Karolinska Development has sold its remaining stake in BioArctic, which is based on research at Uppsala University and floated on Nasdaq Stockholm last year.
Karolinska Development, the venture capital arm of Karolinska Institute, sold its remaining shareholding in BioArctic, a Sweden-based biopharmaceutical firm based on research at Uppsala University.
Karolinska sold more than half a million shares for a total of Skr12m ($1.4m). The firm had already sold $3.9m worth of stock in November 2017 shortly after BioArctic listed on Nasdaq Stockholm.
Founded in 2003, BioArctic was initially focusing on Alzheimer’s disease but has since also used its platform to develop treatments for other conditions affecting the central nervous system, such as Parkinson’s disease and to produce diagnostics and related technology.
The company was co-founded by Lars Lannfelt, a senior professor in the Department of Public Health and Caring Sciences, who discovered a mutation that leads to early development of Alzheimer’s disease in 1992. Lannfelt co-founded the business with Pär Gellerfors.
Karolinska Innovations, the commercialisation arm, supplied an undisclosed sum in 2004, though its stake was later transferred to Karolinska Development. Uppsala University Holding subsequently invested an undisclosed amount in 2005.
BioArctic listed on Nasdaq Stockholm in October 2017, raising $68m in its initial public offering. Shares are currently trading at Skr23 ($2.50), down from the opening price of Skr29.
Viktor Drvota, chief executive of Karolinska Development, said: “The successful divestment of our holding in BioArctic reveals the good returns that can be achieved from investments in drug development.
“At the same time, the liquidity contributes to a strengthening of the cash position. We will continue to combine business creativity with the professional development of innovative life science projects to maximize opportunities for creating value for our owners
