Abbott Laboratories and Karo Bio identify novel new compound for diabetes

ABBOTT LABORATORIES AND KARO BIO IDENTIFY NOVEL NEW COMPOUND FOR
DIABETES

Abbott Park, Illinois and Huddinge, Sweden, March 27, 2003 –
Abbott Laboratories and Karo Bio AB today announced that they have
identified a novel, first-in-class compound, A-348441, for the treatment
of type 2 diabetes. Currently in preclinical study, A-348441 targets the
glucocorticoid receptor in the liver, which is considered to be an
important target protein for regulating glucose metabolism.

In preclinical animal studies, A-348441 normalizes blood glucose levels
and has beneficial effects on elevated lipids in diabetic, dyslipidemic
animals. In multiple species, A-348441 significantly reduces hepatic
glucose output with secondary improvements in insulin sensitivity.
Although glucocorticoid receptors are present in a variety of tissues, A-
348441 is pharmacologically selective for glucocorticoid receptors in
the liver, thereby minimizing potential systemic side effects associated
with this drug target. No increase in body weight, commonly observed
with the insulin sensitizers currently on the market, is observed in
animals treated with the A-348441 compound.

The preclinical profile of A-348441 has been submitted for presentation
at the June 2003 American Diabetes Association meeting in New Orleans.
The joint drug discovery period has successfully been concluded, and
Abbott and Karo Bio are currently evaluating A-348441 for clinical
development. Karo Bio may receive future milestone payments depending on
further successful preclinical and clinical development of the A-348441
compound. Karo Bio and Abbott Laboratories also will enter into
discussions regarding second-generation compounds.

“Abbott Laboratories and Karo Bio have taken a highly innovative
approach to diabetes therapy through our work targeting liver
glucocorticoid receptors,” said Terry Opgenorth, Ph.D., divisional vice
president, metabolic disease research, Abbott Laboratories. “We are
pleased that this successful collaboration, which began a few years ago
with early scientific work on novel target identification, has resulted
in a new compound in A-348441.”

“The collaboration with Abbott has in three years yielded a promising
compound that we are considering for clinical development,” says Björn
O. Nilsson, CEO & President, Karo Bio. “Abbott is an ideal partner for
Karo Bio in the diabetes area, and we look forward to continuing our
work with Abbott to bring the concept of treating diabetes with
glucocorticoid antagonists to the market to benefit the vast number of
patients seeking novel treatment.”

Since January 2000, Abbott and Karo Bio have collaborated on the
discovery and development of novel therapies for the treatment of type 2
diabetes. The aim of the collaboration has been to develop liver-
selective glucocorticoid receptor antagonists that will reduce the
elevated glucose output found in type 2 diabetics. In April 2001, Abbott
and Karo Bio announced that they had identified the three-dimensional
structure of the glucocorticoid receptor.

Diabetes is a major health issue in industrialized countries, where one
in ten adults will develop type 2 diabetes in their lifetime. Over 150
million people worldwide have type 2 diabetes, and this number is
projected to rise to 300 million by 2025. It is estimated that more than
one-third of the people with type 2 diabetes are undiagnosed, and only
13 percent of treated patients are able to achieve desired glucose
levels. Therefore, an urgent need exists for new, safe and effective
treatments for type 2 diabetes.

For further information, please contact:

Karo Bio
Björn O. Nilsson, President & CEO, tel. +46 8 608 60 20
Per Otteskog, Senior Vice President, tel. +46 8 608 60 18

Abbott Laboratories
Melissa Brotz (847) 935-3456

Background

Karo Bio has operations in Sweden and the United States. The Company
employs 116 people.

Karo Bio has been listed on the Stockholm stock exchange (Reuters:
KARO.ST) since 1998 and maintains a leading position in the field of
drug discovery focused on nuclear receptors. Nuclear receptors are
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. Karo Bio has 395 patent cases
including 161 granted patents.

Karo Bio has drug discovery programs in several therapeutic areas
including men and women’s health care, metabolic disorders such as
obesity, cardiovascular disease, diabetes, dermatology and
ophthalmology.

Karo Bio collaborates with major pharmaceutical companies for the
development of products and marketing. In these partnerships Karo Bio
receives upfront payments, R&D funding and milestone payments, as well
as royalties on net sales when products reach the market.

Karo Bio has strategic pharmaceutical drug discovery partnerships with
Abbott Laboratories, Bristol-Myers Squibb, Merck & Co., Inc. and Wyeth
Pharmaceuticals.

Karo Bio’s news releases and other information are available on the
company’s Web site at www.karobio.se.

Abbott Laboratories is a global, broad-based health care company devoted
to the discovery, development, manufacture and marketing of
pharmaceuticals, nutritionals, and medical products, including devices
and diagnostics. The company employs more than 70,000 people and markets
its products in more than 130 countries. In 2002, the company’s sales
and net earnings were $17.7 billion and $3.2 billion, respectively, with
diluted earnings per share of $2.06, excluding one-time charges.

Abbott ‘s news releases and other information are available on the
company’s Web site at www.abbott.com.

————————————————————
This information was brought to you by Waymaker https://www.waymaker.net
The following files are available for download:
https://www.waymaker.net/bitonline/2003/03/27/20030327BIT00090/wkr0001.doc
https://www.waymaker.net/bitonline/2003/03/27/20030327BIT00090/wkr0002.pdf