Biora AB · 6-K · For 4/10/01

Filed On 4/10/01 3:51pm ET   ·   SEC File 0-29076   ·   Accession Number 950172-1-457

Report of a Foreign Private Issuer   ·   Form 6-K
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 6-K         Report of a Foreign Private Issuer                    61±   274K 

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SECURITIES AND EXCHANGE COMMISSION    
WASHINGTON, D.C. 20549    

FORM 6-K    

REPORT OF FOREIGN ISSUER    

Pursuant to Rule 13a-16 or 15d-16 of    
the Securities Exchange Act of 1934     

Date of Report: April 10, 2001    

BIORA AB    

SE-205 12 Malmo, Sweden     

Telephone: (011) 46-40-32-13-33     

            Indicate by a check mark whether the registrant files or
will file annual reports under cover of Form 20-F or Form 40-F.                 

            |X|   Form 20-F                    |_|   Form 40-F

    Indicate by check mark whether the registrant by
furnishing the information contained in this Form is also thereby               
furnishing the information to the Commission pursuant to Rule 12g3-2(b)         
under the Securities Exchange Act of 1934.                                      

     |_|   Yes                          |X|   No

      If "Yes" is marked, indicate below the file number
assigned to the registrant in connection with Rule 12g3-2(b):                   

Not applicable.                             

          This Form 6-K consists of Biora AB's Annual Report for
2000 (see Annex A).                                                             

Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on its behalf     
by the undersigned hereunto duly authorized.                                    

            BIORA AB

Dated:   April 10, 2001                   By:  /s/ Anders Agering               
                                            ------------------------------
                                    Anders Agering
                                             Chief Financial Officer

                                                               ANNEX A

BIORA     

ANNUAL REPORT 2000    

CONTENTS    

Biora - summary of year 2000                                  5                 
Biora in brief                                                5                 
Focus on the core business                                    7                 
Biora - objectives and strategies                             11                
Emdogain and dental disease                                   13                
Research and development                                      16                
Clinical experiences of Emdogain                              18                
The market for Emdogain                                       20                
International Customer Center                                 22                
Quality and environment                                       24                
Directors' report                                             25                
Statements of operations                                      29                
Balance sheets                                                30                
Statements of cash flow                                       32                
Notes to financial statements                                 33                
Auditors' report                                              52                
Board of directors and auditors                               53                
Management group                                              57                
Shares and shareholders                                       60                
Five year summary and key ratios                              62                
Addresses                                                     64                

This Annual report may contain certain forward-looking statements that          
relate to future events or future business and financial performance. Such      
statements can only be predictions and the actual events or results may         
differ from those discussed. The Company cautions that these statements are     
subject to important factors that could cause actual results to differ          
materially from those expressed or implied in such forward-looking              
statements and are more fully discussed in periodic reports filed with          
the Securities and Exchange Commission.                                         

ANNUAL GENERAL MEETING    

The Annual General Meeting of shareholders of Biora AB (publ) will take         
place on Thursday, May 3, 2001, at 5:00 p.m. in Hotel IBIS (Skyline Hotel)      
Bisittaregatan 2/Stadiongatan in Malmo.                                         

REGISTRATION                                                                    

Shareholders who wish to attend the annual general meeting must:                

o    be registered in the share register of the Securities Register Center,     
VPC AB, not later than Monday, April 23, 2001; shareholders who have  
registered their holdings through an investment manager must request  
temporary share registration with VPC well before April 23.           

o    register their participation no later than 4:00 p.m. on Thursday,          
April 26, 2001.                                                       

SHAREHOLDERS MAY REGISTER BY:                                                   

o    the shareholder registration card attached to this Annual Report           
o    Internet at Biora's website at "www.biora.com"                             
o    letter, to Biora AB, Attention Christel Rosendahl, Medeon Science          
Park, 205 12 Malmo, Sweden                                            
o    fax on +46-40-32 13 55                                                     
o    telephone on +46-40-32 13 69.                                              

WHEN REGISTERING, SHAREHOLDERS SHOULD STATE:                                    

o    their name                                                                 
o    their social insurance, social security or registration number             
o    their address and telephone number                                         
o    the name of any potential accompanying persons (two guests per             
shareholder are permitted)                                            

If the shareholder intends to participate by proxy, notification must be        
submitted prior to the meeting.                                                 

ITEMS FOR THE AGENDA                                                            

The agenda and list of items to be discussed at the Annual General Meeting      
will be published in the major Swedish daily newspapers. The agenda may         
also be requested from the company when registering for the meeting.            

