Business & Finance
Karolinska Development announces receipt of SEK512m investment for portfolio company Aprea Therapeutics
3 December 2018 -

Karolinska Development (STO:KDEV), a Nordic life sciences investment company, announced on Friday an investment of SEK512m by an investment consortium, including Redmile Group, in Aprea Therapeutics (Aprea), a portfolio company of Karolinska Development.

This investment consortium also includes Rock Spring Capital, which like Redmile Group enters as a new owner, and 5AM Ventures, Versant Ventures, HealthCap, Sectoral Asset Management and Karolinska Development AB, which are all previous owners of Aprea Therapeutics.

Based on this investment, Karolinska Development said it has decided to increase the book value for its holding of Aprea. As a consequence, a positive effect on earnings by approximately SEK60m will be reported in the income statement for the fourth quarter 2018, to be published on 14 February 2019.

Also, Redmile Group, which is a US venture capitalist firm focused on health care, will appoint a representative to Aprea Therapeutic's board of drectors.

Reportedly, Aprea's drug candidate APR-246 has shown initial positive results in a combination study with standard care azacitidine in patients with TP53 mutant myelodysplastic syndromes (MDS). Proceeds from the financing will be used to advance the clinical development of APR-246.

In addition, Aprea is planning to begin a phase III clinical study in myelodysplastic syndrome (MDS) and is nearing completion of a phase Ib/II clinical trial in p53 mutated high-risk myelodysplastic syndromes (MDS) and oligoblastic acute myeloid leukaemia (AML).

The phase II part of the study is ongoing, with updated data to be presented at the 2018 American Society of Haematology (ASH) annual meeting, from 1 to 4 December 2018.