Quarterly Report • May 26, 2011
Quarterly Report
Open in ViewerOpens in native device viewer
Corporate Identity Number 556707‐5048
Since I took over as CEO of Karolinska Development in the middle of January this year, we have successfully listed the company on NASDAQ‐OMX Stockholm generating SEK 577m after issue costs. Importantly we attracted top quality institutional investors from Sweden, Norway, the US and the UK.
With the increased funding through the IPO, Karolinska Development is even more strongly positioned to build and invest in pioneering projects, from Karolinska Institutet and other top‐ranked universities, that could solve significant unmet medical needs. Furthermore, it will enable us to develop our highest‐priority portfolio companies more quickly, and provide a higher level of funding for promising new projects.
The recent SEK 123 million funding round, led by Karolinska Development, for one of our accelerated growth portfolio companies, Axelar, is a demonstration of Karolinska Development's investment strategy. Axelar is focusing on the development of anti‐cancer products and is currently in clinical Phase I/II. The funding will play a key role in progressing the company's lead product to proof‐of‐ concept in patients suffering from lung cancer.
During the period, a number of our portfolio companies have also shown positive clinical and commercial development. Examples include Axelar and Aprea, which concluded their Phase I/II clinical studies in cancer patients, and Promimic, which received approval from the FDA to market and sell its product in the USA. We have divested small portions of our portfolio to KCIF, our co‐investment vehicle with the European Investment Fund, and undertaken our first joint investment with Kurma Biofund. I am pleased with the progress we have made so far, but I recognize we will need more and bigger deals in the future to capitalize on the portfolio. We have therefore a significant focus on business development and commercialization of our portfolio companies. At the same time, we will continue to review and prioritize the portfolio to optimize near‐term value creation.
Torbjörn Bjerke Chief Executive Officer
Karolinska Development aims to create value for investors, patients, and researchers by developing innovations from world class research into products that can be sold or out‐licensed with high returns. The business model is to: select the most commercially attractive medical innovations; develop these to the stage where the greatest return on investment can be achieved; and commercialize the innovations through the sale of companies or out licensing of products. This will result in upfront payments, milestone payments and royalties.
An exclusive deal flow agreement with Karolinska Institutet Innovations AB, along with other cooperation agreements with leading Nordic universities, delivers a continuous flow of innovations.
Karolinska Development's flexible exit strategy enables projects to be exited at whichever stage of development offers the greatest return on investment, usually after Phase II clinical trials have indicated the desired pharmaceutical effect on patients ‐ this being an important value enhancing step.
Today, the portfolio consists of over 40 projects at various stages, from concept development to Phase II clinical trials, twelve projects are in clinical trials with six in Phase II. The portfolio is particularly strong in the areas of cancer, dermatology, inflammation, cardiovascular disease, women's health and diseases that affect the central nervous system.
On January 13, Torbjörn Bjerke was appointed as new CEO in Karolinska Development and on February 15 , Terje Kalland was appointed as CSO.
During February, Karolinska Development divested part of its participations in four portfolio companies, Aprea AB, Athera Biotechnologies AB, Umecrine Mood AB and XSpray Microparticles AB, to the fund KCIF Co‐Investment Fund KB, jointly owned by Karolinska Development and EIF. The divestment of shares in these four portfolio companies amounted to SEK 20.4m, based on the value of the completed issues carried out after the formation of the co‐investment fund on 17 November 2009. These sales shares were carried out because it was not possible for KCIF to subscribe to the original share issues due to time constraints. Consequently, Karolinska Development also subscribed to KCIF's portion of the share issues in order to sell them subsequently to KCIF (a procedure which is regulated by agreements with the EIF and KCIF).
The biomaterials company Promimic AB received a 510 (k) approval for the implant surface HANANO Surface™. The approval means the company can market and sell the surface in the United States in the field of dental implants
Aprea announced that its clinical safety study in Phase I / II of cancer patients who were treated with APR‐246 has been completed and demonstrated that the product is safe and tolerated.
Karolinska Development AB decided to broaden its shareholder base through a new issue of Series B shares and to apply for a listing of Karolinska Development's Series B shares on the NASDAQ OMX Stockholm exchange
Karolinska Development extended its portfolio through an investment in BioChromix AB of SEK 2.0m. BioChromix AB is a diagnostics company with a focus on Alzheimer's disease.
Axelar reported positive interim results from an ongoing Phase I/II study. The Company also achieved the goal of identifying the optimal Phase II dose, as well as demonstrating that AXL1717 is safe and tolerated.
Kurma Biofund executed its first joint investment with Karolinska Development in the portfolio company Umecrine Mood AB. Through the new share issue, Kurma Biofund has become an important shareholder in Umecrine Mood AB. After the new share issue, Karolinska Development owns 39% of the shares in Umecrine Mood AB.
Karolinska Development AB was listed on NASDAQ OMX Stockholm on 15 April 2011. In conjunction with the listing, a total of 15,200,000 Series B shares were issued raising SEK 608.0m gross and SEK 576.7m net of issue costs. As of 29 April 2011, the number of shares in Karolinska Development AB amounted to 48,531,417, distributed between 1,503,098 Series A shares and 47,028,319 Series B shares, totaling 62,059,299 votes in the Company.
Karolinska Development took the lead in a SEK 123 million funding round of one of its accelerated growth portfolio companies, Axelar AB
Karolinska Development participated in the new share issue in the portfolio company, Pergamum AB, whereby outstanding loans amounting to SEK 77.6m were converted into shares in Pergamum. Other main noteholders participated in the issue with the application of similar conditions. After the conversion, Karolinska Development holds 61.09% of the shares in Pergamum AB.
During May, Karolinska Development divested part of its participations in two companies, Pharmanest AB and Umecrine Mood AB, to the fund KCIF Co‐Investment Fund KB, jointly owned by Karolinska Development and EIF. The divestment of shares in these two portfolio companies amounted to SEK 2.2m, based on the value of the completed issues carried out after the formation of the co‐ investment fund on 17 November 2009. These sales shares were carried out because it was not possible for KCIF to subscribe to the original share issues due to time constraints. Consequently, Karolinska Development also subscribed to KCIF's portion of the share issues in order to sell them subsequently to KCIF (a procedure which is regulated by agreements with the EIF and KCIF).
The total value of portfolio holdings at 31 March 2011 calculated in accordance with the International Private Equity and Venture Capital Valuation Board Guidelines for fair value was SEK 1,461.9m (1,564.0), compared with SEK 1,454.7m as at 31 December 2010.
Consolidated revenue during the first quarter of 2011 amounted to SEK 2.9m (2.6), which is an increase of SEK 0.3m compared to the previous year.
The Group's operating profit for the period amounted to SEK ‐41.6m (‐0.6), which is a change of SEK ‐42.2m compared with the corresponding period last year. Profit after tax amounted to SEK ‐37.5m (‐0.1). Profit has decreased due to a higher level of operating costs in both the Parent Company and the subsidiaries, as well as a negative fair value change in some of the portfolio companies.
Reported fair value in the Group (in which the subsidiaries are not included, see Note 4) amounts to SEK 1,230.5m, compared with SEK 1,245.6m as at December 31, 2010.
