interim report, 1 january – 31 march 2010 fileinterim report, medivir ab, 1 january - 31 march2010...

Medivir AB Telephone Facsimile ContactPO Box 1086 +46 8 5468 3100 +46 8 5468 3199 [email protected] Huddinge www.medivir.seSWEDEN

Press Release, 29 April 2010

Interim Report, 1 January – 31 March 2010

Net sales were SEK 21.3 (17.5) m. The loss after tax was SEK -26.2 (-30.2) m. Earnings per share were SEK -1.25 (-1.45). Cash flow from operating activities was SEK -32.0 (-41.2) m. Cash and cash equivalents as of 31 March were SEK 184.1 (243.1) m.

Comments from the CEO“The highlight for the first quarter was the launch of Xerclear™ in the home markets of Swedenand Finland through our own sales and marketing organization. This is a really exciting andimportant milestone for the company. An agreement was also concluded with Meda AB who willlaunch Xerclear™ in North America and the Xerese™ brand towards the end of this year andpartnership discussions are also well advanced for Europe and other geographies. The companyalso completed an overhaul of its R&D portfolio and implemented a greatly improved portfoliomanagement system. This has resulted in us prioritizing 9 projects, 6 of which are for infectiousdiseases. Medivir has also identified further infectious disease projects, which can be fast trackeddue to Medivir’s expertise in this segment. In order to exploit our portfolio to its full potential andto ensure adequate resources for the commercial development of the company the Board ofDirectors of Medivir has resolved to conduct a rights offering, subject to approval by the AnnualGeneral Meeting” commented Ron Long Medivir’s CEO.

First quarter in briefSeveral important events were reported in the quarter, which can be summarized as follows:

Our cold sore pharmaceutical, branded Xerclear™ in Europe, was launched in Swedenand Finland.

Partnership agreement entered with Meda AB for sales of our cold sore pharmaceuticalon the North American market under the Xerese™ brand.

After concluding a portfolio evaluation, Medivir has nine projects conducted in conjunctionwith partners or in-house with their main focus in anti-infectives.

EUR 5 m milestone payment received from Tibotec. New licensing agreement for the clinical development of our hepatitis B project, MIV-210,

entered with Daewoong Pharmaceutical Co. Ltd. The Board has decided to propose a rights issue of some SEK 300 m to the AGM.

For more information, please contactRein Piir, CFO and VP, Investor Relations: +46 (0)70 853 7292 or +46 (0)8 546 83123.

Forthcoming financial informationThe Annual General Meeting (AGM) will be held at 3 p.m. on 29 April at the PolstjärnanConference Facility, Sveavägen 77, Stockholm, Sweden.The Six-month Interim Report will be published on 8 July 2010.The Nine-month Interim Report will be published on 22 October 2010.

Additional information on Medivir’s operations is available on the company’s website, www.medivir.se.Financial Reports are available under the ‘Investor Relations’ heading.

Interim Report, Medivir AB, 1 January - 31 March 2010

2

Highlights after the end of the reporting period

Terms and conditions of rights issueThe Medivir board decided on April 26 on the terms for the rights offering of class B shares.Shareholders in Medivir have preferential rights to subscribe for one new class B share for everyfour shares held, regardless of share class.

The subscription price is SEK 62 per share, which represents total rights offering proceeds ofapproximately SEK 325 million. The subscription price corresponds to a “discount” ofapproximately 42 percent to the theoretical ex-rights price of SEK 106.20 based on the closingprice of Medivir’s class B share on 26 April 2010.

The rights offering is subject to approval by the Annual General Meeting, which will be held today,starting at 15.00. The prospectus is expected to be published April 30 and the subscription periodruns from and including 6 May 2010, up to and including 28 May 2010.

