Image courtesy Karolinska Development.
Conny Bogentoft, CEO of Karolinska Development, said he is pleased to have attracted strong financial backing from an outstanding group of investors. “[Their] participation in this round further validates our business strategy and the value we bring to our life science innovations.”
Karolinska Development currently boasts a portfolio of 38 companies. Three of these have (non-pharmaceutical) products that are in the process of being launched, while five have compounds in Phase II and four have compounds in Phase I clinical studies.
The company believes it has a very effective business model, enabling its companies to reach this stage development in less than 5 years, on an investment of less than SEK 600 million, (€58.7 million). The resulting portfolio comprises a product pipeline comparable with that of a major pharmaceutical company.
“This is an incredible achievement,” said Bogentoft, “and is in stark contrast to the amounts traditionally spent by pharmaceutical companies to achieve similar results.”
One portfolio company, Dilafor has, for example, has taken its first-in-class compound for protracted labour during childbirth from concept to Phase II in only 5 years. This is a further validation of Karolinska Development’s business model, said Bogentoft. “We don’t just invest in our portfolio companies, we partner with them. Our team brings decades of operating experience, market knowledge, and a global network to every company in the portfolio.”
One of the company’s aims is to prove that long-term investment in good academic science pays off in more ways than one, creating jobs, creating new products that will benefit society and making money. Bogentoft said, “We haven't proved the latter yet, but that is what we want to do over the next three years.”
The proceeds of this financing will be used to provide the capital necessary to continue development of the portfolio.
This share issue is being handled by EFG Investment Bank, which has worked with Karolinska Development on three previous share offers
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