The Fair value change during the first quarter amounted to SEK ‐15.3m, of which SEK ‐2.8m was comprised of divestitures (SEK ‐ 20.4m) and investments (SEK 17.6m). The portion of the change in fair value affecting income during the first quarter amounted to SEK ‐12.3m (18.7) and can be attributed to the following key factors:
The Group's equity to debt ratio was 97 (97) percent as at 31 March, 2011 and equity amounted to SEK 1,679.6m (1,717.2).
Cash and bank deposits amounted to SEK 141.8m at 31 March, 2011 which is an increase of SEK 34.5m as a result of the disposal of short‐term investments and sales of participations in portfolio companies to KCIF Co‐Investment Fund KB.
Total assets on 31 March 2011 amounted to SEK 1,737.3m (1,773.6).
During the period, Karolinska Development invested a total of SEK 35.7m in the portfolio companies, compared with SEK 46.3m during the equivalent period in the previous year. For further information see Note 8.
Parent company revenue during the reporting period from services rendered to portfolio companies decreased and amounted to SEK 0.9m (2.6). This was primarily due to the activity in KCIF Fund Management AB, which sells services to KCIF Co ‐ Investment Fund KB during the introduction phase, being lower than expected.
The Parent company operating loss during the reporting period amounted to SEK ‐19.0m (‐9.8), a reduction of SEK ‐9.2m compared to the equivalent period in the previous year.
Income after taxes during the period amounted to SEK ‐18.4m (‐10.2).
Parent company investments in subsidiaries during the reporting period amounted in total to SEK 18.0m (11.5). The largest investments were SEK 10.0m made in Akinion Pharmaceuticals AB and SEK 4.0m in NovaSaid AB. The Parent Company has invested SEK 14.7m (34.7) in associated companies and joint ventures. The largest investments were SEK 5.9m made in Aprea AB and SEK 4.0m in Dilafor AB. The Parent Company has invested SEK 3.0m (2.6) in other financial investments (Note 9).
Risks and uncertainties relate primarily to risks in connection with the investment operations of the Group and indirectly to the operational risks of the portfolio companies' development, as well as financial risks.
Future investments in new and current portfolio companies will require capital. There is no guarantee that capital may be generated on favourable terms, or that generated capital will be sufficient to finance operations in accordance with the operational plan, or that such capital may be generated at all.
Companies operating within pharmaceutical development and medical technology at an early phase are difficult to value, as lead times are of a significant length and the development risks are high. Forecasts and assessments are, to a high degree, based on future profits and very rarely on existing cash flows. The uncertainty in these assessments entails that the estimated value of the portfolio can deviate substantially from the actual value.
The CEO hereby certifies that this interim report gives a true and fair view of the Parent Company's and the Group's operations, financial position and results of operations and describes the material risks and uncertainties faced by the Parent Company and the companies included in the Group.
Solna, 25 May 2011
Torbjörn Bjerke CEO
Interim report January – June 2011 25 August 2011 Interim report January – September 2011 25 November 2011 Year‐end report 2011 February 2012
The reports will be published on Karolinska Development's homepage, www.karolinskadevelopment.com
Torbjörn Bjerke, CEO +46 (0) 72 744 41 23
Gunnar Casserstedt CFO and Deputy CEO +46 (0) 73 068 37 00
See also www.karolinskadevelopment.com
Karolinska Development AB (publ) Fogdevreten 2A, SE‐171 65 Solna, Sweden
This interim report has not been subject to review by the Company's auditors.
NB: This report is a translation of the Swedish interim report. In case of any discrepancies, the Swedish version shall prevail.
| 2011 | 2010 | 2010 | |
|---|---|---|---|
| Note Amounts in TSEK |
Jan–Mar | Jan–Mar | Full year |
| Income 2 |
2,901 | 2,601 | 13,895 |
| Other external expenses | ‐18,158 | ‐10,027 | ‐62,559 |
| Personnel costs | ‐13,631 | ‐10,458 | ‐43,393 |
| Depreciation, amortisation and write‐down of tangible and intangible assets |
‐406 | ‐250 | ‐27,418 |
| Changes in fair value participations in joint ventures and associates |
‐9,560 | 19,996 | ‐224,104 |
| Changes in fair value in other financial investments | ‐2,766 | ‐1,266 | ‐1,685 |
| Operating profit/loss | ‐41,620 | 596 | ‐345,264 |
| Financial net | 541 | ‐488 | 5,983 |
| Profit/loss before tax 2 |
‐41,079 | 108 | ‐339,281 |
| Deferred taxes | 3,535 | 0 | 4,697 |
| Profit/loss for the year | ‐37,544 | 108 | ‐334,584 |
| Attributable to: | |||
| Owners of the parent company | ‐34,537 | 1,614 | ‐325,615 |
| Minority interests | ‐3,007 | ‐1,506 | ‐8,969 |
| 2011 | 2010 | 2010 | |
|---|---|---|---|
| Amounts in TSEK Note |
Jan–Mar | Jan–Mar | Full year |
| Profit/loss for the year | ‐37,544 | 108 | ‐334,584 |
| Profit/loss comprehensive income | ‐37,544 | 108 | ‐334,584 |
| Attributable to: | |||
| Parent Company's shareholders | ‐34,537 | 1,614 | ‐325,615 |
| Non‐controlling interests | ‐3,007 | ‐1,506 | ‐8,969 |
| Total | ‐37,544 | ‐108 | ‐334,584 |
| 2011 | 2010 | 2010 | ||
|---|---|---|---|---|
| Amounts in SEK | Note | Jan–Mar | Jan–Mar | Full year |
| Earnings per share, weighted average, before and after dilution, SEK |
6 | ‐1.04 | 0.05 | ‐9.79 |
| Number of shares, weighted average, before dilution | 33,331,417 | 33,079,705 | 33,263,938 |
| Amounts in TSEK | Note | 31 Mar 2011 | 31 Mar 2010 | 31 Dec 2010 |
|---|---|---|---|---|
| Assets | ||||
| Non‐current assets | ||||
| Intangible assets | 3 | 179,856 | 154,310 | 179,778 |
| Property, plant and equipment | 2,368 | 2,892 | 2,493 | |
| Investments in joint ventures and associates | 4 | 1,205,467 | 1,392,480 | 1,220,791 |
| Other financial investments | 4 | 25,055 | 32,173 | 24,761 |
| Total non‐current assets | 1,412,746 | 1,581,855 | 1,427,823 | |
| Current assets | ||||
| Trade receivables | 467 | 2,331 | 680 | |
| Other short‐term receivables | 5 | 90,590 | 45,307 | 93,054 |
| Prepaid expenses and accrued income | 13,002 | 2,902 | 8,138 | |
| Current investments | 78,633 | 250,908 | 136,607 | |
| Cash and cash equivalents | 141,841 | 184,006 | 107,325 | |
