KDev Oncology AB invests in GliGene AB
STOCKHOLM, SWEDEN - February 14, 2012. GliGene AB, a new Swedish drug development company focusing on cancer diseases, has received its first financing through a new share issue directed to KDev Oncology AB, a wholly owned subsidiary of Karolinska Development AB. The new share issue will enable GliGene to advance the discovery of new antagonists to the Hedgehog pathway. KDev Oncology's investment at SEK 6.8m will result in an ownership in GliGene at 44%*.
GliGene is an early stage drug development company that discovers, develops and commercializes new targeted therapies for cancer patients. The discovery effort is based on world class research at Karolinska Institutet by Prof. Rune Toftgård and colleagues, who are co-founders of the company.
In developed countries approximately 35% of all deaths are caused by malignant tumors. Cancer is usually treated with a combination of surgery, chemotherapy, targeted therapy and radiotherapy. GliGene will focus its discovery activities on the Hedgehog signaling pathway. This pathway is one of the key regulators of animal development and plays a fundamental role in the control of cell differentiation, growth, and proliferation. The Hedgehog signaling pathway becomes reactivated in cancer, and is not likely to be required in most normal adult tissues. Thus, inhibition of this pathway may provide a selective way of treating cancer.
Dr. Carl Harald Janson, CEO, KDev Oncology AB, and Chairman of the Board, GliGene AB:
"We are delighted to announce the start of GliGene and the first investment in the company. We are very happy to have Prof. Rune Toftgård and his colleagues as co-founders in the company. Their contribution will be of great importance for our future success."
Prof. Rune Toftgård, Center for Biosciences, Karolinska Institutet:
"It is a pleasure to be part of GliGene and we look forward to see science provide benefit to cancer patients. We appreciate the investment by KDev Oncology and look forward to a fruitful relationship."
Dr. Torbjörn Bjerke, CEO, Karolinska Development AB:
"GliGene is the first investment by KDev Oncology, our newly formed, fully owned oncology group. This marks the start of our enhanced effort in oncology, an area of strategic importance to Karolinska Development. The cancer market is currently valued at around USD 80bn and is one of the fastest growing segments in the pharma industry. "
*Including indirect ownership through KCIF Co-Investment Fund at 3.9%.
For further information, please contact:
Carl Harald Janson, CEO, KDev Oncology AB, and Chairman of the Board, GliGene AB
Phone: +46 (0) 70 226 91 52, e-mail: carlharald.janson@karolinskadevelopment.com
Torbjörn Bjerke, CEO, Karolinska Development AB
Phone: +46 (0) 72 744 41 23, e-mail: torbjorn.bjerke@karolinskadevelopment.com
TO THE EDITORS
About GliGene AB
GliGene AB is a Swedish biotech company founded in 2011. The company is developing antagonists to the Hedgehog pathway for the treatment of solid tumors. GliGene is part of the Karolinska Development portfolio of companies.
About Karolinska Development
Karolinska Development aims to create value for investors, patients, and researchers by developing innovations from world class science into products that can be sold or out-licensed with high returns. The business model is to: SELECT the most commercially attractive medical innovations; DEVELOP innovations to the stage where the greatest return on investment can be achieved; and COMMERCIALIZE the innovations through the sale of companies or out-licensing of products. An exclusive deal flow agreement with Karolinska Institutet Innovations AB, along with other cooperation agreements with leading Nordic universities, delivers a continuous flow of innovations. Today, the portfolio consists of 35 projects, of which 14 are in clinical development. For more information, please visit www.karolinskadevelopment.com.
Karolinska Development is listed on NASDAQ OMX. Karolinska Development may be required to disclose the information provided herein pursuant to the Securities Markets Act.