Karolinska Development’s Portfolio Company Umecrine Cognition Secures Funding Ahead of Phase 2 Study of Golexanolone in Primary Biliary Cholangitis

Karolinska Development AB (publ)

STOCKHOLM, SWEDEN – September 14, 2022. Karolinska Development AB (Nasdaq Stockholm: KDEV) today announces that portfolio company Umecrine Cognition has secured funding of SEK 41 million to start a phase 2 study of the candidate- drug golexanolone in primary biliary cholangitis, a condition that occurs when the bile ducts in the liver are slowly destroyed. The financing is implemented in the form of a convertible loan with stock options. Karolinska Development is investing SEK 15 million as part of an investor consortium that includes, among others, AB Ility. The dilutive effect of the transaction will result in a negative profit effect of SEK 49 million (7.7%) for Karolinska Development in the third quarter of 2022.

Umecrine Cognition is developing a new class of drugs to relieve cognitive symptoms caused by liver disease. The company’s most advanced drug candidate, golexanolone, is currently being evaluated in patients with primary biliary cholangitis (PBC) and hepatic encephalopathy (HE; liver coma). These severe conditions result in inappropriate suppression of brain activity, causing extreme fatigue, difficulty concentrating, and impaired motor function. Results from previous clinical and preclinical studies strongly indicate that golexanolone is able to counteract such inappropriate suppression of brain activity.

“Umecrine Cognition’s golexanolone drug candidate addresses an important medical need in patients with liver disease who suffer from severe chronic cognitive symptoms. We are delighted with the strong interest shown by external investors to fund the launch of the next phase 2b study with Karolinska Development. The results of the study have the potential to significantly enhance the value of this unique drug project,” said Viktor Drvota, CEO of Karolinska Development.

Karolinska Development’s stake in Umecrine Cognition amounts to 73%. Upon full exercise of the stock options attached to the convertible loan, Karolinska Developments’ ownership will decrease to 65%.

For more information, please contact:

Viktor Drvota, CEO, Karolinska Development AB
Telephone: +46 73 982 52 02, e-mail: [email protected]

Johan Dighed, General Counsel and Deputy Managing Director, Karolinska Development AB
Telephone: +46 70 207 48 26, e-mail: [email protected]

TO EDITORS

About Karolinska Development AB

Karolinska Development AB (Nasdaq Stockholm: KDEV) is a Nordic life sciences investment company. The company is focused on identifying breakthrough medical innovations in the Nordic region that are developed by entrepreneurs and management teams. The company invests in the creation and growth of companies that turn these assets into commercial products designed to make a difference in the lives of patients while delivering an attractive return on investment to shareholders.

Karolinska Development has access to world-class medical innovations at Karolinska Institutet and other leading universities and research institutes in the Nordic region. The company aims to build companies around leading scientists in their fields, supported by experienced management teams and advisors, and co-financed by specialist international investors, to offer the best chance of success.

Karolinska Development has a portfolio of ten companies targeting opportunities in the innovative treatment of life-threatening or severe debilitating diseases.

The firm is led by an entrepreneurial team of investment professionals with proven business builders and access to a strong global network.

For more information, please visit www.karolinskadevelopment.com.

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