HUDDINGE, Sweden, Sept. 13, 2004 (PRIMEZONE) -- Karo Bio's research operations have been re-engineered in 2004 by strengthening of the efforts in pharmacology and chemistry. With Karo Bio's expressed strategy to continue to evolve the Company by taking individual projects into clinical trials, re-engineering of the operational activities will continue. Special competence and key individuals with expertise regarding clinical trials will be recruited. Certain development activities will be performed by external parties. The intention is to conduct these development efforts within the current cost level also in 2005 and 2006.
As a consequence of that, Karo Bio has today announced to immediately take measures to reduce its current cost base to provide for the increased costs for taking selected projects towards clinical trials internally. The savings initiative includes the reduction of the current organization by 20 persons. The reduction affects primarily staff in the early phase of drug discovery, but also in the organization outside the research operations.
"It is sad that many talented and appreciated employees now have to leave Karo Bio," says Bjorn O. Nilsson, President and CEO. "However, this is necessary to provide for the resources required to invest in taking own projects into man, particularly relevant for the two interesting and promising projects that we have received from Bristol- Myers Squibb and Abbott Laboratories."
Due to the ongoing new share issue with preferential rights for the Company's shareholders, reference is made to the prospectus prepared for the issue. The prospectus is available on Karo Bio's website at www.karobio.com/newissue
Huddinge, September 13, 2004
KARO BIO AB
For further information, please contact Bjorn O. Nilsson, President & Chief Executive Officer, phone +46 8 608 60 20
Bertil Jungmar, Chief Financial Officer, phone +46 8 608 60 52
Facts about Karo Bio
Karo Bio has operations in Huddinge, Sweden, and 95 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 drug discovery programs in several therapeutic areas including women's health care, cancer, cardiovascular disease, atherosclerosis and diabetes.
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 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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