K/S Sunstone Biomedical Venture Annex I

The Fund’s administration was taken over by Sunstone Capital A/S on 1 January 2010 followed by another transfer within Sunstone to Sunstone Life Science Ventures A/S on 1 May 2016.

The result for the year shows a loss of DKK 13,945k influenced by realised and unrealised net loss on investments of DKK 13,744k.

Development in selected portfolio companies:
F2G Ltd: Located in Manchester, UK, is a drug development company focused on the development of novel agents to treat serious fungal diseases. F2G has obtained a EUR 24 million loan from European Investment Bank’s (EIB) InnovFin – Infectious Diseases Finance Facility’ (IDFF) run under Horizon 2020. This is expected to allow the company to complete clinical development and file for marketing authorization in 2023.

Santaris Pharma (acquired by Roche 2013): Sunstone is chairing the Sellers’ Committee whose sole purpose is to ensure the purchaser’s compliance with the Share Purchase Agreement signed in September 2013 between Purchaser Hoffman La Roche (Roche) and the 54 Sellers, among which Sunstone was the largest single shareholder. During 2019 the Fund received two minor milestone payments from Roche, which was distributed to the LP’s. Further milestone payments are very uncertain, but Sunstone is expecting final and last update from Roche in February 2020, when the agreement with Roche expires.

Zymenex Holding (asset acquired by Chiezi 2013): Zymenex' lead compound Lamzede (formerly "Lamazyme") for the treatment of the rare disease alpha-mannosidosis was evaluated by EMA in 2017 and subsequently was granted marketing authorization in 2018. The grant triggered a EUR 10 million milestone payment from Chiesi Pharmaceutici to Zymenex's former shareholders (distributed in 2018). Chiesi has now launched Lamzede in several European countries and has initiated price negotiations with the relevant authorities in these countries. To our knowledge none of the negotiations have been finalized, however, we can see that Lamzede is listed in several European countries at prices below the threshold that will trigger additional milestone payments to Zymenex’ shareholders.

Uncertainty relating to recognition and measurement
When preparing the annual report, the General Partner, in accordance with legislative provisions, makes accounting judgments and estimates, which form the basis of the annual report. The accounting judgments and estimates made by the General Partner are described in the paragraph ”Management’s significant accounting judgments and estimates” under accounting policies to which we refer. Such estimates are made on the basis of assumptions, which the General Partner considers reasonable and realistic, but which are uncertain by nature.

Unusual circumstances
Except for the fair value adjustment on investments, the annual report is not influenced by unusual circumstances.