Moberg Pharma

Quarterly Report • May 7, 2024

Interim report January – March 2024

Moberg Pharma AB (Publ)

LAUNCH INITIATED IN SWEDEN

"The launch to pharmacies was initiated in February. A majority of Swedish pharmacies now have MOB-015 available on the shelf under the brand name Terclara® and interest is exceeding the chains' forecasts. The pharmacy chains are increasing their orders after consumer marketing began around the end of March due to the fact that the product occasionally has sold out at several of the pharmacy chains. However, there is a well-stocked wholesale warehouse," says Anna Ljung, CEO of Moberg Pharma.

FIRST QUARTER (JAN-MAR 2024)

• Net revenue SEK 0.8 million (0)
• EBITDA SEK -7.6 million (-6.1)
• Operating profit (EBIT) SEK -7.9 million (-6.7)
• Profit after tax SEK -6.5 million (-5.0)
• Diluted earnings per share SEK -0.23 (-0.51)
• Cash and cash equivalents amounted to 38.6 million (84.5)

SIGNIFICANT EVENTS IN THE FIRST QUARTER

• The sale of MOB-015 in Sweden under the brand name Terclara® has begun in collaboration with the company's partner Allderma and the majority of pharmacies around the country have decided to sell the product.
• In February, the Nomination Committee presented its proposal to the Annual General Meeting 2024, where Jonas Ekblom was proposed for election as a new board member.

SIGNIFICANT EVENTS AFTER THE QUARTER

• National approvals have been received in the following countries: Belgium, Italy and the Netherlands. In all three countries MOB-015 has been approved for OTC sales and with this, national approvals have been received for all countries included in the decentralized procedure.
• An application to include the intended terbinafine supplier in the company's registration file for MOB-015 has been submitted. Approval is expected before the end of the year.
• TV marketing started on April 1 and a majority of Swedish pharmacies have the product available on the shelf.

Advertising campaign in the Stockholm Metro, May 2024

STATEMENT FROM THE CEO

The launch to pharmacies was initiated in February. A majority of ~1,400 Swedish pharmacies now have MOB-015 available on the shelf under the brand name Terclara® and interest is exceeding the chains' forecasts. The pharmacy chains are increasing their orders after consumer marketing began around the end of March due to the fact that the product occasionally has sold out at several of the pharmacy chains. However, there is a well-stocked wholesale warehouse.

We have now received national approvals in all 13 countries in the decentralized procedure. The three countries added since last report - Belgium, Italy and the Netherlands – all decided to approve the product for over-the-counter (OTC) sales right from the start. It is important for us to obtain approval as an OTC pharmaceutical in as many markets as possible, since the largest sales volumes in Europe are expected to come from markets where the product has OTC status. It is therefore gratifying that 7 of the 13 countries have granted OTC approval.

In the North American study, half of the patients have now completed their treatment. After patient enrollment was finalized in October 2023, cash flow has improved through lower expenditure as we are now nearing the end of the study. The North American study is a double-blind, randomized, vehicle-controlled, multicenter Phase 3 study being conducted at 33 study centers in the U.S. and Canada. The study will be unblinded after the fungal sample from the last patient's last visit has been analyzed, with topline results expected in January 2025. Ahead of this data, we are intensifying our business development activities and have entered into a collaboration with Back Bay Life Science Advisors, which has conducted in-depth interviews with U.S. payer representatives and is organizing our process to find the best partner for targeting U.S. dermatologists. The indepth interviews indicate a strong willingness on the part of insurance companies to pay per completed treatment cycle, which in combination with the medical need makes the U.S. a very attractive market for a new nail fungus medication. To capture the full potential in the U.S. and capitalize on the knowledge we gained from our first-generation product Kerasal Nail®, we want to build our own footprint in the U.S. market vis-à-vis podiatrists, while also collaborating with a company with an established sales force targeting dermatologists. Our intent is to enter into such a collaboration after the topline data has been made public.

