Interim / Quarterly Report • Aug 23, 2012
Interim / Quarterly Report
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Corporate Identity Number 556707-5048
Karolinska Development aims to create value by developing and commercializing the projects in the portfolio companies. Ongoing efforts to find potential partners and licensees for selected portfolio companies remain intensive and are facilitated as the projects reach more mature development stages and positive data are generated. At this point, eleven of Karolinska Development's projects in the active company portfolio are in clinical trials to provide us with the necessary information prior to their further development.
During the second quarter, many of the companies progressed significantly in the clinical development of its products. Pharmanest took its SHACT project from preclinical development to Phase II within pain relief. To date, around half the patients have been dosed in Axelar's clinical Phase II trial with AXL1717 against lung cancer. Data from this trial is expected in 2013. In addition, in Pergamum's Phase II trial of DPK-060 against external otitis, the final patient recruitment is ongoing and data is expected by the end of 2012. The trials with sevuparin (Dilaforette) against malaria and AKN-028 (Akinion Pharmaceuticals) against acute myeloid leukemia are proceeding according to plan. Where studies produce positive outcomes, we expect to be able to sell the companies or license out the projects.
While the hope is naturally that the results of the clinical trials will increase the projects' attractiveness to potential licensing partners and buyers, negative outcomes are commonplace for research companies. We continue to closely evaluate the project portfolio, so that we can allocate our resources to the most promising projects and thereby maximize our long-term return. Our assessment is that we will be able to commercialize parts of our portfolio during 2012.
Torbjörn Bjerke Chief Executive Officer
Group
| 2012 | 2011 | 2012 | 2011 | |
|---|---|---|---|---|
| Amounts in SEKm | Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun |
| Income statement | ||||
| Revenue | 3.1 | 2.3 | 5.5 | 5.2 |
| Profit/loss after tax | -100.1 | -93.2 | -189.2 | -130.8 |
| Earnings per share before and after dilution (SEK) | -1.83 | -1.92 | -3.52 | -3.09 |
| Balance sheet | ||||
| Cash and cash equivalents | 170.3 | 162.1 | ||
| Short-term investments | 291.1 | 577.5 | ||
| Share information | ||||
| Net asset value per share (SEK) (Note 5) | 42.5 | 49.6 | ||
| Share price, last trading day in the reporting period (SEK) | 19.5 | 29.4 | ||
| Portfolio information | ||||
| Investments in portfolio companies* (Note 7) | 37.7 | 190.6 | 115.7 | 226.2 |
| Of which investments not affecting cash flow (Note 7) | - | 78.2 | - | 84.1 |
| Valuation of total portfolio holdings (Note 2) | 1,564.4 | 1,652.1 |
* Portfolio companies comprise subsidiaries, joint ventures, associated companies and other long-term securities holdings
Pharmanest announced in April that the first patient had been dosed in an open label pharmacokinetic study with its drug candidate SHACT, a product developed for pain relief in connection with intrauterine device (IUD) insertion. The objective of the study is to establish the pharmacokinetic properties of SHACT when applied in the cervix and uterus of women receiving an IUD. Secondary objectives are to evaluate safety and tolerability.
In June, Pharmanest announced that the first patient had been dosed in a randomized, double blind Phase II study with SHACT. The objective of the Phase II study is to evaluate the efficacy of SHACT in connection with IUD insertion in women. The trial is expected enroll around 200 patients. Secondary objectives include evaluating safety and tolerability. Karolinska Development AB owns 59 percent of Pharmanest AB.
Karolinska Development AB and Industrifonden signed an agreement whereby Industrifonden will exchange Karolinska Development AB's shares in Oncopeptides AB for its shares in Aprea AB. After the transaction, Karolinska Development AB will own a total of 69.4 percent of Aprea AB. Through the transaction Karolinska Development AB will also receive 5 percent of Industrifonden's revenue from Oncopeptides up to SEK 80m, while Industrifonden receives 5 percent of any revenue Karolinska Development receives from Aprea AB up to SEK 80m.
Karolinska Development AB and Industrifonden have been majority shareholders in both Aprea AB and Oncopeptides AB for several years. During this time, both companies have reached Phase I/II stage of clinical development, and both have promising future potential.
In July, Pergamum AB, a Karolinska Development portfolio company, announced top-line results from the randomized clinical Phase II trial of PXL-01 for prevention of post-surgical adhesions. The study showed that the drug was safe and well tolerated. Although the primary end point of the study was not met, the data suggests that PXL-01 may improve hand mobility following surgery. The patients are currently being monitored and an evaluation will be made after six and twelve months. During the reporting period, the carrying amount of the company was written down after the results of the trial proved inconclusive. Karolinska Development AB owns 62 percent of Pergamum.
| PHARMACEUTICALS | Ownership* | Concept development |
Lead discovery |
Lead optimization |
Preclinical development |
Phase I | Phase II | Phase III | Launch |
|---|---|---|---|---|---|---|---|---|---|
| ONCOLOGY | |||||||||
| Axelar AB | 45% | ||||||||
| Aprea AB | 41% | ||||||||
| Oncopeptides AB | 43% | ||||||||
| KDev Oncology AB (AKN-028) | 90% | ||||||||
| KDev Oncology AB (GliGene) | 29% | ||||||||
| DERMATOLOGY AND WOUND HEALING | |||||||||
| Pergamum AB (DPK-060, atopic dermatitis) | 62% | ||||||||
| Pergamum AB (DPK-060, external otitis) | 62% | ||||||||
| Pergamum AB (PXL01) | 62% | ||||||||
| Pergamum AB (LL-37) | 62% | ||||||||
| WOMEN'S HEALTH | |||||||||
| Dilafor AB | 55% | ||||||||
| Pharmanest AB | 59% | ||||||||
| Umecrine Mood AB | 43% | ||||||||
| INFECTIOUS DISEASE Dilaforette AB |
62% | ||||||||
| Biosergen AS | 60% | ||||||||
| CARDIOVASCULAR | |||||||||
| Athera Biotechnologies AB (Annexin A5) | 65% | ||||||||
| Athera Biotechnologies AB (PC-mAb) | 65% | ||||||||
| CNS | |||||||||
| BioChromix Pharma AB | 70% | ||||||||
| Umecrine Cognition AB | 54% | ||||||||
| INFLAMMATION NovaSAID AB |
89% | ||||||||
| ProNoxis AB | 22% | ||||||||
| OPHTHALMOLOGY | |||||||||
| Clanotech AB | 88% | ||||||||
| TECHNOLOGY | Ownership* | Concept development | Prototype | Development | Product | Sales | |||
| IMPLANTS Promimic AB |
28% | ||||||||
| OSS-Q AB | 16% | ||||||||
| DIAGNOSTIKS | |||||||||
| Athera Biotechnologies AB (CVDefine®) | 65% | ||||||||
| BioChromix AB | 14% | ||||||||
| PHARMACEUTICAL FORMULATION | |||||||||
| Inhalation Sciences Sweden AB | 72% | ||||||||
| XSpray Microparticles AB | 62% | ||||||||
| Lipidor AB | 46% | ||||||||
| MEDICAL EQUIPMENT | |||||||||
| NeoDynamics AB (Fourier/AS) | 21% | ||||||||
| NeoDynamics AB (Terapi/PRFA) | 21% | ||||||||
| FINANCIAL/PASSIVE INVESTMENTS | |||||||||
| PHARMACEUTICALS | Ownership* | Concept development |
Lead discovery |
Lead optimization |
Preclinical development |
Phase I | Phase II | Phase III | Launch |
Solid colored area = completed phase *Includes indirect ownership Shaded colored area = ongoing phase
Consolidated revenue during the first half-year 2012 amounted to SEK 5.5m, compared with SEK 5.2m in the same period in 2011.
