Karo Bio: Interim Report January - December 2011

Regulatory News:

Karo Bio (STO:KARO)

The January–December period and the fourth quarter 2011 in brief

• Net sales amounted to MSEK 0.0 (0.0)
• Net loss was MSEK 226.6 (163.5), whereof the fourth quarter MSEK 50.6 (50.1)
• Loss per share was SEK 0.59 (0.67), whereof the fourth quarter SEK 0.13 (0.20)
• Cash flow from operating activities was MSEK -198.3 (-158.9), whereof the fourth quarter MSEK -37.9 (-44.3). The increase in the full year primarily concerns costs related to the phase III program for eprotirome.
• Cash and cash equivalents and other short-term investments totaled MSEK 158.5 (395.0) at the end of the period
• In March, the research collaboration with Zydus Cadila for GR was extended with one year.
• In April, an agreement was reached with the Indian pharmaceutical company Alkem Laboratories Ltd for eprotirome that lower Karo Bios costs for eprotirome’s phase III program with approximately MSEK 100.
• The phase III study (AKKA) for eprotirome commenced in September and the recruitment of patients proceeded according to plan in the fourth quarter. The interim analysis is therefore expected to take place during the second quarter 2012 as planned.

Collaborations

• In December, an agreement was reached with Pfizer for the RORgamma project for autoimmune diseases
• Discussions with leading pharmaceutical companies are on-going as to the licensing of the ERbeta project

Spin-off of the preclinical operations

• The Board of Directors is preparing a spin-off of the preclinical part of the company by transferring these operations to a subsidiary, for which new owners will be sought out.
• The company has initiated an efficiency program to reduce costs before the spin-off.

Conference call today at 10.00 CET

CEO Per Bengtsson will present the report today at 10.00 CET in an audiocast, held in Swedish, available via a link on www.karobio.se and telephone: +46 8 505 598 75 or +44 20 715 391 56.

The information in this report is such that Karo Bio is required to disclose under the Swedish Securities Market Act. The information was disclosed on February 8, 2012, 08:30 CET.

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