Karo Bio AB To Focus Its Operations; Reducing Its Staff
STOCKHOLM, Sweden -- Karo Bio has a pipeline of six prioritized projects. Three of these are partnerships where the partner covers all the costs. In addition, Karo Bio runs three proprietary projects which are intended for partnerships at a later stage. Earlier this year, Karo Bio made a new share issue and raised 400 MSEK for the purpose of securing the further development of its projects. The most advanced compound, KB2115, intended for treatment of dyslipidemia, is in Phase II clinical development. Karo Bio intends to complete the Phase II program with additional preclinical and clinical studies and build value for a partnership and further development to the market. In addition, Karo Bio intends to initiate clinical development for the type 2 diabetes compound KB3305 during fall of this year.
To secure an effective and sustainable development of the prioritized projects, Karo Bio has updated its organization. The R&D organization will be led by Dr Anneli Hallgren, Vice President Preclinical Development, Dr Carl-Magnus Andersson, Vice President Chemistry and Pharmaceutical Sciences, and Dr Jens Kristensen, Vice President Medical Sciences. In association with the organizational changes, Karo Bio is reducing its staff by 14 people. The down-sizing affects both administrative support and R&D operations. On an annual basis, the cost base will be reduced by approx. 20 MSEK.
"With this organization and staffing, we preserve our ability to develop new medicines, albeit with less resources. We will focus on the programs where we have the best chance to deliver visible progress. Naturally, we regret that some of our loyal staff have to leave the company in connection with this process", says Per Olof Wallstrom, President of Karo Bio.
Facts about Karo Bio Karo Bio is a drug discovery and development company specializing in nuclear receptors for the development of novel pharmaceuticals with focus on metabolic diseases.
The company has expanded from being a drug discovery company by adding in-house preclinical and clinical development resources and competence for development of drugs to treat metabolic diseases. The company has a strong project portfolio with innovative molecules that primarily targets diseases such as diabetes, atherosclerosis and dyslipidemia. In all of these areas there are significant market opportunities and a growing need for new pharmaceuticals with new mechanisms of action.
In addition to the proprietary projects Karo Bio has two strategic collaborations with international pharmaceutical companies and one biotech collaboration for development of innovative therapies for the treatment of common diseases.
Karo Bio is listed on the OMX Nordic Exchange Stockholm AB since 1998 (Reuters: KARO.ST).
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Contact: Karo Bio Per Olof Wallstrom, +46 8 608 60 20 President & Chief Executive Officer or Per Otteskog, +46 8 608 60 18 Senior Vice President