Led · Equity · Apr 2019

Dilafor develops pharmaceutical products aimed at minimizing the risk of protracted labor, with lead candidate tafoxiparin. The company previously evaluated an intravenous formulation and reported a Phase 2b in October 2018 that showed good safety and tolerability but did not meet the primary efficacy endpoints for time to delivery. After analyzing results, Dilafor is prioritizing a subcutaneous dosage form administered over a longer period to soften the cervix prior to labor induction; a prior Phase 2a study of subcutaneous tafoxiparin showed a significant positive effect on time to delivery and cervical ripening. The company plans a new Phase 2b study to investigate subcutaneous tafoxiparin in a larger group. To finance the study, Dilafor completed a SEK 23.3 million capital raise with existing shareholder Opocrin S.p.A as the main investor. The transaction increases Karolinska Development's book value for its holding and yields a positive earnings effect of approximately SEK 16.8 million in Q2 2019; Karolinska's holding amounts to 30% after full dilution. Dilafor AB focuses on developing tafoxiparin, a proprietary heparan sulphate mimetic, for obstetric indications aimed at reducing slow progress and protracted labor. Tafoxiparin is a modified form of heparin and has shown encouraging evidence in a Phase II trial that it can shorten labor time. The company’s primary goal is to decrease the incidence of slow progress of labor both after induction and after spontaneous onset, reducing associated maternal and fetal complications. Dilafor plans to start a Phase IIb dose-finding trial in Northern Europe before the end of 2016, enrolling women with slow progress of labor after spontaneous onset. To enable this, the company raised SEK 51 million in a financing round to facilitate the planned study. Major shareholders include KDev Investments (the largest shareholder), the Foundation for Baltic and European Studies, and Praktikerinvest.