Operations

Medivir is now a complete pharmaceutical company, which complements successful pharmaceutical development in infectious diseases with a Nordic market presence,
and its current business generates some sek 500 m of annual sales.

After the acquisition of BioPhausia, Medivir is organized into two business areas, Pharmaceuticals and Parallel Import. The pharmaceuticals business area includes the
group’s research and development portfolio, the inhouse developed cold sore pharmaceutical Xerclear^® and the original pharmaceuticals owned by BioPhausia, the
most well known being Citodon, Mollipect, Laxabon and Suscard. Since Medivir’s acquisition of BioPhausia, sales of original pharmaceuticals continued their stable
progress, with an unchanged, positive EBITDA margin.

The Parallel Import business area, Cross Pharma, imports, packages and sells original pharmaceuticals on the Swedish market. To exploit new business opportunities,
which are expected to have a positive impact in 2012, Cross Pharma increased its employee headcount. This means that fixed costs increased in the final quarter of the year, thus having a negative effect on operating margin. Through its preparations in the fourth quarter, Cross Pharma should be able to re-attain its historically good earnings levels.

Over the years, Medivir has entered a number of successful partnerships with other pharmaceutical companies on the development of new experimental drugs. Medivir currently possesses the competence to take projects from preclinical research to clinical development and market launch in-house.