Karolinska to divest shareholdings in Pharmanest

Swedish pharma company Karolinska Development (STO: KDEV) is divesting its entire shareholding in Pharmanest to a consortium consisting of The Foundation for Baltic and East European Studies (Östersjöstiftelsen), Recipharm Venture Fund and Praktikerinvest.

Karolinska and KCIF Co-Investment Fund, a jointly-owned holding company between Karolinska and the European Investment Fund, will transfer their shareholdings in Pharmanest to the consortium in an earn-out agreement. These are the only financial terms that will be disclosed.

Jim Van Heusden, chief executive of Karolinska Development, said: “We are continuously evaluating creative options for all our portfolio companies to retain and realize as much value as possible. The divestment of our holding in Pharmanest to a new investor consortium is a clear example of this strategy. The consortium will provide the necessary funding to bring Pharmanest to the next value inflection point. Following the deal, Karolinska Development will provide no further financing to the company, but retains an economic interest in Pharmanest through an earn-out agreement, which has the potential to capture significant future value.”