Karolinska Development Supports Modus Therapeutics' Growth

Karolinska Development's Strategic Move for Modus Therapeutics

In a significant move for growth and development, Karolinska Development AB, a prominent player in the Nordic life sciences sector, announced that its portfolio company, Modus Therapeutics, is undertaking a fully secured rights issue worth SEK 28.3 million. This funding aims to support the advanced clinical journey of sevuparin, a drug candidate targeting chronic kidney disease complicated by anemia.

A Crucial Step in Drug Development

On June 26, Modus Therapeutics, which is listed on the Nasdaq First North Growth Market, revealed its decision to launch this rights issue. The initiative will bring in SEK 28.3 million, prior to any associated costs, upon full subscription. This move is subject to the green light from an extraordinary general meeting set for July 29.

Financing the Clinical Journey

The primary objective of securing this capital is to expedite the ongoing clinical phase II study of sevuparin. The funds will also ensure that operations are maintained throughout 2026, allowing the company to meet significant milestones in its developmental timeline.

Backing by Key Shareholders

Key stakeholders, including Karolinska Development, influential figures like Hans Wigzell and Anders Bladh, have made substantial free subscription commitments—totaling SEK 17.7 million—which covers approximately 62.7% of the rights issue. The remaining 37.3% is backed by external underwriting commitments, showcasing robust confidence in Modus Therapeutics' strategy and future prospects.

Confidence in Challenging Markets

Viktor Drvota, the CEO of Karolinska Development, expressed optimism about the successful rights issue amidst challenging market conditions. He stated, “Securing a fully subscribed rights issue is a clear indicator of strength for Modus Therapeutics and its clinical strategy. Our significant ownership and support reinforce our belief in the company’s potential to make significant advancements in sevuparin’s development.”

Karolinska Development's Commitment

Karolinska Development holds a substantial 66% stake in Modus Therapeutics, reflecting its deep commitment to nurturing innovative advancements within the life sciences landscape. The parent company consistently seeks to identify and support breakthrough medical innovations crafted by passionate entrepreneurs.

Focus on Innovative Treatment Solutions

The strategic direction of Karolinska Development emphasizes not only financial investment but also building a framework that fosters innovation. With access to world-renowned medical advancements from institutions like the Karolinska Institutet, it aims to cultivate companies around cutting-edge scientists, bolstered by adept management teams and financing from specialized global investors.

Growing Portfolio of Life-Saving Innovations

Currently, Karolinska Development boasts a portfolio encompassing eleven dynamic companies dedicated to addressing serious health challenges with innovative treatments. Guided by an entrepreneurial team recognized for their expertise as company builders, the objective remains clear: turning innovative concepts into life-changing products for patients while ensuring shareholder value.

Contact Information for Further Inquiries

For further insights or inquiries regarding Karolinska Development's activities and strategic initiatives involving Modus Therapeutics, please reach out to:

Viktor Drvota, CEO
Phone: +46 73 982 52 02
Email: viktor.drvota@karolinskadevelopment.com

Johan Dighed, General Counsel and Deputy CEO
Phone: +46 70 207 48 26
Email: johan.dighed@karolinskadevelopment.com

Frequently Asked Questions

What is the purpose of the SEK 28.3 million rights issue?

The funds will primarily finance the clinical development of sevuparin for chronic kidney disease and support operations until the end of 2026.

Who are the major shareholders backing this rights issue?

Key shareholders include Karolinska Development, Hans Wigzell, and Anders Bladh, who together have committed SEK 17.7 million, covering a significant part of the rights issue.

What are the expected outcomes of the rights issue?

The rights issue aims to successfully develop and advance the clinical phase of sevuparin, ultimately contributing to better treatment options for patients with chronic kidney disease.

How does Karolinska Development support its portfolio companies?

Karolinska Development provides financial investment, access to medical innovations, and builds supportive frameworks around innovative scientists and management teams to enhance success rates.

What is Modus Therapeutics’ main focus?

Modus Therapeutics is focused on developing sevuparin, a drug candidate aimed at treating chronic kidney disease with anemia, signifying a critical area in medical need.

About The Author

My name is Dylan Bailey, and I am 28 years old. I am an author and an expert on the stock market who specializes in publicly traded companies. Early fascination with the stock market inspired me to seek a finance degree and then delve deeply into the world of stocks. I have developed over the years my abilities to spot investment prospects, assess business performance, and analyze market trends.

My books and articles try to help regular investors understand the nuances of the stock market. Anyone can, in my opinion, make wise investment choices and succeed financially if they have the correct information and resources. In my writing, I combine in-depth research with practical insights and advice that can be put into action. This is done with the intention of assisting readers in navigating the constantly shifting landscape of publicly traded companies.

In addition to writing, I also host webinars and workshops, where I give presentations and share my knowledge with a wider audience. I also write for top financial journals and show up as a guest analyst on financial news shows. I like to travel, spend time with my family, and keep active by playing different sports when I'm not buried in market research.

My goal is to enable people to choose wisely and consciously in their investments, so taking charge of their financial futures. By my work, I hope to create a community of informed and self-assured investors prepared to take advantage of the chances presented by the stock market.

Contact Dylan Bailey privately here. Or send an email with ATTN: Dylan Bailey as the subject to contact@investorshangout.com.

About Investors Hangout

Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/

The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.