STOCKHOLM - October 31, 2017. Karolinska Development AB (Nasdaq Stockholm: KDEV) today publishes its Interim Report for January - September 2017. This is the first time since 2014, when Karolinska Development implemented its new strategy, that the company reports a positive quarterly result. The company will host a conference call and an online presentation on October 31, at 2 pm CET - details below. The full report is available on the Company's website.

"It is gratifying that Karolinska Development is starting to see the effects of the strategy shift implemented in 2014. We have posted a positive quarterly result and our portfolio companies are well-positioned to exploit the phase II results that are expected to become available in 2018. The past quarter has seen the value of Karolinska Development's portfolio increase by SEK 229 million, primarily due to the positive results of Umecrine Cognition's phase Ib study and the stock market listing of Xspray Pharma", says Viktor Drvota, CEO, Karolinska Development.

Third Quarter Highlights 2017

  • Karolinska Development posted a positive quarterly result for the first time since the company's strategy shift in 2014.
  • Karolinska Development reports an increase in the value of its holdings in Umecrine Cognition as a result of the company's positive phase Ib-data (October 2017).
  • Umecrine Cognition presented positive phase Ib data for its GR3027 candidate drug, which is being developed for the treatment of hepatic encephalopathy (September 2017).
  • BioArctic announced that it intends to float the company's class B shares on the NASDAQ First North Stockholm exchange (September 2017).
  • Xspray Pharma AB was listed on the NASDAQ First North exchange in Stockholm. When Karolinska Development sold its Xspray holding to new owners in September 2015, an earn-out agreement ensured that it would, in conjunction with a stock market listing, be entitled to receive a holding of 3.74% of the number of shares after the flotation. Based on the share price on 30 September 2017, the value of these shares and the shares owned indirectly via KCIF Co-Investment Fund KB corresponds to SEK 16.2 million, and the value of Karolinska Development's portfolio holdings has, therefore, increased by an equivalent amount (September 2017). 
  • Aprea Therapeutics enrolled the first patient in a phase Ib/II study of the APR-246 candidate drug for patients with platinum-resistant, high-grade serous ovarian cancer (HGSOC) (August 2017).
  • Karolinska Development appointed Fredrik Järrsten to the position of CFO. Fredrik Järrsten will take up his new position in late 2017, succeeding Christian Tange who, after four years at Karolinska Development, is leaving the company to pursue other opportunities. Tange will, however, remain with the company for a period of time after Järrsten takes over as CFO, in order to ensure an orderly handover (August 2017). 

Significant events after the end of Q3 2017

  • Aprea Therapeutics received the last tranche of SEK 188 million in a financing round of totally SEK 437 million from 2016. Aprea also announced the enrollment of the first patient in a phase Ib/II study in esophageal cancer (October 2017).
  • Umecrine Cognition announced that it had secured SEK 20 million in financing for an exploratory, phase IIa study of the company's candidate drug, GR3027, in an additional therapeutic indication area, namely idiopathic hypersomnia (October 2017).
  • BioArctic was listed on the NASDAQ First North exchange. Karolinska Development's holding are valued at SEK 48 million, based on the offering price on 12 October, corresponding to a sum that is 80 times the investment (October 2017).

  • Karolinska Development and KCIF Co-Investment Fund KB announced the divestment of their holdings in Xspray Pharma AB. The transaction generated SEK 13.3 million to Karolinska Development (October 2017).

Financial update

  • Karolinska Development posted a positive quarterly result for the first time since the company's strategy shift in 2014. The net profit totalled SEK 194.1 million (net loss of SEK 17.9 million in Q3 2016), and the earnings per share were SEK 3.0 (SEK -0.3 in Q3 2016).
  • The result of change in portfolio fair value amounted to SEK 212.2 million. The increase was primarily due to the increase in the valuation of the Umecrine Cognition holding due to the positive results from the phase Ib study presented during the quarter, and to the flotation of Xspray Pharma.
  • The total fair value of the portfolio was SEK 674.0 million at the end of September 2017, an increase from SEK 445.0 million at the end of June 2017.
  • Net sales totalled SEK 0.5 million during the third quarter 2017 (SEK 0.4 million in Q3 2016). 
  • Karolinska Development invested a total of SEK 17.1 million in its portfolio companies during the third quarter. Third quarter investments in the portfolio companies by Karolinska Development and other specialised life sciences investors totalled SEK 21.4 million. 
  • Cash and cash equivalents decreased by SEK 23.7 million during the third quarter, totalling SEK 165.4 million on 30 September 2017.
  • The Parent Company's equity at the end of September 2017 was SEK 235.1 million.

Conference Call and Webbcast

The Company will host a conference call on October 31, 2017 at 2 pm CET. 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:
https://edge.media-server.com/m6/p/95yxnc6z

Host: Viktor Drvota, CEO.

For further information, please contact:

Viktor Drvota, CEO, Karolinska Development AB
Phone: +46 73 982 52 02, e-mail: viktor.drvota@karolinskadevelopment.com

Christian Tange, CFO, Karolinska Development AB
Phone: +46 73 712 14 30, e-mail: christian.tange@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 in the Nordic region that are developed by entrepreneurs and leadership teams. The Company 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 31 October 2017.

KD Q3 2017 (ENG) FINAL


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Source: Karolinska Development AB (publ) via Globenewswire