2. Today’s Presentation
Second Quarter Highlights
Selected Portfolio Companies
Financial Information
Summary
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3. Karolinska Development in Summary
Exclusive access to top class medical innovations
First-in-class drug candidates with multi billion dollar
sales potential
Significant clinical progress – 14 projects in clinical
phase
Large portfolio of companies removes binary risk –
26 companies, 35 projects
Cash position provides funding through major
clinical data
Strong focus on business development activities
across the portfolio
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4. Highlights During and Since the Second Quarter 2012
Pharmanest initiated Phase I and Phase II trials with SHACT, a product
developed for pain relief in connection with IUD insertion
Karolinska Development AB and Industrifonden signed a share swap
agreement whereby Industrifonden will exchange Karolinska Development
AB’s shares in Oncopeptides AB for its shares in Aprea AB
Pergamum reported top-line Phase II-data from the clinical trial with PXL-01
for prevention of post-surgical adhesions
Strengthened Management team in Karolinska Development:
– Dr Gunilla Ekström recruited as VP Operations
– Ann-Sofie Sternås recruited as VP IPR
Akinion Pharmaceuticals announced the publication of preclinical results for
AKN-028 in highly cited scientific journal
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5. The Portfolio has a Significant Market Potential
Concept Lead Lead Preclinical
Ownership* Phase I Phase II Phase III Launch
PHARMACEUTICALS development discovery optimization development
ONCOLOGY
Axelar AB 50%
Aprea AB 41%
Oncopeptides AB 43 %
KDev Oncology AB (AKN-028) 90%
KDev Oncology AB (GliGene) 44%
DERMATOLOGY
Pergamum AB (DPK-060, atopic dermatitis) 62%
Pergamum AB (DPK-060, external otitis) 62%
Pergamum AB (PXL01) 62%
Pergamum AB (LL-37) 62%
WOMEN’S HEALTH
Dilafor AB 55%
Pharmanest AB 59%
Umecrine Mood AB 43%
INFECTIOUS DISEASE
Dilaforette AB 62%
Biosergen AS 60%
CARDIOVASCULAR
Athera Biotechnologies AB (Annexin A5) 65%
Athera Biotechnologies AB (PC-mAb) 65%
CNS
BioChromix Pharma AB 70%
Umecrine Cognition AB 54%
INFLAMMATION
NovaSAID AB 89%
ProNoxis AB 22%
OPHTHALMOLOGY
Clanotech AB 88% Solid colored area = completed phase
Shaded colored area = ongoing phase
*Including indirect ownership. Ownership in Axelar and GliGene shown after
all tranches in recent investment round. All shares in Oncopeptides will be
exchanged for Industrifondens shares in Aprea. Ownership in Aprea after
share swap transactiona will be 69%.
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6. The Portfolio has a Significant Market Potential
TECHNOLOGY Ownership* Concept development Prototype Development Product Sales
IMPLANTS
Promimic AB 28%
Oss-Q AB 16%
DIAGNOSTICS
Athera Biotechnologies AB (CVDefine®) 65%
BioChromix AB 14%
PHARMACEUTICAL FORMULATION
Inhalation Sciences Sweden AB 72%
XSpray Microparticles AB 62%
Lipidor AB 46%
MEDICAL EQUIPMENT
NeoDynamics AB (Fourier/AS) 21%
NeoDynamics AB (Therapy/PRFA) 21%
Solid colored area = completed phase
Shaded colored area = ongoing phase
*Including indirect ownership
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7. Portfolio Focus in 2012 and 2013
Axelar – AXL1717 Phase I/II data
Axelar – AXL1717 for NSCLC Initiate Phase II
Akinion – AKN-028 for AML Initiate clinical studies
ONCOLOGY
Aprea – APR-246 Complete Phase I/II
Akinion – AKN 028 Complete Phase I/II
Axelar – AXL1717 for NSCLC Complete Phase II
Pergamum – PXL01 for surgical adhesion Complete enrolment of Phase II
Pergamum – DPK-060 for external otitis Initiate Phase II
DERMATOLOGY Pergamum – DPK-060 for skin infection Preparation for Phase IIb
Pergamum – LL-37 for chronic wounds Initiate clinical studies
