Karo Bio announces the ind filing by partner Bristol-Myers Squibb to initiate clinical trials of jointly developed obesi

KARO BIO ANNOUNCES THE IND FILING BY PARTNER BRISTOL-MYERS SQUIBB TO
INITIATE CLINICAL TRIALS OF JOINTLY DEVELOPED OBESITY DRUG CANDIDATE

Press release August 31, 2001

Karo Bio and Bristol-Myers Squibb (BMS) have jointly discovered a novel
anti-obesity drug candidate that targets the thyroid hormone receptor.
BMS has now filed an Investigational New Drug (IND) application with the
US Food and Drug Administration (FDA) to initiate clinical trials in man
with the drug candidate.

“The IND filing by BMS is an important milestone event for the obesity
project”, says Björn Nilsson, President of Karo Bio, “taking a drug
candidate to the clinic. We are very pleased with the productive
collaboration with BMS, a world leading company in the field of
metabolic disorders and drug development”.

Although thyroid hormone increases metabolism, it also has stimulatory
effects on heart rate and consequently, that latter activity prevents
the use of native thyroid hormone for the treatment of obesity. However,
Karo Bio and BMS have successfully developed a selective compound that
maintains the stimulatory effects on metabolism while eliminating the
cardiac side effects. Extensive testing of this compound in relevant
animal models has shown very positive results with significant weight-
lowering and demonstrating a broad therapeutic window.

Obesity is the most serious health problem in the western world and
often leads to life threatening diseases such as cardiovascular disease
and diabetes. Since the medical need for developing treatments for
obesity in the western world is largely unmet, the Karo Bio/BMS drug
candidate has significant block-buster market potential. For its part in
this alliance, BMS has been responsible for all animal studies and will
be responsible for clinical development.

In addition to the first generation compound entering the clinic, the
companies continue to collaborate on the development of second-
generation compounds which may expand the possible indications
attributed to this class of novel thyroid hormone receptor agonists.

KARO BIO AB (publ)

For further information contact:
Karo Bio AB
Björn Nilsson, President
Direct telephone: +46-8-608 6020
Mobile telephone: +46-70-218-1500

Per Otteskog, Senior Vice President Investor Relations
Direct telephone: +46-8-608 6018
Mobile telephone: +46-70-632 7527

Background
Karo Bio has operations in the United States and Sweden. The Company
employs 130 people and has 250 patent cases including 100 approved
patents.

Karo Bio has been listed on the Stockholm stock exchange (Reuters:
KARO.ST) since 1998 and maintains a leading position in the field of
drug discovery focused upon nuclear receptors. Nuclear receptors are
validated drug targets for a number of clinical indications and the
Company uses proprietary technologies for the development of novel and
improved therapies for major markets.

Karo Bio has drug discovery programs in several therapeutic areas
including women’s health care, metabolic disorders such as obesity,
cardiovascular disease, diabetes, dermatology, ophthalmology and
infectious disease.

Karo Bio collaborates with major pharmaceutical companies for
development of products and marketing. In these partnerships Karo Bio
receives upfront payments, R&D funding and royalties on net sales when
products reach the market.

Karo Bio’s has strategic pharmaceutical drug discovery partnerships with
Abbott Laboratories, Bristol-Myers Squibb, Merck & Co., and Aventis.

————————————————————
This information was brought to you by Waymaker https://www.waymaker.net
The following files are available for download:
https://www.waymaker.net/bitonline/2001/08/31/20010831BIT00250/bit0002.doc
https://www.waymaker.net/bitonline/2001/08/31/20010831BIT00250/bit0002.pdf