Karolinska Development (0P3C) Conference Transcript

Summary of Karolinska Development Conference Call - September 01, 2025 Company Overview - Company Name: Karolinska Development - Industry: Investment in biotechnology and medical technology - Founded: 2003, publicly listed since 2011 - Portfolio: 11 companies focused on clinical phase innovations and medical technology [4][5][6] Core Insights and Arguments - Investment Strategy: Focus on finding and developing new companies, particularly those in clinical phases, often when other investors are not involved [4][5] - Market Focus: Emphasis on achieving cash flow positivity in the U.S. market for medical technology companies, with a revenue threshold of over 200 million SEK to attract buyers [5] - Innovation Type: Targeting "first in class" innovations, which are unique and carry higher risks but potentially offer greater rewards [5] - Active Management: The company takes an active role in its portfolio companies, assisting with capital raising and strategic direction [6] Portfolio Highlights - Dilafor: Currently in phase 3, previously had disagreements with the FDA regarding study endpoints, now resolved [7] - Modus Therapeutics: Focused on chronic kidney disease and malaria, with a significant need for treatments; phase 2 readout expected in 2026 [8] - SVF-vaccin: Aiming to develop a vaccine for hepatitis B and D, with a phase 1 study completed for COVID-19, but not pursuing further in that area [10] - Anacardio: A heart failure company with significant interest from big pharma; awaiting phase 2 results in November [12] - Human Kind Cognition: Focused on CNS diseases related to liver failure, with a shift to a different liver disease for exclusivity in the market [14][15] - Boost Pharma: Targeting osteogenesis imperfecta (brittle bone disease) with unique clinical data showing an 80% reduction in fractures [17][18] Financial and Market Dynamics - Exit Strategy: The company has made 12 exits, generating approximately 488 million SEK, with a long-term strategy focused on achieving cash flows from successful exits [20][21] - Current Market Conditions: The investment climate remains challenging, but there are signs of improvement; fundraising is competitive [22][23] - Investment Opportunities: Current pricing allows for entry into early-stage startups at lower costs, with a focus on helping these companies reach clinical milestones [34] Upcoming Developments - Anacardio Phase 2 Data: Expected in November, which could significantly impact the company's valuation [38] - Yumikran Cognition: Anticipated data on Parkinson's disease and a major study expected early next year [38] - Boost Pharma: Potential financing for a phase 3 study is anticipated [39] - Modus Therapeutics: Phase 2 data expected in 2026 [39] Additional Insights - Investor Dynamics: There is a mix of cooperation and competition among VC investors, with varying strategies on exits and funding [25][30] - Clinical Challenges: The company has faced setbacks, such as issues with capsule leakage in studies, but has resolved these [14][15] This summary encapsulates the key points discussed during the conference call, highlighting the strategic direction, portfolio developments, and market conditions affecting Karolinska Development.