Karolinska to manage fund, invest in new products, and provide follow-on financing for portfolio companies.

The EU’s European Investment Fund (EIF) has agreed to put €26.7 million ($39.65 million) into a new co-investment fund established with Karolinska Development (KD). Managed by Sweden-based KD, the co-investment fund will be used to invest in the company’s portfolio of early-stage pharmaceutical and medical technology companies.

The EIF investments will be made over a four-year period, and be used alongside KD’s own investments in new products and for follow-on financing for its portfolio companies in latter stages of clinical development. The EIF pledge represents its largest single investment in the Nordic region to date.

EIF maintains that its financial input demonstrates a real commitment to technology transfer across Europe. “This investment will help innovations from research organizations to reach the marketplace more quickly and will hopefully allow spin-out companies to reach their full potential working in conjunction with the KD team,” commented Richard Pelly, EIF’s CEO.

Conny Bogentoft, KD’s CEO, added, “This fund, together with the new share issue due to take place before the end of the year, will put KD in excellent financial shape for the important opportunities ahead. We are now working hard to ensure successful commercial exits for several of our more mature projects.”

KD manages one of the largest portfolios of life science companies in Europe. The portfolio currently comprises around 40 companies, three of which already have products on the market; seven have compounds at Phase II, and six at Phase I.

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