Umecrine Cognition is a portfolio company of Karolinska Development advancing golexanolone, its lead drug candidate. The company is financing the ongoing Phase 2 clinical trial of golexanolone in primary biliary cholangitis and covering working capital needs. It recently presented strong preclinical data supporting the candidate. The latest funding was implemented as a convertible loan with attached share options and totals SEK 30.4 million. Karolinska Development participates in the investor consortium and currently holds a 73% stake in Umecrine Cognition. Upon full exercise of the new and two earlier convertible loans with similar terms, Karolinska Development's holding would decrease to 62%. Umecrine Cognition is a portfolio company of Karolinska Development focused on developing the drug candidate golexanolone. The company has secured additional financing to advance a clinical Phase 2 trial of golexanolone in primary biliary cholangitis (PBC) and to fund preclinical studies in Parkinson’s disease. The financing was implemented as a convertible loan with attached share options totaling SEK 31.6 million. An investor consortium comprising Karolinska Development, AB Ility and Ribbskottet AB provided the funding, and Karolinska Development participated in the round. Karolinska Development currently owns 73% of Umecrine Cognition; upon full exercise of the attached share options its holding would decrease to 63%. Karolinska Development expects the dilutive effect of the transaction to produce a negative earnings effect of SEK 19.7 million in Q1 2023. Company management highlights the treatment’s potential in both PBC and Parkinson’s disease, areas described as lacking adequate treatments. Umecrine Cognition is developing a new class of drugs to alleviate cognitive symptoms caused by liver disease. Its most advanced candidate, golexanolone, is being evaluated in patients with primary biliary cholangitis (PBC) and hepatic encephalopathy (HE). Previous clinical and preclinical studies indicate golexanolone can counteract inappropriate suppression of brain activity that produces fatigue, difficulty concentrating and impaired motor function. The company has secured SEK 41 million in funding implemented as a convertible loan with attached share options to enable the start of a Phase 2 study of golexanolone in PBC. Karolinska Development is investing SEK 15 million as part of an investor consortium that includes AB Ility. Karolinska Development currently owns 73% of Umecrine Cognition; upon full exercise of the share options its holding would decrease to 65%. Karolinska Development expects a negative earnings effect of SEK 49 million (7.7%) in Q3 2022 due to the dilutive transaction. Umecrine Cognition is developing golexanolone, a drug candidate with a novel mechanism of action that attenuates incorrect activation of the GABAA receptor in the brain. Positive phase 2 results in hepatic encephalopathy were published in the Journal of Hepatology, supporting initiation of late clinical‑phase studies and expansion into other disease areas. The company carried out a directed new share issue of SEK 35.1 million to broaden its ownership base and finance continued clinical development and IPO preparatory activities. Concurrently, Karolinska Development converted SEK 66.9 million of loans into shares at the same subscription price as the new issue. Following the transactions Karolinska Development’s ownership in Umecrine Cognition increased to 72.59 percent. Vator Securities acted as financial advisor in connection with the share issue, and the company planned an IPO on Nasdaq First Growth Market in Q4 2021. Umecrine Cognition is developing GR3027, a GABAA-receptor modulating steroid antagonist intended to treat sleep disorders. The company plans an explorative phase 2a study of GR3027 for idiopathic hypersomnia funded by the recent financing. GR3027 is also being developed as a potential treatment for hepatic encephalopathy and recently showed good results in a phase 1b trial. The phase 1b study reported that GR3027 was well tolerated, had no dose-limiting side effects, and exhibited a favorable pharmacokinetic profile. Idiopathic hypersomnia currently has no effective treatment, making the new indication potentially significant. To support the expanded clinical development, Umecrine Cognition closed a financing round raising SEK 20 million.

Total raised

$16M

Funding rounds

6

Latest round

Convertible Note

Latest activity

Nov 2023