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Karolinska Development: Q4 and 2017 Year-End Report - January-December

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Thursday, February 15, 2018

STOCKHOLM - Karolinska Development AB (Nasdaq Stockholm: KDEV) publishes its Q4 and 2017 Year-End Report with a positive quarterly and full-year result. The full report is available on the Company's website.

"A number of the portfolio companies' projects have made significant progress in 2017, with positive subsequent effects, such as the substantial increase in the value of our holding in Umecrine Cognition. We have also realised a successful return on the partial exit of BioArctic as well as proving the potential to generate value from our earn-out agreements through the divestment of the holding in Xspray, which we received as an earn-out. This has enabled Karolinska Development to post another positive quarterly result and, for the first time since the strategy shift, to post a positive full-year result."

Significant events during the fourth quarter

  • Karolinska Development announced that the value of its holdings in the portfolio company, Umecrine Cognition, increased as a result of positive phase Ib data. The increase in the book value positively impacted the third quarter 2017 profit by SEK 196 million (October 2017).
  • Umecrine Cognition secured financing of SEK 20 million for clinical development of the GR3027 candidate drug for the treatment of idiopathic hypersomnia - a severe form of sleep disorder (October 2017).
  • Aprea Therapeutics received the final tranche of SEK 188 million as part of the 2016 total financing programme of SEK 437 million (October 2017).
  • Trading in the shares of the portfolio company BioArctic began on the NASDAQ Stockholm exchange (October 2017). Karolinska Development realised a value increase through a partial exit and received SEK 35 million (November 2017).
  • Karolinska Development and KCIF Co-Investment Fund KB divested their holdings in Xspray, which they received as earn-out, realising a total of SEK 13.3 million for Karolinska Development (October 2017).
  • The number of class B shares in Karolinska Development increased via the conversion of convertible loans (October 2017).
  • Hans-Olov Olsson resigned from the Board of Karolinska Development at his own request (October 2017) and Theresa Tse was elected to the Board at an Extraordinary General Meeting (November 2017).
  • Karolinska Development and KCIF Co-investment Fund KB received shares in Pharmanest AB as a result of the earn-out agreement entered into in conjunction with an earlier divestment of the holding (November 2017).
  • Professor Hans Wigzell, Member of the Board of Karolinska Development since 2006, was appointed new Chairman of the Board after Niclas Adler, who resigned from this position for personal reasons (December 2017).


Financial update
Karolinska Development posted a positive full-year result for the first time since the company's strategy shift. The total fair value of the portfolio increased during the year by 76% to SEK 714 million.

Fourth quarter

  • The net profit for the fourth quarter was SEK 32 million (SEK -23 million in the fourth quarter 2016). Earnings per share totalled SEK 0.50 (SEK -0.43 in the fourth quarter 2016).
  • The result of the Change in fair value of shares in portfolio companies amounted to SEK 49.1 million. The increase was primarily due to result of a partial exit of BioArctic and the divestment of the holding in Xspray, received as an earn-out.
  • The total fair value of the portfolio was SEK 714 million at the end of December 2017, an increase from SEK 674 million at the end of the previous quarter. At the same date, net portfolio fair value was SEK 448 million, an increase from SEK 410 million at the end of the previous quarter.
  • Revenue totalled SEK 0.8 million during the fourth quarter of 2017 (SEK 3.7 million in the fourth quarter 2016).
  • Karolinska Development invested a total of SEK 34.7 million in its portfolio companies during the fourth quarter. Fourth quarter investments in the portfolio companies by Karolinska Development and other specialised life sciences investors totalled SEK 253.1 million.
  • Cash and cash equivalents increased by SEK 4.2 million during the fourth quarter, totalling SEK 169.6 million on 31 December 2017.


Full year

  • The full-year net profit was SEK 179.6 million (SEK -216.8 million in 2016). Earnings per share totalled SEK 2.93 (SEK -4.08 in 2016).
  • The full-year result for the change in the fair value of the portfolio amounted to SEK 252.1 million. The increase was primarily due to the revaluation of Umecrine Cognition amounting to SEK 196 million in connection with presented phase Ib data.
  • The total fair value of the portfolio was SEK 714 million at the end of December 2017, an increase from SEK 405 million at the corresponding date in 2016. The net portfolio fair value was SEK 448 million, an increase from SEK 149 million at the corresponding date in 2016.
  • Revenue totalled SEK 2.5 million for the full year of 2017 (SEK 5.4 million in 2016).
  • Karolinska Development invested a total of SEK 91.9 million in its portfolio companies during the full year. Full-year investments in the portfolio companies by Karolinska Development and other specialised life sciences investors totalled SEK 396.8 million.
  • Cash and cash equivalents decreased by SEK 78.5 million during the full year, totalling SEK 169.6 million on 31 December 2017.
  • The Parent Company's equity on 31 December 2017 was SEK 267 million.
  • The Board will not propose any dividend for the financial year 2017.


The Q4 and 2017 Year-End Report for Karolinska Development AB for the period January-December 2017 is available as a PDF at www.karolinskadevelopment.com.

Contacts:
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


Source: Karolinska Development AB
3.0
3.0 from 16 votes
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