INTERIM REPORT JANUARY-JUNE 2008

INTERIM REPORT JANUARY-JUNE 2008 

The period in brief
•	Net sales for the six month period amounted to MSEK 7.2 (3.9) 
•	Net loss for the six month period amounted to MSEK 101.8 (118.2) 
•	Loss per share for the six month period amounted to SEK 0.88 (1.24)
•	Cash flow from operating activities for the six month period amounted to MSEK
-105.7 
(-90.9). Cash and cash equivalents and other short-term investments totaled MSEK
325.1 (520.5) at the end of the period 
•	A phase IIb study with eprotirome as add-on to statin treatment has been
successfully concluded. Data show that eprotirome was efficacious, safe and well
tolerated at all three doses tested
•	An additional phase IIb study with eprotirome as add-on to ezetimibe is
progressing according to plan. Data will be presented in the fourth quarter of
2008
•	A phase I single ascending dose study with the type 2 diabetes compound KB3305
has been successfully completed
•	A strategic collaboration with Zydus Cadila, with the aim to develop novel
anti-inflammatory compounds, was initiated in the first quarter and
identification of lead compounds is progressing

Significant events after the end of the reporting period 
•	After the end of the reporting period, Karo Bio has obtained and reported data
from the phase IIb study with eprotirome that was conducted during the first
half of 2008 

For further information, please contact:
Per Olof Wallström, President, tel. +46 8 608 60 20
Per Otteskog, Senior Vice President Investor Relations, tel. +46 8 608 60 18
Erika Johnson, Chief Financial Officer, tel. +46 8 608 60 52


Legal disclaimer
This financial report includes statements that are forward looking and actual
results may differ materially from those stated. In addition to the factors
discussed, among other factors that may affect results are development within
research programs, including development in preclinical and clinical trials, the
impact of competing research programs, the effect of economic conditions, the
effectiveness of the Company's intellectual property rights and preclusions of
potential third party's intellectual property rights, technological development,
exchange rate and interest rate fluctuations, and political risks.


The Board of Directors and the President and CEO certify that the Interim Report
gives a true and fair overview of the Parent Company's and Group's operations,
their financial position and results of operations, and describes significant
risks and uncertainties facing the Parent Company and other companies in the
Group.

This report has not been subject to review by the Company's auditors.

The information is of a nature which Karo Bio shall need to disclose according
to the Securities Market Act.  The information was disclosed August 5, 2008,
08:30 am