TMC435 presented at the Annual Meeting of the European Association for theStudy of the Liver, EASL, on 14-18 AprilTMC435 is a protease inhibitor Medivir is developing in partnership with Tibotec to treat hepatitisC virus infections (HCV). TMC435 is currently in clinical phase IIb trials (C205, C206 and C215)in treatment-naive patients with genotype-1 HCV, and on patients with genotype-1 that previouslydid not respond to IFN-based therapy. These clinical trials are proceeding as planned, and thefirst results of these clinical phase IIb trials will be presented in autumn 2010.

Four trials were presented at the EASL Meeting in Vienna, one of which was an in vitrocombination trial with TMC435 and two new NS5B inhibitors (polymerase inhibitors). Thesepreclinical results show increased activity against HCV.

Highlights in the first quarter of 2010

Rights issue of some SEK 300 mOn 28 March, Medivir’s Board of Directors decided to conduct a rights issue of some SEK 300 m,net of issue costs. This will be conducted as a new issue of class B shares with preferential rightsfor Medivir’s current shareholders. The rights issue has been underwritten by subscriptionundertakings, letters of intent and guarantees from current shareholders, and by a guaranteeconsortium. This new share issue is subject to approval at the AGM, held on today’s date.

The issue proceeds will give Medivir the flexibility to take projects further into clinical developmentbefore partnering, advance early stage projects for treating infectious diseases further towardsand into the clinic, strengthen its commercial organization to fully exploit Xerclear™/Xerese™,build capacity to inlicense products—for the Scandinavian market initially—and finally, createoperational and financial flexibility.

GSK co-promotionMedivir has marketed several GSK products in Sweden since 2008 and has succeeded in thechallenge of increasing sales for a portfolio of established products. GSK is very satisfied withMedivir’s work but recently acquired Stiefel, a company which specializes in skincare productsthereby reducing GSK’s need for Medivir’s sale support in Sweden. Accordingly, Medivir andGSK have agreed that this agreement will terminate on 30 April 2010. Medivir has derivedsignificant benefits from this agreement as it has enabled Medivir to start building its commercialteam and to gain valuable experience from the skincare market where Xerclear is now beingintroduced.


3

Medivir’s cold sore pharmaceutical Xerclear™/Xerese™In December the Swedish Medical Products Agency approved Xerclear’s™ sale as a prescriptionpharmaceutical in a 5g tube and OTC in a 2g tube. In March, Medivir launched Xerclear™ as aprescription pharmaceutical in Sweden itself, followed by Finland. The ambition is to launchXerclear™ as an OTC pharmaceutical in Sweden and Denmark in 2010. Discussions arecurrently ongoing with potential partners for the European markets, with the ambition of startingthe launch of Xerclear™ in the second half-year 2010.

In February, Medivir entered an agreement with Meda AB to launch and sell Medivir’s cold sorepharmaceutical in North America where it will be marketed under the Xerese™ brand. Meda hasexclusive rights to market, sell and distribute Xerese™ in the US, Canada and Mexico for thetreatment of cold sores. In addition to funding the commercial development of Xerese™, Medawill pay up-front and pre-launch milestones to Medivir totaling USD 5 m in two payments, anddouble-digit royalties on sales. Meda is planning to launch Xerese™ in Q4 of this year.

Medivir outlicenses MIV-210 to Daewoong Pharmaceutical Co. Ltd.In March, Medivir entered a licensing agreement for its polymerase inhibitor against the hepatitisB virus (HBV), lagociclovir valactate (MIV-210), with Daewoong Pharmaceutical Co. Ltd., (SouthKorea).

Daewoong will be responsible for the clinical development of MIV-210 in return for commercialrights to the South Korean, Japanese and Chinese markets (including Taiwan, Macao and HongKong). Medivir will receive up to double-digit royalties on sales, and has retained exclusivemarket rights for the rest of the world. Daewoong has agreed that Medivir’s former partner forlagociclovir, Noken, will continue in the capacity as a distributer for the Chinese market.

Working with Daewoong in South Korea will facilitate MIV-210’s faster clinical development fromphase I to phase II as the regulatory authorities will accept the phase I data that has already beengenerated for the compound.

