Karolinska Development (KDEV) DNB Carnegie Småbolagsdag summary

Portfolio strategy and investment approach

• Focus on investing in and building companies, primarily in clinical or late commercial phases, with a preference for first-in-class innovations and high-risk, high-reward opportunities.

• Emphasis on active ownership, including board participation and strategic guidance, especially regarding capital raising and exit strategies.

• Success in medical technology requires achieving cash flow positivity in the US market, with a target of over SEK 200 million in revenue to attract buyers.

• Portfolio includes 11 companies, with a mix of pharmaceuticals and medtech, and a focus on reaching value inflection points for potential exits.

• Early entry into companies allows for significant ownership at low cost, but later rounds may lead to dilution.

Key portfolio highlights and clinical progress

• Dilafor is advancing toward phase 3 after resolving regulatory issues with the FDA, now seeking business development opportunities.

• Modus Therapeutics recently secured financing for studies in chronic kidney disease-related anemia, with key data expected in 2026; also progressing in brain malaria with recent study completion in Africa.

• Anacardio, focused on heart failure, expects phase 2 results in November, which could lead to further financing or a potential deal.

• Human Kind Cognition is exploring new indications, including Parkinson’s, with promising preclinical results and support from the Michael J. Fox Foundation; clinical data expected early next year.

• Boost Pharma, targeting brittle bone disease, has shown an 80% reduction in fractures and is preparing for phase 3 financing.

Exit history and financial model

• Achieved 12 exits and 9 IPOs since 2016, generating approximately SEK 488 million.

• Exit model relies on upfront payments, milestone-based payouts, and potential sales royalties.

• Notable exits include BioArctic and Forendo, with the latter sold to Organon in 2021.

• Current strategy is to focus on maturing existing portfolio companies to exit readiness rather than new investments.