| Total current assets | 324,533 | 485,454 | 345,804 | |
| TOTAL ASSETS | 1,737,279 | 2,067,309 | 1,773,627 |
| Amounts in TSEK | Note | 31 Mar 2011 | 31 Mar 2010 | 31 Dec 2010 |
|---|---|---|---|---|
| Equity and liabilities | ||||
| Equity | ||||
| Issued capital | 6 | 16,665 | 16,576 | 16,665 |
| Share premium | 1,212,611 | 1,201,043 | 1,212,611 | |
| Retained earnings including current period result | 419,868 | 781,713 | 454,484 | |
| Equity attributable to owners of the parent company | 1,649,144 | 1,999,332 | 1,683,760 | |
| Share of non‐controlling interest | 30,486 | 21,618 | 33,414 | |
| Total equity | 1,679,630 | 2,020,950 | 1,717,174 | |
| Liabilities | ||||
| Non‐current liabilities | ||||
| Deferred taxes | 7 | 30,660 | 30,015 | 34,195 |
| Interest‐bearing liabilities | 2,000 | 0 | 2,000 | |
| Total non‐current liabilities | 32,660 | 30,015 | 36,195 | |
| Current liabilities | ||||
| Trade payables | 7,224 | 3,926 | 3,117 | |
| Other short‐term liabilities | 4,838 | 2,045 | 5,044 | |
| Accrued expenses and prepaid income | 12,927 | 10,373 | 12,097 | |
| Total short‐term liabilities | 24,989 | 16,344 | 20,258 | |
| Total liabilities | 61,184 | 46,359 | 56,453 | |
| TOTAL EQUITY AND LIABILITIES | 1,737,279 | 2,067,309 | 1,773,627 |
| Amounts in TSEK | Note | 31 Mar 2011 | 31 Mar 2010 | 31 Dec 2010 |
|---|---|---|---|---|
| Pledged assets | 8 | 4,529 | None | 4,563 |
| Contingent liabilities | 8 | 1,900 | 600 | 2,100 |
| 6,429 | 600 | 6,663 |
| Equity attributable to owners of the Parent Company | |||||||
|---|---|---|---|---|---|---|---|
| Retained earnings incl. |
Non‐ | ||||||
| Issued | Share | current year | controlling | ||||
| Amounts in TSEK | Note | capital | premium | result | Total | interests | Total equity |
| Balance at 1 Jan 2011 | 16,665 | 1,212,611 | 454,484 | 1,683,760 | 33,414 | 1,717,174 | |
| Profit/loss for the year | ‐38,072 | ‐38,072 | ‐3,007 | ‐41,079 | |||
| Total profit/loss for the year | 0 | 0 | ‐38,072 | ‐38,072 | ‐3,007 | ‐41,079 | |
| Change in non‐controlling interests | ‐79 | ‐79 | 79 | 0 | |||
| Balance at 31 Mar 2011 | 6 | 16,665 | 1,212,611 | 419,868 | 1,649,144 | 30,486 | 1,679,630 |
| Balance at 1 Jan 2010 | 16,576 | 1,201,673 | 780,099 | 1,998,348 | 0 | 1,998,348 | |
| Profit/loss for the year | 1,614 | 1,614 | ‐1,506 | 108 | |||
| Total profit/loss for the year | 0 | 0 | 1,614 | 1,614 | ‐1,506 | 108 | |
| Acquisition of subsidiaries | 0 | 23,125 | 23,125 | ||||
| Share issue costs | ‐631 | ‐631 | ‐631 | ||||
| Balance at 31 Mar 2010 | 6 | 16,576 | 1,201,042 | 781,713 | 1,999,331 | 21,619 | 2,020,950 |
| Balance at 1 Jan 2010 | 16,576 | 1,201,673 | 780,099 | 1,998,348 | 0 | 1,998,348 | |
| Net profit/loss for the year | ‐325,615 | ‐325,615 | ‐8,969 | ‐334,584 | |||
| Total profit/loss for the year | 0 | 0 | ‐325,615 | ‐325,615 | ‐8,969 | ‐334,584 | |
| Acquisition of subsidiaries | 0 | 42,383 | 42,383 | ||||
| Share options issued | 613 | 613 | 613 | ||||
| New share issue | 89 | 10,956 | 11,045 | 11,045 | |||
| Share issue costs | ‐631 | ‐631 | ‐631 | ||||
| Balance at 31 Dec 2010 | 6 | 16,665 | 1,212,611 | 454,484 | 1,683,760 | 33,414 | 1,717,174 |
| 2011 | 2010 | 2010 | |
|---|---|---|---|
| Amounts in TSEK Note |
Jan–Mar | Jan–Mar | Full year |
| Cash flows from operating activities | |||
| Operating income | ‐41,620 | 596 | ‐345,264 |
| Adjustment for depreciation and impairments | 406 | 250 | 27,418 |
| Adjustment for changes in fair value | 12,326 | ‐18,730 | 225,789 |
| Interest paid | ‐22 | ‐493 | ‐22 |
| Interest received | 383 | 5 | 29 |
| Net cash used in operating activities, before changes in | |||
| working capital | ‐28,527 | ‐18,372 | ‐92,050 |
| Cash flows from changes in working capital | |||
| Increase (‐)/Decrease (+) in working capital assets | 1,102 | ‐5,703 | 2,358 |
| Increase (+)/Decrease (‐) in working capital liabilities | 4,731 | ‐3,654 | ‐7,632 |
| Net cash used by operating activities | ‐22,694 | ‐27,729 | ‐97,324 |
| Cash flows from investing activities | |||
| Payments for intangible assets | ‐216 | ‐34 | ‐2,697 |
| Payments for property, plant and equipment | ‐143 | ‐376 | ‐497 |
| Payments to acquire subsidiaries | 0 | 16,820 | 25,213 |
| Payments to acquire shares in Joint Ventures and associated 8 companies |
‐8,788 | ‐32,215 | ‐135,327 |
| 8 Payments to acquire other long‐term financial investments |
‐2,002 | ‐2,555 | ‐9,293 |
| Sales and disposals of current investments | 58,365 | ‐129,516 | ‐11,296 |
| Sale of shares in Joint Ventures and associated companies | 20,394 | 0 | 17,881 |
| Borrowings to associated companies | ‐9,400 | ‐16,421 | ‐65,870 |
| Net cash generated/used by investing activities | 57,210 | ‐164,297 | ‐181,886 |
| Cash flows from financing activities | |||
| New share issue | 0 | 8,826 | 19,960 |
| Share issue costs | 0 | ‐26,865 | ‐27,496 |
| Net cash generated/used by financing activities | 0 | ‐18,039 | ‐7,536 |
| Net increase/decrease in cash and cash equivalents | 34,516 | ‐210,065 | ‐286,746 |
| Cash and cash equivalents at the beginning of the period | 107,325 | 394,071 | 394,071 |
| CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD¹ | 141,841 | 184,006 | 107,325 |
¹The Group, in addition to cash and cash equivalents, has at its disposal short‐term investments amounting to 78,633 (250,908) and 136,607 as of 31 December 2010
| 2011 | 2010 | 2010 | |
|---|---|---|---|
| Amounts in TSEK Note |
Jan–Mar | Jan–Mar | Full year |
| Net sales | 852 | 2,635 | 11,007 |
| Revenue | 852 | 2,635 | 11,007 |
| Other external expenses | ‐9,408 | ‐5,772 | ‐31,048 |
| Employee benefit expenses | ‐7,589 | ‐6,598 | ‐25,685 |
| Depreciation of tangible and amortization of intangible assets | ‐17 | ‐22 | ‐88 |
| Impairment in shares in subsidiaries, associates and other | |||
| financial investments | ‐2,797 | 0 | ‐63,680 |
| Result from sale of shares | 0 | 0 | ‐29,439 |
| Dividends from subsidiaries | 0 | 0 | 21,552 |
| Operating loss | ‐18,959 | ‐9,757 | ‐117,381 |
| Financial net | 536 | ‐479 | 6,032 |
| LOSS FOR THE PERIOD | ‐18,423 | ‐10,236 | ‐111,349 |
| 2011 | 2010 | 2010 | |
|---|---|---|---|
| Amounts in TSEK Note |
Jan–Mar | Jan–Mar | Full year |
| Profit/loss for the period | ‐18,423 | ‐10,236 | ‐111,349 |
| Comprehensive income for the period | ‐18,423 | ‐10,236 | ‐111,349 |
| Attributable to: | |||
| Parent company's shareholders | ‐18,423 | ‐10,236 | ‐111,349 |