During the quarter, we together with our partner Allderma worked to ensure that the preconditions for a successful launch are in place and Terclara® started to appear on shelves at Swedish pharmacies in February of this year. In parallel with the pharmacies filling up the shelves, work was ongoing in February and March to inform physicians and pharmacists about the unique benefits of Terclara®. The focus has now shifted to end consumers, with TV marketing started on April 1 as planned. This means that MOB-015 is available to Swedish patients ahead of high season for those who want to begin the journey towards attractive, fungus-free nails before sandal season and the summer holiday.

Sales in the quarter mainly reflect the initial pharmacy orders. It is not until consumer marketing begins that demand from patients will affect the sales figures. Sweden is initially the priority market for Moberg Pharma as we have limited access to terbinafine (the active substance in Terclara®) in the near term. We continue to deliver on our plan to secure a long-term supply of terbinafine ahead of the planned pan-European rollout. In April, we submitted an application to add a terbinafine manufacturer for MOB-015 with approval expected before the end of the year. In addition, we are actively working to secure another terbinafine supplier and thus have two parallel tracks to ensure a stable supply of terbinafine.

Preparations ahead of the pan-European rollout and commercialization in the U.S. are the company's biggest value drivers. During the quarter, we continued to deliver according to plan for all key activities: the North American study, long-term terbinafine access and the rollout of Terclara® in Sweden. 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 thirteen European countries. The global annual sales potential for MOB-015 is estimated at USD 250–500 million.

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 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 was recommended for national approval in 13 European countries for the treatment of mild to moderate fungal infections of the nails in adults. All national approvals have now been completed, with the last country approving the product in May 2024.

The following EU countries are included: Austria (OTC), Belgium (OTC), Czech Republic (Rx), Denmark (Rx), Finland (Rx), France (Rx), Hungary (OTC), Ireland (Rx), Italy (OTC), Netherlands (OTC), Norway (OTC), Spain (Rx) and Sweden (OTC).

TWO-STEP ROLLOUT

The commercialization rollout will be a two-step process and has now begun. As of February 2024, MOB-015 is available in pharmacies under the brand name Terclara® and a majority of Swedish pharmacies now have the product available on the shelf. 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 the company's 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 the company's partner Bayer, following the results of the ongoing North American Phase 3 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 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 company sees a very interesting opportunity to build our own commercial platform in the U.S. to target podiatrists with MOB-015 as the main product, which will be complemented going forward by additional niche products. Moberg Pharma also intends to collaborate with a U.S. partner that has an established sales force targeting dermatologists. 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 and sales in 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

In February, the Nomination Committee presented its proposal for the Board of Directors for the coming year. The Nomination Committee proposes re-election of Nikolaj Sörensen, Kerstin Valinder Strinnholm and Håkan Wallin as members of the board and the election of Jonas Ekblom as a new director. After two years on the board, Anders Lundmark chose not to be available for re-election. He will continue to support Moberg Pharma in his role as one of the company's major shareholders.

Jonas Ekblom has worked for three decades in research and development of pharmaceuticals and medtech products. Jonas has held board and management positions in public and privately held life science companies in Sweden, Switzerland and the U.S. He has served as CEO of BOWS Pharmaceuticals SA, Pergamum AB and Promore Pharma AB. Today, Jonas is chairman of the board of CombiGene AB and Oblique Therapeutics AB, and is a board director of Emplicure AB.

FINANCIAL OVERVIEW

REVENUES AND PROFIT

First quarter (January - March 2024)

During the quarter, Moberg Pharma's partner Allderma launched MOB-015 under the brand name Terclara® in Sweden, making it the first quarter with sales revenue for MOB-015. Sales in the quarter mainly reflect initial pharmacy orders. It is not until consumer marketing begins that demand from patients will impact the sales numbers. Net revenue för quarter was SEK 0.8 million (0.0). The largest expense items in the quarter consist of business development and administration expenses of SEK 6.9 million (5.4) and selling expenses of SEK 1.1 million (0.4), followed by research and development expenses of SEK 0.9 million (0.8). Moberg Pharma has initiated strategic marketing investments to optimize marketing messaging, ensuring MOB-015 is best positioned for its global launch, where marketing expenses will increase in coming quarters. The majority of development expenses is directly attributable to the ongoing Phase 3 study in the U.S. and is capitalized. Profit for the quarter was SEK -6.5 million (-5.0).

