Bristol-Myers Squibb returns compound rights to Karo Bio

Bristol-Myers Squibb returns compound rights to Karo Bio

In the fall of 1997 Karo Bio and Bristol-Myers Squibb (BMS) initiated a
drug discovery collaboration with the aim to develop novel treatments
for obesity and the metabolic syndrome. The collaboration has focused on
compounds that target the thyroid hormone receptors. The program has
succeeded in discovering selective compounds with desirable effects in
animal models that lacked the undesirable cardiac side-effects that
occur with the use of the natural hormone. These pioneering results were
communicated recently in an important publication in the Proceedings of
The National Academy of Sciences USA (P.N.A.S.). The discovery phase of
the joint program was completed in March 2003. Since then BMS has been
free to evaluate compounds from the collaboration as potential clinical
candidates. Based upon internal decisions, BMS has now returned their
lead compound rights to Karo Bio and discontinued internal activities on
this target.

Dr. Björn O. Nilsson, President & CEO of Karo Bio, said “The concept of
treating metabolic disorders through thyroid hormone receptor agonists
has been significantly strengthened through the BMS collaboration. Based
upon this and recent input from our scientific advisors, we are now
focusing our pre-clinical discovery activities on novel promising second
generation compounds in the metabolic disease area.”

KARO BIO AB

For further information, please contact:
Björn O. Nilsson, President & Chief Executive Officer
Telephone: +46 8 608 60 20

Bertil Jungmar, Chief Financial Officer
Telephone: +46 8 608 60 52

Facts about Karo Bio
Karo Bio has operations in Huddinge, Sweden. The Company has 95 employees.

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 drug discovery programs in several therapeutic areas
including women’s health care, cancer, cardiovascular disease and
diabetes.

Karo Bio collaborates with major pharmaceutical companies for the
development of products and marketing. In these collaborations 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 collaborations with
Merck & Co., Inc. and Wyeth Pharmaceuticals.

This press release is also available online at www.karobio.se and at
www.waymaker.net.

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https://www.waymaker.net/bitonline/2004/04/30/20040430BIT00060/wkr0002.pdf