Medivir receives EUR 5 m milestone payment from TibotecAt the end of January, Medivir received an EUR 5 m advance on future milestone payments fromits partner Tibotec.

Portfolio evaluationAfter many months of work Medivir has introduced an improved portfolio management systemthat facilitates continuous iterative assessment of technical, commercial, financial and IP risk.This system has been used to evaluate all existing R&D projects. Those projects that camethrough this review successfully are now in one portfolio. There are now 6 projects in infectiousdisease, all of which are have partners, two for Hepatitis C, two for HIV, one for Hepatitis B andone for Shingles. There are 3 projects relating to other disease indications includingOsteoporosis, Bone Metastases, Neuropathic Pain and Alzheimer’s, none of which havecommercial partners at present. Medivir has also prepared plans to fast track early stage projectsin its infectious disease focus area including additional projects for treating Hepatitis C.


4

R&D Portfolio

A summary of Medivir’s project portfolio is shown in the table below

Two preclinical projects, HCV-POL and HIV-PI, are being conducted in partnership withTibotec/J&J.

In the HCV-POL partnership, entered in May 2008, pharmaceuticals are being developed againsthepatitis C with polymerase as their target enzyme. This project designated a CD in December2008, which Tibotec is taking onwards towards clinical phase I trials, scheduled to start duringthis year. Some clinical data on these compounds was recently presented at the EASL AnnualMeeting this month in Vienna.

The HIV-PI project has been conducted, and fully funded, by Tibotec since year-end 2008. Itsnext goal is to designate CDs in 2010.

The cathepsin K project addresses a wide range of indications in bone disorders. This project hastwo clinical CDs, MIV-701 and MIV-711, that have distinct profile differences and may addressdifferent therapy areas. Work on evaluating these compounds for different indications for differentclinical models is ongoing.

Medivir’s protease-based project in Alzheimer’s disease (BACE) is in preclinical optimization.

The cathepsin S project primarily addresses neuropathic pain and is at the pre preclinicaloptimization stage and progressing very well.


5

Consolidated earnings and financial position

Turnover and earnings, 1 January - 31 March 2010Net sales were SEK 21.3 (17.5) m. Net sales in the period primarily consisted of a first one-offpayment of SEK 18.0 m (USD 2.5 m) from Meda for a product launch. Net sales also include aone-off payment for a licensing agreement on Medivir’s polymerase-inhibiting pharmaceuticalagainst the hepatitis B virus (HBV), lagociclovir valactate (MIV-210) from DaewoongPharmaceutical Co. Ltd. of SEK 1.4 m (USD 0.2 m). Other operating income primarily consists ofEU subsidies and other research support. In the corresponding period of the previous year, netsales primarily consisted of remuneration for research collaboration on hepatitis C of SEK 5.9 mand an allocated one-off payment of SEK 11.6 m from Tibotec Pharmaceuticals Ltd.

Operating costs were SEK -50.4 (-50.5) m, comprising external costs of SEK -25.5 (-20.5) m,personnel costs of SEK -22.6 (-27.3) m and depreciation and amortization of SEK -2.3 (-2.7)m. Increased external costs are mainly due to higher costs for outlicensing. Lower personnelcosts are mainly due to staff reductions.

The operating loss was SEK -26.5 (-32.5) m. The lower figure is mainly a consequence ofincreased operating income. Profit from financial investments was SEK 0.3 (2.3) m. Lower profitfrom financial investments is mainly due to lower returns on investments in securities, etc. Thenet loss for the period was SEK -26.2 (-30.2) m.

Cash flow and financial positionCash flow from operating activities was SEK 32.0 (-41.2) m. The SEK 73.2 m improvement ismainly due to higher operating profit of SEK 6.0 m and an advance milestone payment of SEK51.8 m (EUR 5.0 m) from Medivir’s partner, Tibotec.

Cash flow from financing activities was SEK 9.0 (0.0) m, and relates to conversion of staff stockoptions.

