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STOCKHOLM, SWEDEN, June 3, 2022. Karolinska Development AB (Nasdaq Stockholm: KDEV) announces that the company has agreed to invest SEK 20 million in PharmNovo AB, which is developing a novel drug for nerve pain, a difficult-to-treat form of pain that often develops into a chronic condition. The drug candidate PN6047 from PharmNovo has shown compelling efficacy in well-established preclinical disease models, and a first clinical trial is planned to start in late 2022. The estimated market value for nerve pain drugs is nearly $6 billion and is expected to continue growing.
The need for improved treatments for nerve pain, also known as neuropathic pain, is enormous. Around 10% of the world's population currently suffers from conditions characterized by this form of pain, leading to a severely reduced quality of life for the individual and substantial costs for society – estimated at nearly €440 billion annually in Europe alone. Neuropathic pain occurs due to nerve damage caused by, for example, type 2 diabetes, shingles, trauma, and cancer. Current pain treatments are often insufficiently effective and are associated with a risk of developing addiction and other serious side effects.
The drug candidate PN6047 from PharmNovo is a spin-out from cutting-edge research at AstraZeneca and has been evaluated in an extensive preclinical program showing promising efficacy data in disease models of neuropathic pain. Based on the high selectivity of the drug candidate, it is expected, unlike current therapies, to deliver superior efficacy and an improved safety and tolerability profile, including addiction. The first clinical trial of PN6047 is planned to start as early as the end of 2022.
Karolinska Development’s investment in PharmNovo has been made within the framework of a new share issue led by Sciety and brings the company a total of approximately SEK 67 million. The proceeds of the issue will be used to finance the production of the drug substance, the conduct of a Phase 1 clinical trial, and the further development of the company's infrastructure.
"The market for neuropathic pain drugs is expected to exceed $7 billion by 2025 and continue to grow. At the same time, the care of this severe pain condition is characterized by malpractice, risking subsequent addiction issues. PN6047 has the potential to become a treatment delivering high efficacy without severe side effects, which would help a large patient population worldwide. We are impressed by the activity level in our new portfolio company's research and the skilled team that will now take the project to clinical phase," comments Viktor Drvota, CEO Karolinska Development.