Jim Van heusden, CEO, comments: ““I am very pleased with the progress that Karolinska Development has made in the first quarter of 2016 based on the foundation established in 2015. As a Nordic investment company, our strategy is to build on this foundation and create value for patients and shareholders through two key areas: our existing portfolio and new investments. We also anticipate that certain of our current earn-out agreements may deliver additional future value to our shareholders.
“Already in 2016 we have seen some exciting progress with our portfolio, a key highlight being Aprea’s SEK 437 million financing, 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. This financing involved a syndicate of leading international life sciences investors highlighting the global potential and value of the innovation that exists within our portfolio and originating from Karolinska Institutet.
“In terms of new investments, we are looking more broadly across the Nordic region to identify new opportunities, including more mature opportunities, where value can be generated and returns may be realized much more quickly.
“Karolinska Development has a portfolio of exciting prospects that are funded to deliver key value-generating milestones over the coming years, and an investment strategy designed to deliver further 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 first quarter 2016
- Karolinska Development has made good progress during 2016 building on the foundation established in 2015 and is now well positioned to create future value through its focused portfolio and through new investments.
- Aprea AB raised SEK 437 million in a Series B financing round from a syndicate of specialist international life science investors. This was the largest ever completed by a Karolinska Development portfolio company and by any private life science company in Sweden in over a decade (March 2016).
- Dilaforette AB signed an agreement with Arabian Gulf University (AGU) to support the Phase II proof of concept study with sevuparin in sickle cell disease patients. AGU will provide up to USD 1.2 million in non-dilutive funding and is assisting with patient recruitment (February 2016).
- OssDsign received CE mark approval for Cranioplug, an innovative device for cranial fixation (January 2016).
- Promimic announced that its strategic partner Sistema de Implante Nacional had initiated the launch of the first dental implant coated with HAnano Surface (January 2016).
- Promimic and Danco Anodizing signed a license agreement where Danco will invest in a production line for the HAnano Surface process. Danco will be the preferred process partner for Promimic for the USA and China medical implant market (March 2016).
- Umecrine Cognition AB completed a private financing round to support the clinical development of GR3027 for hepatic encephalopathy in liver disease patients (January 2016).
- Akinion Pharmaceutical AB halted development of AKN-028, which was being evaluated in a Phase I/II clinical study for acute myeloid leukemia (AML), due to a number of patients experiencing severe liver toxicity (March 2016).
Significant events after the first quarter
- OssDsign AB appointed Simon Cartmell as Chairman to the Board of Directors (April 2016).
Financial summary
- As a consequence of Akinion’s decision to stop further development of its lead product candidate AKN-028, the Total Fair Value of the company has been reduced from SEK 119.4 million to SEK 0.0 million in line with Karolinska Development’s valuation guidelines. With this reduction, the Total Fair Value of the portfolio end of March was SEK 476.8 million. Net Fair Value of the portfolio at the end of March 2016 was SEK 193.0 million, a decrease of SEK 75.0 million compared to the end of 2015 whereof SEK 78.0 million is related to Akinion, a KDev Investments portfolio company.
- Net sales amounted to SEK 0.6 million in the first quarter (SEK 1.0 million in the first quarter 2015). Net loss amounted to SEK -100.0 million (SEK -250.9 million). Earnings per share amounted to SEK -1.9 (SEK -4.7).
- KDev Investments sold 33,677 shares in Inhalation Sciences Sweden AB to a syndicate of Swedish investors led by Stockholms Affärsänglar for SEK 1.0 million.
- Karolinska Development’s investments in portfolio companies during the first quarter amounted to SEK 7.6 million. Total investments in portfolio companies by other specialized life science investors during first quarter amounted to SEK 380.7 million.
- Cash, cash equivalents and short term liquidity investments decreased by SEK 9.8 million during the first quarter and amounted to SEK 287.6 million as of March 31, 2016.
- Operational costs in the first quarter amounted to SEK 8.4 million, a reduction of 41% compared to SEK 14.2 million in first quarter 2015 as a consequence of the organizational restructuring undertaken during 2015.
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/mirvu4zh
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 (Nasdaq Stockholm: KDEV) is a Nordic life sciences investment company. The company focuses 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 to its shareholders.
Karolinska Development has access to world-class medical innovations at leading universities and research institutes in the Nordic region, including the Karolinska Institutet. The Company aims to build companies around innovative products and technologies, supported by experienced management teams and advisers, and co-funded by specialist international life science investors, to provide the greatest chance of success.
Karolinska Development’s portfolio comprises 11 companies focusing on the development of innovative treatment for life-threatening or serious debilitating diseases.
The Company is led by a team of investment professionals with strong investment backgrounds, experienced company builders and entrepreneurs, with access to a strong global network. For more information, please visit www.karolinskadevelopment.com
This constitutes information that Karolinska Development AB (publ) (Nasdaq Stockholm: KDEV) is legally obliged to publish under the Securities Market Act and/or the Financial Instruments Trading Act.