The Group's operating loss for the first half-year amounted to SEK -202.5m (-131.6), a change of SEK -70.9m year-on-year. The increased loss was mainly due to the portion of the change in fair value affecting income, which amounted to SEK -123.4m (-62.9) during the six-month period, as well as increased development costs in subsidiaries. As indicated in Note 2, the value of companies reported as subsidiaries appreciated by SEK 25.3m (57.2) during the first half-year. Changes in the fair value of subsidiaries are not recognized in the consolidated income statement and statement of financial position, since the subsidiaries are consolidated and therefore are not measured at fair value.
The Group's loss before tax amounted to SEK -196.8m (-139.2) during the first half-year.
The Group's operating loss for the second quarter amounted to SEK -107.3m (-90.0), a change of SEK -17.3m year-on-year. The increased loss was mainly due to the portion of the change in fair value affecting income, which amounted to SEK -60.9m (-50.5) during the second quarter, as well as increased development costs in subsidiaries. As indicated in Note 2, the value of companies reported as subsidiaries appreciated by SEK 6.5m (53.0) during the second quarter.
The Group's loss before tax amounted to SEK -105.0m (-98.1) during the second quarter.
The Group's investments for the first half-year 2012 amounted to SEK 115.7m (226.2).
The largest investments (SEKm) during the first half-year were in Axelar AB at SEK 25.0m, Athera Biotechnologies AB at SEK 19.0m and the KDev Oncology AB Group at SEK 18.0m (of which SEK 15.0m was invested in Akinion Pharmaceuticals AB and SEK 3.0m in GliGene AB).
The Group's investments during the second quarter amounted to SEK 37.7m (190.6).
The largest investments (SEKm) during the second quarter were in the KDev Oncology AB Group at SEK 18.0m, Inhalation Sciences Sweden AB at SEK 4.0m and Lipidor at SEK 4.0m.
The Group's equity to total assets ratio was 92 percent (93) on 30 June 2012 and equity amounted to SEK 1,986.3m (2,173.9).
Cash, cash equivalents and short-term investments amounted to SEK 461.4m (620.6) on 30 June 2012.
Total assets amounted to SEK 2,251.9m (2,345.9) on 30 June 2012.
* Comparable figures refer to 31 December 2011
The Parent Company's revenue during the first half-year 2012 amounted to SEK 1.7m (1.4).
The Parent Company's operating loss for the first half-year amounted to SEK -139.1m (-96.7), a change of SEK -42.4m year-on-year. The increased loss is mainly the result of impairment of the holdings in Pergamum AB (SEK -104.8m), KDev Exploratory AB (formerly Actar AB) (SEK -3.4m), Limone AB (SEK -2.2m) and Avaris AB (SEK -0.5m). The impairment related to Pergamum AB was recognized after the results of the randomized clinical Phase II trial of PXL-01 for prevention of post-surgical adhesions proved inconclusive.
The Parent Company's net loss amounted to SEK -132.9m (-104.7) during the first half-year.
The Parent Company's operating loss for the second quarter amounted to SEK -123.7m (-77.8), a change of SEK -45.9m year-on-year. The increased loss is mainly the result of higher impairment losses.
The Parent Company's net loss was SEK -121.4m (-86.3) during the second quarter.
The Parent Company invested a total of SEK 66.8m (69.0) in subsidiaries during the first half-year. The largest investments (SEKm) were in Axelar AB at SEK 25,0, the KDev Oncology AB Group at SEK 18.0m (of which SEK 15.0m was invested in Akinion Pharmaceuticals AB and SEK 3.0m in GliGene AB) and KDev Exploratory AB (formerly Actar AB) at SEK 10.0m.
The Parent Company invested SEK 47.4m (154.2) in associated companies and joint ventures during the first half-year. The largest investments (SEKm) were in Athera Biotechnologies AB at SEK 19.0 and in Dilaforette Holding AB at SEK 10.0m (of which SEK 10.0m was invested in Dilaforette AB).
The Parent Company invested SEK 1.5m (3.0) in other long-term securities holdings during the first half-year.
During the second quarter, the Parent Company invested a total of SEK 37.7m (190.6). The largest investments (SEKm) were in the KDev Oncology AB Group at SEK 18.0m, Inhalation Sciences Sweden AB at SEK 4.0m and Lipidor at SEK 4.0m.
Companies active in pharmaceutical development and medical technology at an early phase are, by their very nature, difficult to value, as lead times are very long and the development risks are high. Due to the uncertainty in these assessments, the estimated value of the portfolio may deviate substantially from the future generated value.
Risks and uncertainties are primarily associated with investments in portfolio companies and the development of projects in these companies. The operations of the portfolio companies consist of the development of early stage pharmaceutical projects. By their very nature, such operations are distinguished by very high risk and great uncertainty in terms of results.
Financial risks consist of investments in portfolio companies as well as risks in the management of liquid assets.
Future investments in new and current portfolio companies will require capital. There is no guarantee that such capital can be obtained on favorable terms or that such capital can be obtained at all.
For a description of other risks and uncertainties, refer to the annual report 2011.
The Board of Directors and the CEO hereby certify that this interim report gives a true and fair view of the operations, financial position and results of operations of the Parent Company and the Group and describes the material risks and uncertainties faced by the Parent Company and the companies included in the Group.
Solna, 22 August 2012
Chairman
Hans Wigzell Per–Olof Edin Rune Fransson
Charlotte Edenius Vlad Artamonov Klaus Wilgenbus
Raymond Hill Torbjörn Bjerke CEO
Interim report January – September 2012 22 November 2012 Year-end report January – December 2012 February 2013 Annual report 2012 April 2013
Karolinska Development is required to make public the information in this interim report in accordance with the Securities Market Act. The information was released for publication on 23 August 2012.
