Karolinska Development: Interim report for January

STOCKHOLM, sweden – 16 may 2017. Karolinska Development AB (Nasdaq Stockholm: KDEV) will publish today its interim report for January -march 2017. The company will hold a teleconference and web presentation, 17 may at 14: 00 CEST – see further information below. The full report is available on the company’s website.

Jim Van heusden, CEO, commented: “

“I am very proud of what we achieved at Karolinska Development the last two years and I am confident that the Company now is in a much stronger position to deliver value as a nordic investment company in the field of life science. Given these advances, I believe that now is the right time for Viktor Drvota to take over as CEO. With the recently completed kvittningsemissionen, Karolinska Developments, the equity has been strengthened and the overall financial risk profile has improved. We have also seen our pharmaceutical companies to make significant commercial progress during the first quarter, especially in the united states. Together with the Company’s portfolio of exciting pharmaceutical company who are set to deliver a number of value-added milestones in the next 12-18 months, is Karolinska Development ready to deliver significant value for its shareholders.”

Highlights during the first quarter of 2017

Karolinska Development completed a set-off issue of shares, which was agreed by the board of directors and then approved at an extraordinary general meeting on 8 march 2017. The purpose was a necessary reinforcement of the Company’s own capital to improve the Company’s overall risk profile. The proposed subscription price in the kvittningsemissionen was SEC of 6.17 per new B-share and the maximum proceeds from the issue amounted to $ 451 million. The bondholder accepted a set-off of $ 67 million of the company’s konvertibelskuld and as a result have 10 871 698 new B-shares issued (march 2017).

Karolinska Development Chief Investment Officer Viktor Drvota was promoted to vice PRESIDENT (march 2017).
Dilafor initiated a phase IIb study with tafoxiparin for women who have protracted labor (January 2017).
OssDsign received 510(k) FDA approval to market OSSDSIGN® Cranial PSI in the united states and preparing to launch the product (January 2017). The company entered into an agreement with Matador Medical Inc regarding the distribution of OSSDSIGN® Cranial PSI in the united states. (February 2017).
OssDsign entered into new partnership agreements in Italy, Spain, Switzerland, Austria and the Netherlands for the commercialization of its medical implants, for cephalic and ansiktsrekonstruktion. The new agreements can be added to the existing partnerships in the Uk, the Nordic countries and a number of markets outside Europe (January 2017).
Promimic appointed Magnus Larsson CEO after Ulf Brogren, who moved to the united states to lead Promimic Inc., the company’s new sales organization in north America (January 2017).
KDev Investments (an investment fund co-owned by Karolinska Development and Rosetta Capital) sold the entire shareholding in Inhalation Sciences Sweden AB (ISS) to the Swedish investment company Rasunda Management AB and two other buyers. Karolinska Development retains an economic interest in the ISS through an agreement on the additional purchase price (February 2017).
Oncopeptides AB carried out a successful initial public offering (“IPO”) on Nasdaq Stockholm. Karolinska Development has an agreement on the five per cent additional purchase price in the industrial development fund in respect of Oncopeptides. The additional purchase price has a market value of $ 26.7 million, based on the Oncopeptides total market value of the listing on 22 February 2017, and is obtained when the industrial development fund divests its holdings in Oncopeptides.
Umecrine Cognition announced that the first patient recruited for their phase Ib/IIa study with GR3027 for hepatic encephalopathy (march 2017).

Significant events after the balance sheet date

Karolinska Development announced the results of the kvittningsemissionen (april 2017).
The company announced that the chairman of the board, Bo Jesper Hansen and PRESIDENT Jim Van heusden decided to resign and to Viktor Drvota is promoted to the new CEO (april 2017).
The company’s nomination committee has proposed that Niclas Adler is elected as the new chairman at the annual general meeting in may 2017 (april 2017).
Umecrine Cognition presented results from its phase Ia study at the EASL International Liver Congress in 2017 (april 2017).
Modus Therapeutics announced that Ellen K. Donelly, Ph.D appointed to the PRESIDENT (april 2017).

Financial summary

The portfolio’s total fair value amounted to $ 431,7 million at the end of march 2017, an increase from $ 405,2 million at the end of december 2016. The net fair value of the portfolio was $ 172,6 million at the end of march 2017, an increase of SEK 23.2 million compared with the end of december 2016.
The result of the change in the portfolio’s fair value amounted to SEK -5,7 million. The decrease was mainly due to a reduction of the fair value of Lipidor after the latest financing round in march 2017, of which Karolinska Development has not attended.
The turnover amounted to $ 0.6 million in the first quarter ($ 0.6 million in the first quarter of 2016). The net loss amounted to SEK 25.2 million (loss of $ 100,1 million in the first quarter of 2016). Earnings per share were SEK -0,5 (SEK-1.9 during the first quarter of 2016).
Karolinska Development’s investments in portfolio companies during the first quarter amounted to SEK 28.9 million. The total investment in portfolio companies, carried out by other specialized life science investors in the first quarter amounted to $ 53,1 million.
Cash and cash equivalents decreased by $ 36.8 million in the first quarter and amounted to $ 211,3 million as of march 31, 2017.
After kvittningsemissionen of B-shares equity in the parent company at the end of march 2017, to $ 46.5 million.

Teleconference and web presentation

The company is holding a teleconference and web presentation, 17 may at 14: 00 CEST. Please call on any of the following numbers a few minutes before telefonkonferensens start:

From Sweden: +46 (0) 8 505 564 74
From the USA: +1 855 753 22 30
From The Uk: +44 (0) 20 336 453 74

Webbpresentationen can simultaneously be accessed from:

http://edge.media-server.com/m/p/5uihaf3q

Presenter: Jim Van heusden, PRESIDENT.

For further information, please contact:

Jim Van heusden, CEO, Karolinska Development AB

Tel: +46 72 858 32 09, e-mail: jim.van.heusden@karolinskadevelopment.com

Christian Tange, cfo, Karolinska Development AB

Tel: +46 73 712 14 30, e-mail: christian.tange@karolinskadevelopment.com

David Dible/Mark Swallow/Pip Batty, Citigate Dewe Rogerson

Tel: +44 20 7638 9571; e-mail: KDev@citigatedr.co.uk

TO THE EDITORS

About Karolinska Development AB

Karolinska Development AB is an investment company that focuses on identifying medical innovations, and invest in the creation and growth of companies that develop their assets to the new products that make a difference in patients ‘ lives and provides an attractive return on invested capital.

Karolinska Development has access to medical research in the world from Karolinska Institutet and other leading universities and research institutions in the Nordic countries. The company’s goal is to build new companies around the leading researchers in the respective field of science with support from the experienced management teams and advisers, through the financing together with international investors specialized in the sector to provide the greatest opportunity for success.

Karolinska Development portfolio consists of nine companies focused on innovative treatments for life threatening and debilitating diseases.

The company is managed by a team of investment professionals with extensive experience in venture capital, experienced business builders and entrepreneurs, with access to a strong global network.

For more information: www.karolinskadevelopment.com

This information is such information that Karolinska Development AB (publ) (Nasdaq Stockholm: KDEV) is obliged to publish under the EU marknadsmissbruksförordning. The information was submitted by Jim Van heusden for publication on may 16, 2017 at 18:00.

KD Q1 2017 (SWE)