CASH FLOW

First quarter (January - March 2024)

Cash flow from operating activities before changes in working capital was SEK -7.0 million (-5.6) and after changes in working capital was SEK -3.8 million (-5.6). Cash flow from investments improved during the period to SEK -17.8 million (-34.5) and relates to capitalized expenditure for the ongoing North American Phase 3 study. Cash flow from financing activities was SEK -0.3 million (-0.9). The total change in cash and cash equivalents in the quarter was SEK -21.9 million (-41.0). Cash and cash equivalents amounted to SEK 38.6 million (84.5) at the end of the period.

INVESTMENTS

Investments in intangible assets relate to capitalized expenses for development work on MOB-015, mainly the ongoing North American Phase 3 study. After patient enrollment was completed in the fourth quarter of 2023, expenditure for enrollment activities and the CRO decreased to SEK 17.8 million (34.5) in the quarter.

R&D expenses (costs and investments)	Jan-March	Jan-Mar	Jan-Dec
(SEK thousand)	2024	2023	2023
R&D expenses (in statement of comprehensive income)	-921	-818	-3,657
Capitalized R&D investments	-17,823	-34,498	-124,116
Depreciation/amortization booked to R&D expenses	193	223	1,276
Change in R&D investments (in statement of financial position)	-17,630	-34,275	-122,840
Total R&D expenditure	-18,551	-35,093	-126,497

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 quarter 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 quarter.

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 1,514,582 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 2023 Annual Report.

WARRANTS OF SERIES 2023 - TO2

There are 18,134,519 outstanding warrants. The warrants have ISIN code SE0020678944 and are traded on Nasdaq Stockholm. Each warrant entitles the holder to subscribe for one ordinary share in Moberg Pharma during the period June 5 – June 19, 2024. The subscription price corresponds to 70 percent of the volume-weighted average price for Moberg Pharma's ordinary share during the period from and including May 20, 2024 up to and including May 31, 2024, though no lower than the quota value of Moberg Pharma's share. The subscription price will be announced on May 31, 2024. The last day of trading in the warrants is June 17, 2024.

SHAREHOLDER INFORMATION

The company's largest shareholders per March 31, 2024:

Shareholder	Number of shares	% of votes and capital
Östersjöstiftelsen	3,266,477	11.5
IBKR Financial Services	1,858,009	6.5
Avanza Pension	1,401,359	4.9
Nordnet Pensionsforsakring AB	897,413	3.2
Kjelsmark Holding ApS	515,000	1.8
Swedbank Försäkring	464,061	1.6
Moberg Pharma AB (publ)	445,974	1.6
Zachau, Styrbjorn	359,000	1.3
Blom, Fredrik	355,000	1.3
Iveland, Beatrice	300,000	1.1
Nordea Livförsäkring Sweden Ab	292,182	1.0
CBNY-National Financial Services LL	287,433	1.0
Clearstream Banking S.A.	271,735	1.0
The Bank of New York Mellon SA/NV, W8IMY	242,360	0.9
Deutsche Bank AG, W8IMY	241,362	0.9
SEB Life International Assurance	229,918	0.8
Henriksson, Stefan	223,238	0.8
Handelsbanken Liv Försäkringsaktiebolag	216,839	0.8
SAXO BANK A/S	200,234	0.7
Staaf, Erik Andre	176,293	0.6
TOTAL, 20 LARGEST SHAREHOLDERS	12,243,887	43.1
Other shareholders	16,163,565	56.9
TOTAL	28,407,452	100.0

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 March 2024, operating profit was SEK -7.9 million (-6.7), while profit after financial items was SEK -7.5 million (-6.1). Profit after tax was SEK -6.5 million (-5.0). Cash and cash equivalents amounted to SEK 38.6 million (84.5) at the end of the period.