| TOTAL | ‐18,423 | ‐10,236 | ‐111,349 |
| Amounts in TSEK | Note | 31 Mar 2011 | 31 Mar 2010 | 31 Dec 2010 |
|---|---|---|---|---|
| Assets | ||||
| Non‐current assets | ||||
| Property, plant and equipment | 92 | 183 | 109 | |
| Shares in subsidiaries, joint ventures, associates and other financial investments |
4 | 743,870 | 695,174 | 731,370 |
| Other financial assets | 1,693 | 0 | 1,515 | |
| Total non‐current assets | 745,655 | 695,357 | 732,994 | |
| Current assets | ||||
| Trade receivables | 456 | 2,369 | 129, | |
| Group receivables | 69 | 22,400 | 2,072 | |
| Other receivables | 5 | 88,917 | 14,171 | 91,431 |
| Prepaid expenses and accrued income | 11,829 | 2,342 | 7,617 | |
| Short‐term investments | 78,633 | 250,908 | 136,607 | |
| Cash and cash equivalents | 102,297 | 162,362 | 73,208 | |
| Total current assets | 282,201 | 454,552 | 311,064 | |
| TOTAL ASSETS | 1,027,856 | 1,149,909 | 1,044,058 |
| Amounts in TSEK | Note | 31 Mar 2011 | 31 Mar 2010 | 31 Dec 2010 |
|---|---|---|---|---|
| Equity and liabilities | ||||
| Equity | ||||
| Issued capital | 6 | 16,666 | 16,576 | 16,666 |
| Retained earnings | ‐207,281 | ‐95,932 | ‐95,932 | |
| Share premium | 1,222,685 | 1,211,028 | 1,222,685 | |
| Loss for the period | ‐18,423 | ‐10,236 | ‐111,349 | |
| Total equity | 1,013,647 | 1,121,436 | 1,032,070 | |
| Liabilities | ||||
| Non‐current liabilities | ||||
| Pension obligations | 1,693 | 0 | 1,515 | |
| Total non‐current liabilities | 1,693 | 0 | 1,515 | |
| Current liabilities | ||||
| Trade payables | 2,417 | 2,387 | 991 | |
| Group liabilities | 665 | 21,552 | 660 | |
| Other payables | 3,336 | 864 | 3,535 | |
| Accrued expenses and deferred income | 6,098 | 3,670 | 5,287 | |
| Total current liabilities | 12,516 | 28,473 | 10,473 | |
| Total liabilities | 14,209 | 28,473 | 11,988 | |
| TOTAL EQUITY AND LIABILITIES | 1,027,856 | 1,149,909 | 1,044,058 |
| Amounts in TSEK | Note | 31 Mar 2011 | 31 Mar 2010 | 31 Dec 2010 |
|---|---|---|---|---|
| Pledged assets | 8 | 4,529 | None | 4,563 |
| Contingent liabilities | 8 | 1,900 | 600 | 2,100 |
| 6,429 | 600 | 6,663 |
| Restricted equity | Unrestricted equity | |||||
|---|---|---|---|---|---|---|
| Retained | Loss for the | |||||
| Amounts in TSEK | Note | Issued capital | Share premium | earnings | period | Total equity |
| Balance at 1 Jan 2011 | 16,666 | 1,222,685 | ‐95,932 | ‐111,349 | 1,032,070 | |
| Appropriation of loss | ‐111,349 | 111,349 | 0 | |||
| Loss for the year | ‐18,423 | ‐18,423 | ||||
| Total | 16,666 | 1,222,685 | ‐207,281 | ‐18,423 | 1,013,647 | |
| Balance at 31 Mar 2011 | 6 | 16,666 | 1,222,685 | ‐207,281 | ‐18,423 | 1,013,647 |
| Balance at 1 Jan 2010 | 16,576 | 1,211,658 | ‐5,665 | ‐90,267 | 1,132,302 | |
| Appropriation of loss | ‐90,267 | 90,267 | 0 | |||
| Loss for the year | ‐10,236 | ‐10,236 | ||||
| Total | 16,576 | 1,211,658 | ‐95,932 | ‐10,236 | 1,122,066 | |
| Share issue costs | ‐630 | ‐630 | ||||
| Balance at 31 Mar 2010 | 6 | 16,576 | 1,211,028 | ‐95,932 | ‐10,236 | 1,121,436 |
| Balance at 1 Jan 2010 | 16,576 | 1,211,658 | ‐5,665 | ‐90,267 | 1,132,302 | |
| Appropriation of loss | ‐90,267 | 90,267 | 0 | |||
| Loss for the year | ‐111,349 | ‐111,349 | ||||
| Total | 16,576 | 1,211,658 | ‐95,932 | ‐111,349 | 1,020,953 | |
| Share issues | 90 | 11,045 | 11,135 | |||
| Share issue costs | ‐631 | ‐631 | ||||
| Options | 613 | 613 | ||||
| Balance at 31 Dec 2010 | 6 | 16,666 | 1,222,685 | ‐95,932 | ‐111,349 | 1,032,070 |
This condensed consolidated interim financial statement has been prepared in accordance with International Accounting Standard ("IAS") 34, Interim Financial Reporting. The accounting policies applied to the Group and the parent company correspond, unless otherwise stated, to the accounting principles and methods of computation applied in the preparation of the previous annual report.
The new or revised IFRS standards and interpretations by IFRS Interpretation Committee Updates have had no impact on the Group or, to the extent that these recommendations shall be applied to legal entities, on income or financial position.
Net asset value per share: calculated fair value of the total portfolio, liquid assets and financial assets less interest bearing liabilities in relation to the number of shares outstanding.
First in class: the first approved medicine with a defined mechanism for a specific target or the specific disease.
Portfolio companies: companies owned fully or in part by Karolinska Development AB (subsidiaries, associates and other long‐term securities holdings) which operate within pharmaceuticals, medtech, theranostics and formulation technology.
Fair value: The NASDAQ OMX regulations for issuers state that companies listed on a public market which constitute groups shall apply International Financial Reporting Standards, IFRS. These standards are applied only in the consolidated financial statements. The application of these standards allows groups of investment company character to apply so‐called fair value in the calculation of assets' value. These calculations are made on the basis of established principles and are not included in the group's opening legal entity's accounting, nor do they affect the cash flows. This is exemplified by the parent company's assets not being taken up at fair value, rather at acquisition value.
Fair value is produced according International Private Equity and Venture Capital Valuation Guidelines. According to these guidelines, fair value can be calculated using different methods, dependent on which method is considered to provide to best estimation of market value for each separate case. For Karolinska Development, this implies that fair value in many of the portfolio companies is produced through the use of a model to calculate the value of discounted and risk‐adjusted cash flows. In other cases, Karolinska Development's total investments are used as the best estimation of fair value, and in some other cases, the valuation of the most recent transaction is used.
Karolinska Development considers the Board of Directors to be the highest operational decision‐making body in the Group since this is the function determining the allocation of resources to investments in portfolio companies and to the Parent Company. The Board of directors follows each investment at project level, as well as the Parent Company's results and financial position.
