	5.43	9.85
Basic average number of shares	98,269,589	44,046,679	75,871,660	43,039,100
Diluted average number of shares	99,904,717	45,141,829	77,523,203	44,134,594
Number of shares at the end of the period excluding repurchased own shares	98,269,589	44,046,679	98,269,589	44,046,679

* continuing operations

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)	2022	2021	2022	2021
Net revenue	‐	‐	207	‐
Cost of goods sold	‐	‐	‐	‐
Gross profit	‐	‐	207	‐
Selling expenses	‐540	‐48	‐1,014	‐70
Business development and administrative expenses	‐5,160	‐4,613	‐20,057	‐18,438
Research and development costs	‐225	‐706	‐1,177	‐3,449
Other operating income	1,326	477	1,815	2,436
Other operating expenses	‐	‐	‐	‐
Operating profit	‐4,599	‐4,890	‐20,226	‐19,521
Interest income	786	‐	786	‐
Interest expenses	‐13	‐26	‐72	‐240
Profit after financial items	‐3,826	‐4,916	‐19,512	‐19,761
Tax on profit for the period	713	878	3,802	3,703
PROFIT	‐3,113	‐4,038	‐15,710	‐16,058

PARENT COMPANY BALANCE SHEET SUMMARY

(SEK thousand)	2022‐12‐31	2021‐12‐31
Assets
Intangible non‐current assets	408,104	327,042
Tangible non‐current assets	0	0
Right‐of‐use assets	5,984	4,519
Non‐current financial assets	100	100
Deferred tax asset	22,575	14,673
Total non‐current assets	436,763	346,334
Trade receivables and other receivables	2,210	2,000
Cash and cash equivalents	125,550	102,655
Total current assets	127,760	104,655
TOTAL ASSETS	564,523	450,989
Equity and liabilities
Equity	533,585	434,052
Non‐current leasing liabilities	3,988	1,235
Non‐current non‐interest‐bearing liabilities	65	65
Total non‐current liabilities	4,053	1,300
Liabilities to Group companies	99	99
Current leasing liabilities	2,117	2,696
Current non‐interest‐bearing liabilities	24,669	12,842
Total current liabilities	26,885	15,637
TOTAL EQUITY AND LIABILITIES	564,523	450,989

PARENT COMPANY CASH FLOW STATEMENT SUMMARY

	Oct‐Dec	Oct‐Dec	Jan‐Dec	Jan‐Dec
(SEK thousand)	2022	2021	2022	2021
Operating activities
Operating profit before financial items	‐4,599	‐4,890	‐20,226	‐19,521
Financial items, received and paid	775	‐26	717	‐240
Adjustments:
Depreciation/amortization and capital gains	645	646	2,582	2,584
Expenses for share‐based incentive program	535	553	1,458	631
Cash flow before changes in working capital	‐2,644	‐3,717	‐15,469	‐16,546
Change in working capital
Increase (‐)/Decrease (+) in operating receivables	‐792	778	‐210	6,931
Increase (+)/Decrease (‐) in operating liabilities	155	2,498	‐1,163	‐5,681
OPERATING CASH FLOW	‐3,281	‐441	‐16,842	‐15,296
Investing activities
Net investments in intangible assets	‐13,622	‐6,636	‐81,062	‐31,309
CASH FLOW FROM INVESTING ACTIVITIES	‐13,622	‐6,636	‐81,062	‐31,309
Financing activities
Repayment of leases	‐	‐1,487	‐1,873	‐3,464
Issue of new shares less transaction costs	‐	‐188	109,682	133,438
CASH FLOW FROM FINANCING ACTIVITIES	‐	‐1,675	107,809	129,974
Change in cash and cash equivalents	‐16,903	‐8,752	22,895	83,369
Cash and cash equivalents at the beginning of the period	142,453	111,407	102,655	19,286
Cash and cash equivalents at the end of the period	125,550	102,655	125,550	102,655

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 2021, 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 2021.

NOTE 2 DISCONTINUED OPERATIONS AND ASSETS HELD FOR DISTRIBUTION

The operations attributable to the BUPI project are reported as discontinued operations. The Extraordinary General Meeting on December 1, 2020 decided, in accordance with the Board's proposal, to distribute Moberg Pharma's interest in the BUPI project through shares in the subsidiary OncoZenge to Moberg Pharma's shareholders. The dividend was paid in accordance with Lex ASEA on February 5, 2021. In accordance with the distribution decision on December 1, 2020, a liability was recognized at a fair value of SEK 45 million. On the balance sheet date, December 31, 2020, the transferred intangible assets were recognized at book value, SEK 22 million. When the assets were distributed in February 2021, the asset amount was adjusted to fair value and recognized as a revaluation of discontinued operations.

	Oct‐Dec	Oct‐Dec	Jan‐Dec	Jan‐Dec
(SEK thousand)	2022	2021	2022	2021
Net revenue	‐	‐	‐	‐
Cost of goods sold	‐	‐	‐	‐
Gross profit	‐	‐	‐	‐
Selling expenses	‐	‐	‐	‐
Business development and administration expenses	‐	‐	‐	‐335
Research and development costs	‐	‐	‐	‐55
Other operating items	‐	‐	‐	‐
Operating profit	‐	‐	‐	‐390
Finance costs	‐	‐	‐	‐
Tax benefit/(expense)	‐	‐	‐	52
Post‐tax profit/(loss) of discontinued operations	‐	‐	‐	‐338
Revaluation of discontinued operations	‐	‐	‐	23,927
Profit after tax for the period from discontinued operations	‐	‐	‐	23,589
TOTAL PROFIT FOR THE PERIOD	‐	‐	‐	23,589

INCOME STATEMENT DISCONTINUED OPERATIONS

NOTE 3 SPECIFICATION OF MAJOR INTANGIBLE NON‐CURRENT ASSETS

(SEK thousand)	2022‐12‐31	2021‐12‐31
Capitalized expenditure for MOB‐015	408,104	327,042
TOTAL CAPITALIZED EXPENDITURE FOR DEVELOPMENT WORK	408,104	327,042

NOTE 4 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 5 RELATED PARTY TRANSACTIONS

No material changes have occurred in the nature and scope of transactions with related parties compared with 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 2023	May 9, 2023
Interim report for January–June 2023	August 15, 2023
Interim report for January– September 2023	November 7, 2023

The Annual General Meeting of Moberg Pharma will be held on May 16, 2023. The last date for shareholders to request to have a matter considered at the Annual General Meeting is March 28, 2023. The Annual Report will be available no later than April 18, 2023 on the company's website at www.mobergpharma.se

FOR FURTHER INFORMATION, PLEASE CONTACT

Anna Ljung, CEO, tel. 08‐522 307 01, anna.ljung@mobergpharma.se Mark Beveridge, VP Finance, tel. 076 ‐ 805 82 88, mark.beveridge@mobergpharma.se

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 7, 2023

Kerstin Valinder Strinnholm Chairman

Anders Lundmark Board member

Nikolaj Sörensen Board member

Mattias Klintemar Board member

Anna Ljung CEO