This interim report, together with additional information, is available on Karolinska Development's website, www.karolinskadevelopment.com
Torbjörn Bjerke, CEO +46 (0) 72 744 41 23
Robin Wright, CFO +44 7720 300 025
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.
| 2012 | 2011 | 2012 | 2011 | 2011 | ||
|---|---|---|---|---|---|---|
| Amounts in SEK 000 | Note | Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Full-year |
| Revenue | 3,074 | 2,278 | 5,549 | 5,179 | 10,479 | |
| Other external expenses | -32,927 | -24,212 | -52,931 | -42,370 | -104,056 | |
| Personnel costs | -15,684 | -16,350 | -29,760 | -29,981 | -59,871 | |
| Depreciation and amortization of tangible and intangible non-current assets |
-957 | -1,193 | -1,948 | -1,599 | -3,431 | |
| Change in fair value of shares in joint ventures and associated companies |
2 | -60,126 | -57,360 | -122,509 | -65,895 | -236,621 |
| Change in fair value of other long-term securities holdings |
2 | -726 | 6,822 | -925 | 3,031 | -7,175 |
| Operating loss | -107,346 | -90,015 | -202,524 | -131,635 | -400,675 | |
| Financial net | 3 | 2,324 | -8,128 | 5,722 | -7,587 | -4,985 |
| Loss before tax | 2 | -105,022 | -98,143 | -196,802 | -139,222 | -405,660 |
| Deferred taxes | 4,936 | 4,921 | 7,597 | 8,456 | 19,987 | |
| Current taxes | 0 | 0 | 0 | 0 | 0 | |
| NET LOSS FOR THE PERIOD | -100,086 | -93,222 | -189,205 | -130,766 | -385,673 | |
| Attributable to: | ||||||
| Parent Company's shareholders | -88,912 | -86,612 | -170,813 | -121,149 | -354,147 | |
| Non-controlling interests | -11,174 | -6,610 | -18,392 | -9,617 | -31,526 | |
| TOTAL | -100,086 | -93,222 | -189,205 | -130,766 | -385,673 | |
| 2012 | 2011 | 2012 | 2011 | 2011 | ||
|---|---|---|---|---|---|---|
| Amounts in SEK 000 | Note | Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Full-year |
| Earnings per share attributable to Parent Company's shareholders, weighted average, before and after dilution |
-1.83 | -1.92 | -3.52 | -3.09 | -8.07 | |
| Number of shares, weighted average | 5 | 48,531,417 | 45,023,025 | 48,531,417 | 39,209,870 | 43,908,951 |
| 2012 | 2011 | 2012 | 2011 | 2011 | |
|---|---|---|---|---|---|
| Amounts in SEK 000 Note |
Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Full-year |
| Net loss for the period | -100,086 | -93,222 | -189,205 | -130,766 | -385,673 |
| Total comprehensive income for the period | -100,086 | -93,222 | -189,205 | -130,766 | -385,673 |
| Attributable to: | |||||
| Parent Company's shareholders | -88,912 | -86,612 | -170,813 | -121,149 | -354,147 |
| Non-controlling interests | -11,174 | -6,610 | -18,392 | -9,617 | -31,526 |
| TOTAL | -100,086 | -93,222 | -189,205 | -130,766 | -385,673 |
| Amounts in SEK 000 | Note | 30 June 2012 | 30 June 2011 | 31 Dec 2011 |
|---|---|---|---|---|
| Assets | ||||
| Non-current assets | ||||
| Intangible non-current assets | 702,305 | 702,809 | 702,957 | |
| Tangible non-current assets | 4,779 | 2,194 | 1,663 | |
| Shares in joint ventures and associated companies | 2,4 | 905,090 | 1,101,526 | 980,276 |
| Other long-term securities holdings | 2,4 | 25,122 | 33,880 | 24,587 |
| Loans receivable joint ventures and associated companies | 40 323 | 14,325 | 3,675 | |
| Total non-current assets | 1,677,619 | 1,854,734 | 1,713,158 | |
| Current assets | ||||
| Accounts receivable | 990 | 1,206 | 1,462 | |
| Other short-term receivables | 6,210 | 11,912 | 8,757 | |
| Prepaid expenses and accrued income | 5,629 | 3,832 | 1,886 | |
| Short-term investments | 291,102 | 577,540 | 457,249 | |
| Cash and cash equivalents | 170,329 | 162,115 | 163,347 | |
| Total current assets | 474,260 | 756,605 | 632,701 | |
| TOTAL ASSETS | 2,151,879 | 2,611,339 | 2,345,859 | |
| Equity and liabilities | ||||
| Equity | ||||
| Share capital | 5 | 24,266 | 24,266 | 24,266 |
| Share premium | 1,768,179 | 1,768,062 | 1,768,179 | |
| Retained earnings including current period result | -78,264 | 323,267 | 86,442 | |
| Equity attributable to Parent Company's shareholders | 1,714,181 | 2,115,595 | 1,878,887 | |
| Non-controlling interests | 272,091 | 312,730 | 295,041 | |
| Total equity | 1,986,272 | 2,428,325 | 2,173,928 | |
| Long-term liabilities | ||||
| Deferred taxes | 135,989 | 155,118 | 143,586 | |
| Interest-bearing liabilities | 0 | 2,000 | 2,000 | |
| Total long-term liabilities | 135,989 | 157,118 | 145,586 | |
| Current liabilities | ||||
| Interest-bearing liabilities | 1,900 | 0 | 0 | |
| Accounts payable | 12,323 | 6,511 | 9,563 | |
| Other short-term liabilities | 3,557 | 5,378 | 2,796 | |
| Accrued expenses and prepaid income | 11,838 | 14,007 | 13,986 | |
| Total current liabilities | 29,618 | 25,896 | 26,345 | |
| Total liabilities | 165,607 | 183,014 | 171,931 | |
| TOTAL EQUITY AND LIABILITIES | 2,151,879 | 2,611,339 | 2,345,859 |
| Equity attributable to Parent Company's shareholders | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Retained | |||||||||
| earnings | |||||||||
| incl. | Non | ||||||||
| Amounts in SEK 000 | Note | Share capital | Share premium |
current year result |
Total | controlling interests |
Total equity |
||
| Opening equity at 1 Jan 2012 | 24,266 | 1,768,179 | 86,442 | 1,878,887 | 295,041 | 2,173,928 | |||
| Net loss for the period | -170,813 | -170,813 | -18,392 | -189,205 | |||||
| Total comprehensive income for the | |||||||||
| period | 0 | 0 | -170,813 | -170,813 | -18,392 | -189,205 | |||
| Change in non-controlling interests | 6,107 | 6,107 | -4,558 | 1,549 | |||||
| Closing equity at 30 June 2012 | 5 | 24,266 | 1,768,179 | -78,264 | 1,714,181 | 272,091 | 1,986,272 | ||
| Opening equity at 1 Jan 2011 | 16,666 | 1,212,611 | 454,484 | 1,683,761 | 33,414 | 1,717,175 | |||
| Net loss for the period | -121,149 | -121,149 | -9,617 | -130,766 | |||||
| Total comprehensive income for the | |||||||||
| period | 0 | 0 | -121,149 | -121,149 | -9,617 | -130,766 | |||
| Business combinations | 0 | 222,834 | 222,834 | ||||||
| Change in non-controlling interests | -10,068 | -10,068 | 66,099 | 56,031 | |||||
| New share issue | 7,600 | 600,400 | 608,000 | 608,000 | |||||
| Issue costs | -44,949 | -44,949 | -44,949 | ||||||
| Closing equity at 30 June 2011 | 5 | 24,266 | 1,768,062 | 323,267 | 2,115,595 | 312,730 | 2,428,325 | ||
| Opening equity at 1 Jan 2011 | 16,666 | 1,212,611 | 454,484 | 1,683,761 | 33,414 | 1,717,175 | |||
| Net loss for the year | -354,147 | -354,147 | -31,526 | -385,673 | |||||
| Total comprehensive income for the year | 0 | 0 | -354,147 | -354,147 | -31,526 | -385,673 | |||
| Business combinations | 0 | 222,834 | 222,834 | ||||||
| Change in non-controlling interests | -13,895 | -13,895 | 70,319 | 56,424 | |||||
