YEAR-END REPORT JANUARY–DECEMBER 2008

The year in brief
• Net sales amounted to MSEK 10.7 (7.5)
• Net loss amounted to MSEK 174.8 (203.4)
• Loss per share amounted to SEK 1.51 (1.92)
• Cash flow from operating activities amounted to MSEK -186.4 (-178.3). Cash and cash equivalents and other short-term investments totaled MSEK 242.7 (432.6) on December 31, 2008
• During the year, two clinical phase IIb studies with eprotirome as add-on to statin treatment and treatment with ezetimibe, respectively, were successfully concluded. Data show that eprotirome gave statistically significant and clinically relevant effects and was safe and well tolerated
• In August, Karo Bio announced that the collaboration with Wyeth Pharmaceuticals was extended for an additional year until August 31, 2009
• In December, Karo Bio announced that a compound within the collaboration with Merck progressed to phase I clinical trials
• Phase I clinical trials with the compound KB3305 in healthy volunteers and type 2 diabetes patients were performed during the year and will be reported in the first quarter of 2009

For further information, please contact:
Per Olof Wallström, President, tel. +46 8 608 60 20
Per Otteskog, Senior Vice President Investor Relations, tel. +46 8 608 60 18
Erika Johnson, Chief Financial Officer, tel. +46 8 608 60 52

Legal disclaimer
This financial report includes statements that are forward looking and actual results may differ materially from those stated. In addition to the factors discussed, among other factors that may affect results are development within research programs, including development in pre-clinical and clinical trials, the impact of competing research programs, the effect of economic conditions, the effectiveness of the Company’s intellectual property rights and preclusions of potential third party’s intellectual property rights, technological development, exchange rate and interest rate fluctuations, and political risks.




Huddinge, February 6, 2009

The Board of Directors