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ARTICLE | Financial News

Karolinska Development reassesses portfolio value

July 10, 2015 2:46 AM UTC

Karolinska Development AB (SSE:KDEV) reduced the reported value of its portfolio to SEK679 million ($80.1 million) in 2Q15 from SEK1.4 billion ($165.1 million) in 1Q15 after it changed its method of valuing early stage investments and divested its holdings in Pharmanest AB (Solna, Sweden). Karolinska said the valuation method is in line with industry standards and reflects its "new strategy to operate as a venture vehicle."

The firm will value early stage companies based on valuations at the most recent investment round, rather than through the discounted cash flow (DCF) method it had been using. Karolinska will use DCF only to value companies with later stage candidates. The change reduced Karolinska's reported portfolio value by SEK368 million ($43.4 million). ...