OTHER INFORMATION

ORGANIZATION

Per March 31, 2024, Moberg Pharma had 9 employees, of whom 78% 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 2023 Annual Report on page 32.

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 was recommended for national approval in 13 European countries for the treatment of mild to moderate fungal infections of the nails in adults. All national approvals have now been completed, with the last country approving the product in May 2024. Moberg Pharma has signed license agreements with partners in Europe, Canada, Israel and the Republic of Korea and will continue to work closely with partners with local registration processes and commercialization.

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 has initiated the launch in Sweden and as of February 2024, MOB-015 is available at pharmacies under the brand name Terclara®. Sweden is the priority market for Moberg Pharma as the company has limited access to terbinafine in the near term. Work is underway to secure a long-term supply of terbinafine ahead of the planned pan-European rollout together with the company's partner Bayer.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

	Jan-Mar	Jan-Mar	Jan-Dec
(SEK thousand)	2024	2023	2023
Net revenue	820	-	-
Cost of goods sold	-328	-	-
Gross profit	492	-	-
Selling expenses	-1,108	-361	-3,257
Business development and administrative expenses	-6,983	-5,414	-21,603
Research and development expenses	-921	-818	-3,657
Other operating income	624	207	1,054
Other operating expenses	0	-287	-
Operating profit/loss (EBIT)	-7,896	-6,673	-27,463
Interest income and similar items	445	623	2,303
Interest expenses and similar items	-62	-73	-260
Profit/loss before tax (EBT)	-7,513	-6,123	-25,420
Tax on profit for the period	1,016	1,093	4,327
PROFIT FOR THE PERIOD	-6,497	-5,030	-21,093
TOTAL PROFIT FOR THE PERIOD	-6,497	-5,030	-21,093
Profit for the period attributable to parent company shareholders	-6,497	-5,030	-21,093
Total profit attributable to parent company shareholders	-6,497	-5,030	-21,093
Basic earnings per share	-0.23	-0.51	-1.33
Diluted earnings per share 2	-0.23	-0.51	-1.33
EBITDA FROM CONTINUING OPERATIONS	-7,567	-6,060	-25,364
Depreciation/amortization	-329	-613	-2,099
Operating profit (EBIT)	-7,896	-6,673	-27,463

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)	2024-03-31	2023-03-31	2023-12-31
Assets
Intangible non-current assets3	550,042	435,015	532,220
Tangible non-current assets	0	0	0
Right-of-use assets	4,613	5,371	4,942
Deferred tax asset	29,093	23,668	28,077
Total non-current assets	583,748	464,054	565,239
Inventories	6,579	-	7,115
Trade receivables and other receivables	3,071	2,702	1,823
Cash and cash equivalents	38,631	84,540	60,555
Total current assets	48,281	87,242	69,493
TOTAL ASSETS	632,029	551,296	634,732
Equity and liabilities
Equity attributable to parent company's shareholders	604,849	529,079	610,725
Total equity	604,849	529,079	610,725
Non-current leasing liabilities	3,139	3,121	3,467
Non-current non-interest-bearing liabilities	-	65	-
Total non-current liabilities	3,139	3,186	3,467
Current leasing liabilities	1,286	1,742	1,270
Current non-interest-bearing liabilities	22,755	17,289	19,270
Total current liabilities	24,041	19,031	20,540
TOTAL EQUITY AND LIABILITIES	632,029	551,296	634,732

³Refers to capitalized development expenses, see note 2.