FINANCIAL INFORMATION FROM BIORA IN 2001                                        

Annual General Meeting of shareholders May 3                                    
Interim report for the first quarter 2001 May 3                                 
Form 20 F, U.S. GAAP 2000 June                                                  
Report for the first half year 2001 August 23                                   
Interim report for the first nine months 2001 November 7                        
Capital markets day for financial analysts, investors and media                 
(in Stockholm) May 17                                                           

BIORA - SUMMARY OF YEAR 2000                                                    

o    Net sales for the year 2000 were SEK 89.2 million, compared to SEK         
73.6 million during 1999. This corresponds to an increase of 21% in   
SEK and 15% at fixed rates of exchange.                               

o    Loss after tax was SEK 76.1 million compared to a loss of SEK 86.7         
million during 1999.                                                  

o    Sales in the U.S. market increased by 51% in SEK and by 36% in U.S.        
Dollars compared to 1999. Sales in Japan as well as in Germany        
decreased by 13%. In Germany, a fourth quarter sales increase of 13%, 
both in SEK and in local currency, reversed the previous negative     
sales trend. No deliveries were made to Japan during the fourth       
quarter, compared to deliveries valued at SEK 2.7 million during the  
corresponding period in 1999 (see below).                             

o    Rickard Soderberg became the new President and Chief Executive Officer     
of Biora AB in August.                                                

o    Emdogain Gel, a development of Emdogain, was introduced in Europe in       
June 2000.                                                            

o    The U.S. Food and Drug Administration, FDA, approved Emdogain Gel in       
January 2001.                                                         

o    In November, Seikagaku Corporation, Biora's marketing and sales            
partner in Japan, recalled all deliveries of Emdogain in order to     
comply with the registration authority's guidelines which required the
same changes to be made to the production process for deliveries to   
Japan as had previously been implemented for other markets. The       
Japanese regulatory authority has indicated that it will look         
favorably on an accelerated registration process for Emdogain Gel and 
registration is expected during 2001.                                 

o    Biora's Board of Directors has decided to divest, or find a partner        
for, BioEx, the organization dedicated to all non-dental research and 
development.                                                          

o    During the first quarter of 2000, Biora acquired the rights to a           
patent-protected pharmaceutical project for the treatment of dry mouth
(xerostomia), a common affliction among the older population and a    
common side effect of many medicines and radiation treatment. In March
2001, Biora signed a license agreement under which Biora retains the  
right to sell the product to dentists and the licensee obtains the    
right to sell to other target groups.                                 

o    In February 2001, it was announced that Biora's Board of Directors         
intends to recommend that the shareholders at the Annual General      
Meeting give the Board authority to issue new shares, if deemed       
necessary, at a time and on market conditions that are considered to  
be appropriate. This will increase the company's freedom of action and
secure an adequate capital base.                                      

BIORA IN BRIEF                                                                  

o    Biora is a Swedish biotechnology company that develops, manufactures       
and markets pharmaceutical products for dentists and dental           
hygienists. The company had 75 employees at the end of the year, with 
headquarters and production based in Malmo, Sweden.                   

o    Sales of Emdogain and Emdogain Gel are conducted through wholly owned      
subsidiaries in the U.S., Germany, Italy, the Benelux countries, Great
Britain and Switzerland, and through Biora's own marketing            
organization in the Nordic countries. In other countries, such as     
Japan, for example, marketing is done through distribution or         
collaboration agreements.                                             

o    The company's most important product, Emdogain, is based on a natural      
enamel matrix protein that is used to treat periodontal disease.      
Emdogain is a patent-protected product in all the important markets.  
It was launched in Sweden and Germany in 1996, in the U.S. and the    
rest of Europe in 1997 and in Japan in 1998.                          

o    Emdogain Gel, which is an improved product based on Emdogain, is a         
pre-mixed, ready-to-use product, which provides a simpler and less    
time-consuming treatment than Emdogain. It was introduced in Europe in
June 2000, in the U.S. in February 2001 and is expected to be launched
in Japan during 2001.                                                 

o    Research and development will concentrate on dental indications that       
will extend the use of Emdogain Gel within the next few years.        

o    Research and development of products for non-dental indications are        
carried out by a separate organization, Biora BioEx, which Biora now  
intends to divest or find a partner for.                              