Karolinska Development's investments are primarily governed by the companies who are expected to generate the best returns. Regardless of the project's level of maturity, therapeutic area, whether the Company is active within pharmaceuticals or medical technology, the companies' respective projects are evaluated by Karolinska Development in the same manner and, therefore, all portfolio companies have been aggregated into one reportable segment.
Karolinska Development's segment measure of profit is the combined profit/loss from change in Fair value of portfolio companies, including those which are consolidated as subsidiaries. Karolinska Development monitors the investments based on the development of Fair value independently of level of influence over the investments. Therefore, subsidiaries, Joint Ventures, associated companies and other investments are monitored by the Board based on their Fair value, and not at their historical costs as subsidiaries are presented in the consolidated financial statements. All other accounting principles, applied in internal reporting correspond with the accounting principles of the Group, as described in Note 1.
| Results from fair value changes in portfolio companies |
||||
|---|---|---|---|---|
| 2011 | 2010 | 2011 | ||
| Amounts in TSEK | Jan‐Mar | Jan‐Mar | Full year | |
| Combined earnings from fair value changes in portfolio companies |
‐8,085 | 5,508 | ‐232,787 | |
| Group adjustments and eliminations | ‐4,241 | 13,222 | 6,998 | |
| Reported profit/loss from fair value changes | ‐12,326 | 18,730 | ‐225,789 |
Reconciliation of combined earnings from fair value changes in portfolio companies for segment and consolidated income before tax
| 2011 | 2010 | 2011 | |
|---|---|---|---|
| Amounts in TSEK | Jan‐Mar | Jan‐Mar | Full year |
| Reported earnings from fair value changes Consolidated profit before tax, excluding fair value |
‐12,326 | 18,730 | ‐225,789 |
| changes from associated companies, Joint Ventures and other financial investments |
‐28,753 | ‐18,622 | ‐113,492 |
| Consolidated profit/loss before tax | ‐41,079 | 108 | ‐339,281 |
| Fair value portfolio companies | ||||
|---|---|---|---|---|
| Amounts in TSEK | 31 Mar 2011 | 31 Mar 2010 | 31 Dec 2010 | |
| Combined fair value of participations in portfolio companies |
1,461,871 | 1,564,038 | 1,454,660 | |
| Group adjustments and eliminations | ‐231,349 | ‐139,385 | ‐209,108 | |
| The Group | 1,230,522 | 1,424,653 | 1,245,552 |
| Amounts in TSEK | 31 Mar 2011 | 31 Mar 2010 | 31 Dec 2010 |
|---|---|---|---|
| Combined fair value in portfolio company's reportable | |||
| segments | 1,461,871 | 1,564,038 | 1,454,660 |
| Less fair value of consolidated subsidiaries | ‐231,349 | ‐139,385 | ‐209,108 |
| The Group's other assets, excluding participations in | |||
| associated companies, Joint Ventures and other | |||
| financial investments | 506,757 | 642,656 | 528,075 |
| Total Group assets | 1,737,279 | 2,067,309 | 1,773,627 |
The Group's revenue is mainly comprised of invoiced services provided to the portfolio companies in Sweden. These services consist of management, communication, finance and administration, also including legal and analytical operations. Operations are conducted in, and the Group's assets are, in all material respects, located in, Sweden.
| Group | ||||
|---|---|---|---|---|
| Amounts in TSEK | 31 Mar 2011 | 31 Mar 2010 | 31 Dec 2010 | |
| Accumulated acquisition value | ||||
| At beginning of the year | 196,688 | 0 | 0 | |
| Acquisition of new subsidiaries | 0 | 150,412 | 196,688 | |
| Closing balance | 196,688 | 150,412 | 196,688 | |
| Accumulated depreciation, amortization and impairment |
||||
| At beginning of the year | ‐22,656 | 0 | 0 | |
| Impairment for the year | 0 | 0 | ‐22,656 | |
| Closing balance | ‐22,656 | 0 | ‐22,656 | |
| Carrying value | 174,032 | 150,412 | 174,032 |
| Group | ||||
|---|---|---|---|---|
| Amounts in TSEK | 31 Mar 2011 | 31 Mar 2010 | 31 Dec 2010 | |
| Accumulated acquisition value | ||||
| At beginning of the year | 8,141 | 28 | 28 | |
| Acquisition of new subsidiaries | 0 | 2,650 | 5,416 | |
| Acquisitions during the year | 216 | 34 | 2,697 | |
| Closing balance | 8,357 | 2,712 | 8,141 | |
| Accumulated depreciation, amortization and impairment |
||||
| At beginning of the year | ‐2,395 | 0 | 0 | |
| Depreciation and amortization for the year | ‐138 | 0 | ‐2,395 | |
| Closing balance | ‐2,533 | 0 | ‐2,395 | |
| Carrying value | 5,824 | 2,712 | 5,746 |
Assets with an indefinite useful life are not depreciated but are tested annually for any possible write‐down requirement. Assets which are depreciated are assessed with reference to the decrease in value whenever events or changes to conditions indicate that the carrying value may not be recoverable. As a result of the valuations regularly carried out, write‐down of goodwill has been made during 2010 and 2009, which refers primarily to the subsidiary Actar AB.