CONSOLIDATED STATEMENT OF CASH FLOWS IN BRIEF

	Jan-Mar	Jan-Mar	Jan-Dec
(SEK thousand)	2024	2023	2023
Operating activities
Operating profit before financial items	-7,896	-6,673	-27,463
Financial items, received and paid	-25	-73	2,006
Taxes paid	-	-	-
Adjustments:
Depreciation/amortization and capital gains	329	613	2,099
Employee share-based adjustments to equity 4	621	525	2,308
Cash flow before changes in working capital	-6,971	-5,608	-21,050
Change in working capital
Increase (-)/Decrease (+) in inventories	536	-	-7,115
Increase (-)/Decrease (+) in operating receivables	-840	-492	424
Increase (+)/Decrease (-) in operating liabilities	3,485	492	-5,464
OPERATING CASH FLOW	-3,790	-5,608	-33,205
Investing activities
Net investments in intangible assets	-17,822	-34,498	-124,116
CASH FLOW FROM INVESTING ACTIVITIES	-17,822	-34,498	-124,116
Financing activities
Repayment of leases	-312	-904	-2,425
Issue of new shares less transaction costs	-	-	94,751
CASH FLOW FROM FINANCING ACTIVITIES	-312	-904	92,326
Change in cash and cash equivalents	-21,924	-41,010	-64,995
Cash and cash equivalents at the beginning of period	60,555	125,550	125,550
Cash and cash equivalents at the end of period	38,631	84,540	60,555

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 – March 31, 2024
Opening balance, January 1, 2024	27,961	921,297	-338,533	610,725
Total profit
Profit for the period			-6,497	-6,497
Transactions with shareholders
New shares issued
Transaction costs
Share-based incentive program		621		621
CLOSING BALANCE, MARCH 31, 2024	27,961	921,918	-345,030	604,849

(SEK thousand)	Share capital	Other capital contributions	Accumulated profit/loss	Total equity
January 1 – March 31, 2023
Opening balance, January 1, 2023	9,827	841,197	-317,440	533,584
Total profit
Profit for the period			-5,030	-5,030
Transactions with shareholders
Share-based incentive program		525		525
CLOSING BALANCE, MARCH 31, 2023	9,827	841,680	-322,923	529,079

(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

KEY RATIOS FOR THE GROUP

	Jan-Mar	Jan-Mar	Jan-Dec
(SEK thousand)	2024	2023	2023
Net revenue	820	0	0
EBITDA	-7,567	-6,060	-25,364
Operating profit (EBIT)	-7,896	-6,673	-27,463
Profit after tax	-6,497	-5,030	-21,093
Cash and cash equivalents	38,631	84,540	60,555
Balance sheet total	632,029	551,296	634,732
Equity/assets ratio	96%	96%	96%
Return on equity	-1%	-1%	-3%
Diluted earnings per share, SEK	-0.23	-0.51	-1.33
Equity per share, SEK	21.63	53.84	21.84
Basic average number of shares	27,961,478	9,826,959	15,871,799
Diluted average number of shares	47,610,579	10,182,736	34,550,449
Number of shares at the end of the period excluding repurchased own shares	27,961,478	9,826,959	27,961,478

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

	Jan-Mar	Jan-Mar	Jan-Dec
(SEK thousand)	2024	2023	2023
Net revenue	820	-	-
Cost of goods sold	-328	-	-
Gross profit	492	-	-
Selling expenses	-1,108	-361	-3,257
Business development and administrative expenses	-6,983	-5,414	-21,603
Research and development expenses	-921	-818	-3,657
Other operating income	624	207	1,054
Other operating expenses	-	-287	-
Operating profit/loss (EBIT)	-7,896	-6,673	-27,463
Interest income	445	623	2,303
Interest expenses	-62	-73	-260
Profit/loss before tax (EBT)	-7,513	-6,123	-25,420
Tax on profit for the period	1,016	1,093	4,327
PROFIT	-6,497	-5,030	-21,093