FOCUS ON THE CORE BUSINESS    

As Biora's new President, I am fascinated by all the possible areas of use      
that exist for Emdogain and the great potential of this product.                
Consequently, I find it easy to envisage all the benefits that Biora can        
expect to reap from Emdogain in the future.                                     

However, the real challenge for Biora right now consists of finding the         
business possibilities that can be expected to lead to a stable financial       
platform in the short term. From this platform, Biora has the potential to      
expand at a rate that can be expected to provide shareholders with a good       
return on their capital and employees with an interesting work place in         
which they can thrive.                                                          

CONCENTRATION ON OUR CORE BUSINESS                                              

During my first six months as President, I have met customers and               
researchers in order to form an understanding of what Biora and Emdogain        
stand for.                                                                      

Biora has today established a strong position among researchers within          
periodontology, and a significant number of specialists use Emdogain            
successfully as standard treatment in regenerative therapy for periodontal      
disease. We also have committed, highly competent employees in our researcher   
and production organization as well as in our sales force. Taken together,      
this provides a number of possibilities that can contribute to a continuing     
increase in sales. Therefore, we are concentrating on the following:            

o    To first attain a strong position in several important key markets and     
then expand into other markets. Biora has traditionally been very     
ambitious, and has simultaneously introduced Emdogain to too many     
markets.                                                              

o    To focus on customers with large sales potential and to establish the      
product among them. The target group has been too broadly defined, and
we have tried to approach many different customers in parallel. By    
focusing more clearly on a well-defined customer segment, we can build
our customer relations in a more systematic way.                      

o    To emphasize the advantages that Emdogain offers the dentist and the       
patient, before concentrating on the mode of action of the product.   

o    To focus on research projects that support Emdogain and have the           
potential for rapid market introduction. There has previously been a  
certain imbalance in the research between projects intended to support
Emdogain in the short term and long-term projects directed towards    
other areas of use for enamel matrix proteins.                        

My mission as President is to ensure that we concentrate on our core            
activity, in relation to both selling and research. This process is already     
underway.                                                                       

KEY MARKETS WITH LARGE GROWTH POTENTIAL                                         

The U.S., Germany and Japan are Biora's three key markets with large            
potential for sales growth. In the U.S. alone, approximately 2 million          
surgical procedures for periodontal disease are performed every year, and       
it is Biora's opinion that Emdogain could be used successfully in at least      
half of them. Only a very small percentage of these patients are treated        
with Emdogain in the U.S. today. Corresponding situations exist in Germany      
and in other markets.                                                           

Why am I so optimistic about the potential of Emdogain in these markets?        

o    Our sales in the U.S. market have grown 51% in SEK compared to 1999.       
With the launch of Emdogain Gel, we can offer a product that          
simplifies periodontal treatment for dentists as it is pre-mixed,     
unlike Emdogain. This should strengthen the product's position in the 
American market.                                                      

o    In Germany, during the fourth quarter, a negative sales trend was          
reversed to provide an increase of 13% in both SEK and local currency.
In a publicized statement, the German Periodontology Association (DGP)
supported Emdogain's use in periodontal surgery. This statement has   
meant that several of the larger German insurance companies now fully 
or partially reimburse patients for the cost of Emdogain treatment.   

o    Historically, Japan had a stable level of sales growth. In November,       
Seikagaku Corporation recalled Emdogain. This was because of the      
Japanese registration authority's guidelines, which required the same 
changes to be made in the production process for deliveries to Japan  
as had earlier been implemented for other markets. The Japanese       
authority has now expressed support for an accelerated registration   
process for Emdogain Gel, which means that Seikagaku Corporation can  
launch a product that can be expected to be more attractive to the    
Japanese market. The date of registration is always difficult to      
predict, but Biora is planning to introduce Emdogain Gel in Japan     
during 2001.                                                          

