The Company operates a fully-owned subsidiary in Sweden, BioStratum AB. This affiliate collaborates with the Division of Matrix Biology at the Karolinska Institute, Stockholm, Sweden, i.e. the laboratory of Dr. Karl Tryggvason, a
cofounder of BioStratum. BioStratum AB functions as
the Company's primary research/drug discovery pipeline operation outside the US. Dr. Tryggvason's laboratory is currently staffed with approximately 40 scientists and technicians, and is funded by research grants from Denmark, Sweden, Finland, the European Union, and the National Institute of Health in the US, as well as research funding from BioStratum Incorporated.
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The breadth of research ongoing in Dr. Tryggvason's laboratory is truly staggering. This laboratory has identified the mutated genes responsible for five genetic diseases, and is currently searching for the gene(s) that predisposes a diabetic patient to develop kidney disease. The most recent finding is the discovery of the mutated gene that causes congenital nephrotic syndrome, named the nephrin gene, which has led to a significant breakthrough in understanding how the kidney filters blood.

Recently, the laboratory crystallized MMP-2, which is
an important enzyme involved in the spread of cancer,
and scientists are currently using this solved structure
to develop improved anti-cancer drug candidates.

Recent scientific advances that have emerged from
Dr. Tryggvason's laboratory include:

1. The discovery of nephrin, a key component of the kidney's ultrafiltration barrier, and potentially a new molecular target for kidney disease;
2. The solved x-ray structures of MMP-2 and its inhibitor TIMP-2, key molecular targets for a number of anti-cancer drug candidates currently in clinical development, providing for the rational drug design
   of improved MMP inhibitors specific for MMP-2;
3. A proprietary glomerular gene transfer technology
   for the treatment of kidney diseases using
   DNA/gene-based therapies;
4. The identification of the laminin g2 chain of laminin-5 as a marker for establishing the metastatic potential
   of tumor biopsies (discussed above); and
5. The discovery of MARCO, a protein that participates
   in the body's immune defense system by removing bacterial material from the blood.

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