Milestone reached in the Karo Bio – Merck & CO., INC. collaboration

MILESTONE REACHED IN THE KARO BIO – MERCK & cO., INC. COLLABORATION

A significant preclinical milestone has been achieved in the estrogen
receptor collaboration between Merck & Co., Inc and Karo Bio. The event
is associated with an undisclosed milestone payment from Merck & Co.,
Inc. to Karo Bio.

The collaboration with Merck & Co., Inc. was initiated in November 1997
with the objective of developing new treatments in the field of estrogen
receptors, which may be particularly relevant in women’s health care.
The collaboration is based on the discovery of the estrogen receptor
beta, which offers the potential for the development of selective drugs
that can target either the alpha-receptor or the beta-receptor. Such
selective compounds may have the potential to address unmet clinical
needs.

“We are very happy to achieve this important milestone,” says Björn
Nilsson, President & CEO of Karo Bio. “It is a key event toward clinical
trials and we are very pleased to have Merck & Co., Inc. as a partner in
the field of women’s health where they have strong capabilities in
clinical development and marketing”.

For further information, please contact
Bertil Jungmar, Chief Financial Officer, +46 8 608 60 52 or Björn
Nilsson, President & CEO, +46 70 218 15 00.

Background
Karo Bio has operations in Sweden and the United States. The Company
employs 140 people.

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 on 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 400 patent cases
including 128 granted patents.

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

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

Karo Bio has strategic pharmaceutical drug discovery partnerships with
Abbott Laboratories, Bristol-Myers Squibb, Merck & Co., Inc. and Wyeth
Pharmaceuticals.

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https://www.waymaker.net/bitonline/2002/07/17/20020717BIT00120/wkr0002.pdf