EIF enters into co-investment agreement with Karolinska Development

Karolinska Development AB today announced that the European Investment Fund (EIF) has entered into a co-investment agreement with the company. The co-investment fund will be managed by Karolinska Development and used to invest in the company's portfolio of early-stage pharmaceutical and medical technology companies. EIF has agreed to invest 26.7 M Euros in the co-investment fund. The agreement represents EIF's largest single investment in the Nordic region to date.

The agreement was concluded after EIF - the EU body for investment in small and medium-sized enterprises -carried out a thorough due diligence of Karolinska Development's strategy, competences and processes. Investments will be made over a four year period and the fund will be used alongside Karolinska Development's own investments in new projects, as well as for follow on investments in portfolio companies in the latter stages of clinical development.

EIF's Chief Executive, Richard Pelly summarised, "Not only is this a landmark transaction representing the largest single investment ever made by EIF into a Swedish fund, but it also demonstrates EIF's firm commitment to support Technology Transfer initiatives across Europe where a funding gap for innovative SMEs has been identified. This investment will help innovations from research organisations to reach the marketplace more quickly and will hopefully allow spin-out companies to reach their full potential working in conjunction with the Karolinska Development team."

Since 2003, Karolinska Development has built up a portfolio of 45 companies, making it one of the largest portfolios of life science companies in Europe. The company forms a key part of Karolinska Institutet's Innovation System, giving it access to world-class life science innovations from Karolinska Institutet as well as many other leading universities throughout the Nordic region.

Conny Bogentoft, CEO of Karolinska Development, said, "We are delighted to be able to establish this new co-investment fund with EIF. The fact that such an important EU body has agreed to make an investment of this magnitude is an enormous vote of confidence in ourbusiness model and the strength of our portfolio. This fund, together with the new share issue, due to take place before the end of the year, will put Karolinska Development in excellent financial shape for the important opportunities ahead. We are now working hard to ensure successful commercial exits for several of our more mature projects."