“The acquisition of Novalon will strengthen Karo Bio’s technology base for the development of new drug substances that act upon nuclear receptors, which will make it possible to start several new projects and partnerships.
It also provides Karo Bio with an opportunity to develop research programs in new areas such as the identification of therapeutics that act upon new pharmaceutical targets derived from discoveries coming from genomics research.
With operations in Europe and the United States, Karo Bio will have better exposure to future collaborative partners and institutional investors,” says Mr. Per- Olof Martensson, President and CEO of Karo Bio.
“By joining with Karo Bio, Novalon is gaining an opportunity to fully exploit the technology platform the company has developed.
The merging of our technologies and research programs will greatly accelerate the pace and scope of our joint drug development,” says Dr. Dana Fowlkes, Chairman, CEO and founder of Novalon.
The new Karo Bio will have collaborative agreements with the leading life science companies Abbott Laboratories, Bristol-Myers Squibb, Merck & Co. Inc., Bayer AG, Ares-Serono, Millennium Pharmaceuticals Inc. and Novartis Research Foundation.
The joint technology platforms encompass both nuclear receptors and genomics.
The deal is conditional on Karo Bio‘s shareholders approving a directed new share issue at the Annual General Meeting on 26 April.
In addition, at that meeting and as a first step towards a stock exchange listing abroad, the company shall propose a new share issue with a value of around SEK 200 million directed to institutional investors.
Karo Bio is a research-based pharmaceutical company developing tissue-selective drug substances that act via nuclear receptors for the treatment of common diseases such as diabetes, obesity, elevated cholesterol, inflammatory disorders, cancer, cardiovascular diseases and certain women’s health problems.
Development takes place in collaboration with international pharmaceutical companies and leading universities.