HUDDINGE, Sweden, Nov. 18, 2003 (PRIMEZONE) -- Karo Bio has decided to reduce its presence in North Carolina USA. Technologies, key projects and other research activities will be transferred immediately. The consolidated research organization will be located at the Company's headquarters in Huddinge, Sweden. Through this action, Company headcount will be reduced by 26 to reach 100 persons.
In the year of 2000, Karo Bio acquired the US based Novalon Pharmaceutical Corporation. The acquisition focused upon access to novel drug discovery technologies developed by Novalon such as the BioKey(R) screening systems and Molecular Braille(R) compound characterization and selection system. These technologies have been successfully integrated into the Karo Bio drug discovery platform. The US subsidiary has been involved in the earlier stages of drug discovery through screening of compound libraries and assay development. Now, Karo Bio will consolidate its research in Sweden and focus on advancing selected projects into later stages of drug discovery and pre-clinical research.
"This is a necessary step for Karo Bio to create a lean organization without losing momentum in the most prioritized projects," says Bjorn Nilsson President of Karo Bio. "We regret that excellent people in the US will need to leave the Company but it is essential that we focus our resources on the most promising areas and activities."
Through this action, the savings will be significant through a reduction in headcount by 26 heads to reach a total level of 100.
Facts about Karo Bio
Karo Bio has operations in Sweden. The Company has 100 employees.
Karo Bio has been listed on the Stockholm stock exchange (Reuters: KARO.ST) since 1998 and maintains a leading position in the field of drug discovery focused on nuclear receptors. Nuclear receptors are validated drug targets for a number of clinical indications and the Company uses proprietary technologies for the development of novel and improved therapies for major markets. Karo Bio has 368 patent cases including 120 granted patents.
Karo Bio has drug discovery programs in several therapeutic areas including men and women's health care, metabolic disorders such as obesity, cardiovascular disease, diabetes, dermatology, ophthalmology and inflammatory diseases.
Karo Bio collaborates with major pharmaceutical companies for the development of products and marketing. In these collaborations Karo Bio receives upfront payments, R&D funding and milestone payments, as well as royalties on net sales when products reach the market.
Karo Bio has strategic pharmaceutical drug discovery collaborations with Bristol-Myers Squibb, Merck & Co., Inc. and Wyeth Pharmaceuticals.
This press release is also available online at www.karobio.com and at www.waymaker.net
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