As of 1 January, cash and cash equivalents including investments in securities, etc. with amaximum maturity of three months were SEK 143.6 (284.4) m and were SEK 184.1 (243.1) m atthe end of the period, a change of SEK 40.3 (-41.3) m in the period.

In accordance with its finance policy, Medivir invests its financial assets in fixed-income securitieswith low risk.

Investments, depreciation, amortization and impairment lossesGross investments in tangible fixed assets in the period were SEK 0.2 (0.4) m; gross investmentsin intangible fixed assets were SEK 0.2 (0.0) m. Investments in tangible fixed assets are mainlyfor research equipment. Investments in intangible fixed assets are capitalized external costs andpersonnel costs for the completion of Xerclear™. Capitalized costs for this product will beamortized over the assessed useful life. Depreciation of tangible fixed assets in the period of SEK-2.1 (-2.6) m was charged to profit. Amortization of intangible fixed assets of SEK -0.2 (-0.1) mwas charged to profit. Sales of fixed assets were SEK 0.0 (0.2) m.

Equity, share data and stock optionsShare capital at the end of the period was SEK 104.9 (104.2) m and equity was SEK 137.0(257.8) m. The number of shares was 20,975,515 (20,843,547), of which 660,000 (660,000) wereclass A and 20,315,515 (20,183,547) class B shares with a nominal value of SEK 5. There were760,000 outstanding options at the beginning of the year. 70,773 options were exercised in the2005/2010 option plan and 42,086 were exercised in the 2007/2012 option plan. Conversion ofoptions in the period increased share capital by SEK 0.7 m and other paid-up capital by SEK 8.3m. The number of outstanding options was 647,141 at the end of the period, corresponding to


6

703,632 class B shares. Upon full conversion, the number of outstanding options could increaseequity by SEK 47.4 m, and the total number of shares could thus amount to 21,679,147.

The equity ratio was 56.2 (83.2)%. Earnings per share, based on a weighted average number ofoutstanding shares, was SEK -1.25 (-1.45) and equity per share was SEK 6.53 (12.37).

Financial assets held for saleHoldings of shares in Medivir’s license partners Presidio Pharmaceuticals Inc. and EpiphanyBiosciences Inc. have been classified as financial assets held for sale. Because these shares arenot quoted, and accordingly not registered on an active marketplace, other non-observable datais used as the basis for their valuation. Medivir judges that no value change occurred to theseshares in the period.

EmployeesMedivir had 79 (99) employees at the end of the period, 48 (49)% of which were women. Thusthe number of employees reduced by 20, mainly as a result of the completed restructuringoperations.

Transactions with related partiesNo transactions occurred between Medivir and related parties that significantly affected thecompany’s financial position and results of operations.

Parent companyMedivir AB (publ), corporate identity no. 556238-4361, is the parent company of the group. Thegroup’s operations are mainly conducted in the parent company, and consist of researchoperations and administrative functions. Parent company net sales for the period were SEK 21.3(17.5) m. Operating costs were SEK -50.4 (-50.0) m, divided between external costs of SEK -25.4(-20.0) m, personnel costs of SEK -22.6 (-27.3) m and depreciation and amortization of SEK -2.3(-2.7) m. The operating loss was SEK -27.8 (-32.5) m. The profit from financial investments wasSEK 0.3 (2.2) m. The net loss for the period was SEK -27.5 (-30.3) m. No purchases from orsales to subsidiaries occurred in the period.

Gross investments in tangible fixed assets were SEK 0.2 (0.4) m and gross investments inintangible fixed assets were SEK 0.2 (0.0) m. Cash and cash equivalents including investments insecurities, etc. with a maximum maturity of three months amounted to SEK 181.6 (242.1) m. Forcomments on operations, please refer to the section on consolidated earnings and financialposition.

Outlook including significant risks and uncertainty factorsDeveloping new pharmaceuticals to approved registration and launch is a highly risky and capital -intensive process. Medivir’s business model is characterized by high risk and the majority ofprojects never reach market registration. There are different types of risk to manage inoperations, operational, i.e. project specific, financial as well as commercial risks as productsreach the market. In recent years, Medivir has taken a goal-oriented and strategic approach tocreate the best possible prospects of running projects quickly and with balanced risks, but despitecontinued work on this, there are still factors the company cannot influence.

