KARO BIO AND ZYDUS CADILA SIGN RESEARCH AGREEMENT FOR DEVELOPMENT OF NOVEL DRUGS TO TREAT INFLAMMATORY DISEASES

KARO BIO AND ZYDUS CADILA SIGN RESEARCH AGREEMENT FOR DEVELOPMENT OF NOVEL DRUGS
TO TREAT INFLAMMATORY DISEASES

Karo Bio and Zydus Cadila, one of India's leading healthcare companies, have
initiated a three year research collaboration with the purpose to discover and
develop novel, selective glucocorticoid receptor (GR) modulators for the
treatment of inflammatory diseases. 

Glucocorticoids are used to treat many different inflammatory conditions such as
rheumatoid arthritis, inflammatory bowels disease, psoriasis and asthma which
together represent a market potential of over USD 10 bn. These powerful
anti-inflammatory agents with long term use could, however, lead to the
development of unwanted side effects like obesity, diabetes and osteoporosis.
Thus, there is a great need for new, selective glucocorticoids devoid of one or
more of these side effects. 

Karo Bio will leverage its expertise in nuclear receptor drug discovery
including structural biology, drug design and compound characterisation. Zydus
Cadila will carry out a focused drug discovery and development programme,
undertaking pre-clinical studies, filing of the Investigational New Drug
Application and performing human clinical trials. Both parties will equally
share risk and rewards for the collaboration programme.

“The glucocorticoid receptor is one of our prioritized target proteins and we
have generated considerable knowledge and expertise in the field. In Zydus
Cadila we have found a very complementary partner. Their expertise and strength
in chemistry and development will be of great value for the successful outcome
of our joint project”, said Mr. Per Olof Wallström, President of Karo Bio.

Speaking on the joint research programme, Mr. Pankaj R. Patel, Chairman and
Managing Director, Zydus Cadila said, "We are excited about this collaboration
with Karo Bio. One of the key research areas of focus at our Zydus Research
Centre is to develop novel GR modulators that are devoid of side effects. By
combining the strengths of Karo Bio and Zydus Cadila, we should be able to
design and develop novel molecules, which would eventually replace currently
available steroids for treatment of inflammatory disorders. This joint research
endeavour will help address an unmet healthcare need."

The glucocorticoid receptor mediates both anti-inflammatory effects and side
effects. Karo Bio and Zydus Cadila have now initiated an intensive research
program aimed at discovering selectively acting glucocorticoids. The design of
new selective compounds will be based on Karo Bio's detailed knowledge about
structural biology aspects of ligand-receptor interactions. 



For further information, please contact:
Per Olof Wallström, President & Chief Executive Officer 
Telephone: +46 8 608 60 20

Per Otteskog, Senior Vice President 
Telephone: +46 8 608 60 18

Erika Johnson, Chief Financial Officer
Telephone: +46 8 608 60 52.



About Karo Bio 
Karo Bio is a drug discovery and development company specializing in nuclear
receptors for the development of novel pharmaceuticals. 
The Company has a strong project portfolio with innovative molecules that
primarily targets metabolic diseases such as diabetes, atherosclerosis and
dyslipidemia. In all of these areas there are significant market opportunities
and a need for new pharmaceuticals with new mechanisms of action. Karo Bio
intends to bring selected compounds within niche therapeutic areas into late
stage clinical development and, potentially, to the market. In addition to
pursuing niche opportunities, Karo Bio continues to develop compounds aimed at
treatment of broad patient populations to clinical proof of concept before
out-licensing.

In addition to the proprietary projects, Karo Bio has three strategic
collaborations with international pharmaceutical companies and one biotech
collaboration for development of innovative therapies for the treatment of
common diseases.
Karo Bio is listed on the OMX Nordic Exchange Stockholm AB since 1998 (Reuters:
KARO.ST).



About Zydus Cadila
Zydus Cadila is an innovative global pharmaceutical company that discovers,
develops, manufactures and markets a broad range of healthcare products. The
group's operations range from API to formulations, animal health products and
cosmeceuticals. Headquartered in the city of Ahmedabad in India with
subsidiaries in USA, Europe, Japan, South Africa, Brazil, the group has a global
presence and reaches out to people in over 60 countries worldwide. In its
mission to create healthier communities globally, Zydus Cadila delivers wide
ranging healthcare solutions and value to its customers. With over 8,000
employees worldwide, a world-class research and development centre dedicated to
discovery research and nine state-of-the-art manufacturing plants, the group is
dedicated to improving people's lives. (www.zyduscadila.com)