Sweden's Karolinska Development has gained some significant financial support for its work. A syndicate led by Rosetta Capital Limited has snagged a minority stake in 13 of their 25 portfolio companies in a $33 million deal. The pact marks a step forward for Karolinska CEO Torbjörn Bjerke, who says the deal implies a total value of $225 million for the portfolio operation. And it leaves Karolinska Development with about $75 million in cash.
In this deal Rosetta gets a stake in a new operation being created to hold the 13 projects. And it gets 100% of the first $33 million in returns, along with a big stake--starting with 30% of the next $99 million--to be made on the portfolio. Rosetta will pay $30 million in the first tranche upfront, with the Rosetta group paying the second tranche out of its initial returns.
"This deal shows the value that Karolinska Development has created in recent years," Bjerke said in a statement. "Our financial position is significantly strengthened and this will enhance our ability to build further value in both KDev Investments as well as the rest of our portfolio, by taking products onwards to the point where we can secure partnerships with pharmaceutical companies as well as trade sales of portfolio companies."
Karolinska Institute was set up to take some of the breakthrough projects underway at the prestigious Karolinska Institutet and then either sell them or out-license the work to developers. There are now 34 projects in the portfolio, including 15 in clinical development.
- here's the press release