Up-date in Program to Develop Treatment for Obesity

Up-date in Program to Develop Treatment for Obesity

Karo Bio announced today that Bristol-Myers Squibb Company has
discontinued development of the first thyroid hormone receptor modulator
for treatment of obesity resulting from a joint research program between
Karo Bio and Bristol-Myers Squibb.

In animal studies, including primates, the compound was well tolerated
with statistically significant weight loss. Initial Phase I studies
demonstrated that the drug was well tolerated in humans. Continuing
toxicology studies identified previously uncharacterized toxic
metabolites in animals given high doses of the compound. These findings
are related to chemical properties of the compound and not to the
mechanism of action.

“Even though the newly identified toxic metabolite will cause a delay of
our program we are encouraged by the fact that data thus far support the
hypothesis that it is possible to increase metabolic rate and thereby
induce weight reduction without causing side effects”, said Björn O.
Nilsson, President and Chief Executive Officer of Karo Bio. “We remain
confident that the program has a high likelihood of success.”

The joint project group will continue with high priority work on
analyzing back up compounds in animal models to identify a replacement
drug candidate.

For further information contact:

Björn Nilsson, President
Telephone: +46-8-608 6020

Per Otteskog, Senior Vice President
Telephone: +46-8-608 6018

Background
Karo Bio has operations in Sweden and the United States. The Company
employs 135 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
development of products and marketing. In these partnerships Karo Bio
receives upfront payments, R&D funding, 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, Wyeth Pharmaceuticals, Bristol-Myers Squibb and
Merck & Co.

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https://www.waymaker.net/bitonline/2002/03/27/20020327BIT00030/wkr0002.pdf