| Group | |||
|---|---|---|---|
| Amounts in TSEK | 31 Mar 2011 | 31 Mar 2010 | 31 Dec 2010 |
| Accumulated acquisition value | |||
| At beginning of the year | 1,711 | 1,711 | 1,711 |
| Closing balance | 1,711 | 1,711 | 1,711 |
| Accumulated write‐downs | |||
| At beginning of the year Depreciation, amortization and write‐downs for the |
‐1,711 | ‐525 | ‐525 |
| year | 0 | 0 | ‐1,186 |
| Impairments for the year | ‐1,711 | ‐525 | ‐1,711 |
| Carrying value | 0 | 1,186 | 0 |
| Total carrying value of intangible assets | 179,856 | 154,310 | 179,778 |
| Amounts in TSEK | Corporate identity number |
Registered office |
Activity | Ownership interest |
Ownership votes |
|---|---|---|---|---|---|
| Actar AB | 556593‐9856 | Solna | Biotechnological research and development |
99.96% | 99.96% |
| Akinion Pharmaceuticals AB | 556777‐0978 | Solna | Biotechnological research and development |
83.39% | 83.39% |
| ClanoTech AB | 556706‐6658 | Solna | Biotechnological research and development |
86.32% | 86.32% |
| Inhalation Sciences Sweden AB | 556665‐6038 | Solna | Biotechnological research and development |
68.75% | 68.75% |
| KCIF Fund Management AB | 556777‐9219 | Solna | Management responsibility for KCIF Co‐Investment Fund, KB |
37.50% | 37.50% |
| KD Incentive AB | 556745‐7675 | Solna | Management of incentive program |
100.00% | 100.00% |
| Limone AB | 556759‐9211 | Stockholm | Biotechnological research and development |
100.00% | 100.00% |
| NovaSAID AB | 556669‐2181 | Solna | Biotechnological research and development |
88.15% | 88.15% |
| Pharmanest AB | 556785‐1158 | Solna | Biotechnological research and development |
51.91% | 51.91% |
| SoftCure Pharmaceuticals AB | 556683‐9345 | Solna | Biotechnological research and development |
100.00% | 100.00% |
| Name | Parent company ownership interest | Carrying value in the parent company | ||||
|---|---|---|---|---|---|---|
| Amounts in TSEK | 31 Mar 2011 | 31 Mar 2010 | 31 Dec 2010 | 31 Mar 2011 | 31 Mar 2010 | 31 Dec 2010 |
| Actar AB | 99.96% | 99.96% | 99.96% | 6,844 | 28,396 | 6,844 |
| Akinion Pharmaceuticals AB | 83.39% | 70.10% | 78.64% | 28,070 | 8,070 | 18,070 |
| ClanoTech AB | 86.32% | 81.44% | 86.32% | 34,695 | 21,696 | 34,695 |
| Inhalation Sciences Sweden AB | 68.75% | ‐ | 66.62% | 19,738 | ‐ | 17,238 |
| KCIF Fund Management AB | 37.50% | ‐ | 37.50% | 43 | ‐ | 43 |
| KD Incentive AB | 100.00% | 100.00% | 100.00% | 100 | 100 | 100 |
| Limone AB | 100.00% | 85.29% | 100.00% | 1,500 | 3,575 | 0 |
| NovaSAID AB | 88.15% | 85.83% | 87.73% | 66,407 | 54,907 | 62,407 |
| Pharmanest AB (previously known as | ||||||
| Dilanest AB) | 48.56% | ‐ | 48.56% | 7,776 | ‐ | 7,776 |
| SoftCure Pharmaceuticals AB | 100.00% | 87.23% | 100.00% | 0 | 9,570 | 0 |
| Total book value | 165,173 | 126,314 | 147,173 | |||
| Total fair value | 231,349 | 139,385 | 209,108 |
| Group | |||
|---|---|---|---|
| Amounts in TSEK | 31 Mar 2011 | 31 Mar 2010 | 31 Dec 2010 |
| Accumulated fair value | |||
| At beginning of the year | 1,220,791 | 1,450,427 | 1,450,427 |
| Acquisitions during the year | 14,688 | 34,770 | 135,327 |
| Changes leading to reclassification as subsidiary | 0 | ‐112,713 | ‐139,264 |
| Sales associated companies | ‐20,394 | 0 | ‐17,881 |
| Changes leading to reclassification to other financial investments | ‐6,626 | 0 | 16,286 |
| Change of fair value in net profit/loss for the year | ‐8,535 | 19,996 | ‐224,104 |
| Closing balance | 1,199,924 | 1,392,480 | 1,220,791 |
| Group ownership interest1 | Carrying value in the Group | |||||
|---|---|---|---|---|---|---|
| Amounts in TSEK | 31 Mar 2011 | 31 Mar 2010 | 31 Dec 2010 | 31 Mar 2011 | 31 Mar 2010 | 31 Dec 2010 |
| Aprea AB | 42.08% | 43.18% | 43.18% | 39,629 | 36,485 | 36,485 |
| Athera Biotechnologies AB | 62.04% | 61.20% | 69.07% | 66,037 | 43,038 | 78,097 |
| Avaris AB | 68.40% | 64.27% | 67.75% | 53,650 | 43,851 | 51,850 |
| BioChromix Pharma AB | 50.34% | 42.77% | 50.34% | 9,350 | 6,350 | 9,350 |
| Bioneris AB | 26.31% | 26.84% | 26.31% | 0 | 5,983 | 0 |
| Biosergen AS | 50.97% | 48.21% | 50.97% | 15,114 | 13,588 | 15,114 |
| Calabar International AB | 63.17% | 63.17% | 63.17% | 0 | 19,731 | 0 |
| Cogmed Systems AB** | ‐ | 51.83% | ‐ | ‐ | 46,920 | ‐ |
| Dilafor AB | 54.02% | 52.38% | 53.60% | 83,830 | 67,928 | 79,830 |
| Eribis Pharmaceuticals AB | 39.02% | 33.77% | 39.02% | 10,970 | 8,240 | 10,970 |
| HBV Theranostica AB | 70.73% | 66.36% | 70.73% | 2,190 | 1,790 | 2,190 |
| IMED AB | 57.38% | 48.91% | 57.38% | 45,307 | 30,807 | 45,307 |
| Inhalation Sciences Sweden AB*** | ‐ | 59.97% | ‐ | ‐ | 11,180 | ‐ |
| KCIF Fund Management AB*** | ‐ | 37.50% | ‐ | ‐ | 43 | ‐ |
| Lipidor AB | 30.01% | 20.00% | 30.01% | 4,003 | 1,200 | 4,003 |
| NeoDynamics AB* | 22.58% | ‐ | 22.58% | 7,551 | ‐ | 7,551 |
| NT‐NeuroTheraputics AB (in liquidation) | 51.85% | 51.85% | 51.85% | 0 | 0 | 0 |
| Oncopeptides AB | 42.32% | 42.32% | 42.32% | 18,536 | 18,536 | 18,536 |
| OncoReg AB | 88.91% | 88.91% | 88.91% | 0 | 0 | 0 |
| Pergamum AB | 59.81% | 63.53% | 59.75% | 103,014 | 102,786 | 102,786 |
| Pharmanest AB, previously known as Dilanest AB |
‐ | 37.83% | ‐ | ‐ | 3,031 | ‐ |
| Promimic AB | 24.50% | 24.69% | 24.50% | 8,101 | 5,500 | 8,101 |
| Pronoxis AB* | 14.16% | ‐ | 14.16% | 3,000 | ‐ | 3,000 |
| Umecrine Cognition AB | 40.00% | 40.00% | 40.00% | 7,000 | 7,000 | 7,000 |
| Umercine Mood AB | 41.88% | 43.00% | 43.00% | 21,253 | 22,530 | 22,530 |
| Xspray Microparticles AB | 59.81% | 59.20% | 64.85% | 27,872 | 21,246 | 32,172 |
| Group ownership interest1 | Carrying value in the Group | |||||
|---|---|---|---|---|---|---|
| Amounts in TSEK | 31 Mar 2011 | 31 Mar 2010 | 31 Dec 2010 | 31 Mar 2011 | 31 Mar 2010 | 31 Dec 2010 |
| Holdings in Pergamum AB | ||||||
| Laurantis Pharma OY | 9.80% | 22.66% | 9.80% | ‐ | ‐ | ‐ |
| DermaGen AB | 100.00% | 51.28% | 100.00% | ‐ | ‐ | ‐ |
| Lipopeptide AB | 100.00% | 57.79% | 100.00% | ‐ | ‐ | ‐ |
| OmnioHealer AB | 53.82% | 34.13% | 53.82% | ‐ | ‐ | ‐ |
| PharmaSurgics in Sweden AB | 100.00% | 49.01% | 100.00% | ‐ | ‐ | ‐ |
| Total book value | 526,407 | 517,763 | 534,872 | |||