Medivir’s ability to produce new CDs, to enter partnerships on its projects, to develop its projectssuccessfully to market launch and sale, and to secure funding of its operations, is decisive to itsfuture. The progress of previously entered partnerships and future new partnerships will exert amajor influence on Medivir’s revenues and cash position. However, it is not possible to specify theexact timing of expected revenue flows. We will continue to take great care in prioritizing newbusiness opportunities for our projects and managing our existing partnerships. The company’scurrent financial assets are judged to assure funding of operations until the end of the secondquarter of 2011 inclusive. On 28 March, Medivir’s Board of Directors decided to conduct a rights


7

issue of some SEK 300 m, net of issue costs. The rights issue has been underwritten bysubscription undertakings, letters of intent and guarantees from current shareholders, and by aguarantee consortium. This new share issue is subject to approval at the AGM, held on today’sdate. For more detailed information on the rights issue, see page X in this Report.For a more detailed review of the future outlook, including significant risks and uncertainty factors,the reader is referred to the Report of the Directors in the Annual Report 2009.

Accounting policiesMedivir applies International Financial Reporting Standards (IFRS) as endorsed by the EuropeanUnion. The significant accounting and valuation principles are stated on pages 46-49 of theAnnual Report 2009 The group’s Interim Reports are prepared according to IAS 34. The parentcompany uses the policies recommended in RFR 2.3 issued by RFR, the Swedish FinancialReporting Board.

Other new or revised IFRS and interpretation statements from IFRIC that came into effect after 31December 2009 did not have any material effect on the group’s or parent company’s financialposition or results of operations.


8

CONSOLIDATED INCOME STATEMENT 2010 2009 2009SUMMARY (SEK m) Jan-Mar Jan-Mar Jan-Dec

Turnover, etc.Net sales 21.3 17.5 25.7Work performed by the company for its own use and capitalized 0.2 0.0 4.1Other revenue 2.5 0.5 5.7Total 23.9 18.0 35.5

Operating costsOther external costs -25.5 -20.5 -72.3Personnel costs -22.6 -27.3 -92.7Depreciation and amortization -2.3 -2.7 -10.4Total -50.4 -50.5 -175.3

Operating profit/loss -26.5 -32.5 -139.8

Profit/loss from financial investments 0.3 2.3 4.4

Profit/loss after financial items -26.2 -30.2 -135.4

Net profit/loss -26.2 -30.2 -135.4

Net profit/loss attributable to:Equity holders of the parent -26.2 -30.2 -135.4

Earnings per share, calculated on profit/loss attributable toequity holders of the parent in the periodBasic and diluted earnings per share, (SEK per share) -1.25 -1.45 -6.49Average number of shares, 000 20,910 20,844 20,844Number of shares at end of period, 000 20,976 20,844 20,844

CONSOLIDATED STATEMENT OF COMPREHENSIVEINCOME 2010 2009 2009(SEK m) Jan-Mar Jan-Mar Jan-Dec

Net profit/loss -26.2 -30.2 -135.4

Other comprehensive incomeExchange rate differences 0.2 0.0 0.4Other comprehensive income for the period, net after tax 0.2 0.0 0.4

Total comprehensive income for the period -26.0 -30.2 -135.0

Total comprehensive income attributable to:Equity holders of the parent -26.0 -30.2 -135.0


9

CONSOLIDATED BALANCE SHEET SUMMARY 2010 2009 2009(SEK m) 31 Mar 31 Mar 31 Dec

AssetsIntangible fixed assets 4.5 0.4 4.6Tangible fixed assets 24.9 33.3 26.9Financial fixed assets 18.8 18.8 18.8Inventories 0.8 0.0 0.6Current receivables 10.5 14.3 10.6Short-term investments 172.8 211.0 130.4Cash and bank balances 11.3 32.1 13.2Total assets 243.6 309.9 205.2

