Modus Therapeutics Secures Significant Funding to Advance Treatments
Major Funding Boost for Modus Therapeutics
In a significant development, Karolinska Development AB (NASDAQ: KDEV) has announced that Modus Therapeutics, one of its esteemed portfolio companies, has successfully raised SEK 28.3 million through an oversubscribed unit issue. This financing initiative received an impressive subscription rate of 189 percent, which underscores the growing confidence in the company's prospects and its innovative drug candidate, sevuparin, aimed at treating chronic kidney disease.
Details of the Unit Issue
Modus Therapeutics has positioned itself strongly in the marketplace as it executes a unit issue that not only raises substantial capital but also signals strong investor confidence. With a 189 percent subscription rate, the need for any guarantee commitments during this phase has been effectively eliminated, thereby streamlining the funding process.
Allocation of Proceeds
The net proceeds from this successful fundraising effort total SEK 24.4 million. A notable portion of these funds, approximately SEK 5 million, is earmarked to settle outstanding loans from its largest shareholder, Karolinska Development. The remaining funds will predominantly support clinical activities, especially focusing on the ongoing Phase 2 study of sevuparin. Furthermore, these resources, which will also include proceeds from exercising warrants of series TO 2026, are anticipated to sustain the company's financial health up to the end of 2026.
Alan Drvota's Encouraging Remarks
Viktor Drvota, the CEO of Karolinska Development, expressed optimism regarding the oversubscribed rights issue. He emphasized that it represents a vital milestone for Modus Therapeutics, especially in a market environment that poses unique challenges. This success not only reveals the resilience of Modus Therapeutics but also reflects robust support and trust in its clinical advancement efforts.
Ownership Structure and Strategic Focus
Karolinska Development holds a significant stake in Modus Therapeutics, with approximately 66 percent ownership directly and an additional 8 percent indirectly through KDev Investments. This strategic investment ensures that Karolinska Development plays a pivotal role in driving Modus Therapeutics' growth trajectory.
About Karolinska Development
Karolinska Development AB is recognized as a leading Nordic life sciences investment company. Its strategy emphasizes identifying groundbreaking medical innovations within the Nordic region, often pioneered by entrepreneurial teams. By investing in the development of these assets into commercial products, Karolinska Development seeks to enhance the lives of patients while delivering appealing returns to its investors.
Looking Ahead: Future Innovations
The portfolio of Karolinska Development includes eleven companies all dedicated to tackling severe and debilitating diseases through innovative treatments. This approach not only ensures the advancement of life-changing therapies but also supports skilled scientists and management teams dedicated to success.
Connecting with Leadership
For those interested in learning more about Modus Therapeutics or any other endeavors spearheaded by Karolinska Development, the leadership team is readily available. Viktor Drvota, CEO, can be reached at +46 73 982 52 02, while Johan Dighed, General Counsel and Deputy CEO, is available at +46 70 207 48 26.
Frequently Asked Questions
What is the total amount raised by Modus Therapeutics in this funding round?
Modus Therapeutics raised a total of SEK 28.3 million in this unit issue.
What will the funds be used for?
The funds will be used primarily for clinical activities related to the development of the drug candidate sevuparin.
Who is the CEO of Karolinska Development?
The CEO of Karolinska Development is Viktor Drvota.
What percentage of Modus Therapeutics does Karolinska Development own?
Karolinska Development owns approximately 66 percent directly and 8 percent indirectly of Modus Therapeutics.
What is sevuparin?
Sevuparin is a drug candidate developed by Modus Therapeutics intended for the treatment of chronic kidney disease.
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