We offer an opportunity to invest in carefully selected life science companies

Our employees have extensive experience of research, development, financing and commercialization of pharmaceutical and medtech projects. This expertise enables us to select attractive investment objects, to monitor the development of our portfolio companies, and to ensure that they have the right team composition and structure – both in order to progress the projects and to ensure value-generating licensing deals, divestments, or IPOs, based on their successes.

This business model may, for many investors, offer clear advantages over direct investments in individual life science companies:  

  • It is difficult for investors without in-depth knowledge of the life science sphere to evaluate the research projects’ quality and level of innovation. Or to evaluate the companies’ ability to commercialize the projects.  
  • Smaller investors often have limited opportunities to acquire shares in unlisted companies.  
  • If a satisfactory risk spread is to be achieved, the investments must also be spread over several companies, making monitoring one’s investments a time-consuming process.  

The conditions for continued success are favorable: 

  • Clinical phase 1 and 2 results from three portfolio companies have been presented during 2024.
  • A number of deals have been completed for comparable candidate drugs to our active holdings in the portfolio where the contract values of the individual projects totaled billions SEK.

Key components to understand the value of Karolinska Development

Syndicated investments  

Investments in the portfolio companies are made by means of syndication with other professional life science investors. The partnership with Rosetta Capital, which invested a substantial sum in a number of portfolio companies in 2012 in exchange for a share of the future returns from these companies, is one example of this approach. The shareholdings in the portfolio companies comprised by the agreement with Rosetta are invested in the jointly owned company, KDev Investments AB, which currently has holdings in four companies, namely Aprea, Modus, Dilafor and Promimic. The returns from KDev Investments’ holdings, including Rosetta Capital’s investments in portfolio companies, will be distributed in accordance with a so-called waterfall structure, as illustrated in the graph below. With its current shareholding, Karolinska Development’s proportion of dividends will be 0% for accumulated dividends up to SEK 220 million, 65% for accumulated dividends between SEK 220 million and SEK 880 million, 75% for accumulated dividends between SEK 880 million and SEK 1,320 million and 92% for accumulated dividends above SEK 1,320 million.  

KDev Investment has so far paid a dividend of SEK 50 million to Rosetta Capital.

Valuation of the portfolio

A valuation of Karolinska Development’s holdings is carried out every quarter, based on international accounting principles (IFRS 13 and IPEV). The Portfolio Fair Value is divided into:  

Total Portfolio Fair Value, which is the aggregate return that would be obtained by Karolinska Development and KDev Investments if the shares in the portfolio companies were to be divested in an orderly transaction between market operators.  

Net Portfolio Fair Value, which is the net aggregate dividend that Karolinska Development will receive after KDev Investments’ dividend payment to Rosetta Capital.  

Karolinska Development’s share (KDEV) is listed on the NASDAQ Stockholm Stock Exchange. 

Investments in the portfolio companies are made by means of syndication with other professional life science investors. The partnership with Rosetta Capital, which invested a substantial sum in a number of portfolio companies in 2012 in exchange for a share of the future returns from these companies, is one example of this approach. The shareholdings in the portfolio companies comprised by the agreement with Rosetta are invested in the jointly owned company, KDev Investments AB, which currently has holdings in four companies, namely Aprea, Modus, Dilafor and Promimic. The returns from KDev Investments’ holdings, including Rosetta Capital’s investments in portfolio companies, will be distributed in accordance with a so-called waterfall structure, as illustrated in the graph below. With its current shareholding, Karolinska Development’s proportion of dividends will be 0% for accumulated dividends up to SEK 220 million, 65% for accumulated dividends between SEK 220 million and SEK 880 million, 75% for accumulated dividends between SEK 880 million and SEK 1,320 million and 92% for accumulated dividends above SEK 1,320 million.  

KDev Investment has so far paid a dividend of SEK 50 million to Rosetta Capital.

A valuation of Karolinska Development’s holdings is carried out every quarter, based on international accounting principles (IFRS 13 and IPEV). The Portfolio Fair Value is divided into:  

Total Portfolio Fair Value, which is the aggregate return that would be obtained by Karolinska Development and KDev Investments if the shares in the portfolio companies were to be divested in an orderly transaction between market operators.  

Net Portfolio Fair Value, which is the net aggregate dividend that Karolinska Development will receive after KDev Investments’ dividend payment to Rosetta Capital.  

Karolinska Development’s share (KDEV) is listed on the NASDAQ Stockholm Stock Exchange.