Liabilities and equityEquity 137.0 257.8 153.9Long-term liabilities 0.2 0.0 0.2Current liabilities 106.4 52.1 51.1Total liabilities and equity 243.6 309.9 205.2

CONSOLIDATED STATEMENT OFCHANGES TO EQUITY

Sharecapital

Otherpaid-upcapital

Exchangerate

difference

Deficitbroughtforward

Totalequity

(SEK m)

Opening balance, 1 January 2009 104.2 847.0 4.3 -668.0 287.6Total comprehensive income for the period 0.4 -135.3 -134.9Staff stock option plans: value of employeeservice 1.2 1.2Closing balance, 31 December 2009 104.2 848.2 4.7 -803.3 153.9

Opening balance, 1 January 2009 104.2 847.0 4.3 -668.0 287.6Total comprehensive income for the period -30.2 -30.2Staff stock option plans: value of employeeservice 0.4 0.4Closing balance, 31 March 2009 104.2 847.5 4.3 -698.2 257.8

Opening balance, 1 January 2010 104.2 848.2 4.7 -803.3 153.9Total comprehensive income for the period 0.2 -26.2 -26.0Option conversion 0.7 8.3 9.0Staff stock option plans: value of employeeservice 0.2 0.2Closing balance, 31 March 2010 104.9 856.7 4.9 -829.5 137.0


10

CONSOLIDATED CASH FLOW STATEMENT SUMMARY 2010 2009 2009(SEK m) Jan-Mar Jan-Mar Jan-Dec

Cash flow from operating activities before changes inworking capital -23.2 -27.1 -123.1

Changes in working capital 55.2 -14.1 -12.0Cash flow from operating activities 32.0 -41.2 -135.1

Investing activitiesAcquisition/divestment of fixed assets -0.4 -0.2 -5.8Cash flow from investment activity -0.4 -0.2 -5.8

Financing activitiesConversion of options 9.0 0.0 0.0Cash flow from financing activities 9.0 0.0 0.0

Cash flow for the periodCash and cash equivalents, at beginning of period 143.6 284.4 284.4Change in cash and cash equivalents 40.6 -41.3 -140.8Exchange rate difference in cash and cash equivalents -0.1 0.0 0.0Cash and cash equivalents, at end of period 184.1 243.1 143.6

KEY FIGURES, SHARE DATA, OPTIONS 2010 2009 2009Jan-Mar Jan-Mar Jan-Dec

Return on:- equity, % -18.0 -11.1 -61.3- capital employed, % -18.0 -11.1 -61.2- total assets, % -11.6 -8.9 -46.8

Number of shares at beginning of period, 000 20,844 20,844 20,844New share issues 132 0 0Number of shares at end of period, 000 20,976 20,844 20,844

- of which class A shares 660 660 660- of which class B shares 20,316 20,184 20,184

Average number of shares, 000 20,910 20,844 20,844Outstanding warrants, 000 647 970 760

- entitlement to class B shares at conversion, 000 704 1,102 836Share capital at end of period, SEK m 104.2 104.2 104.2Equity at end of period, SEK m 137.0 257.8 153.9Basic and diluted earnings per share, SEK -1.25 -1.45 -6.49Equity per share, SEK 6.53 12.37 7.38Net worth per share, SEK 6.53 12.37 7.38Cash flow per share after investments, SEK 1.51 -1.99 -6.76Equity ratio, % 56.2 83.2 75.0


11

Definitions of key figures

Return on equity. Profit/loss after financial items as a percentage of average equity.

Return on capital employed. Profit/loss after financial items plus financial costs as a percentageof average capital employed.

Return on total assets. Profit/loss after financial items plus financial costs as a percentage ofaverage total assets.

Equity per share. Equity divided by the number of shares at the end of the period.

Average number of shares. The unweighted average number of shares in the year.

Cash flow per share after investments. Cash flow after investments divided by the averagenumber of shares.

