Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on KAROLINSKA DEVELOPMENT-B. We currently have 7 research reports from 2 professional analysts.
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Unshackling itself from its bonds?
09 Feb 17
Karolinska Development intends to restructure the convertible bonds, due to mature in December 2019. The proposal would materially strengthen the balance sheet and allow full implementation of the revised investment strategy. Additionally, in our view, it would remove what has been a distraction for management and a major overhang on the share price. Our valuation of Karolinska Development, based on its four main assets, was SEK 473m (SEK9.10 per share) and is placed under review pending the outcome of the offer.
Another quarter of delivery
23 Nov 16
Karolinska Development's turnaround maintained its momentum in Q316. Portfolio companies, Promimic and Dilafor, raise a total of SEK75m (including commitments) with SEK53m already invested by third-party investors; and Umecrine Cognition has since completed a SEK45m fundraising. On the operation front, BioArctic has formed a collaboration with AbbVie; and after the period end, following the publication of very promising Phase I data in ovarian cancer, Aprea has advanced APR-246 into Phase II. Our valuation of Karolinska, based on its four main assets, is unchanged at SEK9.10 per share.
The corner has been turned
09 Nov 16
Over the past two years Karolinska Development has successfully repositioned itself, with the investment strategy firmly focussed on disruptive technologies that could materially alter current treatment models. New management has re- galvanised the entire organisation, with a greater emphasis on an active investment in these mid- and late-stage opportunities. Our DCF-based valuation of the four main investments alone suggests a value of SEK473m, SEK9.10 per share, which represents an uplift of 52% to the current market value, with the remaining six portfolio companies representing further upside.
N+1 Singer - Karolinska Development AB - Forecast update post Q2: portfolio value credible, but stock expensive
07 Sep 16
Q2 results on 31st August revealed a further reduction in net portfolio value to SEK143.7m. The stock is currently trading at a price/NAV of 2.4x and an EV/portfolio value of 3.2x, the latter representing a significant premium over the 1.75x average for quoted IP commercialisation companies (when adjusted for quoted company holdings). Although we believe that the portfolio is now conservatively valued, the valuation premium is in our view too wide given the convertible debt (SEK586.4m payable in 2019e) and preferred dividends payable to Rosetta Capital, in spite of the potentially attractive propositions represented by (in our view) Aprea AB and OssDsign AB in particular. We downgrade from Hold to Sell with an EV/portfolio value ratio based target price of SEK4.2.
N+1 Singer - Morning Song 07-09-2016
07 Sep 16
Consort Medical (CSRT LN) In line AGM statement & contract with AZ | Futura Medical (FUM LN) Stellar data from pivotal MED2002 (Eroxon™) trial | Karolinska Development AB (KDEV SS) Forecast update post Q2: portfolio value credible, but stock expensive | N Brown Group (BWNG LN) Deep value but more downgrades after tricky Q2 | OMG (OMG LN) Yotta continues international expansion with Amey contract | Oxford Pharmascience Group (OXP LN) Interim results provide update on development activities | PureTech (PRTC LN) Interim results highlight upcoming newsflow | Servelec Group (SERV LN) Interims reflect difficult H1. Outlook more positive | Vectura Group (VEC LN) Solid AGM update
N+1 Singer - Morning Song 22-02-2017
22 Feb 17
CORETX (COR LN) Contract wins and new Lifestyle facility | Gooch & Housego (GHH LN) Solid Q1 trading plus earnings enhancing acquisition of StingRay Optics | NCC Group (NCC LN) Further issues in Assurance | PCI-PAL (PCIP LN) Strong H1 underpins positive outlook | UBM (UBM LN) Results | Verona Pharma (VRP LN) Phase IIa RPL554 add-on trial to tiotropium commenced
Interim results – adhering to international growth strategy
23 Feb 17
Interim results showed a strong performance for Tristel, 6% ahead of its AGM statement on 12 December at which it indicated adjusted pre-tax profits to be no less than £1.6m. Revenues increased by 22% (16% at constant exchange rates – CER or 12% CER excluding the impact of the Australian acquisition) and adjusted pre-tax profits were up 15% to £1.71m. Despite the strong half, we leave our full-year forecasts unchanged, given FX uncertainty and a one-off stocking order in H1 from the NHS, although at current FX rates the risk to our forecasts is considered to be to the upside. However, we raise our target price by 10% to 165p to reflect the solid progress as well as rolling forward our multiples to calendar-adjusted 2017.
N+1 Singer - Morning Song 21-02-2017
21 Feb 17
Abzena (ABZA LN) Contract bookings strong; US costs higher than expected | City of London Investment Group (CLIG LN) Earnings and interim dividend in line, some modest growth in FuM | dotdigital Group (DOTD LN) Good H1; broadening avenues of growth | Grafenia (GRA LN) Weak print volumes | Vernalis (VER LN) Interims highlight increasing Tuzistra™ scrip volume
Panmure Morning Note 15-02-2017
15 Feb 17
With the early January trading update having prompted us to upgrade forecasts, today’s interim results show how the group’s focus on areas such as product development and international sales are translating through to growth in both the top and bottom-line. The consistency of delivery is what impresses us, reflecting the maturity of the management team and the clarity of the longterm vision. We repeat our Buy recommendation.
N+1 Singer - Morning Song 23-02-2017
23 Feb 17
Genus (GNS LN) Interim results: R&D step-up, disappointing ABS performance | Howden Joinery Group (HWDN LN) Prelims and net cash better than expected but conditions weaken | Oxford Pharmascience Group (OXP LN) Encouraging interim OXPzero™ Ibuprofen exploratory PK data | StatPro Group (SOG LN) Increased majority shareholding in Infovest Consulting | Wilmington Group (WIL LN) Interims slightly ahead, move to focus on 3 verticals
13 Dec 16
Tristel has announced in its AGM statement that it expects to report first half adjusted (share-based payments) pre-tax profits to be no less than £1.6m. This compares with £1.5m in the 6 months to December 2015 and is in line with management’s expectations and stated strategic financial goals: (i) revenue growth within a range of 10% to 15% as an annual average over the 2016-19 period, (ii) maintaining a minimum pre-tax profit margin of 17.5% and (iii) distributing cash that is not required for the operational and investment needs of the business to shareholders in the form of dividends. Our forecasts for the full year are for adjusted pre-tax profits of £3.6m, and include a contribution from the acquisition of its previous Australian distributor for its Wipes System from 21 July 2016 (ie 11 months contribution in the full year). Our forecasts also include £0.5m of US development expenses for the full year (incremental £370k), which impacts margins by c190bps. We make no changes to either our forecast or target price; however, note that risks to both of these are on the upside.