HALF YEAR REPORT JANUARY - JUNE 2007

• A 12 week phase II study with KB2115 in patients with primary hypercholesterolemia has been successfully completed. KB2115 was efficacious in LDL lowering and safe with respect to a broad range of parameters reflecting effects on heart, bone, muscle and thyroid function
• The clinical candidate in the Merck collaboration has been discontinued. A backup compound has been selected for preclinical development
• The initiation of phase I studies with KB5359 will be delayed due to toxicology findings that needs further evaluation
• The research collaboration with Wyeth Pharmaceuticals has been extended with one year until August 31, 2008
• A new share issue with preferential rights has been successfully completed. The rights issue generated MSEK 387.2 to the company after transaction costs
• Net sales for the six month period amounted to MSEK 3.9 (15.2)
• The loss for the six month period amounted to MSEK 118.2 (61.3)
• Cash flow from operating activities for the six month period amounted to
MSEK -90.9 (-69.5)
• Liquid assets and other short-term investments amounted to MSEK 520.4 (274.4) at the end of the period
• Loss per share for the six month period amounted to SEK 1.24 (0.67)