Update from Karo Bio for the period January-September

Karo Bio (STO:KARO):

The period January-September in brief

• Net sales amounted to MSEK 5.9 (8.9), whereof the third quarter MSEK 1.5 (1.7)

• Net loss decreased to MSEK 116.9 (143.6), whereof the third quarter MSEK 34.2 (41.8)

• Loss per share decreased to SEK 1.01 (1.24), whereof the third quarter SEK 0.29 (0.36)

• Cash flow from operating activities amounted to MSEK -116.8 (-138.3), whereof the third quarter MSEK -37.2 (-32.6)

• Cash and cash equivalents and other short-term investments totaled MSEK 119.0 (289.6) at the end of the period

• Karo Bio’s innovative ER-beta program was chosen as one of the ten most interesting neuro-science projects currently open for partnerships

• From September 1, 2009, Wyeth will take on all future research and development activities under the drug discovery collaboration between the parties

• Karo Bio has expanded and further strengthened the intellectual property portfolio for its thyroid hormone receptor (TR) platform by entering into an agreement that provides Karo Bio with an exclusive license to a US patent from Pfizer Inc.

Significant events after the end of the reporting period

• In an update of the project portfolio, Karo Bio announced, among other things, that the company, in accordance with earlier communicated plans, has submitted an IND application for eprotirome to the American Food and Drug Administration (FDA); that a candidate drug has been nominated within the ER-beta program; and that the company has decided not to initiate further in-house development of KB3305 for the treatment of type 2 diabetes. A partner for the project will be sought. Concurrently, the company analyses how the compound can be used for other more specialist-focused therapies.

Source:

Karo Bio

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