Promising Data from Karo Bio – Demonstrate Potential for New Way to Treat Obesity

PROMISING DATA FROM KARO BIO -DEMONSTRATE POTENTIAL FOR NEW WAY TO TREAT
OBESITY

Scientists from Karo Bio, together with scientific collaborators, have
for the first time shown results that may offer a new approach to treat
obesity that constitutes the largest health problem in the western
world. The results may also offer new ways to treat hyperlipidemia.
These findings have recently (August 19, 2003) been published as a paper
in the distinguished scientific journal Proc. Natl. Acad. Sci. USA and
the article has already received international recognition.

Obesity has developed into the most serious health problem in the
western society, contributing as a major risk factor to increasing
incidence of several metabolic disorders such as diabetes, myocardial
infarction and stroke. Therefore, there is a huge need for new and
effective treatment for obesity. Karo Bio scientists have together with
scientific collaborators, now demonstrated, in a number of animal
models, including monkeys, that specific activation of the thyroid
hormone receptor beta could be a new and promising approach to treat
obesity. It is well established that thyroid hormone increases body
metabolism that leads to weight loss. However, thyroid hormone is not
attractive as a drug due to adverse effects on cardiac function. The
paper describes for the first time that these cardiac side effect can be
avoided by using selective synthetic compounds. The experimental
compound KB 141, selective for the thyroid hormone receptor beta,
reduced body weight with up to seven percent in monkeys after only one
week of treatment without any detectable stimulation of the heart. The
compound also significantly lowered cholesterol and reduced the level of
lipoprotein (a), both factors also strongly associated with risk for
developing metabolic disorders. Together these results show that
selective agonists of thyroid hormone receptors have the potential to
become new pharmaceutical classes for treatment of obesity and
hypercholesterolemia.

“I am very impressed by the convincing results towards treating obesity
that we have generated”, says Björn Nilsson, President & Chief Executive
Officer of Karo Bio. “I am also intrigued by the effects on cholesterol
lowering and on lipoprotein (a) since they, apart from obesity, open up
new possibilities to treat hyperlipidemia with selective activators of
thyroid hormone receptors. Together these results provide important
commercial opportunities for present and future Karo Bio programs”.

KARO BIO AB

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

Per Otteskog, Senior Vice President
Telephone: +46 8 608 6018

Facts about Karo Bio

Karo Bio has operations in Sweden and the United States. The Company has
124 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 368 patent cases
including 120 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 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
Abbott Laboratories, Bristol-Myers Squibb, Merck & Co., Inc. and Wyeth
Pharmaceuticals.

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

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The following files are available for download:
https://www.waymaker.net/bitonline/2003/08/21/20030821BIT00370/wkr0001.doc
https://www.waymaker.net/bitonline/2003/08/21/20030821BIT00370/wkr0002.pdf