The finances of Karolinska Development remain in a dangerous downward spiral as the company dropped to €136.9M (SEK 1,277 million), an unsatisfactory record for the company, the lowest valuation since 2011. For this purpose, the company decided to totally abandon investing in Pergamum, Umecrine and NeoDynamics AB, three biotech companies.
Karolinska’s reaction is well-defined: the company will focus on the portfolio businesses that have the potential to generate attractive returns while finding constructive solutions for the other portfolio companies.
For this purpose, Karolinska Development has decided to fully write off investments in these three biotechs, Pergamum, Umecrine and NeoDynamics AB. The company has taken it to the final step after resolving to cease further investments in the three companies. Pergamum value is written off with the amount of €14.37M (SEK 120.2 million), Umecrine Mood with €7.04M (SEK 58.9 million) and NeoDynamics AB measured up to €1.16M (SEK 9.7 million), all compared to the year-end 2014 valuations. Additional adjustments of the fair value of the portfolio add up to €3.9M (SEK -36.4 million).