Year-end Report, January-December 2015

January-December 2015[1]

Fourth quarter 2015[1]

1)      For information about non-recurring items, see page 7.
2)      Recalculation of comparative figures to consider the bonus issue element in the 2014 new share issue.
Webcast presentation of the report on February 11 at 10:00 a.m.
The presentation can be accessed at, where a recorded version will also be available until the next interim report.
For further inquiries, please contact:
Paula Treutiger, VP Corporate Communications & Sustainability,, +46 733-666 599.

CEO statement

I am proud of what Meda and its employees have achieved in 2015. We have successfully integrated our largest ever acquisition ahead of plan and achieved more than the planned synergies for the year while at the same time continuing to drive our day-to-day business forward in our respective markets. We have now achieved a leading position in the European specialty pharma market with good profitability and strong cash flow generation. For the full year 2015 sales amounted to SEK 19.6 billion and EBITDA excluding non-recurring items was SEK 6.5 billion corresponding to an improved EBITDA margin of 33%. Free cash flow excluding non-recurring items for the year was SEK 4.2 billion corresponding to an increase of close to 40%.

As planned, we took measures in the fourth quarter to address issues in our Italian business. The challenges we are facing in Italy include a Cx business with potential to improve, unfavorable pricing conditions, and over the years high inventories built up at the wholesale level. We have now reorganized the Cx business so the sales force will have greater pharmacy reach in order to increase demand at the pharmacy level. At the same time, we have reduced sales to Italian wholesalers in order to improve the situation with wholesale stocks. As a result of this we significantly reduced in receivables and improved cash flow. Going forward our sales will be at more favorable pricing conditions. I truly believe we are now on the right track with our business in Italy.

The strategic review of our manufacturing structure is progressing and during the last quarter of the year we divested Euromed, a non-core manufacturing operation. This was a step within our program targeting improved gross margin.

Our Western European business continues to be supported by our major products such as Dymista, EpiPen and Elidel. Tambocor is still weighing on sales in France but the impact is gradually levelling out. Adjusting for the situation in Italy, Q4 sales in Western Europe increased slightly.

Our US business is still benefitting from strong performance by Felbatol, and Dymista has also added to growth. However, several other products such as Soma, Astelin and Astepro are still under pressure due to generic competition.

Emerging Markets showed solid performance with, Russia, the Middle East and Greater China in particular showing positive development. In Emerging Markets, the former Rottapharm products are important growth drivers for us.

Following completion of the Rottapharm integration, cash flow and the balance sheet have strengthened and we are preparing for the next steps building a world-leading specialty pharma company. Meda is well equipped and our organization is ready to take on new growth opportunities.

In 2016, we will continue our journey. Our focus will be on further exploiting our growth products, Emerging Markets franchises and other opportunities to counter challenges faced by our base business.

Jörg-Thomas Dierks

Group President and CEO

The company’s auditors did not review this year-end report.

Forward-looking statement

This report is not an offer to sell or a solicitation to buy shares in Meda. This report also contains certain forward-looking statements with respect to certain future events and Meda’s potential financial performance. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts and may sometimes include words such as “may”, “will”, “seek”, “anticipate”, “expect”, “estimate”, “intend”, “plan”, “forecast”, “believe”, or other words of similar meaning. These forward-looking statements reflect the current expectations on future events of the management at the time such statements are made, but are made subject to a number of risks and uncertainties. In the event such risks or uncertainties materialize, Meda’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, Meda’s ability to secure new products for commercialization and/or development, and other risks and uncertainties detailed from time to time in Meda AB’s interim or annual reports, prospectuses, or press releases. Listeners and readers are cautioned that no forward-looking statement is a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking statement. Meda does not intend or undertake to update any such forward-looking statements.

Meda AB discloses the information provided herein pursuant to the Securities Market Act and/or the Financial Instruments Trading Act. This information was submitted for publication on February 10, 2016 at 22:30 p.m.