The gains came against a backdrop of falling net profits and cash reserves that will test Karolinska Development as it looks ahead to convertible debt obligations.
Karolinska Development, the investment arm of Karolinska Institute, witnessed a one-third annual increase in its portfolio value to SKr952m ($107.3m at December 31) in 2018 as it contemplated mixed operational fortunes at its biotech holdings.
Karolinska Development’s net profit fell year-on-year in both annual terms and during the fourth quarter, sliding by 83% and 53.4% respectively to $3.4m for the year and $1.7m for the quarter.
The firm invested a total of $14.1m in its portfolio companies in 2018, compared with $11.2m the previous year.
However its cash reserve fell by $9.5m year-on-year to $9.7m, and the unit is now looking to shore up its position as it prepares for the maturing of a $53.3m convertible loan in December 2019. Its board of directors will not propose any dividends for the 2018 financial year.
Operationally, Karolinska Development reported promising results from ongoing phase 1b/2 studies of APR-246, the lead drug candidate at its oncological portfolio company Aprea Therapeutics, which attracted $56.8m from investors including Karolinska Development in its November 2018 series C round.
Another Karolinska portfolio company, Umecrine Cognition, received favourable phase 2a data on safety and pharmacokinetics for its GR3027 drug indicated for the sleep disorder idiopathic hypersomnia, in addition to provisional results supporting the drug’s clinical effectiveness.
Conversely, Karolinska Development said the protracted maternal labour drug tafoxiparin, at its portfolio company Dilafor, had not performed to expectations during a phase 2 trial.
The firm expects to receive news of a further three phase 2 studies from its life sciences portfolio over the next six months.
Other portfolio events reported by Karolinska Development include US regulatory approval for the marketing and sales of OssDsign’s Cranioplug regenerative bone implant.
OssDsign, which extends research from Karolinska University Hospital and Uppsala University, closed its $6.9m round last week and is aiming to list on the Nasdaq First North exchange later in February 2019.
