Karo Bio strengthens leadership position in nuclear receptor research

KARO BIO STRENGTHENS LEADERSHIP POSITION IN NUCLEAR RECEPTOR RESEARCH Karo Bio announced today that the Company has finalized the exclusive in- licensing of technologies developed at Duke University Medical Center, Durham, North Carolina. These technologies include Cellular Braille. The Cellular Braille technology further expands the capabilities of the Karo Bio Molecular Braille® technology that was previously developed by Karo Bio USA in collaboration with scientists at Duke University Medical Center. Last year Karo Bio acquired Novalon Pharmaceuticals Corporation, now Karo Bio USA. The basis for the acquisition was the BioKey® Technology developed by Novalon Pharmaceuticals allows rapid identification of lead compounds for pharmaceutical target proteins. The BioKey® Technology has strengthened Karo Bio's nuclear receptor program significantly. The technology is also the technology of choice in several genomics target collaborations between Karo Bio USA and pharmaceutical companies such as Aventis Pharma, Bayer AG, Boehringer Ingelheim Pharmaceuticals, Inc., GPC Biotech, NovImmune S.A., and Serono International S.A. The development of Molecular Braille®, an adaptation of the BioKey® technology, has begun to have significant impact on drug discovery efforts in nuclear receptors. This technology has the unique ability to serve as a system with high throughput capacity for the selective identification of pharmaceutical compounds having desirable, rather than deleterious, tissue specific effects; a capability that saves significant research time and resources. -The Cellular Braille technology allows further characterisation and confirmation of promising compounds in living cells, thereby adding value and precision to the selection of compounds for development, says Dana Fowlkes, Senior Vice President R&D of Karo Bio. -We are also happy for a strengthened relationship with Duke University that is an important part of our broad scientific network. -The development of the Molecular and Cellular Braille technologies is the culmination of years of work by Duke scientists and their collaborators at Karo Bio USA, says Robert L. Taber, Vice Chancellor, Science and Technology Development of Duke University. -It's an enabling technology that will allow mechanism-based searches for novel drugs for the treatment of cancer, metabolic, and other diseases. The licensing of our rights to these discoveries to Karo Bio reflects our desire to convert basic science discoveries into new medicines. A bench-to-bed research strategy that we foster at Duke. KARO BIO AB (publ) For further information contact: Karo Bio AB Per Otteskog, Acting President, Karo Bio Direct telephone: +46-8-608 6018 Mobile telephone: +46-70-632 7527 Background Karo Bio is a company with operations in the United States and Sweden. The Company employs 120 people and has 250 patent cases including 100 approved patents. Karo Bio has been listed on the Stockholm stock exchange (KARO) since 1998 and has a leading position in the field of drug discovery and nuclear receptors. Nuclear receptors are important and 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. An important base for generation of new therapeutic strategies is Karo Bio's strong academic network. Karo Bio has drug discovery programs in therapeutic areas such as women's health care, metabolic disorders, cardiovascular disease, diabetes, dermatology, ophthalmology and infectious disease. Karo Bio collaborates with major pharmaceutical companies for development of products through clinical trials and marketing. In these partnerships Karo Bio receives downpayments, R&D funding and royalties on net sales when products reach the market. Karo Bio's product pipeline is strong and includes a number of proprietary projects that will be partnered in different stages. Karo Bio generally collaborates with major pharmaceutical companies from early drug discovery through clinical trials but also takes the opportunity to bring products to the clinic before partnering. Apart from financial compensations the partners bring competence and resources for drug development and marketing to the collaboration. Karo Bio has one product in clinical trials and expects to enter clinical trials with partners in the future. Karo Bio has a strong financial position and it's partnerships include Abbott Laboratories, Bristol-Myers Squibb, Merck & Co., Aventis Pharma, Bayer AG, Boehringer Ingelheim Pharmaceuticals, Inc. GPC Biotech, NovImmune S.A., and Serono International S.A. ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2001/05/22/20010522BIT00050/bit0002.doc http://www.bit.se/bitonline/2001/05/22/20010522BIT00050/bit0002.pdf