NEW INDICATIONS TO ESTABLISH EMDOGAIN GEL AS STANDARD THERAPY                   

Within Biora we have now given the highest priority to research projects        
that support the use of Emdogain and have a shorter time to market              
introduction. Prioritized indications are tooth trauma, treatment of            
exposed root surfaces (recession type defects) and restoring lost               
tooth-supporting structures in connection with non-surgical cleaning of the     
dental root.                                                                    

Two additional indications, which involve treatment by general dentists,        
have been initiated within Biora.                                               

o    The first of these projects aims to develop a new enamel matrix            
protein-based product to accelerate healing of wounds that occur in   
conjunction with non-surgical treatment of the dental root.           

o    The goal of the second project is to demonstrate that treatment with       
Emdogain could lead to that a dental pulp that is damaged does not    
need to be replaced with a root filling ("root canal"), but can       
instead be preserved and surrounded by new hard tissue.               

These projects are vital if we are to establish Emdogain Gel and enamel         
matrix proteins as standard therapy for different oral cavity diseases for      
which tissues need to be regenerated.                                           

BIORA BIOEX - DISCUSSIONS ABOUT DIVESTITURE OR PARTNERSHIP IN PROGRESS          

Biora's Board of Directors intends to focus activity within the company and     
is therefore aiming to divest Biora BioEx, or find a partner for it. There      
are several interesting projects being developed by Biora BioEx, such as        
improved healing of chronic ulcer and stimulation of bone formation. A sale     
of BioEx or collaboration with a partner will enable more resources to be       
allocated to these projects allowing the development to be completed. A         
divestiture should also strengthen Biora's financial position and provide       
the company with improved liquidity. Biora is presently negotiating with        
several interested parties, but as usual in negotiations no guarantees can      
be made as to the result. Should we not be able to sell BioEx, alternative      
strategies will be considered.                                                  

NEW PRODUCTS FOR THE FUTURE                                                     

In my judgment Emdogain Gel will become increasingly important in the           
treatment of periodontal disease. In order to strengthen Emdogain's and         
Biora's market position, we aim to increase our portfolio of pharmaceutical     
products for dentists and hygienists. During the year, Biora acquired the       
rights to one such product, a treatment for dry mouth, which affects a          
large number of older individuals and is a common side effect of many types     
of medication and radiation treatment.                                          

THE GOAL IS TO MAKE BIORA A LEADING COMPANY WITHIN ITS FIELD                    

My goal is to make Biora a profitable enterprise with strong sales growth.      
To achieve this, Biora must assume a leading position within its area of        
activity - namely pharmaceutical products that are used by dentists and         
hygienists for diseases in the oral cavity. Biora will be present with its      
own organization in markets such as the U.S. and Germany. In other markets      
with large potential, Biora will work together with partners. For certain       
new indications the target group can be increased to include general            
dentists, and for these Biora will look for partners to collaborate with,       
instead of expanding its own organization.                                      

NEW ISSUE                                                                       

In order to increase freedom of action and to secure continued adequate         
finance, the Board of Directors intends to ask the shareholders at the          
Annual General Meeting to give the Board authority to issue new shares, if      
deemed necessary, at a time and on market conditions that are considered to     
be appropriate.                                                                 

Rickard Soderberg,                                                              
President and Chief Executive Officer                                           

BIORA - OBJECTIVES AND STRATEGIES     

BIORA develops, manufactures and sells pharmaceutical products to dentists      
and dental hygienists so that their patients with dental diseases can           
regain or retain their dental health and improve the appearance of their        
teeth. In this way, Biora creates added value for its customers and through     
long-term sales and profit development added value for its owners.              