Total fair value 1,007,066 1,251,869 1,034,086
1) Ownership interest corresponds to ownership votes
* The above company has been reclassified from financial investments
** Have been divested during the year 2010
*** The above company has, during the year, been reclassified to a subsidiary as of 1 January 2010, as a result of Karolinska Development changing its influence over this company
| Name | Group ownership interest1 | Carrying value in the Group | ||||
|---|---|---|---|---|---|---|
| Amounts in TSEK | 31 Mar 2011 | 31 Mar 2010 | 31 Dec 2010 | 31 Mar 2011 | 31 Mar 2010 | 31 Dec 2010 |
| Axelar AB | 44.98% | 44.98% | 44.98% | 28,342 | 28,342 | 28,342 |
| Cytoguide | ‐ | ‐ | 11.00% | ‐ | ‐ | 3,300 |
| KCIF Fund KB | 26.00% | 26.00% | 26.00% | 7,439 | 2,555 | 7,476 |
| Total book value | 35,781 | 30,897 | 39,118 | |||
| Total fair value | 192,858 | 140,611 | 186,705 | |||
| 1) Ownership interest corresponds to ownership votes |
||||||
| Total fair value of Joint Ventures and | ||||||
| associated companies | 1,199,924 | 1,392,480 | 1,220,791 |
| Group | ||||
|---|---|---|---|---|
| Amounts in TSEK | 31 Mar 2011 | 31 Mar 2010 | 31 Dec 2010 | |
| Accumulated fair value | ||||
| At beginning of the year | 24,761 | 33,439 | 33,439 | |
| Additions | 3,002 | 2,555 | 9,293 | |
| Reclassifications to associates | 0 | ‐2,555 | ‐16,286 | |
| Reclassifications from associates | 6,626 | 0 | 0 | |
| Changes in fair value through profit or loss | ‐3,791 | ‐1,266 | ‐1,685 | |
| Total fair value | 30,598 | 32,173 | 24,761 |
| Name | Group ownership interest | Carrying value in the Group | ||||
|---|---|---|---|---|---|---|
| Amounts in TSEK | 31 Mar 2011 | 31 Mar 2010 | 31 Dec 2010 | 31 Mar 2011 | 31 Mar 2010 | 31 Dec 2010 |
| BioArctic NeuroScience AB | 3.17% | 3.17% | 3.17% | 600 | 600 | 600 |
| BioChromix AB | 8.00% | ‐ | ‐ | 2,002 | ‐ | ‐ |
| Bioresonator AB | 7.62% | 5.35% | 7.62% | 2,500 | 1,500 | 2,500 |
| Cytoguide | 9.06% | ‐ | ‐ | 3,300 | ‐ | ‐ |
| Independent Pharmaceutica AB | 5.98% | 5.98% | 5.98% | 0 | 0 | 0 |
| InDex Pharmaceuticals AB | 0.003% | 0.003% | 0.003% | 0 | 0 | 0 |
| NephroGenex Inc. | 0.58% | 0.58% | 0.58% | 709 | 709 | 709 |
| NeoDynamics AB | ‐ | 18.51% | ‐ | ‐ | 4,998 | ‐ |
| Pronoxis AB | ‐ | 9.68% | ‐ | ‐ | 1,500 | ‐ |
| Umecrine AB | 10.41% | 10.01% | 10.01% | 7,398 | 6,398 | 6,398 |
| Total book value | 16,509 | 20,201 | 10,207 | |||
| Total fair value | 30,598 | 32,173 | 24,761 | |||
| Total book value in subsidiaries, Joint Ventures, associated companies and |
||||||
| other financial investments | 743,870 | 695,174 | 731,370 | |||
| Total fair value in subsidiaries, Joint | ||||||
| Ventures, associated companies and other financial investments |
1,461,871 | 1,564,038 | 1,454,660 |
¹ The fair values of the subsidiaries are not disclosed in the balance sheet. The subsidiaries are consolidated and therefore acquired assets and liabilities are disclosed, of which the majority are comprised of intangible assets.
| Group | Parent Company | |||||
|---|---|---|---|---|---|---|
| Amounts in TSEK | 31 Mar 2011 | 31 Mar 2010 | 31 Dec 2010 | 31 Mar 2011 | 31 Mar 2010 | 31 Dec 2010 |
| Receivable from affiliates | 83,325 | 34,422 | 83,870 | 83,325 | 9,425 | 83,870 |
| Tax receivable | 726 | 150 | 276 | 646 | 150 | 145 |
| VAT receivable | 3,523 | 2,230 | 2,850 | 2,050 | 1,004 | 1,369 |
| Current portion of restricted cash funds | 2,837 | 0 | 5,879 | 2,837 | 0 | 5,879 |
| Other | 179 | 8,505 | 179 | 59 | 3,592 | 168 |
| Total | 90,590 | 45,307 | 93,054 | 88,917 | 14,171 | 91,431 |
| Year | Transaction | Increase in number of shares |
Increase in share capital |
Share capital | Number of A shares |
Number of B shares |
Subscripti on price |
Par value |
|---|---|---|---|---|---|---|---|---|
| March 2006 | Founding of the company |
100,000 | 100,000 | 100,000 | 100,000 | 1 | 1 | |
| June 2007 | Bonus issue | 400,000 | 400,000 | 500,000 | 500,000 | 1 | ||
| October 2007 | Split | 500,000 | 0 | 500,000 | 1,000,000 | 0.5 | ||
| Total per 31 December 2007 | 1,000,000 | 1,000,000 | 0 | 0.5 | ||||
| January 2008 | Non‐cash issue |
23,350,205 | 11,675,10 2 |
12,175,102 | 1,366,453 | 22,983,752 | 60 | 0.5 |
| May 2008 | New issue | 55,000 | 27,500 | 12,202,602 | 1,366,453 | 23,038,752 | 60 | 0.5 |
| August 2008 | New issue | 139,783 | 69,892 | 12,272,494 | 1,366,453 | 23,178,535 | 60 | 0.5 |
| December 2008 | New issue | 1,637,828 | 818,914 | 13,091,408 | 1,503,098 | 24,679,718 | 60 | 0.5 |
| Total per 31 December 2008 | 26,182,816 | 1,503,098 | 24,679,718 | 0.5 | ||||
| January 2009 | New issue | 816,670 | 408,335 | 13,499,743 | 1,503,098 | 25,496,388 | 60 | 0.5 |
| December 2009 | New issue | 5,610,507 | 2,805,254 | 16,304,997 | 1,503,098 | 31,106,895 | 62, | 0.5 |
| Total per 31 December 2009 | 32,609,993 | 1,503,098 | 31,106,895 | 0.5 | ||||
| January 2010 | New issue | 541,824 | 270,912 | 16,575,909 | 1,503,098 | 31,648,719 | 62, | 0.5 |
| April 2010 | New issue | 179,600 | 89,800 | 16,665,709 | 1,503,098 | 31,828,319 | 62, | 0.5 |
| Total per 31 December | ||||||||
| 2010 | 33,331,417 | 16,665,709 | 1,503,098 | 31,828,319 | 0.5 | |||
| Total per 31 March 2011 | 33,331,417 | 16,665,709 | 1,503,098 | 31,828,319 | 0.5 |
Karolinska Development has issued share options through its subsidiary KD Incentive AB under three separate sequential programs and three supplemental programs, granting the entitlement to subscription to a maximum of 121,750 shares at a strike price of SEK 91.1 per share (option program 2008), to a maximum of 13,246 shares at a strike price of SEK 120 per share (supplemental options no. 1 regarding option program 2008), to a maximum of 28,149 shares at a strike price of SEK 93 (supplemental options no. 2 regarding option program 2008), to a maximum of 72,075 shares at a strike price of SEK 120 per share (option program 2009), to a maximum of 11,625 shares at a strike price of SEK 93 (supplemental options regarding option program 2009) and to a maximum of 78,888 shares at a strike price of SEK 124 regarding the option program 2010.
