KARO BIO SELECTS CANDIDATE DRUG FOR DYSLIPIDEMIA TREATMENT

HUDDINGE, Sweden, June 27, 2006. The Swedish biotech company Karo Bio, listed on the Stockholm Stock Exchange (Karo), has selected KB5359 as a candidate drug for the treatment of dyslipidemia. KB5359 significantly lowers LDL cholesterol in several animal models and has an efficacy and safety profile that is promising for treatment of common forms of dyslipidemia.

Karo Bio has developed a series of compounds intended for the treatment of dyslipidemia. KB3495 is a racemate (the molecule exists as two enantiomers or mirror images) and one of the enantiomers (KB5359) has now been selected as a candidate drug. The final preclinical development has therefore been initiated with the intention of generating a full documentation package before initiation of clinical studies. In pre-clinical models KB5359 has an efficacy and safety profile that translated into man would be beneficial for treatment of common forms of dyslipidemia. KB5359 significantly lowers LDL cholesterol in several animal models, with no observed negative effects on the heart. KB5359 also has the potential to lower independent risk factors for the development of cardiovascular diseases such as body weight, triglycerides, blood glucose and lipoprotein(a). “This is an important event for Karo Bio” says Per-Olof Wallström, President for Karo Bio. ”Our scientists have made an important contribution and developed truly innovative molecules that target the thyroid hormone receptor. KB5359 appears to have a promising profile that we believe will bring significant value to the treatment of dyslipidemia.” The dyslipidemia market amounts to 24 billion $US and continues to grow. There is still an unmet medical need for treatments that significantly lower blood lipids, either as a single therapy or in combination with other drugs, primarily statins. KB5359 is regarded as very promising for treatment of broad patient populations with dyslipidemia since it is potent and acts by a different mechanism compared to statins. Karo Bio has generated animal data indicating significant additive or synergistic effects when combining a thyroid hormone agonist with a statin. KARO BIO AB This press release is also available online at: www.karobio.com and www.waymaker.net