OBJECTIVES                                                                      

Biora's goal is to become the market leader in the area of pharmaceutical       
products used to treat or mitigate dental diseases and our target group is      
periodontologists and certain dentists specialized in periodontology as         
well as hygienists.                                                             

EMDOGAIN GEL - BIORA'S PLATFORM                                                 

Biora's principal product and the platform on which it will build its           
business is Emdogain Gel, a development of Emdogain that offers a simpler       
and less time-consuming treatment. Emdogain Gel provides dentists with a        
ready-mixed product that, like Emdogain, regenerates natural                    
tooth-supporting structures. It was launched in Europe in June 2000 and has     
been well received by our customers because it is easy to use and saves         
time. Emdogain Gel was registered in the U.S. in January 2001, and market       
introduction is in progress. The Japanese authority has expressed support       
for an accelerated registration process for the product, with registration      
expected during 2001.                                                           

FOCUS ON KEY MARKETS                                                            

The U.S., Germany and Japan together make up 75 per cent of Biora's total       
sales. In the U.S. and Germany, Biora will use its wholly owned marketing       
organizations to build relationships with key customers and attain a strong     
position. These organizations will also be able to market and sell other        
products in Biora's portfolio of the future. In Japan, Emdogain is marketed     
and sold by Biora's Japanese partner, Seikagaku Corporation. Biora is           
aiming to secure a strong position in these key markets and then to expand      
into other markets.                                                             

FOCUS ON ESTABLISHED CUSTOMERS WITH LARGE SALES POTENTIAL                       

Experience with Emdogain and Emdogain Gel shows that customers who learn to     
use the product correctly and have used it repeatedly are satisfied with        
the results of treatment, and the aim is now to get them to increase their      
use of Emdogain Gel. Expanding the indications for Emdogain will enable the     
product to be used on more and more patients.                                   

FOCUS CLINICAL RESEARCH ON NEW INDICATIONS FOR EMDOGAIN GEL                     

Research and development within Biora will concentrate on dental                
indications that are expected to expand the use of Emdogain Gel, such as        
surgical treatment of recession defects or restoration of lost                  
tooth-supporting structures associated with non-surgical treatment of the       
dental root.                                                                    

DIVESTITURE OR COLLABORATION FOR PRODUCTS WITH NON-DENTAL INDICATIONS           

As part of a move to focus its business activities, Biora intends to            
divest, or find a partner for, Biora BioEx, the part of the research and        
development portfolio that covers non-dental indications. BioEx's portfolio     
includes several interesting indications for enamel matrix proteins,            
including healing of chronic sores such as leg ulcers, and stimulation of       
bone formation, as well as the patent application relating to inhibition of     
certain cancer cells, based on early cell studies. The process of finding a     
buyer or partner for BioEx is underway, and a sale or partnership will          
enable more resources to be allocated so that the development of BioEx's        
projects can be completed. In addition, a divestiture is expected to result     
in improved liquidity for Biora                                                 

INCREASED PRODUCT PORTFOLIO WITHIN THE DENTAL AREA                              

In order to take full advantage of Biora's marketing and sales resources in     
the marketing organizations, Biora is actively seeking new pharmaceutical       
products with dental indications. During the year, Biora acquired the           
rights to a patent-protected pharmaceutical project for the treatment of        
dry mouth. The work of developing a formulation for the product is in the       
final phase, and clinical studies are in progress. In March 2001, Biora         
signed a license agreement for sales of the product to target groups other      
than dentists.                                                                  

EMDOGAIN AND DENTAL DISEASE     

Periodontal disease occurs throughout the world and its range and               
distribution are so great that it could be considered a disease of the          
entire population.                                                              

PERIODONTITIS - A COMMON DISEASE                                                

One third of the population over 55 suffers from periodontal disease. For       
patients with extensive loss of tooth-supporting structures and jawbone,        
surgery is usually required. According to a report by the American Dental       
Association, around two million such surgical procedures are performed in       
the U.S. every year. The number of procedures in the world is estimated to      
be about five million.                                                          

