Investment
Recipharm Venture Fund, Östersjöstiftelsen and Praktikerinvest have invested kr28 million in Pharmanest. Recipharm’s part of the investment is kr8 million.
At the same time, Karolinska Development and co-investor KCIF have agreed to sell their shares in Pharmanest to the three investors in exchange for an earn out arrangement on future revenues. Upon completion of the transaction, Recipharm will hold approximately 25 per cent of Pharmanest shares.
Recipharm has supported Pharmanest in developing SHACT, a topical pharmaceutical product for pain relief in conjunction with insertion of intra uterine devices (IUDs), since 2011. This investment enables Pharmanest to move forward towards submission of an application for regulatory approval in Europe for its first product candidate. Recipharm will receive pre-commercial revenues by providing Pharmanest with technical transfer and scale-up services for future commercial manufacturing at its Karlskoga facility in Sweden.
Carl-Johan Spak, executive vice president development and technology, Recipharm, commented: “We are very pleased to have reached an agreement with our co-investors and Karolinska Development to secure sufficient funding for Pharmanest. We are convinced that SHACT will help a huge amount of women with proper pain relief where there is no good alternative today."
Gunilla Lundmark, chief executive officer of Pharmanest, added: “The capital raised will enable us together with Recipharm to prepare for the commercialisation of SHACT. Our clinical trials indicate that SHACT has the potential to become the first safe and effective pain relief product for millions of women who use IUD."