KARO BIO AND WYETH EXTEND RESEARCH COLLABORATION

The Swedish company Karo Bio, listed on the Stockholm Stock Exchange (KARO), today announced that Wyeth (NYSE:WYE) and Karo Bio extended their atherosclerosis collaboration for an additional year until August 31, 2007. The primary objective of the extension is to characterize back up compounds and to further evaluate additional clinical possibilities by targeting LXR.

The collaboration with Wyeth started in 2001 and in August 2005 it was extended for one year until August 31, 2006, with the primary objective of selecting a candidate drug for clinical development. In April 2006 this goal was reached and the event triggered a milestone payment to Karo Bio. “We remain committed to the collaboration with Wyeth and in addition to the clinical candidate selected for development we believe that there are more opportunities to explore”, says Per-Olof Wallström, President of Karo Bio. “We are therefore looking forward to yet another exciting year in our collaboration.” LXR is a nuclear hormone receptor that is an important regulator of cholesterol metabolism in mammals. LXR has many features that make it an attractive drug development target for prevention and treatment of atherosclerosis and dyslipidemia. Modulation of LXR with small molecule compounds has been demonstrated to enhance the efflux of cholesterol from cells in atherosclerotic blood vessels, resulting in a reduction in the progression of atherosclerotic disease in selected experimental models. Modulation of LXR has also been implicated in reducing vascular inflammation which, in addition to cholesterol, is an important mediator of atherosclerosis. It is believed that these features of LXR are of central importance for a new generation of drugs to treat and prevent atherosclerosis successfully. Karo Bio has been a leader in the development of LXR as a drug development target and in collaboration with Wyeth has built a highly competitive program to advance compounds into clinical development. KARO BIO AB