Karolinska Development (KDEV) Q2 2024 earnings summary

Executive summary

• Net loss for Q2 2024 was SEK -16.0 million, down from SEK 23.3 million profit in Q2 2023; H1 2024 net loss was SEK -15.8 million compared to SEK -4.8 million in H1 2023.

• Portfolio expanded to twelve companies, with new investment in BOOST Pharma, focused on cell-based therapy for osteogenesis imperfecta.

• Key clinical progress in portfolio companies, including Umecrine Cognition's phase 2 study in PBC and Biosergen's approval to start a clinical trial in India.

• PharmNovo secured EUR 17.5 million in EU funding for neuropathic pain drug development.

Financial highlights

• Change in fair value of portfolio shares was SEK -11.1 million in Q2 2024, mainly due to price adjustments in PharmNovo and declines in OssDsign and Modus Therapeutics, partially offset by gains in Promimic.

• Net sales were SEK 0.5 million in Q2 2024, unchanged year-over-year; H1 2024 net sales were SEK 1.0 million.

• Total portfolio fair value at end of June 2024 was SEK 1,454.0 million, up SEK 1.7 million sequentially; net portfolio fair value was SEK 1,113.9 million, down SEK 0.3 million.

• Cash and cash equivalents fell to SEK 49.7 million at June 30, 2024, from SEK 147.7 million a year earlier.

• Investments in portfolio companies totaled SEK 10.7 million in Q2 2024, down from SEK 20.5 million in Q2 2023.

Outlook and guidance

• Multiple portfolio companies are expected to present phase 1 and phase 2 clinical data in 2024–2025, with one company preparing for a phase 3 study.

• BOOST Pharma is expected to announce phase 1/2 study results before year-end 2024; Umecrine Cognition and PharmNovo anticipate key clinical milestones in H1 2025.