Karolinska Development AB (publ) - Interim report January - March 2013

STOCKHOLM – May 10, 2013. Karolinska Development AB (publ) announces publication
of its Interim report January-March, 2013. A conference call will be held today
at 14.00 CET. Participant access numbers: SE: +46 (0)8 506 307 79, UK: +44 (0)
1452 555 131, or US: +1 866 682 8490. The full report and a link to the webcast
are available on the company's website.
Torbjörn Bjerke, CEO, comments: “During the first quarter, Karolinska
Development finalized the strategically important deal with Rosetta Capital, in
which a minor part of the portfolio was sold at a premium of 23 percent compared
to our reported valuation. The revaluation of the portfolio companies included
in the deal is also the main reason why the first quarter 2013 is Karolinska
Development’s best quarter so-far, with a positive result after tax at SEK 389m.

The pace of development in our drug projects remains high. Since the beginning
of the year, Pergamum has completed a Phase I/II trial, Dilaforette has
initiated a Phase II trial and Axelar has reported the preliminary results of a
Phase II trial. The latter trial indicated that the drug candidate AXL1717 is
efficacious in 2nd line treatment of patients with lung cancer. Based on these
preliminary results, AXL1717 has the potential to be an important part of future
treatment alternatives and a valuable asset for Karolinska Development. We look
forward to presenting the data to potential partners for further development.

Our reputation as a life science investor and developer of pharmaceutical
projects has facilitated a cooperation agreement with a world-leading research
center: Mayo Clinic of the US. Karolinska Development will have the opportunity
to evaluate and invest in innovations from Mayo Clinic, which increases our
access to pioneering life science research and gives us a broader base of
potential investment opportunities. Pergamum’s strategic agreement with Cadila
Pharmaceuticals Ltd of India on the development of a new infection treatment,
which was announced in February, is another example of our ability to attract
outside partners.

We are working intensely to commercialize our projects. The deal with Rosetta is
one concrete validation of the value we are building in our portfolio companies.
In the next two years, we expect to reach important milestones which will pave
the way for exits in the form of out-licensing or divestments. We have a
professional team to develop our projects in the best way, and through the deal
with Rosetta we have now gained access to additional expertise in the global
pharmaceutical and medical technology industry.

As a result, we were able during the quarter to strengthen all three parts of
Karolinska Development’s business model: we have created a broader base for
selecting medical innovations, we have driven the development of our project
portfolio forward, and we have strengthened our opportunities to commercialize
our projects.”

Summary of significant events during and after the end of the first quarter

  · Pergamum announced the last visit of the last patient in a Phase I/II trial
of a potential new treatment for hard-to-heal wounds
  · The Nomination Committee proposed Bo Jesper Hansen as the new Chairman of
the Board
  · Axelar reported that preliminary results of a Phase II trial indicate that
AXL1717 is efficacious in 2nd line treatment of patients with lung cancer
  · Karolinska Development and Rosetta Capital announced the closing of their
strategic SEK 220m deal
  · Pergamum entered into a strategic collaboration with Cadila Pharmaceuticals
Ltd
  · Karolinska Development started a collaboration with the Mayo Clinic
  · Dilaforette initiated a Phase II trial with sevuparin for the treatment of
severe malaria

Group                                2013     2012       2012
Amounts in SEKm                   Jan-Mar  Jan-Mar  Full-year
Income statement
Revenue                               1.9      2.5        9.9
Profit/loss after tax               389.4    -89.1     -230.2
Balance sheet
Cash and cash equivalents           419.6    171.5      117.0
Short-term investments                0.0    362.2      174.2
Total cash, cash equivalents and    419.6    533.7      291.2
short-term investments (Note 3)
Share information
Earnings per share before and         8.2     -1.7       -4.4
after dilution (SEK)
Net asset value per share (SEK)      44.2     44.1       43.9
(Note 1)
Share price, last trading day in     29.0     24.4       15.3
the reporting period (SEK)
Portfolio information
Investments in portfolio             15.7     78.0      231.6
companies
Of which investments not              3.8      0.0       77.8
affecting cash flow
Valuation of total portfolio      1,652.0  1,581.1    1,827.2
holdings (Note 2)

For further information, please contact:
Torbjörn Bjerke, CEO, Karolinska Development AB
Phone: +46 (0)72 744 41 23, e-mail: torbjorn.bjerke@karolinskadevelopment.com

Robin Wright, CFO, Karolinska Development AB
Phone: +44 7720 300025, e-mail: robin.wright@karolinskadevelopment.com

Benjamin Nordin, IRO, Karolinska Development AB
Phone: +46 (0)73 093 60 80, e-mail: benjamin.nordin@karolinskadevelopment.com

TO THE EDITORS

About Karolinska Development AB
Karolinska Development aims to create value for patients, researchers, and
investors by developing innovations from world class science into products that
can be sold or out-licensed with high returns. The business model is to: SELECT
the most commercially attractive medical innovations; DEVELOP innovations to the
stage where the greatest return on investment can be achieved; and COMMERCIALIZE
the innovations through the sale of companies or out-licensing of products. An
exclusive deal flow agreement with Karolinska Institutet Innovations AB, along
with other cooperation agreements with leading universities, delivers a
continuous flow of innovations. Today, the portfolio consists of 36 projects, of
which 15 are in clinical development. For more information, please visit
www.karolinskadevelopment.com.

Karolinska Development is listed on NASDAQ OMX. Karolinska Development may be
required to disclose the information provided herein pursuant to the Securities
Markets Act.