Karolinska Development’s portfolio company Dilafor signs binding term sheet with Exeltis for a license agreement regarding tafoxiparin

Core Viewpoint - Dilafor has entered into a binding term sheet with Exeltis for an exclusive semi-global license to develop and commercialize tafoxiparin, a drug aimed at priming labor, with Exeltis funding pivotal clinical trials and commercialization efforts [1][2][3] Company Overview - Dilafor AB is a women's health company based in Stockholm, Sweden, focused on developing therapies for women's health issues with significant unmet medical needs [5] - The company was founded in 2003 by scientists from prominent institutions and aims to minimize maternal and fetal complications during labor [5] - Tafoxiparin, Dilafor's leading drug candidate, is ready for clinical phase 3 trials and works by mimicking natural physiological processes to prepare for labor [5] Partnership Details - The agreement with Exeltis includes milestone payments linked to commercial performance and stepped royalties based on net sales, with Exeltis covering all future development and commercialization costs [2][3] - Exeltis is part of Insud Pharma, a Spanish multinational with over 40 years of experience and a focus on women's health, operating in more than 40 countries [4] Market Context - The deal positions tafoxiparin to address the increasing demand for labor inductions, which have risen to 30-40% among first-time mothers due to the risks associated with prolonged pregnancies [3] - The potential for tafoxiparin is significant, with expectations of it becoming a disruptive treatment option that allows for home care rather than hospital surveillance [3] Financial Implications - Karolinska Development holds a 3% direct ownership and a 29% indirect ownership interest in Dilafor, but the term sheet is not expected to significantly impact Dilafor's book value [6]