Basic and diluted earnings per share. Profit/loss after financial items divided by the averagenumber of shares.

Equity ratio. Equity in relation to total assets.

Net worth per share. Equity plus hidden assets in listed equities divided by number of shares atthe end of the period.

Capital employed. Total assets less non interest-bearing liabilit ies including deferred taxliabilities.


12

PARENT COMPANY INCOME STATEMENT 2010 2009 2009(SEK m) Jan-Mar Jan-Mar Jan-Dec

Turnover, etc.Net sales 21,3 17,5 38,4Work performed by the company for its own use and capitalized 0,2 0,0 4,1Other operating income 1,1 0,0 3,7Total 22,6 17,5 46,2

Operating costsOther external costs -25,4 -20,0 -71,4Personnel costs -22,6 -27,3 -92,7Depreciation and amortization -2,3 -2,7 -10,4Total -50,4 -50,0 -174,5

Operating profit/loss -27,8 -32,5 -128,3

Profit/loss from financial investments 0,3 2,2 -6,7

Profit/loss after financial items -27,5 -30,3 -135,0

Equity holders of the parent -27,5 -30,3 -135,0

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 2010 2009 2009(SEK m) Jan-Mar Jan-Mar Jan-Dec

Net profit/loss -27,5 -30,3 -135,0

Other comprehensive income for the period, net after tax -27,5 -30,3 -135,0

Total comprehensive income for the period -27,5 -30,3 -135,0

Total comprehensive income attributable to:Equity holders of parent -27,5 -30,3 -135,0


13

PARENT COMPANY BALANCE SHEET SUMMARY 2010 2009 2009(SEK m) 31 Mar 31 Mar 31 Dec

AssetsIntangible fixed assets 4.5 0.4 4.6Tangible fixed assets 24.9 33.3 26.9Financial fixed assets 19.0 19.0 19.0Inventories 0.8 0.0 0.6Current receivables 9.2 10.6 9.2Investments in securities, etc 172.7 211.0 130.4Cash and bank balances 8.9 31.1 10.1Total assets 240.0 305.4 201.0

Liabilities and equityEquity 135.4 257.7 153.8Long-term liabilities 3.6 1.9 1.8Current liabilities 100.9 45.839 45.4Total liabilities and equity 240.0 305.4 201.0

Ron LongCEO/Board member

Huddinge, Sweden, 29 April 2010


14

Review report

We have conducted a limited review of the financial statement for Medivir AB (publ) for the period1 January – 31 March 2010. The preparation and presentation of these interim financialstatements pursuant to IAS 34 and the Swedish Annual Accounts Act are the responsibility of theBoard of Directors and Chief Executive Officer. Our responsibility is to report our conclusionsconcerning these interim financial statements on the basis of our limited review.

We have conducted our limited review pursuant to the Standard for Limited Review (SÖG) 2410“Limited review of interim financial information conducted by the company’s appointed auditor” . Alimited review consists of making inquiries, primarily to individuals responsible for financial andaccounting matters, as well as performing analytical procedures and taking other limited reviewmeasures. A limited review has a different focus and significantly less scope than an auditaccording to RS Auditing Standards in Sweden and generally accepted auditing practice. Thereview procedures undertaken in a limited review do not enable us to obtain a level of assurancewhere we would be aware of all important circumstances that would have been identified had anaudit been conducted. Therefore, a conclusion reported on the basis of a limited review does nothave the level of certainty of a conclusion reported on the basis of an audit.

Based on our limited review, no circumstances have come to our attention that would give usreason to believe that the interim financial statements have not been prepared pursuant to IAS 34and the Swedish Annual Accounts Act for the group, and pursuant to the Swedish AnnualAccounts Act for the parent company, in all material respects.

PricewaterhouseCoopers AB

Claes DahlénAuthorized Public Accountant

Stockholm, Sweden, 29 April 2010

interim report, 1 january – 31 march 2010 fileinterim report, medivir ab, 1 january - 31 march2010...

Documents