HUDDINGE, Sweden, August 19, 2003 (PRIMEZONE) -- Karo Bio (Other OTC:KARBF) announces today that Merck & Co, Inc. (NYSE:MRK) has decided to discontinue development of the first of the two candidate compounds that have been identified in the collaboration between the two companies. Development of the compound was discontinued due to adverse findings in the final stages of preclinical testing. The second drug candidate continues to be studied in preclinical testing. In addition, other estrogen receptor compounds, arising from the Karo Bio and Merck & Co, Inc. collaboration continue to be evaluated.
The collaboration with Merck & Co., Inc. was initiated in November 1997 with the objective of developing new treatments in the field of estrogen receptors, which is particularly relevant in women's health care. The collaboration is based on the discovery of the estrogen receptor beta, which offers the potential for the development of selective drugs that can target either the alpha-receptor or the beta-receptor. Such selective compounds may have the potential to address unmet clinical needs.
The pre-clinical milestone for the first drug candidate was reached in July 2002, and a milestone for a second drug candidate was reached recently in May 2003.
"Even though the discontinuation of the first drug candidate causes delay in the program we have a second drug candidate identified in the Merck collaboration that continues in preclinical development", says Bjorn O. Nilsson, President and Chief Executive Officer of Karo Bio. "We are also encouraged by the fact that additional compounds continue to be evaluated for further study."
KARO BIO AB
For further information, please contact:
Bjorn 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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http://www.waymaker.net/bitonline/2003/08/19/20030819BIT00070/wkr0001.doc
http://www.waymaker.net/bitonline/2003/08/19/20030819BIT00070/wkr0002.pdf