Pergamum - DPK-060 for external otitis Complete Phase II
Pharmanest – SHACT for pain relief at IUD insertion Initiate Phase I
Pharmanest – SHACT for pain relief at IUD insertion Initiate Phase II
WOMEN’S HEALTH Dilafor – Tafoxiparin for protracted labor Initiate Phase IIb with partner
Pharmanest – SHACT for pain relief at IUD insertion Complete Phase I and II
Umecrine Mood – Severe PMS and PMDD Initiate Phase I/II
Dilaforette – Sevuparin for malaria Initiate Phase I/II
OTHER
Dilaforette – Sevuparin for malaria Complete Phase I/II
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8. Anticipated Major Clinical Data
Phase I data LL-37 Phase I data
PXL01 Phase II data DPK-060 Phase II data Phase II data
Phase II data
in NSCLC
2012 2013 2014
Phase I data Phase I/II data Phase I/II data
Tafoxiparin Phase IIb data
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9. Significant Deal Values in Our Focus Areas
Therapeutic Total Deal
Date Licensor Licensee Product Phase at Deal
Area Value (USDm)
February 16, 2011 AVEO Pharmaceuticals, Inc. Astellas Pharma, Inc. Oncology AV951 Phase II 1480
February 29, 2012 Galapagos NV Abbott Laboratories Inflammatory GLPG0634 Phase II 1350
November 10, 2009 Alder Biopharmaceuticals Inc. Bristol-Myers Squibb Company Inflammatory ALD518 Phase II 1049
December 8, 2011 Pharmacyclics, Inc. Janssen Biotech, Inc. Oncology PCI32765 Phase II 975
September 3, 2009 Algeta ASA Bayer Healthcare Pharmaceuticals, Inc. Oncology Alpharadin Phase II 800
December 21, 2009 Incyte Corporation Eli Lilly & Co Inflammatory INCB28050 Phase II 755
February 12, 2009 Portola Pharmaceuticals Inc. Novartis AG CVD PRT128 Phase II 575
May 4, 2011 Molecular Partners AG Allergan Inc. Ophthalmology MP0112 Phase II 420
September 5, 2011 Evotec AG Roche Holding, Ltd. CNS EVT302, RG1577 Preclinical 830
Janssen Pharmaceuticals Inc./
June 1, 2010 Orexo AB Respiratory OX-CLI, OX-ESI Preclinical 586
Johnson & Johnson
June 8, 2011 Affectis Pharmaceuticals AG Merck Serono S.A. CNS P2X7 Antagonist Preclinical 409
January 1, 2012 Virobay, Inc. LEO Pharma A/S Dermatology Preclinical 307
MP0260,
August 21, 2012 Molecular Partners AG Allergan Inc. Ophthalmology Discovery 1400
eye disease DARPins
December 20, 2010 Avila Therapeutics, Inc. Sanofi Oncology Discovery 964
January 5, 2012 Forma Therapeutics, Inc. Boehringer Ingelheim Corporation Oncology Discovery 815
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11. AXL1717 - Block Buster Potential in Lung Cancer Ownership: 50%
12
Avastin, Tarceva and Iressa Sales (USDbn)
Company: Axelar AB 10
Active ingredient: Small molecule 8
6
Primary indication: Non Small Cell Lung Cancer
4
Current Phase: Phase II
2
0
Status Market Overview
The only small-molecule IGF-1R inhibitor in man Around 420 000 new cases of NSCLC in the
without insulin receptor inhibition industrialized countries each year
Unique preclinical efficacy UBS estimated total US lung cancer sales in 2010 for
Promising Phase I/II data Avastin at USD 1150m, Tarceva at USD 400m, and
Phase II ongoing – Top-line data expected in the Iressa at USD 310m
beginning of 2013
Next indication Glioblastoma
Source: Datamonitor
AXL1717 - Potential in Multiple Cancers
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12. AXL1717 – Promising Phase I/II-data (March 30 Update) Ownership: 50%
SAFETY
Progression-free survival and overall survival of 15 patients with progressive and refractory NSCLC treated with single
AXL1717 was well-tolerated with reversible neutropenia agent AXL1717 in 3rd or 4th line. Patients with a treatment duration longer than 14 days. Status per March 30, 2012
as dose limiting toxicity
- Even at exposures 5-10 fold higher than those needed
for anti-tumor activity in animals.
