YEAR-END REPORT JANUARY-DECEMBER 2009

YEAR-END REPORT JANUARY-DECEMBER 2009

2009 in brief
•	Net sales amounted to MSEK 5.9 (10.7), whereof the fourth quarter MSEK - (1.8)
•	Net loss decreased to MSEK 154.6 (174.8), whereof the fourth quarter MSEK 37.6
(31.2)
•	Loss per share decreased to SEK 1.31 (1.37), whereof the fourth quarter SEK
0.31 (0.25)
•	Cash flow from operating activities amounted to MSEK -146.9 (-186.4), whereof
the fourth quarter MSEK -30.1(-48.1)
•	Cash and cash equivalents and other short-term investments totaled MSEK 237.2
(242.7) at the end of the year
•	In the fourth quarter, Karo Bio carried out a rights issue of MSEK 166. The
issue was over¬subscribed with 73%, and 98% of the shares offered were
subscribed with the exercise of subscription rights. The proceeds net of
transaction cost was MSEK 150
•	Two smaller human pharmacological studies of eprotirome were performed to
supplement the clinical documentation. Preliminary analyses of the data support
the continued drug development. In parallel, an effort is ongoing to clarify the
regulatory authorities' demands for the continued development of eprotirome
•	Within the ER-beta program, the compound KB9520 was nominated as candidate
drug in October, and pre-clinical development was initiated
•	In December, Karo Bio's collaboration partner Merck initiated clinical phase
II studies with the lead investigational drug candidate within the collaboration
•	From September, Karo Bio's partner Wyeth has taken on all research and
development activities under the drug discovery collaboration 

For further information, please contact:
Per Olof Wallström, President, tel. +46 8 608 60 20
Erika Söderberg 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 pre-clinical 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 information is of a nature that Karo Bio shall need to disclose according to
the Securities Market Act.  The information was disclosed on February 9, 2010,
at 08.30 am