STOCKHOLM - 16 August 2018. Karolinska Development AB (Nasdaq Stockholm: KDEV) today publishes its Interim Report for the period January - June 2018. The full report is available on the Company's website.
"We are proud to report a profitable second quarter that is the result of the healthy development by our portfolio companies, paving the way for, amongst other things, the investment in Modus Therapeutics by an international renowned life science investor. We can now look forward to a very exciting latter half of the year in which several of the portfolio companies are expected to present important results from phase II studies, including Modus Therapeutics, Dilafor and Umecrine Cognition", says Viktor Drvota, CEO, Karolinska Development.
Significant events during the second quarter 2018
- Asarina Pharma announced the start of a clinical Phase IIB study with the drug candidate Sepranolone. The study will be conducted in patients with premenstrual dysphoric disorder, the severest form of premenstrual syndrome (April 2018).
- Karolinska Development followed up the partial exit in BioArctic, conducted during the fourth quarter of 2017, and divested the remaining holdings to a total amount of SEK 12.0 million (April 2018).
- Aprea Therapeutics presented initial positive results at the 2018 American Association of Cancer Research Annual Meeting in Chicago from its ongoing Phase Ib/II clinical study of APR-246 in patients with myelodysplastic syndrome (April 2018).
- Modus Therapeutics candidate drug sevuparin has been granted rare pediatric disease designation by the US Food & Drug Administration (FDA) for the treatment of children with sickle cell disease (April 2018).
- Pharmanest announced the appointment of Helena Jansson as new Chief Executive Officer. She replaces Gunilla Lundmark, who left her position after seven years (May 2018).
- Pharmanest entered into an exclusive agreement with Acerus Pharmaceuticals Corporation pertaining to the commercialization of Pharmanest's gynecological pain relief product SHACT (Short Acting Lidocaine product) in Canada (May 2018).
- Aprea Therapeutics presented continued positive development for the candidate drug APR-246 in patients with myelodysplastic syndrome at the 2018 European Hematology Association (EHA) Annual Meeting in Stockholm (June 2018).
Significant post-period events
- Karolinska Development announces that HealthCap with an investment of SEK 60 million becomes a new shareholder of Modus Therapeutics under a conditional agreement, with closing after the end of the second quarter. At the same time, convertible notes held by current shareholders will also be converted into shares. The new investment together with the conversion, amount to a total of just above SEK 140 million. The transaction will increase the book value of Karolinska Development's holding in Modus Therapeutics already in the second quarter.
Financial update
Second quarter
- The net profit/loss for the second quarter was SEK 31.3 million (SEK -21.3 million in the second quarter of 2017). Earnings per share totalled SEK 0.5 (SEK -0.3 in the second quarter of 2017).
- The result of the Change in fair value of shares in portfolio companies amounted to SEK 26.0 million. The increase was primarily due to the value development of Modus Therapeutics.
- The total fair value of the portfolio was SEK 831.6 million at the end of June 2018, an increase of SEK 103.0 million from SEK 728.6 million at the end of the previous quarter. The net portfolio fair value was at the same time SEK 524.7 million, an increase of SEK 68.1 million from SEK 456.4 at the end of the previous quarter.
- Net sales totalled SEK 0.8 million during the second quarter of 2018 (SEK 0.6 million during the second quarter of 2017).
- Karolinska Development invested a total of SEK 54.2 million in portfolio companies during the second quarter. Second quarter investments in the portfolio companies by Karolinska Development and other specialised life sciences investors totalled SEK 123.4 million.
- Cash and cash equivalents decreased by SEK 49.2 million during the second quarter, totalling SEK 96.5 million on 30 June 2018.
The Interim Report for Karolinska Development AB for the period January-June 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 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 08:00 am CET on 16 August 2018.
