Karolinska Development AB: Interim Report – January-June 2017

STOCKHOLM - August 29, 2017. Karolinska Development AB (Nasdaq Stockholm: KDEV) today publishes its Interim Report for the period January - June 2017. The Company will host a conference call and webcast on August 30 at 2 pm CEST - details below. The full report is available on the Company's website.

Viktor Drvota, CEO, comments: ""I am very pleased to present my first set of interim results as CEO of Karolinska Development. With our portfolio companies progressing according to their development plans, we are working closely with the management teams to ensure they are well prepared and well positioned to capture the value that we anticipate being created from a series of important commercial and clinical milestones in the next 12-18 months. These events also present multiple opportunities for Karolinska Development to crystallize value and generate return on investment for our investors."

Significant events during the second quarter 2017

  • Karolinska Development announced the results of the set-off issue (April 2017) aimed at strengthening the Company's equity position and improving the Company's overall financial risk profile. The offered subscription price for the set-off issue was SEK 6.17 per new B share and convertible holders accepted to offset SEK 67 million of the convertible debt. As a result, 10,871,698 new B shares were issued.
  • The Company announced leadership changes with Viktor Drvota being promoted to CEO, replacing Jim Van heusden, who decided to step down (April 2017). At the same time, Chairman Bo Jesper Hansen also decided to step down, and board member Niclas Adler was elected as new chairman at the General Meeting in May 2017.
  • Further changes were made to the Karolinska Development board of directors at the General Meeting, with Hans-Olov Olsson, Anders Härfstrand and Magnus Persson elected as directors bringing significant board, executive and investment experience from the biopharmaceutical and other global industries.
  • Umecrine Cognition presented promising results from its Phase I study with GR3027 at the EASL International Liver Congress 2017 (April 2017).
  • Modus Therapeutics announces appointment of Ellen K. Donnelly, Ph.D. as CEO (April 2017).

Significant events after the second quarter 2017

  • Aprea Therapeutics announced the first patient enrolled in Phase Ib/II clinical study of APR-246 for the treatment of platinum-resistant high-grade serous ovarian cancer (HGSOC) (August 2017).
  • Xspray Pharma announced a planned listing on Nasdaq First North. Karolinska Development and KCIF Co-Investment Fund KB is eligible to receive shares in Xspray Pharma should the listing and shar issue complete successfully. Karolinska Development is eligible to receive 462,115 shares and to receive a further 29,691 shares base on its participation in KCIF (August 2017).
  • Karolinska Development announced that it has appointed Fredrik Järrsten as Chief Financial Officer. Mr Järrsten, will join the Company towards the end of 2017. Mr Järrsten will replace Christian Tange who, after 4 years with Karolinska Development, has decided to pursue other opportunities. Mr Tange will remain with the Company until after Mr Järrsten's arrival to ensure a smooth and orderly hand over period (August 2017).

Financial summary

  • The Total Portfolio Fair Value of Karolinska Development's portfolio at the end of June 2017 was SEK 445.0 million, an increase from the Total Portfolio Fair Value of SEK 431.7 million at the end of March 2017. Net Portfolio Fair Value at the end of June 2017 was SEK 180.9 million, an increase of SEK 8.3 million compared to the end of March 2017.
  • The Result of Change in Portfolio Fair Value amounted to SEK -3.5 million. The decrease was mainly driven by increased potential distribution to Rosetta Capital due to the investment in Modus Therapeutics.
  • Revenue amounted to SEK 0.6 million in the second quarter (SEK 0.6 million in the second quarter 2016). Net loss amounted to SEK 11.4 million (loss of SEK 64.9 million in second quarter 2016). Earnings per share amounted to SEK -0.34 (SEK -1.43 in second quarter 2016).
  • Karolinska Development's investments in portfolio companies during the second quarter amounted to SEK 11.9 million. Total investments in the portfolio companies by other specialized life science investors during second quarter amounted to SEK 9.6 million.
  • Cash, cash equivalents and short term liquidity investments decreased by SEK 22.2 million during the second quarter and amounted to SEK 189.1 million as of June 30, 2017.
  • Equity in the Parent Company amounted to SEK 41.2 million at the end of June 2017.

Conference Call and Webcast

The Company will host a conference call on August 30, 2017 at 2 pm CEST. Please dial in at one of the following numbers a few minutes before the start of the conference call:

From Sweden: +46 (0) 8 505 564 74
From the US: +1 855 753 22 30
From the UK: +44 (0) 20 336 453 74

The presentation will also be webcast and can be accessed from the following web address:

Host: Viktor Drvota, CEO.

For further information, please contact:

Viktor Drvota, CEO, Karolinska Development AB
Phone: +46 73 982 52 02, e-mail: viktor.drvota@karolinskadevelopment.com

Christian Tange, CFO, Karolinska Development AB
Phone: +46 73 712 14 30, e-mail: christian.tange@karolinskadevelopment.com

David Dible/Mark Swallow/Pip Batty, Citigate Dewe Rogerson
Phone: +44 20 7638 9571; e-mail: KDev@citigatedr.co.uk

About Karolinska Development AB
Karolinska Development AB (Nasdaq Stockholm: KDEV) is a Nordic life sciences investment company. The company focuses on identifying breakthrough medical innovations in the Nordic region that are developed by entrepreneurs and leadership teams. The Company invests in the creation and growth of companies that advance these assets into commercial products that are designed to make a difference to patients' lives while providing an attractive return on investment to shareholders.

Karolinska Development has access to world-class medical innovations at the Karolinska Institutet and other leading universities and research institutes in the Nordic region. The Company aims to build companies around scientists who are leaders in their fields, supported by experienced management teams and advisers, and co-funded by specialist international investors, to provide the greatest chance of success.

Karolinska Development has established a portfolio of nine companies targeting opportunities in innovative treatment for life-threatening or serious debilitating diseases.

The Company is led by an entrepreneurial team of investment professionals with a proven track record as company builders and with access to a strong global network.

For more information, please visit www.karolinskadevelopment.com

This information is information that Karolinska Development AB (publ) (Nasdaq Stockholm: KDEV) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of Viktor Drvota, at 6 pm CEST on August 29, 2017



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