The gains came against a backdrop of falling net profits and cash reserves that will test Karolinska Development as it looks ahead to convertible debt obligations.
Karolinska Development, the investment arm of Karolinska Institute, witnessed a one-third annual increase in its portfolio value to SKr952m ($107.3m at December 31) in 2018 as it contemplated mixed operational fortunes at its biotech holdings.
Karolinska Development’s net profit fell year-on-year in both annual terms and during the fourth quarter, sliding by 83% and 53.4% respectively to $3.4m for the year and $1.7m for the quarter.
The firm invested a total of $14.1m in its portfolio companies in 2018, compared with $11.2m the previous year.
However its cash reserve fell by $9.5m year-on-year to $9.7m, and the unit is now looking to shore up its position as it prepares for the maturing of a $53.3m convertible loan in December 2019. Its board of directors will not propose any dividends for the 2018 financial year.
Operationally, Karolinska Development reported promising results from ongoing phase 1b/2 studies of…