| New share issue | 7,600 | 600,400 | 608,000 | 608,000 | |||||
| Issue costs | -44,949 | -44,949 | -44,949 | ||||||
| Warrants | 117 | 117 | 117 | ||||||
| Closing equity at 31 Dec 2011 | 5 | 24,266 | 1,768,179 | 86,442 | 1,878,887 | 295,041 | 2,173,928 |
| 2012 | 2011 | ||
|---|---|---|---|
| Amounts in SEK 000 | Note | Jan-Jun | Jan-Jun |
| Operating activities | |||
| Operating loss | -202,524 | -131,635 | |
| Adjustments for depreciation, amortization and impairment losses |
1,948 | 1,599 | |
| Adjustments for changes in fair value | 2 | 123,434 | 62,864 |
| Realized changes in value of short-term investments | 3 763 | 0 | |
| Interest paid | -20 | -39 | |
| Interest received | 881 | 879 | |
| Cash flow from operating activities before changes in working capital |
-72,518 | -66,332 | |
| Cash flow from changes in working capital | |||
| Increase (-)/Decrease (+) in operating receivables | -3,025 | -1,856 | |
| Increase (+)/Decrease (-) in operating liabilities | 1,375 | 3,638 | |
| Cash flow from operating activities | -74,168 | -64,550 | |
| Investing activities | |||
| Investments in intangible non-current assets | -711 | -1,136 | |
| Investments in tangible non-current assets | -3,642 | -247 | |
| Acquired liquid assets in subsidiaries | 0 | 12,878 | |
| Investments in shares in joint ventures and associated companies | 7 | -47,371 | -70,165 |
| Investments in other long-term securities | -1,460 | -3,002 | |
| Change in short-term investments | 166 247 | -437,111 | |
| Sale of shares in joint ventures and associated companies | 3,217 | 21,811 | |
| Sale of other long-term securities | 0 | 540 | |
| Loans provided to associated companies | -36,648 | -20,400 | |
| Cash flow from investing activities | 79,632 | -496,832 | |
| Financing activities | |||
| Non-controlling interests' share of subsidiary issue | 1,618 | 53,121 | |
| New share issue | 0 | 608,000 | |
| Issue costs | 0 | -44,949 | |
| Amortization of interest-bearing liabilities | -100 | 0 | |
| Cash flow from financing activities | 1,518 | 616,172 | |
| Cash flow for the period | 6,982 | 54,790 | |
| Cash and cash equivalents at beginning of period | 163,347 | 107,325 | |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD¹ | 170,329 | 162,115 |
¹ In addition to cash and cash equivalents, the Group has at its disposal short-term investments amounting to SEK 291,102 thousand (577,540)
| 2012 | 2011 | 2012 | 2011 | 2011 | |
|---|---|---|---|---|---|
| Amounts in SEK 000 Note |
Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Full-year |
| Net sales | 891 | 544 | 1,725 | 1,396 | 2,467 |
| Revenue | 891 | 544 | 1,725 | 1,396 | 2,467 |
| Other external expenses | -7,611 | -10,943 | -15,510 | -20,351 | -32,174 |
| Personnel costs | -8,075 | -8,994 | -14,381 | -16,583 | -32,066 |
| Depreciation of tangible non-current assets | -2 | -16 | -3 | -33 | -67 |
| Impairment losses on shares in subsidiaries, joint ventures, associated companies and other long-term |
|||||
| securities holdings | -108,998 | -58,360 | -110,935 | -61,157 | -125,961 |
| Result from sale of shares | 47 | 0 | 47 | 0 | 6,239 |
| Operating loss | -123,748 | -77,769 | -139,057 | -96,728 | -181,562 |
| Financial net 3 |
2,339 | -8,492 | 6,192 | -7,956 | -6,183 |
| NET LOSS FOR THE PERIOD | -121,409 | -86,261 | -132,865 | -104,684 | -187,745 |
| 2012 | 2011 | 2012 | 2011 | 2011 | |
|---|---|---|---|---|---|
| Amounts in SEK 000 Note |
Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Full-year |
| Net loss for the period | -121,409 | -86,261 | -132,865 | -104,684 | -187,745 |
| Total comprehensive income for the period | -121,409 | -86,261 | -132,865 | -104,684 | -187,745 |
| Attributable to: | |||||
| Parent Company's shareholders | -121,409 | -86,261 | -132,865 | -104,684 | -187,745 |
| TOTAL | -121,409 | -86,261 | -132,865 | -104,684 | -187,745 |
| Amounts in SEK 000 | Note | 30 June 2012 | 30 June 2011 | 31 Dec 2011 |
|---|---|---|---|---|
| Assets | ||||
| Non-current assets | ||||
| Tangible non-current assets | 12 | 76 | 42 | |
| Shares in subsidiaries, joint ventures, associated companies and other | ||||
| long-term securities holdings | 4 | 884,533 | 870,487 | 879,819 |
| Loans receivable joint ventures and associated companies | 40,323 | 14,325 | 3,675 | |
| Other financial assets | 2,252 | 1,853 | 2,080 | |
| Total non-current assets | 927,120 | 886,741 | 885,616 | |
| Current assets | ||||
| Accounts receivable | 6 | 243 | 49 | |
| Group receivables | 303 | 38 | 74 | |
| Other receivables | 2,802 | 7,056 | 5,766 | |
| Prepaid expenses and accrued income | 3,278 | 2,284 | 881 | |
| Short-term investments | 291,102 | 577,540 | 457,249 | |
| Cash and cash equivalents | 61,761 | 31,491 | 68,319 | |
| Total current assets | 359,252 | 618,652 | 532,338 | |
| TOTAL ASSETS | 1,286,372 | 1,505,393 | 1,417,954 | |
| Equity and liabilities | ||||
| Equity | ||||
| Restricted equity | ||||
| Share capital | 5 | 24,266 | 24,266 | 24,266 |
| Unrestricted equity | ||||
| Share premium reserve | 1,778,253 | 1,778,136 | 1,778,253 | |
| Retained earnings | -395,026 | -207,281 | -207,281 | |
| Net loss for the period | -132,865 | -104,684 | -187,745 | |
| Total equity | 1,274,628 | 1,490,437 | 1,407,493 | |
| Long-term liabilities | ||||
| Pension obligations | 2,252 | 1,853 | 2,080 | |
| Total long-term liabilities | 2,252 | 1,853 | 2,080 | |
| Current liabilities | ||||
| Accounts payable | 2,049 | 1,935 | 807 | |
| Group liabilities | 0 | 952 | 0 | |
| Other current liabilities | 1,870 | 3,736 | 1,530 | |
| Accrued expenses and deferred income | 5,573 | 6,480 | 6,044 | |
| Total current liabilities | 9,492 | 13,103 | 8,381 | |
| Total liabilities | 11,744 | 14,956 | 10,461 | |
| TOTAL EQUITY AND LIABILITIES | 1,286,372 | 1,505,393 | 1,417,954 |
| Amounts in SEK 000 | Note | 30 June 2012 | 30 June 2011 | 31 Dec 2011 |
|---|---|---|---|---|
| Pledged assets | 6 | 2,252 | 4,690 | 2,080 |
| Contingent liabilities | 6 | 26,200 | 26,900 | 26,900 |
| Total | 28,452 | 31,590 | 28,980 |
| Restricted equity | Unrestricted equity | |||||
|---|---|---|---|---|---|---|
| Net | ||||||
| Share | profit/loss | |||||
| Amounts in SEK 000 | Note | Share capital | premium reserve |
Retained earnings |
for the period |
Total equity |
| Opening equity at 1 Jan 2012 | 24,266 | 1,778,253 | -207,281 | -187,745 | 1,407,493 | |
| Appropriation of loss | -187,745 | 187,745 | 0 | |||
| Net loss for the period | -132,865 | -132,865 | ||||
| Closing equity at 30 June 2012 | 5 | 24,266 | 1,778,253 | -395,026 | -132,865 | 1,274,628 |
| Opening equity at 1 Jan 2011 | 16,666 | 1,222,685 | -95,932 | -111,349 | 1,032,070 | |
| Appropriation of loss | -111,349 | 111,349 | 0 | |||