As of 30 June 2010, subscriptions have been made, in the above mentioned order, of 163,145 options, 83,700 options and 78,888 options regarding the three separate sequential programs. This will dilute existing shareholders to the extent that the market price of the shares exceeds the strike price for the shares associated with the options. Subscription of the shares may be exercised during the period 1 October 2012 to 31 December 2012 regarding option program 2008 and supplemental options, 1 October 2013 to 31 December 2013 regarding option program 2009 and supplemental options, and 1 October 2014 to 31 December 2014 regarding
option program 2010. The number of shares which may be subscribed under these programs are limited to a maximum of 1 % of the total shares outstanding.
The company has a commitment to offer the owners of the share options the right to subscribe for supplemental options at future share issues, as a protection against dilution. Therefore, the subscription right holders will, within the framework of the three various sub‐programmes, be offered to subscribe for supplementary options as a result of the new issue carried out during April 2011.
| Group | |||
|---|---|---|---|
| Amounts in TSEK | 31 Mar 2011 | 31 Mar 2010 | 31 Dec 2010 |
| Intangible assets¹ | ‐45,770 | ‐39,558 | ‐45,770 |
| Tax loss carry forwards² | 15,110 | 9,543 | 11,575 |
| Deferred tax receivables / liabilities, net | ‐30,660 | ‐30,015 | ‐34,195 |
1 Represents deferred tax liability related to fair value adjustment of ongoing project development in acquisitions of subsidiaries ² Deferred tax assets on fiscal deficits are recognized to the extent that they can be deducted from future taxable income in acquired subsidiaries or, alternatively, be set off against surplus value in the Group
| Group | Parent Company | ||||||
|---|---|---|---|---|---|---|---|
| Amounts in TSEK | 31 Mar 2011 | 31 Mar 2010 | 31 Dec 2010 | 31 Mar 2011 | 31 Mar 2010 | 31 Dec 2010 | |
| Collaterals and contingent liabilities |
|||||||
| Escrow account Cogmed | 2,837 | 0 | 3,048 | 2,837 | 0 | 3,048 | |
| Capital insurance | 1,692 | 0 | 1,515 | 1,692 | 0 | 1,515 | |
| 4,529 | 0 | 4,563 | 4,529 | 0 | 4,563 | ||
| Investment commitments | |||||||
| Uminova | 400 | 600 | 600 | 400 | 600 | 600 | |
| Biocelex | 1,500 | 0 | 1,500 | 1,500 | 0 | 1,500 | |
| 1,900 | 600 | 2,100 | 1,900 | 600 | 2,100 | ||
| TOTAL | 6,429 | 600 | 6,663 | 6,429 | 600 | 6,663 |
Certain individual pension commitments have been guaranteed by company owned so called capital insurance policies. The company has no further commitment to cover any decrease in value in the capital insurance policy or to make any payments in addition to the policy premiums paid. Consequently, the company has deemed these pension plans as fixed amount pension plans. As such the payments of policy premiums are equivalent to the total commitment to the employee. In accordance with IAS 19 and the rules regarding fixed amount pension plans, the company therefore does not record any asset or liability, with the exception of the special salary tax, related to these insurance policies.
In January 2008, Karolinska Development and Karolinska Institutet Innovations AB (KIAB) entered a deal flow agreement aimed towards ensuring Karolinska Development's access to research projects via KIAB's flow of innovations from researchers at Karolinska Institutet and other research institutions in the Nordic region. Through the agreement, the Company has the right of first refusal to all projects evaluated by KIAB. The agreement is valid up to and including January 2017 and is, thereafter, if not terminated at the latest three years prior to this, extended indefinitely with a period of notice of three years. For each research project Karolinska Development becomes involved in, KIAB has the right to remuneration amounting to KIAB's internal costs regarding said project increased by 100 percent, plus external costs increased by 10 percent. In addition to this, KIAB is entitled to a so‐called success fee equivalent to 6 percent of Karolinska Development's accumulated net profit before financial items and tax as of 1 January 2008. No success fee is payable until before accumulated net profit amounts to a minimum of SEK 652m, after which only excess amounts will provide the basis for the calculation. A condition of the base for the calculation is that accumulated net profit shall be cash flow positive.
Commitments existing at the end of the respective period regarding compensation for creating additional investment opportunities, in accordance with contractual engagements. No commitments relating to further funding in portfolio companies are in place.
| Parent Company | |||||
|---|---|---|---|---|---|
| 2011 | 2010 | 2010 | |||
| Amounts in TSEK | Jan–Mar | Jan–Mar | Full year | ||
| Investments in subsidiaries | |||||
| Akinion Pharmaceuticals AB | 10,000 | 0 | 10,000 | ||
| ClanoTech AB | 0 | 3,000 | 16,000 | ||
| Inhalation Sciences Sweden AB | 2,500 | 0 | 6,058 | ||
| Limone AB | 1,500 | 0 | 0 | ||
| NovaSAID AB | 4,000 | 7,500 | 15,000 | ||
| Pharmanest AB, fd Dilanest AB | 0 | 0 | 388 | ||
| SoftCure Pharmaceuticals AB | 0 | 1,000 | 1,000 | ||
| Total investments in subsidiaries | 18,000 | 11,500 | 48,446 | ||
| Investments in Joint Ventures and associated companies | |||||
| Aprea AB | 5,9001 | 0 | 0 | ||
| Athera Biotechnologies AB | 0 | 9,609 | 44,668 | ||
| Avaris AB | 1,800 | 2,000 | 10,000 | ||
| Axelar AB | 0 | 7,876 | 7,875 | ||
| BioChromix Pharma AB | 0 | 0 | 3,000 | ||
| Biosergen AS | 0 | 0 | 1,526 | ||
| Dilafor AB | 4,000 | 5,000 | 16,903 | ||
| Eribis Pharmaceuticals AB | 0 | 0 | 2,730 | ||
| HBV Theranostica AB | 0 | 0 | 400 | ||
| IMED AB | 0 | 0 | 14,500 | ||
| KCIF Fund KB | 2,760 | 0 | 4,921 | ||
| Lipidor AB | 0 | 0 | 2,803 | ||
| Pergamum | 228 | 0 | 0 | ||
| Pharmanest AB, fd Dilanest AB | 0 | 3,000 | 7,745 | ||
| Promimic AB | 0 | 0 | 2,600 | ||
| Umecrine Mood AB | 0 | 4,730 | 4,730 | ||
| Xspray Microparticles AB | 0 | 0 | 10,927 | ||
| Total investments in Joint Ventures and | |||||
| associated companies | 14,688 | 32,215 | 135,327 | ||
| Investments in other financial assets | |||||
| BioCromix AB | 2,002 | 0 | 0 | ||
| Bioresonator AB | 0 | 0 | 1,000 | ||
| CytoGuide ApS | 0 | 0 | 1,685 | ||
| KCIF Fund KB | 0 | 2,555 | 2,555 | ||
| NeoDynamics AB | 0 | 0 | 2,553 | ||
| ProNoxis AB | 0 | 0 | 1,500 | ||
| Umecrine AB | 1,000 | 0 | 0 | ||
| Total investments in other financial assets | 3,002 | 2,555 | 9,293 | ||
| Total investments | 35,690 | 46,270 | 193,066 |
1 Refers to the conversion of previous lending
Karolinska Development AB (publ) Interim report 31 March 2011
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.