Karo Bio strengthens leadership position in nuclear receptor research

KARO BIO STRENGTHENS LEADERSHIP POSITION IN NUCLEAR RECEPTOR RESEARCH

Karo Bio announced today that the Company has finalized the exclusive in-
licensing of technologies developed at Duke University Medical Center,
Durham, North Carolina. These technologies include Cellular Braille. The
Cellular Braille technology further expands the capabilities of the Karo
Bio Molecular Braille® technology that was previously developed by Karo
Bio USA in collaboration with scientists at Duke University Medical
Center.

Last year Karo Bio acquired Novalon Pharmaceuticals Corporation, now
Karo Bio USA. The basis for the acquisition was the BioKey® Technology
developed by Novalon Pharmaceuticals allows rapid identification of lead
compounds for pharmaceutical target proteins. The BioKey® Technology has
strengthened Karo Bio’s nuclear receptor program significantly. The
technology is also the technology of choice in several genomics target
collaborations between Karo Bio USA and pharmaceutical companies such as
Aventis Pharma, Bayer AG, Boehringer Ingelheim Pharmaceuticals, Inc.,
GPC Biotech, NovImmune S.A., and Serono International S.A.

The development of Molecular Braille®, an adaptation of the BioKey®
technology, has begun to have significant impact on drug discovery
efforts in nuclear receptors. This technology has the unique ability to
serve as a system with high throughput capacity for the selective
identification of pharmaceutical compounds having desirable, rather than
deleterious, tissue specific effects; a capability that saves
significant research time and resources.

-The Cellular Braille technology allows further characterisation and
confirmation of promising compounds in living cells, thereby adding
value and precision to the selection of compounds for development, says
Dana Fowlkes, Senior Vice President R&D of Karo Bio. -We are also happy
for a strengthened relationship with Duke University that is an
important part of our broad scientific network.

-The development of the Molecular and Cellular Braille technologies is
the culmination of years of work by Duke scientists and their
collaborators at Karo Bio USA, says Robert L. Taber, Vice Chancellor,
Science and Technology Development of Duke University. -It’s an enabling
technology that will allow mechanism-based searches for novel drugs for
the treatment of cancer, metabolic, and other diseases. The licensing of
our rights to these discoveries to Karo Bio reflects our desire to
convert basic science discoveries into new medicines. A bench-to-bed
research strategy that we foster at Duke.

KARO BIO AB (publ)

For further information contact:

Karo Bio AB
Per Otteskog, Acting President, Karo Bio
Direct telephone: +46-8-608 6018
Mobile telephone: +46-70-632 7527

Background

Karo Bio is a company with operations in the United States and Sweden.
The Company employs 120 people and has 250 patent cases including 100
approved patents.

Karo Bio has been listed on the Stockholm stock exchange (KARO) since
1998 and has a leading position in the field of drug discovery and
nuclear receptors. Nuclear receptors are important and 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. An important base for generation of new
therapeutic strategies is Karo Bio’s strong academic network.

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

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

Karo Bio’s product pipeline is strong and includes a number of
proprietary projects that will be partnered in different stages. Karo
Bio generally collaborates with major pharmaceutical companies from
early drug discovery through clinical trials but also takes the
opportunity to bring products to the clinic before partnering. Apart
from financial compensations the partners bring competence and resources
for drug development and marketing to the collaboration.

Karo Bio has one product in clinical trials and expects to enter
clinical trials with partners in the future.

Karo Bio has a strong financial position and it’s partnerships include
Abbott Laboratories, Bristol-Myers Squibb, Merck & Co., Aventis Pharma,
Bayer AG, Boehringer Ingelheim Pharmaceuticals, Inc. GPC Biotech,
NovImmune S.A., and Serono International S.A.

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