| Net loss for the period | -104,684 | -104,684 | ||||
| Total | 16,666 | 1,222,685 | -207,281 | -104,684 | 927,386 | |
| New share issue | 7,600 | 600,400 | 608,000 | |||
| Issue costs | -44,949 | -44,949 | ||||
| Closing equity at 30 June 2011 | 5 | 24,266 | 1,778,136 | -207,281 | -104,684 | 1,490,437 |
| Opening equity at 1 Jan 2011 | 16,666 | 1,222,685 | -95,932 | -111,349 | 1,032,070 | |
| Appropriation of loss | -111,349 | 111,349 | 0 | |||
| Net loss for the year | -187,745 | -187,745 | ||||
| Total | 16,666 | 1,222,685 | -207,281 | -187,745 | 844,325 | |
| New share issue | 7,600 | 600,400 | 608,000 | |||
| Issue costs | -44,949 | -44,949 | ||||
| Warrants | 117 | 117 | ||||
| Closing equity at 31 Dec 2011 | 5 | 24,266 | 1,778,253 | -207,281 | -187,745 | 1,407,493 |
This report has been prepared in accordance with the International Accounting Standard (IAS) 34 Interim Financial Reporting and the Annual Accounts Act. The accounting principles applied to the Group and the Parent Company correspond, unless otherwise stated below, to the accounting principles and valuation methods applied in the preparation of the previous annual report.
The new or revised IFRS standards and interpretations by IFRIC have had no impact on the Group or, to the extent that these recommendations are applied to legal entities, on the Parent Company's income or financial position.
Net asset value per share: Estimated fair value of the total portfolio, cash and cash equivalents, and financial assets less interestbearing liabilities in relation to the number of shares outstanding on the closing date.
First In Class: The first approved medicine with a defined mechanism for a specific target or a specific disease.
Portfolio companies: Companies owned fully or in part by Karolinska Development (subsidiaries, joint ventures, associated companies and other long-term securities holdings) which are active in pharmaceuticals, medtech, theranostics and formulation technology.
Fair value: The NASDAQ OMX regulations for issuers require companies listed on NASDAQ OMX to apply the International Financial Reporting Standards, IFRS, in their consolidated financial statements. The application of the standards allows groups of an investment company nature to apply so-called fair value in the calculation of the carrying amount of certain assets. These calculations are made on the basis of established principles and are not included in the opening accounts of the Group's legal entity, nor do they affect cash flows.
Fair value is estimated according to the International Private Equity and Venture Capital Valuation Guidelines. According to these guidelines, fair value can be calculated using different methods, depending on which is considered to provide the best estimate of market value in each case. For Karolinska Development, this means that the fair value of many portfolio companies is determined using a model to calculate the value of discounted and risk-adjusted cash flows. In other cases, Karolinska Development's total investment is used as the best estimation of fair value. In one other case, the valuation at the time of the last capital contribution is used.
Interim period: The period from the beginning of the financial year through the closing date.
Reporting period: Current quarter.
The Board of Directors is the function that determines the allocation of resources to investments in portfolio companies and to the Parent Company. The Board of Directors monitors each investment at the project level as well as the Parent Company's results and financial position.
Karolinska Development's investments are primarily steered to companies that yield the best returns. Regardless of a project's maturity, therapeutic area and whether the company is active within pharmaceuticals or medical technology, each company's projects are evaluated by Karolinska Development in the same manner, because of which Karolinska Development has aggregated all the portfolio companies into a single reportable segment.
Karolinska Development's measure of profit is the aggregate change in the fair value of its shares in the portfolio companies, including those consolidated as subsidiaries. The Board of Directors and management monitor the investments based on changes in their fair value independently of the company's level of influence. Consequently, the Board of Directors and management monitor subsidiaries, associated companies, joint ventures and other holdings based on changes in their fair value and not on their historical acquisition costs as subsidiaries recognized in the consolidated financial statements. The accounting principles applied in the internal reporting otherwise correspond to the Group's accounting principles as described in Note 1.
| Profit/loss from change in fair value of portfolio companies | |||||||
|---|---|---|---|---|---|---|---|
| 2012 | 2011 | 2012 | 2011 | 2011 | |||
| Amounts in SEK 000 | Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Full-year | ||
| Subsidiaries | |||||||
| Change in fair value | 6,454 | 52,972 | 25,345 | 57,213 | 67,819 | ||
| Joint ventures and associated companies | |||||||
| Change in fair value | 45,153 | 1,140 | -17,230 | -7,395 | -118,789 | ||
| Impairment losses | -105,279 | -58,500 | -105,279 | -58,500 | -117,832 | ||
| Other long-term securities holdings | |||||||
| Change in fair value | -726 | 6,822 | -925 | 3,031 | -4,675 | ||
| Impairment losses | 0 | 0 | 0 | 0 | -2,500 | ||
| Change in fair value of total portfolio holdings | -54 398 | 2,434 | -98,089 | -5,651 | -175,977 | ||
| Group eliminations | |||||||
| Less change in fair value of subsidiaries | -6 454 | -52,972 | -25,345 | -57,213 | -67,819 | ||
| Net loss from changes in fair value | -60,852 | -50,538 | -123,434 | -62,864 | -243,796 | ||
| Consolidated revenue and other expenses (including | |||||||
| financial net) | -44,170 | -47,605 | -73,368 | -76,358 | -161,864 | ||
| Consolidated loss before tax | -105,022 | -98,143 | -196,802 | -139,222 | -405,660 |
The aggregate loss from changes in the fair value of the portfolio companies amounted to SEK -98.1m (-5.7) during the six-month period after accounting for a positive change in the fair value of subsidiaries of SEK 25.3m (57.2). The change in the fair value of subsidiaries is not recognized in the consolidated income statement or statement of financial position, since the subsidiaries are consolidated and therefore are not measured at fair value. The Group's net loss from changes in the fair value of joint ventures, associated companies and other long-term securities holdings amounted to SEK -123.4m (-62.9).
