Karo Bio’s business is based on a model in which projects targeting major patient populations in competitive market segments are outlicensed to partners in preclinical or early clinical stages of development. In addition to the partnership-based model, Karo Bio will bring selected compounds aimed at targeted patient populations to late stage clinical development. The company will potentially launch such compounds in selected markets.  
          The strategy will create opportunities for flexibility in deal making, while providing better control of the business and improved prospects for revenue and earnings-generation over time. Thus, the risks in this strategy are better balanced.

Karo Bio’s Strategy and Business Model 
Karo Bio’s strategy for developing the company and building shareholder value is to:
• Generate new innovative projects through drug discovery targeting nuclear receptors
• Reduce risk by maintaining a focused project portfolio and building a clinical pipeline
• Bring selected projects in niche areas to the market or late stage out licensing
• License out compounds intended for treatment of broad patient populations