STOCKHOLM, SWEDEN – June 17, 2021. Karolinska Development AB (Nasdaq Stockholm: KDEV) today announced that it will increase the carrying amount of its stake in portfolio company Dilafor based on an external valuation. The background to this is that Dilafor’s drug candidate tafoxiparin has shown a significantly positive effect on cervical maturation in a recently conducted phase 2b study in first mothers receiving labor induction treatment. The external valuation, which was risk-adjusted by Karolinska Development, will for the time being have a positive effect on the posted fair value of the stake in Dilafor, which is held indirectly via KDev Investments AB. This has a positive impact on the net result of Karolinska Development AB in the second quarter of 2021 in the amount of approx. 250 million SEK, which corresponds to approx. 1.42 SEK per share.
About a quarter of all pregnant women are induced to induce labor, but more than half of these treatments fail. This results in a prolonged labor process, increasing the need for a caesarean section and the risk of complications for both mother and child.
Dilafors’ phase 2b double-blind, placebo-controlled study of drug candidate tafoxiparin enrolled 170 primiparous women with immature cervices who received treatment to mature the cervix to facilitate the onset of labor. The study results showed that tafoxiparin had a positive effect on cervical maturation compared to placebo, a difference that was highly statistically significant (p
Market research shows that a drug that can induce cervical maturation has the potential to reach over $ 1 billion in annual sales in the US market alone.
“The positive results from phase 2b increase the opportunities to develop Dilafor’s drug candidate tafoxiparin as a new treatment that reduces the risk of complications in children and mothers due to slow labor. This noticeable progress has a very positive effect on the valuation of the company, ”comments Viktor Drvota, CEO of Karolinska Development.
Karolinska Development holds a stake in Dilafor of 30.9% of the outstanding shares of Dilafor through KDev Investments AB.
For more information please contact:
Viktor Drvota, CEO, Karolinska Development AB
Phone: +46 73 982 52 02, email: [email protected]
Johan Dighed, General Counsel and Deputy CEO, Karolinska Development AB
Telephone: +46 70 207 48 26, email: [email protected]
TO THE EDITORS
About Karolinska Development AB
Karolinska Development AB (Nasdaq Stockholm: KDEV) is a Nordic life science investment company. The company is focused on identifying breakthrough medical innovations in the Nordic region that are being developed by entrepreneurs and leadership teams. The company invests in creating and growing companies that turn these assets into commercial products that improve patient lives while delivering attractive returns to shareholders.
Karolinska Development has access to world class medical innovations at Karolinska Institutet and other leading universities and research institutes in the Nordic region. The company aims to build businesses from academics who are leaders in their fields, supported by experienced management teams and consultants, and co-funded by specialist international investors to provide the greatest chance for success.
Karolinska Development has a portfolio of ten companies targeting innovative ways to treat life-threatening or serious diseases.
The company is led by an entrepreneurial team of investment professionals with a proven track record of founding companies and with access to a strong global network.
More information is available at www.karolinskadevelopment.com.
This information is information that Karolinska Development AB (publish) (Nasdaq Stockholm: KDEV) is obliged to publish according to the EU Market Abuse Regulation. The information has been submitted for publication by the agency of Viktor Drvota, at 19:fifteen CET 17ththat from June, 2021.
PM KD Dilafor Värdeförändring 2021-06-17 GER