Karolinska Development AB
-investor in new innovative treatments for life-threatening diseases.
Many small research companies struggle to turn their medical innovations into commercial products. While their scientific know-how is often high, their access to capital and commercial expertise is limited. Karolinska Development works to increase the value of such companies by providing financing, expertise, a network of contacts and active corporate governance. Karolinska Development currently owns shares in around twenty research companies within both pharmaceuticals and medical technology. The company’s investment focus is on developing new treatments for rare life-threatening or serious debilitating diseases.
Karolinska Development’s investment criteria – patient-focused innovation
To maximize opportunities for a favorable return on its capital, Karolinska Development invests strictly in existing portfolio companies and new opportunities that meet a number of well-defined criteria.
A product with clear advantages – The assets that the portfolio companies develop must be offering a clear differentiation and advantages compared with existing and/or future competing products.
Orphan drugs and specialty care products – Karolinska Development primarily invests in pharmaceutical projects with the potential to obtain orphan drug status and products used in specialty care.
Well-defined clinical and regulatory strategy – The portfolio companies must have a convincing plan how their asset will be taken through the clinical development path, the registration and market access process in a compelling way that maximizes its commercial value.
A clear-cut exit strategy – Investments are limited to projects where we have defined how and when their commercial value can be realized through a licensing deal or sale.
Market exclusivity – A future product must be positioned to obtain market exclusivity based on intellectual rights (e.g., patents) and/or orphan drug status.
Right leadership and clear ties to leading researchers – The portfolio companies must have a professional management of serial entrepreneurs or next generation entrepreneurs in place, and close collaborations with leading researchers in their specialty.
Opportunities to syndicate the investment – The project must be able to attract additional professional life science investors that can contribute to further value creation with their expertise and networks.
Sources of new innovation
Agreement with Karolinska Institutet
Many of Karolinska Development’s current portfolio companies originated in a preferential deal flow agreement with Karolinska Institutet Innovations AB. The agreement provides access to innovations from Karolinska Institutet, one of the world’s most well-respected and highest ranking medical schools.
Other deal flow agreements
In recent years, Karolinska Development has entered into similar collaborations with a number of Nordic universities and highly respected academic research institutions in the US and Europe. Through the Mayo Clinic in the US, Ospedale San Raffaele in Italy and the Medical University of Graz, Austria, the company has access to innovations from around 7,000 other researchers and physicians.