SIGNIFICANT MILESTONE REACHED IN THE COLLABORATION BETWEEN KARO BIO AND WYETH

The Swedish company Karo Bio, listed on the Stockholm Stock Exchange (KARO), today announced that Wyeth (NYSE:WYE) initiated clinical studies with a compound that targets LXR for the treatment of atherosclerosis. This compound was discovered in the joint collaboration between the two companies and this event triggers a significant milestone payment to Karo Bio.

The collaboration with Wyeth started in 2001 and was recently extended for one year until August 31, 2007. In April 2006 a candidate drug was selected and Karo Bio received a milestone payment. The initiation of clinical studies will trigger a second milestone payment to Karo Bio. “The collaboration with Wyeth is progressing and we are very pleased with the results so far”, says Per-Olof Wallström, President of Karo Bio. “We are excited about the initiation of clinical development with the innovative molecule that we have jointly developed and we believe that drugs targeting LXR may have potential for the treatment of atherosclerosis”. 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 and Wyeth are leaders in the development of LXR as a drug development target and have built a highly competitive program to advance compounds into clinical development. KARO BIO AB