BRIEF—Karolinska divests its holding in Lipidor

Nordic life sciences investment company Karolinska Development has announced the divestment of its holding in Lipidor, a privately-held Swedish lipid technology company focusing on dermatology and skin care.

In connection with the divestment, Karolinska has entered into an agreement with a compensation in the form of an earn-out, which gives the company the right to benefit from future value growth in Lipidor.

The divestment is part of Karolinska’s ongoing efforts to optimize the composition of its investment portfolio. The book value of its ownership in Lipidor amounted to 3.6 million Swedish krona ($400,000) as at September 30, 2017.

Viktor Drvota, Karolinska’s chief executive, said: “We divest our holding in Lipidor, but retain the right to a part of the future values that the company may generate. Similar earn out-agreements has previously proved capable of generating value for our shareholders.