KARO BIO REACQUIRES RIGHTS TO SARM COMPOUNDS FROM RADIUS

KARO BIO REACQUIRES RIGHTS TO SARM COMPOUNDS FROM RADIUS

In September 2006 Karo Bio and Radius announced a licensing agreement in which
Radius acquired the exclusive worldwide rights to a new class of selective
androgen receptor modulators (SARMs) developed by Karo Bio. Karo Bio has now
reacquired the full rights to these compounds and to all related data generated
by Radius.

Karo Bio has an exclusive compound library within its exploratory androgen
receptor antagonist project for treatment of prostate cancer. A subset of the
compounds was investigated by Radius in preclinical models. Of specific interest
were compounds that exhibited SARM properties, which means that they were
stimulatory in bone and muscles while at the same time having neutral effects on
prostate or uterine tissue. These compounds were in-licensed by Radius with the
intention to develop new compounds for treatment of osteoporosis. Karo Bio has
now reacquired all rights to the Karo Bio SARM compounds and to related data
generated by Radius.
“There are several therapeutic opportunities for compounds targeting the
androgen receptor, and the retained rights and data to the SARMs add value to
our technology base. However, our main focus is currently on our prioritized
projects which are making progress according to plan”, says Per Olof Wallström,
President of Karo Bio.

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

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 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).