Interim report January
Transcription
Interim report January
Interim report January – September 2012 Acquisition of Alterna LLC Moberg Derma AB (publ) October 25, 2012 Peter Wolpert, CEO and Founder Disclaimer Statements included herein that are not historical facts are forward-looking statements. Such forward-looking statements involve a number of risks and uncertainties and are subject to change at any time. In the event such risks or uncertainties materialize, Moberg Derma’s results could be materially affected. The risks and uncertainties include, but are not limited to, risks associated with the inherent uncertainty of pharmaceutical research and product development, manufacturing and commercialization, the impact of competitive products, patents, legal challenges, government regulation and approval, Moberg Derma’s ability to secure new products for commercialization and/or development and other risks and uncertainties detailed from time to time in Moberg Derma AB’s interim or annual reports, prospectuses or press releases. 1 1 Continued strong growth driven by launches July - Sep 2012 July - Sep 2011 Jan - Sep 2012 Jan - Sep 2011 26.7 21.9 82.3 35.4 Operating profit 4.0 4.9 13.3 -11.4 EBT 4.5 5.4 14.7 -10.8 Earnings after Tax 2.8 5.4 42.1 -10.8 Earnings per Share (SEK) 0.31 0.60 4.64 -1.47 Cash position Sep 30 85.7 (MSEK) Revenues Significant events during and after Q3, 2012 Kerasal ® Nail™ towards leading position in the U.S. – Walmart more than doubles distribution Strong start for European launch – all milestones expected in 2012 - Milestones received Q3: 2.5 MSEK (13 MSEK) Recruitment completed for Limtop phase II study Moberg Derma acquires its US distributor Alterna 2 2 Strong revenue growth under profitability Operating profit, rolling 12 months, MSEK Revenues rolling 12 months, MSEK 120 98 103 100 30 15 81 18 17 80 60 7 0 56 41 -8 -15 40 21 20 9 13 -30 0 -45 Q4 2010 -20 -30 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 -32 -34 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 3 3 Continued growth in Nalox™/Emtrix® product sales 4 4 Medical device/cosmetic Pharmaceutical Product portfolio Product Indication Formulation Clinical Phase Market Partners On the market NaloxTM Nail diseases 10 partners, 50 markets Kaprolac® Skin 1 partner, 1 market In development Limtop Actinic Keratosis Phase II data H113 MOB-015 Nail fungus Phase II data Q412 Pipeline with over 500 MUSD in market potential 5 5 Kerasal® Nail™ – Rapidly gaining market share Launched Fall 2011 at CVS, Rite Aid and Walmart Walgreens launch March 2012 Already #2 brand in Drug class of trade and growing(1) Walmart expanded doors in August: 1,325 –> 3,570 doors 6 (1) Retail sales of fungal nail SKUs in drug class of trade over the last 20 weeks as reported by IRI 6 Rapid growth in Kerasal® Nail™ sales 7 Source: RSI reporting 7 Kerasal® Nail™ is already the #2 Brand in Drugstores 12 Week Ending Sep 9, 2012 TOTAL U.S. - DRUG Dollar Sales FUNGI NAIL CLEAR NAIL CARE ITEM NAIL TREATMENT 0.06OZ 5307617120 FUNGI NAIL CLEAR NAIL CARE ITEM NAIL TREATMENT 1OZ 5307610326 KERASAL NAIL CLEAR NAIL CARE ITEM NAIL TREATMENT 0.33OZ 5707400161 FUNGI CURE CLEAR NAIL CARE ITEM NAIL TREATMENT 1OZ 7295961030 PRO CLEARZ CLEAR NAIL CARE ITEM NAIL TREATMENT 1OZ 8037601549 DR BLAINES TINEACIDE NAIL CARE ITEM NAIL TREATMENT ANTI FUNGAL 1.25OZ 1672805000 DR PAULS PIGGY PASTE CLEAR NAIL CARE ITEM NAIL TREATMENT 0.8OZ 5915700200 XENNA NONYX CLEAR NAIL CARE ITEM NAIL TREATMENT 4OZ 1263400101 FUNGI NAIL CLEAR NAIL CARE ITEM NAIL TREATMENT 0.7OZ 5307617450 MYCOCIDE NS CLEAR NAIL CARE ITEM NAIL TREATMENT 1.33OZ 8315425001 PRO CLEARZ CLEAR NAIL CARE ITEM NAIL TREATMENT 0.11OZ 8037601579 RECLEAR AF NAL ANTMCRBL ANTFNGL FOOT TREATMENT SOLUTION 1OZ 5235300024 MIRANEL NATURAL ANTI FUNGAL FOOT TREATMENT CREAM 1OZ 0395013191 DR SCHOLL FUNGAL NAIL CLEAR NAIL CARE ITEM NAIL TREATMENT 1OZ 1101740562 RECLEAR AF CLEAR NAIL CARE ITEM NAIL TREATMENT 1.5OZ 5235300023 FUNGI NAIL CLEAR NAIL CARE ITEM NAIL TREATMENT 0.06OZ 5307616720 8 Source: IRI 8 $1,852,602 $1,760,860 $1,181,685 $699,244 $654,485 $635,906 $599,015 $584,982 $502,441 $377,159 $349,481 $205,617 $123,469 $54,877 $49,295 $12,529 Dollar Sales % Chg YAgo 18.48 0.68 (2.92) 51.91 1.96 140.82 (18.78) (56.61) (1.91) 70.15 (26.23) (17.46) (82.37) (58.36) Unit Sales 166,829 113,703 51,649 62,057 71,085 33,372 19,949 27,554 36,055 27,671 49,073 13,824 5,530 5,796 7,385 1,420 The Alterna acquisition Strong performance