STOCKHOLM - November 23, 2016. Karolinska Development AB (Nasdaq Stockholm: KDEV) today publishes its Interim Report for the period January - September 2016. The Company will host a conference call and webcast today at 14:00 CET - details below. The full report is available on the Company’s website.
Jim Van heusden, CEO, comments: “During the third quarter 2016, Karolinska Development saw several of its portfolio companies secure new funds to finance the progression of their businesses toward defined value-creating milestones. Karolinska Development participated in these fundraising events directly and indirectly via KDev Investments, and was pleased to see experienced new investors leading and participating in the investor syndicates. The majority of companies in Karolinska Development’s portfolio are now funded to deliver key value-generating milestones over the coming years, with additional value potential retained in divested companies.
“A key highlight so far in 2016 has been Aprea’s SEK 437 million financing in March, the largest ever completed by a Karolinska Development portfolio company and more broadly by any private life science company in Sweden in more than a decade. Dilaforette and Promimic also secured non-dilutive financing through new partnerships. More recently, Dilafor raised SEK 51 million with new investors including Lee’s Healthcare Industry Fund and Pila AB.
“We are also encouraged by the progress made by our portfolio companies in advancing their development pipelines, and presenting and publishing their latest results.
“Additionally, we have attracted entrepreneurial leaders to the boards and senior management team of our companies: in October, Promimic strengthened its board through the elections of Tord Lendau as Chairman of the Board of Directors; and Håkan Krook and Patrik Sjöstrand as Non-executive Directors. In July, Umecrine Cognition announced the appointment of Dr. Bruce Scharschmidt as a new member of its Board of Directors and Senior Development Adviser. Aprea Therapeutics announced the appointment of Christian S. Schade as President and Chief Executive Officer (June 2016); and Simon Cartmell as Chairman of the Board of OssDsign (April 2016).
“Karolinska Development’s investment strategy is designed to deliver value from the most promising life science opportunities across the Nordic region. I look forward to providing further updates as we execute on our strategy.”
Significant events during the third quarter 2016
Karolinska Development continued to see good progress during the third quarter through its portfolio companies making important announcements in relation to financing, advances with their product pipelines, and the strengthening of their board and management teams. Most of the companies in the portfolio are now funded to deliver key value-generating milestones over the coming years.
• Dilafor AB raised SEK 51 million from new and existing investors to facilitate a Phase IIb dose finding trial with its lead candidate tafoxiparin to evaluate its ability to decrease the incidence of protracted labor in women. The trial is planned to start before the year end 2016. (September 2016).
• Promimic AB secured SEK 23.8 million from new and existing investors to finance the establishment of US operations to drive the commercialization of its novel HAnano Surface coating technology for medical and dental implants (September 2016).
• BioArctic AB entered into a strategic collaboration with AbbVie, a global biopharmaceutical company, to develop and commercialize BioArctic’s portfolio of antibodies directed against alpha-synuclein for the treatment of Parkinson’s disease and other potential indications. (September 2016).
• OssDsign AB presented preliminary data at European Congress of Neurosurgery 2016 from a retrospective study of patients undergoing cranioplasty using its OSSDSIGN Cranial implants, the results of which indicate that this novel implant may provide a better, more permanent solution for cranioplasty, even in a complex patient population (September 2016).
• KDev Investments divested its entire shareholding in Clanotech AB to Rosetta Capital. Karolinska Development retains an economic interest in Clanotech through an earn-out agreement, the proceeds of which will be retained entirely by Karolinska Development (July 2016).
Significant events after the third quarter
• Aprea Therapeutics AB first patient treated in Phase II trial of APR-246 in high-grade serous ovarian cancer (October 2016)
• Aprea Therapeutics AB presented clinical data from ongoing Phase I/II study of APR-246 at ESMO (October 2016)
• Promimic and Danco completed the set up and validation phase of the US production facility for HAnano Surface coating technology (October 2016)
• In Promimic AB Tord Lendau was elected as Chairman of the Board of Directors, and Håkan Krook and Patrik Sjöstrand as Non-executive Directors (October 2016)
• Dilaforette announced it has changed its name to Modus Therapeutics and its intention to conduct an initial public offering (October 2016)
• Modus Therapeutics announced an extension to its ongoing Phase II clinical study to include patients aged 12-18; and to increase sample size of the study from 45 to around 150 patient (November 2016)
• Umecrine Cognition announces positive Phase 1 data with GR3027 in hepatic encephalopathy and raised SEK 45 million in a private financing round (November 2016)
• Trinity Delta, a UK based equity research firm, has initiated coverage of Karolinska Development and issued its first report on the Company (November 2016)
Financial summary
• The Total Fair Value of Karolinska Development’s portfolio at the end of September 2016 was SEK 410.5 million, an increase from the Total Fair Value of SEK 401.2 million at the end of June 2016. Net Fair Value of the portfolio at the end of September 2016 was SEK 150.9 million, an increase of SEK 7.3 million compared to the end of June 2016. The increase was mainly due to investments during the period.
• Net sales amounted to SEK 0.4 million in the third quarter (SEK 0.3 million in the third quarter 2015). Net loss amounted to SEK 17.7 million (SEK 27.5 million). Earnings per share amounted to SEK -0.3 (SEK -0.5). • Karolinska Development’s investments in portfolio companies during the third quarter amounted to SEK 6.9 million. Total investments in portfolio companies by other specialized life science investors during third quarter amounted to SEK 52.8 million.
• Cash, cash equivalents and short term liquidity investments decreased by SEK 12.1 million during the third quarter and amounted to SEK 256.3 million as of September 30, 2016.
• Operational costs in the third quarter amounted to SEK 7.6 million.
Conference Call and Webcast
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: http://edge.media-server.com/m/p/6ut8gkp9
Host: Jim Van heusden, CEO.
For further information, please contact:
Jim Van heusden, CEO, Karolinska Development AB
Phone: +46 72 858 32 09, e-mail: jim.van.heusden@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
TO THE EDITORS
About Karolinska Development AB
Karolinska Development AB is an investment company focused on identifying medical innovation and investing in the creation and growth of companies developing these assets into differentiated products that will make a difference to patients’ lives and provide an attractive return on investment.
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 10 companies targeting opportunities in innovative treatment for life-threatening or serious debilitating diseases.
The Company is led by a team including investment professionals with strong venture capital backgrounds, experienced company builders and entrepreneurs, with access to a strong global network.
For more information, please visit www.karolinskadevelopment.com
