Moberg Pharma's Journey: A Glimpse into Growth and Challenges
November 13, 2024, 11:52 pm
Moberg Pharma is navigating the turbulent waters of the pharmaceutical industry. The company recently released its interim report for January to September 2024, revealing both triumphs and trials. The report showcases the launch of Terclara®, a topical treatment for nail fungus, which has emerged as a market leader in Sweden. However, challenges loom on the horizon, particularly regarding the ongoing Phase 3 study in the U.S.
In the first nine months of 2024, Moberg Pharma reported a net income of SEK 8.8 million, a significant leap from zero the previous year. However, the EBITDA still reflects a loss of SEK 15.7 million, slightly improved from SEK 17.4 million. The operating profit also remains in the red at SEK -16.7 million, though this is an improvement from -19.2 million. The total profit for the period was SEK -11.8 million, a slight reduction from -14.6 million. Diluted earnings per share improved to SEK -0.34 from -1.24, signaling a potential turnaround.
In the third quarter alone, Moberg Pharma achieved a net income of SEK 3.9 million, again a notable increase from zero. The EBITDA loss narrowed to SEK -3.0 million, and the operating profit loss was reduced to SEK -3.3 million. The total profit for this quarter was SEK -1.3 million, down from -5.8 million. The cash reserves stood strong at SEK 309 million, a significant increase from SEK 101.5 million the previous year.
The crown jewel of this report is the success of Terclara®. The product has been recognized as the "Best Launch of the Year" by both Kronans Apotek and Doz Apotek. This accolade is not just a feather in the cap; it reflects a robust market share. By September 2024, Terclara® captured 30% of the pharmacy sales value and 25% of the units sold. In the third quarter, these figures rose to 34% and 28%, respectively. This growth is remarkable, especially considering that consumer marketing only began in April.
The product is now available in over 90% of Swedish pharmacies, and its launch has spurred a 41% growth in the category overall. The initial reluctance of one major pharmacy chain to stock Terclara® was quickly overturned as demand surged, showcasing the product's appeal among patients.
However, the road ahead is not without bumps. Moberg Pharma has lowered its expectations for the primary treatment target in the ongoing Phase 3 study in the U.S. Preliminary data indicates that the number of patients achieving clinical cure is lower than anticipated. This raises concerns about the product's commercialization in the U.S., where the FDA typically requires two studies demonstrating superiority for approval.
Despite these challenges, Moberg Pharma remains committed to its strategy. The company is focused on ensuring a stable supply of terbinafine, the active ingredient in Terclara®. They have secured enough supply to meet Swedish market needs until a new supplier is approved. Participation in industry events like CPHI has allowed Moberg to strengthen relationships with partners and suppliers, essential for overcoming launch challenges.
The company is also preparing for a pan-European rollout, with plans for a broader launch in 2026. The success in Sweden serves as a springboard for this expansion. Collaborations with key opinion leaders in dermatology are crucial for understanding data and refining strategies as they move forward.
Moberg Pharma's approach to marketing has proven effective. The success of Terclara® not only establishes it as a market leader but also expands the overall market for nail fungus treatments. With a clinical cure rate of 76% in large Phase 3 studies, Terclara® stands out as a leading option for patients.
As the company awaits the topline results from the U.S. study, it is clear that Moberg Pharma is at a crossroads. The Swedish market has embraced Terclara®, but the U.S. remains a critical battleground. The outcome of the ongoing study will shape the future of the product and the company.
In conclusion, Moberg Pharma's interim report paints a picture of a company on the rise, yet facing significant challenges. The success of Terclara® in Sweden is a beacon of hope, but the uncertainties in the U.S. market cast a shadow. As they navigate these waters, the company must remain agile, ready to adapt to the changing tides of the pharmaceutical landscape. The next few months will be pivotal. Will Moberg Pharma ride the wave of success, or will it face the storm ahead? Only time will tell.
In the first nine months of 2024, Moberg Pharma reported a net income of SEK 8.8 million, a significant leap from zero the previous year. However, the EBITDA still reflects a loss of SEK 15.7 million, slightly improved from SEK 17.4 million. The operating profit also remains in the red at SEK -16.7 million, though this is an improvement from -19.2 million. The total profit for the period was SEK -11.8 million, a slight reduction from -14.6 million. Diluted earnings per share improved to SEK -0.34 from -1.24, signaling a potential turnaround.
In the third quarter alone, Moberg Pharma achieved a net income of SEK 3.9 million, again a notable increase from zero. The EBITDA loss narrowed to SEK -3.0 million, and the operating profit loss was reduced to SEK -3.3 million. The total profit for this quarter was SEK -1.3 million, down from -5.8 million. The cash reserves stood strong at SEK 309 million, a significant increase from SEK 101.5 million the previous year.
The crown jewel of this report is the success of Terclara®. The product has been recognized as the "Best Launch of the Year" by both Kronans Apotek and Doz Apotek. This accolade is not just a feather in the cap; it reflects a robust market share. By September 2024, Terclara® captured 30% of the pharmacy sales value and 25% of the units sold. In the third quarter, these figures rose to 34% and 28%, respectively. This growth is remarkable, especially considering that consumer marketing only began in April.
The product is now available in over 90% of Swedish pharmacies, and its launch has spurred a 41% growth in the category overall. The initial reluctance of one major pharmacy chain to stock Terclara® was quickly overturned as demand surged, showcasing the product's appeal among patients.
However, the road ahead is not without bumps. Moberg Pharma has lowered its expectations for the primary treatment target in the ongoing Phase 3 study in the U.S. Preliminary data indicates that the number of patients achieving clinical cure is lower than anticipated. This raises concerns about the product's commercialization in the U.S., where the FDA typically requires two studies demonstrating superiority for approval.
Despite these challenges, Moberg Pharma remains committed to its strategy. The company is focused on ensuring a stable supply of terbinafine, the active ingredient in Terclara®. They have secured enough supply to meet Swedish market needs until a new supplier is approved. Participation in industry events like CPHI has allowed Moberg to strengthen relationships with partners and suppliers, essential for overcoming launch challenges.
The company is also preparing for a pan-European rollout, with plans for a broader launch in 2026. The success in Sweden serves as a springboard for this expansion. Collaborations with key opinion leaders in dermatology are crucial for understanding data and refining strategies as they move forward.
Moberg Pharma's approach to marketing has proven effective. The success of Terclara® not only establishes it as a market leader but also expands the overall market for nail fungus treatments. With a clinical cure rate of 76% in large Phase 3 studies, Terclara® stands out as a leading option for patients.
As the company awaits the topline results from the U.S. study, it is clear that Moberg Pharma is at a crossroads. The Swedish market has embraced Terclara®, but the U.S. remains a critical battleground. The outcome of the ongoing study will shape the future of the product and the company.
In conclusion, Moberg Pharma's interim report paints a picture of a company on the rise, yet facing significant challenges. The success of Terclara® in Sweden is a beacon of hope, but the uncertainties in the U.S. market cast a shadow. As they navigate these waters, the company must remain agile, ready to adapt to the changing tides of the pharmaceutical landscape. The next few months will be pivotal. Will Moberg Pharma ride the wave of success, or will it face the storm ahead? Only time will tell.