| Fair value of portfolio companies | ||||
|---|---|---|---|---|
| 30 June | 30 June | 31 Dec | ||
| Amounts in SEK 000 | 2012 | 2011 | 2011 | |
| Fair value of total portfolio holdings | ||||
| Subsidiaries | 634,165 | 516,684 | 542,001 | |
| Joint ventures and associated companies | 905,090 | 1,101,526 | 980,276 | |
| Other long-term securities holdings | 25,122 | 33,880 | 24,587 | |
| Fair value of total portfolio holdings | 1,564,377 | 1,652,090 | 1,546,864 | |
| Less fair value in subsidiaries | -634,165 | -516,684 | -542,001 | |
| Group | 930,212 | 1,135,406 | 1,004,863 |
| Joint ventures/ Associated |
Other long term |
Total portfolio |
||
|---|---|---|---|---|
| Amounts in SEK 000 | Subsidiaries | companies | securities | holdings |
| Accumulated fair value | ||||
| Opening balance at 1 Jan 2011 | 209,108 | 1,220,791 | 24,761 | 1,454,660 |
| Acquisitions during the year (Note 7) | 69,000 | 154,240 | 3,002 | 226,242 |
| Reclassifications | 182,173 | -185,799 | 3,626 | 0 |
| Sale of shares | -810 | -21,811 | -540 | -23,161 |
| Changes in fair value and impairment losses | 57,213 | -65,895 | 3,031 | -5,651 |
| Closing balance at 30 June 2011 | 516,684 | 1,101,526 | 33,880 | 1,652,090 |
| Opening balance at 1 Jan 2011 | 209,108 | 1,220,791 | 24,761 | 1,454,660 |
| Acquisitions during the year (Note 7) | 83,711 | 209,955 | 3,915 | 297,581 |
| Reclassifications | 182,173 | -185,799 | 3,626 | 0 |
| Sale of shares | -810 | -28,050 | -540 | -29,400 |
| Changes in fair value and impairment losses | 67,819 | -236,621 | -7,175 | -175,977 |
| Closing balance at 31 Dec 2011 | 542,001 | 980,276 | 24,587 | 1,546,864 |
| Opening balance at 1 Jan 2012 | 542,001 | 980,276 | 24,587 | 1,546,864 |
| Acquisitions during the period (Note 7) | 66,819 | 47,371 | 1,460 | 115,650 |
| Sale of shares | 0 | -48 | 0 | -48 |
| Changes in fair value | 25,345 | -122,509 | -925 | -98,089 |
| Closing balance at 30 June 2012 | 634,165 | 905,090 | 25,122 | 1,564,377 |
| Reconciliation between the aggregate fair value of portfolio companies for segments and consolidated total assets | ||||
|---|---|---|---|---|
| 30 June | 30 June | 31 Dec | |
|---|---|---|---|
| Amounts in SEK 000 | 2012 | 2011 | 2011 |
| Aggregate fair value of total portfolio holdings | 1,564,377 | 1,652,090 | 1,546,864 |
| Less fair value of consolidated subsidiaries | -634,165 | -516,684 | -542,001 |
| Other consolidated assets | 1,221,667 | 1,475,933 | 1,340,996 |
| Consolidated total assets | 2,151,879 | 2,611,339 | 2,345,859 |
| Group | |||||
|---|---|---|---|---|---|
| 2012 | 2011 | 2012 | 2011 | 2011 | |
| Amounts in SEK 000 | Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Full-year |
| Interest income | 1,131 | 3,009 | 2,005 | 3,396 | 6,247 |
| Interest expenses | -8 | -24 | -20 | -39 | -36 |
| Change in value of short-term investments | 1,438 | 914 | 4,709 | 4,102 | 10,036 |
| Exchange rate gains and losses | -237 | -27 | -972 | -249 | -2 |
| Impairment of receivables from joint ventures and associated companies |
0 | -12,000 | 0 | -12,000 | -21,230 |
| Profit share from KCIF Co-Investment Fund KB | 0 | 0 | 0 | -2,797 | 0 |
| Financial net | 2,324 | -8,128 | 5,722 | -7,587 | -4,985 |
| Parent Company | ||||||
|---|---|---|---|---|---|---|
| 2012 | 2011 | 2012 | 2011 | 2011 | ||
| Amounts in SEK 000 | Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Full-year | |
| Interest income | 1,082 | 78 | 1,664 | 437 | 5,017 | |
| Interest expenses | -4 | 0 | -4 | 0 | -6 | |
| Change in value of short-term investments | 1,261 | 3,430 | 4,532 | 3,821 | 10,036 | |
| Exchange rate gains and losses | 0 | 0 | 0 | -214 | 0 | |
| Impairment of receivables from joint ventures and | ||||||
| associated companies | 0 | -12,000 | 0 | -12,000 | -21,230 | |
| Financial net | 2,339 | -8,492 | 6,192 | -7,956 | -6,183 |
The Group's holdings of shares in portfolio companies
| Total ownership interest, %¹ | |||
|---|---|---|---|
| 30 June 2012 | 30 June 2011 | 31 Dec 2011 | |
| Subsidiaries | |||
| Axelar AB | 45.29 | 40.03 | 40.03 |
| ClanoTech AB | 87.39 | 86.32 | 86.94 |
| Daffodil AB (dormant) | 100.00 | - | - |
| HBV Theranostica AB (dormant) | 100.00 | - | - |
| Inhalation Sciences Sweden AB | 74.72 | 68.75 | 72.11 |
| KCIF Fund Management AB | 37.50 | 37.50 | 37.50 |
| KD Incentive AB | 100.00 | 100.00 | 100.00 |
| KDev Exploratory AB (formerly Actar AB) | 100.00 | 99.96 | 100.00 |
| KDev Oncology AB | 100.00 | 100.00 | 100.00 |
| Akinion Pharmaceuticals AB | 90.32 | 88.09 | 88.09 |
| GliGene AB | 29.44 | - | 10.13 |
| Limone AB | 100.00 | 100.00 | 100.00 |
| NovaSAID AB | 88.91 | 88.91 | 88.91 |
| Pharmanest AB | 59.03 | 53.57 | 56.53 |
| Joint ventures | |||
| Aprea AB | 41.12 | 41.12 | 41.12 |
| Athera Biotechnologies AB | 64.57 | 62.10 | 62.19 |
| Avaris AB | 94.87 | 68.40 | 68.40 |
| BioChromix Pharma AB | 70.35 | 58.96 | 68.77 |
| Bioneris AB (in liquidation) | 26.31 | 26.31 | 26.31 |
| Biosergen AS | 60.26 | 54.29 | 60.26 |
| Dilafor AB | 54.76 | 54.76 | 54.76 |
| Dilaforette Holding AB | 62.12 | 54.02 | 57.96 |
| Dilaforette AB | 62.12 | 54.02 | 57.96 |
| Eribis AB (divested) | - | 43.14 | - |
| HBV Theranostica AB (dormant) | - | 72.52 | 72.52 |
