Karo Bio and Bristol-Myers Squibb expand and extend collaboration

KARO BIO AND BRISTOL-MYERS SQUIBB EXPAND AND EXTEND COLLABORATION The three-year collaboration between Karo Bio and Bristol-Myers Squibb has been extended for the second time and also expanded to include Karo Bio Molecular Braille® technology. An innovative research collaboration was initiated between Karo Bio and Bristol-Myers Squibb Company (NYSE: BMY) in 1997 using the thyroid hormone receptor (THR) as a drug target for a novel treatment of metabolic disorders. This primary collaboration spanned a three-year period, successfully resulting in two clinical development candidates for the treatment of obesity. A one-year extension aiming to develop second generation compounds and explore subsequent indications began in October 2000. Karo Bio and Bristol-Myers Squibb are announcing a renewed, broader collaboration that will incorporate and utilize Karo Bio's proprietary Molecular Braille® technology. This expansion includes an extended term for the collaboration of one year and promises new milestones. "We are enthusiastic about the expanded scope of the collaboration with Karo Bio", says Richard Gregg, M.D., Vice President of Metabolic and Cardiovascular Drug Discovery at Bristol-Myers Squibb. "We look forward to accelerating the development of our second generation products with the application of Molecular Braille® technology. The technology appears promising for the characterization and selection of tissue selective compounds." "We are very pleased for the additional expansion and prolongation with Bristol-Myers Squibb," says Torben Jørgensen, President of Karo Bio. "The great commitment and expertise of Bristol-Myers Squibb in the metabolic disease area makes them an ideal partner for Karo Bio. This is also the first agreement which would apply Molecular Braille® technology and we look forward to its inclusion in the already successful collaboration with Bristol-Myers Squibb." For further information contact: Torben Jørgensen, President, Karo Bio Direct telephone: +46-8-608 6020 Mobile telephone: +46-70-749 0584 Tracy Furey, Director, Public Affairs, Bristol-Myers Squibb Direct telephone: +1-609-252-3208 Tracy.Furey@bms.com Background Karo Bio is a leading company within the field of nuclear receptors and genomics-based drug discovery. The company uses its state-of-the-art technologies for the development of tissue selective and receptor specific drugs for major markets. Karo Bio AB, based in Stockholm, Sweden, is a global drug discovery company with a leading position for drugs acting on nuclear receptors. Karo Bio has strategic alliances in the nuclear receptor area with Merck & Co (MRK.NYS), Bristol-Myers Squibb (BMY.NYS) and Abbott Laboratories (ABT.NYS). In addition, Karo Bio has a strong pipeline of projects owned solely by Karo Bio that will be further reinforced with the BioKey technology. Karo Bio has 100 issued patents and more than 250 patent applications. The company has 120 employees in its facilities in Stockholm, Sweden and Durham, NC. Through the Company's technology access and therapeutic programs, Karo Bio USA is creating a pipeline of novel pharmaceuticals that act on the wealth of targets coming from genomics. On May 10, 2000, Novalon merged with Karo Bio AB to become Karo Bio USA. The company's BioKey assay technology enables the quick identification of small molecule leads and is the subject of alliances with Bayer AG (BAY.FSE), Boehringer Ingelheim Pharmaceuticals, Inc., Serono International(AREBE.ZRH), GPC Biotech AG (GPC.FSE), NovImmune S.A., and Aventis Pharma (NYSE:AVE). ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2001/03/12/20010312BIT00090/bit0001.doc http://www.bit.se/bitonline/2001/03/12/20010312BIT00090/bit0001.pdf