- No changes in blood levels of glucose, insulin or
C-peptide were reported.
CLINICAL BENEFIT
For the NSCLC patients treated for 14 days or longer (Mar 30, 2012):
Median survival 60 weeks
Median time to progression 31 weeks
One Partial Response according to RECIST
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13. Normalizing p53 to Overcome Drug Resistance Ownership: 41%*
Platinum refractory patients in ovarian cancer (US)
Company: Aprea AB First Line Treatment (60500 patients) 86% 14%
Active ingredient: Small molecule
Second Line Treatment (30500 patients) 58% 42%
Primary indication: Ovarian cancer
Current Phase: Phase I/II Third Line Treatment (18000 patients) 25% 75%
Patients given platinum-based therapy Patients ineligible for platinum-based therapy
Status Market Overview
Aprea has identified small molecules that reactivate 63 500 patients are diagnosed with ovarian cancer
p53, considered a prime target for new first-line cancer each year in 7MM, 25 % with an advanced disease at
therapies diagnosis
Gained orphan drug status for indication AML in the Close to half of the patients in second line treatment
EU develop resistance to platinum-based treatment
Planning in progress of a Phase I/II study in Aprea's drug candidate aims to target this problem
chemotherapy-resistant patients
*Ownership in Aprea will be 69% after share swap
13 transaction with Industrifonden.
14. AKN-028 - Targeting all AML Tumor Types Ownership: 90%
AML Treatment Outcomes
70%
Company: Akinion
60% 30 day Treatment
Pharmaceuticals AB 50% Mortality
Active ingredient: Small molecule 40%
30% Resistance
Primary indication: Acute Myeloid 20%
Leukemia (AML) 10% Complete Remission after
Current Phase: Phase I/II 0% cytarabine + daunorubicin
<56 56-65 66-75 >75 treatment
Age Group
Status Market Overview
Targets FLT3 and c-Kit – important factors in leukemia Chemotherapy is the only viable pharmaceutical
development treatment for AML today
Unique preclinical efficacy in chemotherapy resistant About 42 000 patients are affected by AML each year
cells in the US, EU and Japan
Phase I/II ongoing in AML 5-year survival: 33% in patients under 65,
4% in patients over 65 years
Sources: Datamonitor, NCCN, SEER, Appeldaum et al 2006
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15. Ex vivo Efficacy of AKN-028 vs. Quizartinib Ownership: 90%
Cytotoxic response to AKN-028 and Quizartinib (AC220) in 11 primary AML samples outlined as individual dose–response curves from the FMCA (a–f ). Samples are grouped
according to in vitro response to Quizartinib. Because of the configuration of data for Quizartinib, a sigmoid curve fitting was not possible. SI, survival index. (Eriksson et al 2012)
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16. Synergistic Response of AKN-028 with Chemotherapy Ownership: 90%
Cytotoxic response to AKN-028 in combination with standard cytotoxic agents cytarabine (a) and daunorubicin (b) in MV4-11 cell line in three different sequences; (I): pretreatment with chemotherapy (24 h), followed
by AKN-028; (II): simultaneous treatment with both agents; (III): pretreatment with AKN-028 (24 h). Results are presented as mean CI, (n¼11–16) of all experimental combination data points with effect levels between
10–90%, error bars representing s.e.m. CI o0.7 indicate synergy and CI of 1 additive interactions. (Eriksson et al 2012)
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17. SHACT - Pain Management in Gynecology Ownership: 59%