| IMED AB (divested) | - | 57.38 | - |
| Lipidor AB | 46.13 | 39.98 | 39.98 |
| NeoDynamics AB | 20.72 | 25.74 | 25.74 |
| Oncopeptides AB | 43.36 | 42.32 | 43.36 |
| OncoReg AB (liquidated) | - | 88.91 | - |
| Pergamum AB | 61.93 | 61.75 | 61.93 |
| DermaGen AB | 61.93 | 61.75 | 61.93 |
| Laurantis Pharma OY | 6.07 | 6.07 | 6.07 |
| Lipopeptide AB | 61.93 | 61.75 | 61.93 |
| PharmaSurgics in Sweden AB | 61.93 | 61.75 | 61.93 |
| Ximmune AB | 5.36 | 6.18 | 5.36 |
| ProNoxis AB | 21.76 | 17.60 | 19.83 |
| Umecrine Cognition AB | 54.17 | 46.25 | 54.17 |
| Umecrine Mood AB | 42.88 | 42.87 | 42.87 |
| XSpray Microparticles AB | 61.81 | 59.81 | 60.80 |
| Associated companies | |||
| KCIF Co-Investment Fund KB | 26.00 | 26.00 | 26.00 |
| Oss-Q AB | 15.63 | - | 15.63 |
| Promimic AB | 28.42 | 24.50 | 24.50 |
| Other long-term securities holdings | |||
| BioArctic NeuroScience AB | 3.17 | 3.17 | 3.17 |
| BioChromix AB | 13.94 | 6.40 | 9.34 |
| BioResonator AB (in liquidation) | 7.62 | 7.62 | 7.62 |
| CytoGuide ApS | 9.06 | 9.06 | 9.06 |
| Independent Pharmaceutica AB (liquidated) | - | 5.98 | - |
| NephroGenex Inc. | 0.58 | 0.58 | 0.58 |
| Umecrine AB | 10.41 | 10.41 | 10.41 |
¹ Including indirect ownership through KDev Oncology AB, Dilaforette Holding AB, Pergamum AB, KCIF Co-Investment Fund KB, BioChromix AB and Umecrine AB
| Amounts in SEK 000 30 June 2012 30 June 2011 31 Dec 2011 Subsidiaries Axelar AB 73,343 48,343 48,343 ClanoTech AB 39,194 34,695 37,194 Daffodil AB (dormant) 50 - - HBV Theranostica AB (dormant) 50 - - Inhalation Sciences Sweden AB 28,238 19,738 24,238 KCIF Fund Management AB 43 43 43 KD Incentive AB 200 100 200 KDev Exploratory AB (formerly Actar AB) 10,288 6,844 3,679 KDev Oncology AB 67,070 0 1,000 Akinion Pharmaceuticals AB - 48,070 48,070 Limone AB 2,049 1,500 296 NovaSAID AB 74,407 74,407 74,407 Pharmanest AB 18,794 9,966 15,075 Total book value subsidiaries 313,726 243,706 252,545 Joint ventures Aprea AB 46,199 46,199 46,199 Athera Biotechnologies AB 93,787 74,797 74,797 Avaris AB 1 53,650 0 BioChromix Pharma AB 19,350 12,350 19,350 Bioneris AB (in liquidation) 0 0 0 Biosergen AS 21,370 15,114 21,370 Dilafor AB 88,831 88,831 88,831 Dilaforette Holding AB 17,188 188 7,188 Eribis AB (divested) - 0 - HBV Theranostica AB (dormant) - 0 0 IMED AB (divested) - 0 - Lipidor AB 12,998 9,000 9,000 NeoDynamics AB 11,097 11,097 11,097 Oncopeptides AB 22,914 18,536 22,914 OncoReg AB (liquidated) - 0 - Pergamum AB 106,012 198,643 210,850 ProNoxis AB 6,500 4,500 5,500 Umecrine Cognition AB 14,700 8,200 14,700 Umecrine Mood AB 27,850 25,112 25,112 XSpray Microparticles AB 36,628 27,872 33,708 Associated companies KCIF Co-Investment Fund KB 12,791 8,624 10,527 Oss-Q AB 3,650 - 3,650 Promimic AB 13,100 8,100 8,100 Total book value joint ventures and associated companies 554,966 610,813 612,893 Total fair value joint ventures and associated companies 905,090 1,101,526 980,276 Other long-term securities holdings BioArctic NeuroScience AB 600 600 600 BioChromix AB 3,834 1,461 2,374 BioResonator AB (in liquidation) 0 2,500 0 CytoGuide ApS 3,300 3,300 3,300 |
Book value in Parent Company | |||
|---|---|---|---|---|
| Independent Pharmaceutica AB (liquidated) - 0 - |
||||
| NephroGenex Inc. 709 709 709 |
||||
| Umecrine AB 7,398 7,398 7,398 |
||||
| Total book value other long-term securities holdings 15,841 15,968 14,381 |
||||
| Total fair value other long-term securities holdings 25,122 33,880 24,587 |
The number of shares has changed as follows:
| Year | Transaction | Number of shares |
Increase in share capital |
Share capital |
Number of A shares |
Number of B shares |
Subscription price |
Par value |
|---|---|---|---|---|---|---|---|---|
| Total as of 1 Jan 2011 | 33,331,417 | 16,665,709 | 1,503,098 | 31,828,319 | 0.5 | |||
| New share | ||||||||
| April 2011 | issue | 15,200,000 | 7,600,000 | 24,265,709 | 15,200,000 | 40 | 0.5 | |
| Total as of 31 Dec 2011 | 48,531,417 | 24,265,709 | 1,503,098 | 47,028,319 | 0.5 | |||
| Total as of 30 June 2012 | 48,531,417 | 24,265,709 | 1,503,098 | 47,028,319 | 0.5 |
| Group | |||||
|---|---|---|---|---|---|
| Amounts in SEK 000 | 30 June 2012 | 30 June 2011 | 31 Dec 2011 | ||
| Net assets | |||||
| Cash and cash equivalents | 170,329 | 162,115 | 163,347 | ||
| Short-term investments | 291,102 | 577,540 | 457,249 | ||
| Loans receivable joint ventures and associated companies | 40,323 | 17,162¹ | 3,675 | ||
| Financial liabilities | -1,900 | -2,000 | -2,000 | ||
| Total net assets | 499,854 | 754,817 | 622,271 | ||
| Estimated fair value of portfolio companies including subsidiaries | 1 564 377 | 1 652 090 | 1,546,864 | ||
| Total net asset value | 2,064,231 | 2,406,907 | 2,169,135 | ||
| Number of shares | 48,531,417 | 48,531,417 | 48,531,417 | ||
| Net asset value per share* | 42.53 | 49.59 | 44.70 |
¹The amount includes a restricted account with a balance of SEK 2,837 thousand. In the statement of financial position, the amount is included in other current receivables
Karolinska Development has entered into an investment commitment of SEK 25.0m related to Axelar AB. Additional financing commitments in portfolio companies also relate exclusively to Axelar AB.
