Meda AB (publ) – Interim report, January-June 2012

 | Source: Meda AB Meda AB 

  · Group net sales reached SEK 6,758 million (6,177). At fixed currency rates,
sales increased 8%.
  · EBITDA amounted to SEK 2,175 million (2,319), corresponding to a 32.2%
margin (37.5).
  · Operating profit amounted to SEK 1,104 million (1,345).
  · Profit after tax amounted to SEK 654 million (753).
  · Earnings per share reached SEK 2.20 (2.50).
  · Cash earnings per share reached SEK 4.45 (5.10).

CEO STATEMENT
Sales for January-June 2012 rose 8% at fixed exchange rates to SEK 6,758
million. As in the first quarter, sales increased organically outside the US in
the second quarter by 4%. In the US, growth is currently negative due to
increased generic competition for certain products, such as Felbatol and Soma.
Astepro sales are increasing slightly, which is important to the launch of
Dymista, our most important new product, which is being introduced in the US in
the fall and provides a basis for strong growth.

Growth in Emerging Markets continues, and we are continuously strengthening
marketing organizations in prioritized growth markets. A high organic sales
growth of 15% was also noted for prescription free products (OTC) in the second
quarter. The launch of SB12 and Nalox was initiated during the second quarter in
several countries, including Germany, the Netherlands, and Austria. The
introduction went very well and sales have been strong. These OTC efforts will
continue and also be initiated in additional markets.

Our growing marketing investments will have a negative effect on earnings in the
short term. These marketing efforts will continue as the company faces
attractive growth opportunities. Despite a significantly higher rate of
investment in marketing, Meda remains in the upper echelon of the most
profitable international specialty pharma companies. However, Meda risks a
certain amount of negative impact from developments in some southern European
markets. With an increasing number of OTC products and a specialized product
portfolio of prescription drugs, Meda develops with a good growth potential.

Anders Lönner

Group President and CEO

For more information, contact

Anders Larnholt,                                                   Phone:+46 8
-630 19 62
VP Corporate Development and Investor Relations             +46 709-458 878

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