enables investment in direct U.S. market access Swedish pharmaceutical company with strong growth in the global market Growth during eight consecutive quarters, positive cash flow and profit ahead of plan Sales in 19 countries Close co-operation with distributors and partners provide local market expertise, faster market penetration and limits capital need Delivering on our strategy – growth organically and through acquisitions Strong performance enables investments in additional products and own distribution in selected markets EBITDA margin target of ≥ 25 percent in three to five years under continued growth 10 10 The Alterna acquisition: A logical step in Moberg Derma's long term growth strategy A proven marketing and distribution organization Channels include the largest U.S. food and drug chains Network of international distributors Strong track record from recent successful launches (e.g. Kerasal Nail™) Positive impact from day one Topline to benefit from rapidly growing sales of Alterna products Adds established brands with high potential to our portfolio Provides direct relationship with end-customers. Enables future U.S. launches under own management 11 11 Alterna in brief Founded 2005 with acquisition of Taro Pharmaceutical’s consumer healthcare products division Focus on building effective niche consumer healthcare brands Customers include major retailers, e.g. CVS, Rite Aid and Walmart Principal brands: - Kerasal® (foot care) - JointFlex® (arthritis pain) Owned by Altaris Capital Partners Headquarters Cedar Knolls, NJ 12 12 The transaction in brief Purchase price 133 MSEK (MUSD 20), of which 33 MSEK (MUSD 5) through issue in kind of 825,652 shares, and 100 MSEK (MUSD 15) in cash 33 MSEK (MUSD 5) in additional consideration based on sales for the period 1 Jan 2012 - 30 June 2014 (2 x MUSD 2.5) The consideration corresponds to a multiple of 1.8 times Alterna’s revenue for the past 12 months (Sep 30, 2012), approximately 72 MSEK (MUSD 11) Financing of cash part 32 MSEK through directed issue to Swedish institutions, including AP3 and Rhenman & Partners 40 MSEK through bank financing from Swedbank 28 MSEK with own funds (Cash Reserves Sep 30: 86 MSEK) Timetable EGM: November 19, 2012 Closing: Before November 30, 2012 Estimated registration of non-cash issue: Beginning of December, 2012 13 13 Highly Effective Supply Chain & Distribution Model 14 14 Alterna’s brands ® CONFIDENTIAL 15 15 U.S. & Canada Retail Customers* 16 * Not an all inclusive list. Kerasal is well distributed among smaller chains and independents, commissaries, and some hospital pharmacies. 16 Moberg Derma going forward 17 A stronger Moberg Derma Continued focus on growth and profitability Bring unique patented products to the U.S. Market Under own management market niche brands in the U.S. / Canada and other select markets Sell through distributors in other markets Expand the product portfolio through acquisitions and / or inlicensing Inlicense from EU to U.S. and vice versa 18 18 Medical device/cosmetic Pharmaceutical Combined product portfolio Product Indication Formulation Clinical Phase Market Partners On the market Nalox™ Nail diseases 10 partners, 50 markets Kaprolac® Skin 1 partner, 1 market Kerasal® Dry cracked feet US: Direct Sales Several int. distributors Kerasal Nail™ Nail appearance US: Direct Sales JointFlex® Arthritis pain US: Direct Sales Several int. distributors In development Limtop Actinic Keratosis Phase II data H113 MOB-015 Nail fungus Phase II data Q412 19 19 Ongoing launch on 50 markets – Alterna brings a well-proven U.S. marketing organization as well as complementary distributor network 20 20 Financial Overview 21 Combining two growth companies 2012 Jan – Sep 2011 Jan - Sep Growth 2011 Revenues 82.3 35.4 132% 55.9 EBITDA 13.3 -11.4 -7.6 Earnings after Tax 42.1 -10.8 -6.4 2012 Jan - Sep 2011 Jan - Sep Growth 2011 68.3 42.7 60% 54.1 EBITDA 4.7 2.9 60% 2.1 Earnings after Tax 1.5 -0.4 (MSEK) (MSEK) Revenues 22 Note: Stand-alone P&Ls, Pro forma figures will include adjustments for Kerasal Nail Sales and marketing costs 22 -2.0 Summary 23 The Alterna acquisition: A major step in Moberg Derma’s growth strategy Delivery on strategic and financial targets Operational and financial strength secured Attractive financing structure in place DIRECT MARKET ACCESS IN THE U.S. THROUGH FORWARD INTEGRATION REVENUE GROWTH THROUGH ACQUISITION OF PRODUCTS Target company’s performance and corporate culture well known 24 24