History
A timeline
2003
Karolinska Development was founded in 2003 with the aim of developing promising medical innovations derived from academic research by the Karolinska Institute and other leading Nordic universities.
2011
Over 1,300 innovations were evaluated during the period from 2003 to 2011, and the number of investments grew rapidly. When Karolinska Development was listed in 2011, the portfolio comprised 27 companies with a total of 36 projects.
2012
In late 2012, as part of its efforts to secure financing for the substantial number of portfolio companies at that time, Karolinska Development entered into partnership with the international specialist investor, Rosetta Capital, who invested substantial funds in a number of portfolio companies in return for a share of the future returns from these companies. The shareholdings in the portfolio companies affected by the partnership (currently Aprea, Modus, Dilafor and Promimic) are invested in the jointly owned company, KDev Investments AB.
2014
In 2014, Karolinska Development implemented a comprehensive strategy shift. The portfolio at this point comprised 21 companies whose projects displayed a wide variation in terms of their level of innovation.
The strategy shift entailed Karolinska Development retaining its holdings in portfolio companies conducting “first in class” projects, and selling a number of companies whose level of innovation and commercial potential were lower. Earn-out agreements secured Karolinska Development’s rights to share in the future growth in value of the divested companies.
A single-minded process of strengthening the commercial competence of the remaining portfolio companies was launched at the same time. Measures were, in addition, implemented in order to broaden the number of therapeutic indication areas in the prioritized projects, in order to boost their commercial potential and spread the risks.
2015
The need for capital continued to be considerable, and in early 2015, a financing package for a total of ca. SEK 450 million was completed. The package entailed, among other things, Sino Biopharmaceutical taking a substantial share in the company and subscribing a significant share of a convertible loan.
2017
Progress by the portfolio companies and successful divestments enabled Karolinska Development to post a profit for the year. At the end of the year, the investment portfolio comprised ten companies, of which the majority have so called “first in class” projects. The substantial reduction in the number of portfolio companies is expected to reduce the need for capital-intensive follow-up investments from the levels previously seen.
2018
For the second consecutive year Karolinska Development posted a profit. Several portfolio company projects advanced during the year and data from a number of important clinical Phase 2 trials were presented, among others continuous positive results from the Aprea Therapeutics Phase 1b/2 trial of APR-246. During the year we saw substantial external investments in the different portfolio companies. An investment consortium, with U.S. investor Redmile Group in the lead, made the largest investment with SEK 512 million in Aprea Therapeutics. Further, the venture capitalist fund Vesalius Biocapital III Partner, with a focus on European late stage life science companies, invested EUR 4 million in Forendo Pharma and HealthCap invested SEK 60 million in Modus Therapeutics.
2019
Aprea Therapeutics’ successful IPO in the USA on the Nasdaq Global Select Market in October was an historic event, both for Swedish research and for Karolinska. Several other portfolio companies also reported significant progress. Forendo Pharma signed a license and collaboration agreement with Novartis –the biggest agreement signed by a portfolio company since Karolinska Development was founded.
2019 also resulted in a strong improvement of the company’s financial position and Karolinska Development were able to report a record profit of SEK 303 million (SEK 30.5 m in 2018), putting the company in its best financial position in a long time.
2021
In November the global pharmaceutical company, Organon, acquired Karolinska Development’s portfolio company, Forendo Pharma, which is developing a new treatment for endometriosis, for a total purchase price of USD 945 million, provided that all milestones are reached. This is an excellent example of the commercial value in which Karolinska Development’s professional and sustainable investment strategy can result and how Karolinska Development helped enable one of the biggest single transactions ever in the Nordic biotech sector.
2022
We are grateful for the confidence that existing and new investors showed in Karolinska Development by taking part in the new rights issue completed in February 2022 bringing in nearly SEK 380 million to the company. With a solid financial position and a strong investment team, it is now time to further increase the tempo of our value creation.