PARENT COMPANY BALANCE SHEET SUMMARY

(SEK thousand)	2024-03-31	2023-03-31	2023-12-31
Assets
Intangible non-current assets	550,042	435,015	532,220
Tangible non-current assets	0	0	0
Right-of-use assets	4,613	5,371	4,942
Non-current financial assets	100	100	100
Deferred tax asset	29,093	23,668	28,077
Total non-current assets	583,848	464,154	565,339
Inventories	6,579	-	7,115
Trade receivables and other receivables	3,071	2,702	1,823
Cash and cash equivalents	38,631	84,540	60,555
Total current assets	48,281	87,242	69,493
TOTAL ASSETS	632,129	551,396	634,832
Equity and liabilities
Equity	604,850	529,080	610,726
Non-current leasing liabilities	3,139	3,121	3,467
Non-current non-interest-bearing liabilities	-	65	-
Total non-current liabilities	3,139	3,186	3,467
Liabilities to Group companies	99	99	99
Current leasing liabilities	1,286	1,742	1,270
Current non-interest-bearing liabilities	22,755	17,289	19,270
Total current liabilities	24,140	19,130	20,639
TOTAL EQUITY AND LIABILITIES	632,129	551,396	634,832

PARENT COMPANY CASH FLOW STATEMENT SUMMARY

	Jan-Mar	Jan-Mar	Jan-Dec
(SEK thousand)	2024	2023	2023
Operating activities
Operating profit before financial items	-7,896	-6,673	-27,463
Financial items, received and paid	-25	-73	2,006
Adjustments:
Depreciation/amortization and capital gains	329	613	2,099
Expenses for share-based incentive program	621	525	2,308
Cash flow before changes in working capital	-6,971	-5,608	-21,050
Change in working capital
Increase (-)/Decrease (+) in inventories	536	-	-7,115
Increase (-)/Decrease (+) in operating receivables	-840	-492	424
Increase (+)/Decrease (-) in operating liabilities	3,485	492	-5,464
OPERATING CASH FLOW	-3,505	-5,608	-33,205
Investing activities
Net investments in intangible assets	-17,822	-34,498	-124,116
CASH FLOW FROM INVESTING ACTIVITIES	-17,822	-34,498	-124,116
Financing activities
Repayment of leases	-312	-904	-2,425
Issue of new shares less transaction costs	-	-	94,751
CASH FLOW FROM FINANCING ACTIVITIES	-312	-904	92,326
Change in cash and cash equivalents	-21,924	-41,010	-64,995
Cash and cash equivalents at the beginning of the period	60,555	125,550	125,550
Cash and cash equivalents at the end of the period	38,631	84,540	60,555

NOTE 1 ACCOUNTING POLICIES AND MEASUREMENT PRINCIPLES

The interim report was prepared in accordance with IAS 34 and the Swedish Annual Accounts Act. The consolidated financial statements were, like the annual accounts for 2023, 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 2023.

MOB-015 continues to develop with the North American Phase 3 study, whose purpose is to facilitate market approval in the U.S. as well as strengthen the product's clinical evidence and marketing claims globally, and work is also underway to secure a long-term supply of terbinafine to enable the pan-European rollout. As the development of MOB-015 is not yet complete, amortization of development expenses has not yet commenced.

NOTE 2 SPECIFICATION OF MAJOR INTANGIBLE NON-CURRENT ASSETS

(SEK thousand)	2024-03-31	2023-03-31	2023-12-31
Capitalized expenditure for MOB-015	550,042	435,015	532,220
TOTAL CAPITALIZED EXPENDITURE FOR DEVELOPMENT WORK	550,042	435,015	532,220

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

The Annual General Meeting of Moberg Pharma will be held at 2 PM (CET) on May 14, 2024. The Annual Report and notice of the Annual General Meeting are available 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 interim 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, May 7, 2024

Kerstin Valinder Strinnholm Chairman

Anders Lundmark Board member

Nikolaj Sörensen Board member

Håkan Wallin Board member Anna Ljung CEO