WYETH CONTINUES RESEARCH PROJECT ORIGINALLY INITIATED IN COLLABORATION WITH KARO BIO

WYETH CONTINUES RESEARCH PROJECT ORIGINALLY INITIATED IN COLLABORATION WITH KARO
BIO

The Swedish biotech company Karo Bio (Reuters: KARO.ST) today announced that
beginning September 1, 2009, Wyeth will take on all future research and
development activities under  the drug discovery collaboration between the
parties.

The primary objective of the collaboration is to identify and select development
candidates for treatment of inflammatory diseases, focusing on the liver X
receptor (LXR) as target receptor. Karo Bio and Wyeth initially entered the
collaboration in 2001.

“We are pleased that this exciting LXR program continues within Wyeth. Since
Wyeth will perform all future research and development, Karo Bio will not put
any more internal resources into the project and will therefore not receive any
further research funding from Wyeth. However, the Collaboration, Research and
License Agreement between the companies shall remain in effect”, commented Per
Olof Wallström, President and CEO of Karo Bio.


For more information, please contact:
Per Olof Wallström, President and Chief Executive Officer
Phone: +46 8 608 60 20
E-mail: perolof.wallstrom@karobio.se

Erika Söderberg Johnson, Chief Financial Officer
Phone: +46 8 608 60 52
E-mail: Erika.soderberg.johnson@karobio.se


Notes to editors

About LXR
LXR is a nuclear hormone receptor that is an important regulator of cholesterol
metabolism in mammals. LXR has many features that make it an attractive drug
development target for prevention and treatment of atherosclerosis and
dyslipidemia. Modulation of LXR with small molecule compounds has been
demonstrated to enhance the efflux of cholesterol from cells in atherosclerotic
blood vessels, resulting in a reduction in the progression of atherosclerotic
disease in selected experimental models. Modulation of LXR has also been
implicated in reducing vascular inflammation which, in addition to cholesterol,
is an important mediator of atherosclerosis. It is believed that these features
of LXR are of central importance for a new generation of drugs to treat and
prevent atherosclerosis successfully.

About Karo Bio
Karo Bio is a drug discovery and development company specializing in targeting
nuclear receptors as target proteins for the development of novel
pharmaceuticals. The company has a project portfolio with innovative molecules
that primarily target dyslipidemia, diabetes, inflammation, and women's health.
In these areas, there are significant market opportunities and a clear need for
pharmaceuticals with new mechanisms of action. Karo Bio develops compounds aimed
at treating broad patient populations up to clinical proof of concept before
out-licensing. In therapeutic niche areas, Karo Bio has the capacity to bring
selected compounds into late stage clinical development and, potentially, to the
market. 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
NASDAQ OMX Stockholm since 1998 (Reuters: KARO.ST).


This press release is also available online at: www.karobio.com and
www.newsroom.cision.com