Karolinska Development (KDEV) Q3 2024 earnings summary

Executive summary

• Net loss of SEK -10.9 million in Q3 2024, compared to SEK 12.0 million profit in Q3 2023; nine-month net loss SEK -26.7 million versus SEK 7.3 million prior year.

• Portfolio fair value increased to SEK 1,463.2 million at September 2024, up SEK 9.2 million from previous quarter.

• Several portfolio companies reported significant clinical and financial milestones, including BOOST Pharma, AnaCardio, PharmNovo, and Umecrine Cognition.

• Divestment of Henlez ApS completed; portfolio now consists of eleven companies.

Financial highlights

• Change in fair value of shares in portfolio companies was SEK -7.9 million in Q3 2024 (SEK 11.7 million in Q3 2023), mainly due to OssDsign share price decline, partially offset by gains in Modus Therapeutics and Promimic.

• Net asset value at end of Q3 2024 was SEK 1,224.4 million (SEK 1,253.2 million in Q3 2023), or SEK 4.5 per share.

• Cash and cash equivalents decreased to SEK 29.3 million at September 2024 from SEK 130.0 million a year earlier.

• Investments in portfolio companies totaled SEK 19.8 million in Q3 2024 (SEK 15.8 million in Q3 2023); total investments for the nine months were SEK 42.6 million.

• Operating loss for Q3 2024 was SEK -12.4 million (Q3 2023: SEK 9.4 million profit); nine-month operating loss SEK -31.4 million.

Outlook and guidance

• Several portfolio companies are expected to present phase 1 and phase 2 clinical data in 2024-2025, with Dilafor preparing for a phase 3 study.

• Management anticipates a warmer market climate and sees potential for value realization through exits in coming years.

• The company maintains a stable going concern status, with ongoing review of financing options to support portfolio development.