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 second important milestone in our
productive collaboration with Merck & Co,” says Björn Nilsson,
President & CEO of Karo Bio. “The track record of Merck & Co in
pharmaceutical development is very strong. Therefore, we are excited to
achieve this second milestone for a new compound”.

For further information, please contact
Björn Nilsson, President & CEO, +46 8 608 60 20
Per Otteskog, Senior Vice President, +46 8 608 6018.

Background
Karo Bio has operations in Sweden and the United States. The Company
employs 116 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 395 patent cases
including 161 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.

This press release is also available online at www.karobio.com and at
www.waymaker.net

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https://www.waymaker.net/bitonline/2003/05/08/20030508BIT00150/wkr0002.pdf