| Group and Parent Company | |||||
|---|---|---|---|---|---|
| Amounts in SEK 000 | 30 June 2012 | 30 June 2011 | 31 Dec 2011 | ||
| Pledged assets | |||||
| Restricted account | 0 | 2,837 | 0 | ||
| Endowment insurance | 2,252 | 1,853 | 2,080 | ||
| Total pledged assets | 2,252 | 4,690 | 2,080 | ||
| Investment commitments | |||||
| Biocelex | 0 | 500 | 500 | ||
| Uminova | 200 | 400 | 400 | ||
| Other contingent liabilities | |||||
| Axelar | 26,000 | 26,000 | 26,000 | ||
| Total contingent liabilities | 26,200 | 26,900 | 26,900 | ||
| Total | 28,452 | 31,590 | 28,980 |
If its project is transferred, Axelar is obligated to pay a maximum of SEK 26m to the project's previous owners as contingent consideration.
| 2012 | 2012 | 2011 | 2011 | 2011 | |
|---|---|---|---|---|---|
| Amounts in SEK 000 | Apr-Jun | Jan-Jun | Apr-Jun | Jan-Jun | Full-year |
| Investments in subsidiaries | |||||
| Akinion Pharmaceuticals AB | 0 | 0 | 20,000 | 30,000 | 30,000 |
| Axelar AB | 0 | 25,000 | 20,000 | 20,000 | 20,000 |
| ClanoTech AB | 0 | 2,000 | 0 | 0 | 2,499 |
| Daffodil AB | 0 | 50 | 0 | 0 | 0 |
| HBV Theranostica AB | 50 | 50 | 0 | 0 | 0 |
| Inhalation Sciences Sweden AB | 4,000 | 4,000 | 0 | 2,500 | 7,000 |
| KD Incentive AB | 0 | 0 | 0 | 0 | 100 |
| KDev Exploratory AB (formerly Actar AB) | 0 | 10,000 | 0 | 0 | 2 |
| KDev Oncology AB | 18,000 | 18,000 | 0 | 0 | 1,000 |
| Limone AB | 2,000 | 4,000 | 0 | 1,500 | 3,000 |
| NovaSAID AB | 0 | 0 | 8,000 | 12,000 | 12,000 |
| Pharmanest AB | 69 | 3,719 | 3,000 | 3,000 | 8,110 |
| Total investments in subsidiaries | 24,119 | 66,819 | 51,000 | 69,000 | 83,711 |
| Investments in joint ventures and associated companies | |||||
| Aprea AB | 0 | 0 | 6,570 | 12,470 | 12,470 |
| Athera Biotechnologies AB | 0 | 18,991 | 8,760 | 8,760 | 8,760 |
| Avaris AB | 444 | 444 | 0 | 1,800 | 1,800 |
| BioChromix Pharma AB | 0 | 0 | 3,000 | 3,000 | 10,000 |
| Biosergen AS | 0 | 0 | 0 | 0 | 6,256 |
| Dilafor AB | 0 | 0 | 5,000 | 9,000 | 9,000 |
| Dilaforette Holding AB | 0 | 10,000 | 188 | 188 | 7,188 |
| Eribis Pharmaceuticals AB | 0 | 0 | 2,490 | 2,490 | 2,490 |
| HBV Theranostica AB | 0 | 0 | 200 | 200 | 200 |
| KCIF Co-Investment Fund KB | 0 | 2,280 | 1,186 | 3,946 | 5,834 |
| Lipidor AB | 3,998 | 3,998 | 4,997 | 4,997 | 4,997 |
| NeoDynamics AB | 0 | 0 | 3,546 | 3,546 | 3,546 |
| Oncopeptides AB | 0 | 0 | 0 | 0 | 4,378 |
| Oss-Q AB | 0 | 0 | 0 | 0 | 3,650 |
| Pergamum AB | 0 | 0 | 95,629 | 95,857 | 108,065 |
| Promimic AB | 2,000 | 5,000 | 0 | 0 | 0 |
| ProNoxis AB | 0 | 1,000 | 1,500 | 1,500 | 2,500 |
| Umecrine Cognition AB | 0 | 0 | 1,200 | 1,200 | 7,700 |
| Umecrine Mood AB | 2,738 | 2,738 | 5,286 | 5,286 | 5,286 |
| XSpray Microparticles AB | 2,920 | 2,920 | 0 | 0 | 5,835 |
| Total investments in joint ventures and associated companies | 12,100 | 47,371 | 139,552 | 154,240 | 209,955 |
| Investments in other long-term securities holdings | |||||
| BioChromix AB | 1,460 | 1,460 | 0 | 2,002 | 2,915 |
| Umecrine AB | 0 | 0 | 0 | 1,000 | 1,000 |
| Total investments in other long-term securities holdings | 1,460 | 1,460 | 0 | 3,002 | 3,915 |
| Total investments | 37,679 | 115,650 | 190,552 | 226,242 | 297,581 |
| 2012 | 2012 | 2011 | 2011 | 2011 | |
|---|---|---|---|---|---|
| Amounts in SEK 000 | Apr-Jun | Jan-Jun | Apr-Jun | Jan-Jun | Full-year |
| Conversions of previously issued loans | |||||
| Aprea AB | 0 | 0 | 0 | 5,900 | 5,900 |
| Biosergen AS | 0 | 0 | 0 | 0 | 2,425 |
| Dilaforette Holding AB | 0 | 0 | 0 | 0 | 4,000 |
| NeoDynamics AB | 0 | 0 | 546 | 546 | 546 |
| Oncopeptides AB | 0 | 0 | 0 | 0 | 4,378 |
| Pergamum AB | 0 | 0 | 77,629 | 77,629 | 77,629 |
| Total investments not affecting cash flow during the period | 0 | 0 | 78,175 | 84,075 | 94,878 |
During the reporting period, the Group did not have any material transactions with or commitments to related parties beyond the normal business transactions described in the annual report for 2011 and as indicated in Note 6.
On 23 May 2012, the Annual General Meeting resolved on a Performance Share Program for management based on the participants acquiring shares ("Saving Shares") on the open market. Under certain conditions, the participants will be allotted, free of charge, a maximum of five Performance Share Rights and one Matching Share Right by the company for each Saving Share they acquire. The Matching and Performance Share Rights will be allotted after three years. The total number of Performance and Matching Share Rights is 480,000. The program comprises a maximum of ten participants.
There are no performance conditions for the Matching Share Rights, but each participant must remain an employee on the allotment date. The conditions for the Performance Share Rights are related to Karolinska Development's share price performance and a comparison between what are called the Start Price and the End Price. The Start Price is measured as the average over ten trading days. The Board of Directors determines the measurement period. However, the measurement must be made not later than 23 November 2012. The End Price is measured as the average over ten trading days beginning on 2 May 2015. For an allotment to be made at all, the share price must rise by six percent annually. For a maximum allotment (five Performance Shares per Saving Share), the share price must rise by 30 percent. Within this span, allotments will be made proportionately. Allotments are capped at ten times the Start Price, after which the number of allotted Performance Share Rights is reduced. The participants will be compensated in cash for dividends paid during the period.
The company intends to cover the social security contributions related to the program by acquiring and transferring not more than 150,800 of its own shares. As of 30 June 2012, no Saving Shares had been acquired. The Performance Share Program has not had any impact on the company's results and financial position as of 30 June 2012.
Karolinska Development AB (publ) Interim Report 30 June 2012
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