STOCKHOLM - December 3, 2015. Karolinska Development AB (Nasdaq Stockholm: KDEV) today announces that it divests its entire shareholding in the drug development company Athera Biotechnologies AB to a consortium led by The Foundation for Baltic and East European Studies (Östersjöstiftelsen) and Industrifonden. This further focuses Karolinska Development's portfolio in line with its strategy to become a leading Nordic venture capital company focused on generating value for patients and shareholders.
Jim Van heusden, CEO of Karolinska Development, says: "I am very pleased to announce that we have concluded the divestment of Athera Biotechnologies to an investment consortium that will fund the further development of the company's lead product, PC-mAb. This deal also allows us to benefit from Athera's future success via an earn-out agreement with potential significant future value."
As part of the agreement, Karolinska Development and KCIF Co-Investment Fund KB, a holding company jointly owned by the European Investment Fund and Karolinska Development, will transfer their entire shareholdings in Athera Biotechnologies to the consortium led by Östersjöstiftelsen and Industrifonden in an earn-out agreement. The divestment has no impact on the latest reported fair value and no further financial details on this transaction will be disclosed.
Concurrently with the agreement, the consortium is investing SEK 24 million into Athera to fund further clinical development of Athera's lead project PC-mAb, currently in clinical Phase I studies, to become a Phase II-ready project. PC-mAb provides an opportunity to address the need for improved secondary prevention after revascularization in severe peripheral artery disease (PAD) patients and reduce the associated risks for complications and new cardiovascular disease events.