STOCKHOLM - 13 November 2018. Karolinska Development AB (Nasdaq Stockholm: KDEV) today publishes its Interim Report for the period January - September 2018. The full report is available on the Company's website.
"We are in an intensive phase of Karolinska Development's development, where a number of portfolio companies are expected to communicate results from important clinical trials in a relatively short period of time. First off the mark was Dilafor, and the results were unfortunately not those for which we had hoped. Phase 2 results from Modus Therapeutics, Aprea Therapeutics and Umecrine Cognition are now in the pipeline and all three of these companies expect to present their results over the next nine months. We also note that Karolinska Development in the third quarter once again was able to return a positive financial result", says Viktor Drvota, CEO, Karolinska Development.
Significant events during the third quarter 2018
- HealthCap invested SEK 60 million in Modus Therapeutics, making it one of the company's biggest shareholders. The investment coincided with the conversion of convertible notes held by current shareholders. The new investment, together with the conversion, totalled just over SEK 140 million and the transaction resulted in the book value of Karolinska Development's holding in Modus Therapeutics increasing as early as the second quarter of 2018 (July 2018).
- Forendo Pharma initiated a clinical phase I trial of its candidate drug, FOR 6219, for the treatment of endometriosis. The data are expected at the end of 2018 (July 2018).
- The venture capital company, Vesalius Biocapital III Partners, which specialises in investing in later stage European life science companies, invested EUR 4 million in the portfolio company, Forendo Pharma. Stéphane Verdood, Managing Partner from Vesalius, joined Forendo Pharma's Board of Directors (September 2018).
- Asarina Pharma conducted an oversubscribed new share issue and was successfully listed on the NASDAQ First North exchange in Stockholm. Karolinska Development's holding in the company totals 1.2% (September 2018).
Significant post-period events
- OssDsign announced that its latest product Cranioplug has received 510(k) clearance by the FDA, which allows marketing and sales of the product in US. The implant is the first product of its kind in the US market (October 2018).
- In October 2018 it was announced that Dilafor's phase 2b study of the candidate drug, tafoxiparin, failed to achieve its primary goals. Tafoxiparin was well tolerated amongst both women and children, but no statistically significant efficacy was observed in any of the dose levels studied. Karolinska Development will revalue Dilafor's book value, which is expected to negatively impact the result by approx. SEK 40 million for the fourth quarter of 2018 (October 2018).
- Modus Therapeutics announced that the U.S Food & Drug Administration (FDA) has approved the company's Investigational New Drug (IND) application to initiate a Phase I clinical trial with subcutaneous sevuparin for the treatment of sickle cell disease (November 2018).
Financial update
Third quarter
- The net profit/loss for the third quarter was SEK 4.1 million (SEK 194.1 million in the third quarter of 2017). Earnings per share totalled SEK 0.1 (SEK 3.0 in the third quarter of 2017).
- The result of the Change in fair value of shares in portfolio companies amounted to SEK 1.0 million.
- The total fair value of the portfolio was SEK 848.7 million at the end of September 2018, an increase of SEK 17.1 million from SEK 831.6 million at the end of the previous quarter. The net portfolio fair value was at the same time SEK 539.1 million, an increase of SEK 14.4 million from SEK 524.7 at the end of the previous quarter.
- Net sales totalled SEK 0.7 million during the third quarter of 2018 (SEK 0.5 million during the third quarter of 2017).
- Karolinska Development invested a total of SEK 13.5 million in portfolio companies during the third quarter. Third quarter investments in the portfolio companies by Karolinska Development and other specialised life sciences investors totalled SEK 78.8 million.
- Cash and cash equivalents decreased by SEK 8.5 million during the third quarter, totalling SEK 88.0 million on 30 September 2018.
The Interim Report for Karolinska Development AB for the period January-September 2018 is available as a PDF at www.karolinskadevelopment.com.
For further information, please contact:
Viktor Drvota, CEO, Karolinska Development AB
Phone: +46 73 982 52 02, e-mail: viktor.drvota@karolinskadevelopment.com
Fredrik Järrsten, CFO, Karolinska Development AB
Phone: +46 70 496 46 28, e-mail: fredrik.jarrsten@karolinskadevelopment.com
TO THE EDITORS
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 and 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 ten 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 08:00 am CET on 13 November 2018.
