Biovitrum AB and Karolinska Development signed an agreement to establish a jointly owned project company. This company will receive all rights to further develop, market and sell Biovitrum's pharmaceutical project FLT3 against leukaemia.

Karolinska Development will finance the project with a maximum of 10 million SEK up to a defined decision point. Thereafter, the new company will decide upon subsequent handling of the assets. The newly started company will be controlled with 80.1 per cent owned by Karolinska Development. Biovitrum becomes minority owner with 19.9 percent ownership. According to the agreement, Biovitrum will receive future royalties on sales of pharmaceuticals developed based on the FLT3 project.

"The agreement means that our interesting low molecule project within leukaemia can be further developed while Biovitrum can pursue its strategy to focus of future biopharmaceuticals," said Martin Nicklasson, CEO of Biovitrum. "I am convinced that Karolinska Development will create the best of possibilities for the development of this project all the way to a new cancer drug for patients with high unmet medical needs," Nicklasson added.

"Karolinska Development has proved to be very innovative and successful in developing this category of early projects," said Conny Bogentoft, CEO of Karolinska Development. In addition, it is fortunate that this Swedish pharmaceutical invention can be further developed on home ground. The bringing of this agreement to a successful close validates our credibility in the surrounding world," Bogentoft added.

The project is currently in preclinical phase. FLT3 is a so called tyrosine kinas, important for the normal development of blood cells and the immune system.

Swedish pharma company, Biovitrum, markets a range of specialist pharmaceuticals internationally. Using its expertise and experience Biovitrum takes scientific innovation all the way to the market and to specialist indication patients with significant medical need.

Managing one of the largest portfolios of life science research companies in Europe, Karolinska Development is a Swedish investment company using a unique, highly cost effective model to commercialize internationally renowned life science innovations.