Company: Pharmanest AB
Active ingredient: Small molecule
Primary indication: Pain in connection with IUD-insertion
Current Phase: Phase II
Status Market Overview
Unique formulation and applicator developed for UN estimates the prevalence of IUD at 15 million
local pain relief during gynecological procedures women in the developed world
Last patient dosed in Phase I safety and Assuming an IUD insertion every 5 year, the annual
pharmacokinetics study number of IUD insertions is 3 million in developed
countries
A randomized, double blind Phase II-study with China represents a large market potential - Over
about 200 patients initiated in 2Q 2012 100 million women with IUD
Phase II-data is expected in 2H 2013 Potential to expand to other indications such as
hysteroscopy, abortions and obstetric pain
Sources: United Nations, World Contraceptive Use (2011)
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19. Key Financial Information for the Group
2012 2011 2011
Amounts in SEKm Jan-June Jan-June Full year
Income statement
Revenue 5.5 5.2 10.5
Profit/loss after tax -189.2 -130.8 -385.7
Earnings per share before and after dilution (SEK) -3.52 -3.09 -8.07
Balance sheet
Cash and cash equivalents 170.3 162.1 163.3
Short-term investments 291.1 577.5 457.2
Share information
Net asset value per share (SEK) 42.5 49.6 44.7
Share price, last trading day in the reporting period (SEK) 19.5 29.4 24.0
Portfolio information
Investments in portfolio companies* 115.7 226.2 297.6
Of which investments not affecting cash flow - 84.1 94.9
Valuation of total portfolio holdings 1,564.4 1,652.1 1,546.9
* Portfolio companies comprise subsidiaries, joint ventures, associated companies and other long-term securities holdings
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20. Strong Shareholder Base
Shareholder A Shares B Shares Cap % Votes %
Third Swedish National Pension Fund 4 678 500 9.6% 7.5%
Karolinska Institutet Holding AB 1 503 098 2 453 933 8.2% 28.2%
Coastal Investment Management LLC 3 470 541 7.2% 5.6%
The Foundation of Baltic and East European Studies 3 345 537 6.9% 5.4%
Swedbank Robur Funds 1 920 074 4.0% 3.1%
Jarla Investeringar AB 1 629 354 3.4% 2.6%
Foundation Asset Management AB 1 392 035 2.9% 2.2%
Länsförsäkringar Group 1 364 415 2.8% 2.2%
Skagen Funds 1 297 700 2.7% 2.1%
Stefan Persson 1 261 278 2.6% 2.0%
Insamlingsstiftelsen för främjande och utveckling av medicinsk
forskning vid Karolinska Institutet 1 150 323 2.4% 1.9%
Government of Norway 781 951 1.6% 1.3%
Holberg Funds 754 653 1.6% 1.2%
SBSB Innovation AB 692 000 1.4% 1.1%
Ruffer Funds 450 000 0.9% 0.7%
Fourth Swedish National Pension Fund 383 959 0.8% 0.6%
Gålö Foundation 375 535 0.8% 0.6%
Nordea Funds 366 600 0.8% 0.6%
KL Ventures AB 300 000 0.6% 0.5%
Lingfield AB 281 989 0.6% 0.5%
Sum listed shareholders 1 503 098 28 329 673 61.5% 69.9%
Sum other shareholders 0 18 698 646 38.5% 30.1%
Sum all shareholders 1 503 098 47 028 319 100.0% 100.0%
As at June 30, 2012
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21. Karolinska Development in Summary
Exclusive access to top class medical innovations
First-in-class drug candidates with multi billion dollar
sales potential
Significant clinical progress – 14 projects in clinical
phase
Large portfolio of companies removes binary risk –
26 companies, 35 projects
Cash position provides funding through major
clinical data
Strong focus on business development activities
across the portfolio
21
