Biovitrum AB Enters Agreement with Karolinska Development AB to Establish a Jointly Owned Project Company
Karolinska Development will finance the project with a maximum of 10 million SEK up to a defined decision point. Thereafter, the new company will decide upon subsequent handling of the assets. The newly started company will be controlled with 80.1 percent owned by Karolinska Development. Biovitrum becomes minority owner with 19.9 percent ownership. According to the agreement, Biovitrum will receive future royalties on sales of pharmaceuticals developed based on the FLT3 project.
"The agreement means that our interesting low molecule project within leukemia can be further developed while Biovitrum can pursue its strategy to focus of future biopharmaceuticals", said Martin Nicklasson, CEO of Biovitrum. I am convinced that Karolinska Development will create the best of possibilities for the development of this project all the way to a new cancer drug for patients with high unmet medical needs," Nicklasson added.
"Karolinska Development has proved to be very innovative and successful in developing this category of early projects", said Conny Bogentoft, CEO of Karolinska Development. In addition, it is fortunate that this Swedish pharmaceutical invention can be further developed on home ground. The bringing of this agreement to a successful close validates our credibility in the surrounding world", Bogentoft added.
The project is currently in preclinical phase. FLT3 is a so called tyrosine kinas, important for the normal development of blood cells and the immune system. With about one fourth of patients with the most common form of leukemia, acute myeloid leukemia (AML), one finds altered, spontaneously active FLT3. This observation is associated with a reduced survival prognosis. FLT3 is therefore considered as a promising target for pharmaceutical invention in AML. Biovitrum's scientists have developed and patented low molecular compounds that effectively and specifically inhibit the activity of FLT3.
Biovitrum is a Swedish pharmaceutical company. The company markets a range of specialist pharmaceuticals internationally. Using its expertise and experience Biovitrum takes scientific innovation all the way to the market and to specialist indication patients with significant medical need. Research expertise and capabilities are focused on development and production of biotechnology therapeutics within our prioritized areas of hemophilia, inflammation/autoimmune diseases and malabsorption. The company has revenues of approximately SEK 1.1 billion and around 400 employees. It is listed on the OMX Nordic Exchange in Stockholm. For more information go to www.biovitrum.com.
About Karolinska Development
Managing one of the largest portfolios of life science research companies in Europe, Karolinska Development is a Swedish investment company using a unique, highly cost effective model to commercialize internationally renowned life science innovations. Professionals in business development and management, supported by a network of experienced technical specialists, ensure fast and efficient development. This enables Karolinska Development to rapidly build value in high risk opportunities, through long term lead investor position from seed stage; developing the medical products of the future. www.karolinskadevelopment.com.
For more information please contact: Biovitrum Martin Nicklasson CEO of Biovitrum Phone: +46 8 697 25 45
Göran Arvidson CFO Cell phone: +46 70 633 30 42
Erik Kinnman VP Investor Relations Cell phone: +46 73 422 15 40 firstname.lastname@example.org
Karolinska Development Conny Bogentoft CEO of Karolinska Development Cell phone +46 70 668 61 43 email@example.com
Biovitrum AB (publ) may be required to disclose the information provided herein pursuant to the Swedish Securities Markets Act. The information was provided for public release on March 17, 2009 at 15:40 a.m. CET.
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