Careful and regular oral hygiene is required for healthy gums and healthy       
tooth-supporting structures. Otherwise, large numbers of bacteria gradually     
accumulate on the teeth and along the edges of the gums, inflammation           
occurs and the gum becomes red and swollen and bleeds easily. If layers of      
bacteria are allowed to continue to grow along the edges of the gum, the        
inflammation will spread deeper into the tissues and the tooth's supporting     
structure can be affected and gradually broken down and destroyed.              
Eventually, a pocket is formed between the dental root and the tooth, and       
the layers of bacteria around the neck of the tooth can grow down into this     
pocket. As the patient cannot brush under the edge of the gum, the disease      
continues to spread deeper, and if the disease process continues the            
periodontal pocket becomes deeper and there is a risk that the patient will     
eventually lose the tooth.                                                      

TREATMENT OF SEVERE PERIODONTITIS                                               

In about 10 percent of the entire population, the breakdown of the              
structures supporting the teeth is so extensive that surgical treatment is      
required to stop the progress of the disease. In the most common form of        
treatment, an incision is made and the edge of the gum is folded to the         
side so the dentist can reach and treat the affected root. Defects in the       
jawbone are leveled out and the gum is sutured to the leveled jawbone. This     
removes periodontal pockets, and the patient is able to manage his or her       
own oral hygiene. The disadvantage is that new tooth-supporting structures      
are not created, and often the normal function of the tooth is not              
regained. Furthermore, patients often complain about sensitivity to cold        
from exposed root surfaces, and an unaesthetic appearance to their mouth.       

EMDOGAIN - REGENERATES LOST TOOTH-SUPPORTING STRUCTURES                         

Emdogain consists of an enamel matrix protein that existed when the             
tooth-supporting structures were originally formed. By surgically covering      
the surface of the dental root and other tissues with a layer of protein,       
the regeneration process can begin and new root cementum, new ligament          
fibers and new surrounding jawbone are formed. This means that the tooth        
regains new, natural supporting structures. In clinical tests conducted by      
Biora, it has taken between eight and twelve months for the formation of        
new jawbone to be clearly visible on X-rays. This formation of new jawbone      
can continue over several years.                                                

A large number of scientific articles on Emdogain have been published in        
international journals from many parts of the world. The published results      
from both pre-clinical and clinical research show that:                         

o    Emdogain is based on an established biological concept and has a           
mechanism of action that is well documented                           

o    Emdogain's safety and effectiveness have been documented in                
independent, controlled studies                                       

o    Emdogain's ability to start the formation of tooth-supporting              
structures with new root cementum, ligament and jawbone has been      
confirmed with human tissue preparations.                             

Over 250,000 patients have so far received treatment with Emdogain.             
Experience to date, coupled with results from the large number of studies,      
confirm that Emdogain is both effective and safe when used for dental           
injuries resulting from periodontal disease, and that the product               
regenerates lost tooth-supporting structures.                                   

EXPOSED ROOT SURFACES (RECESSION DEFECTS)                                       

Many people lose part of the gum on the front side of the teeth. The cause      
is often an inflammation of the gum or an improper (too hard)                   
tooth-brushing technique that causes the edge of the gum to successively        
recede and expose part of the root of the tooth. These gum defects often        
cause increased sensitivity and shooting pains in the tooth. Furthermore,       
the long dental roots that are visible in the front part of the mouth can       
be perceived as aesthetically unpleasing. These defects are currently           
treated surgically by "lifting up" the gum and laying it over the exposed       
root. Biora has recently completed a series of clinical studies using           
Emdogain to improve the result following such treatment, and the results        
are now being analyzed.                                                         

DENTAL TRAUMA                                                                   

The indication trauma means treatment of teeth that have been completely        
knocked out in accidents. This most often affects adolescents, whose jaws       
are still soft and whose support structures for the permanent teeth are not     
fully developed. The recommended treatment for a permanent tooth that has       
been knocked out is to set it back in the jaw as soon as possible. If the       
tooth is outside the mouth for more than 15 to 20 minutes, the outermost        
layer of cells on the root surface will die and the likelihood of good          
healing is reduced. Instead, the tooth grows together with the jawbone and      
the dental root gradually begins to break down until the tooth is lost. In      
addition, this can cause difficulties in replacing the lost tooth with an       
implant or bridge, as the growth of the jawbone is often halted. Treatment      
of knocked-out teeth is an approved indication for Emdogain in Europe,          
Canada and Brazil. Studies are in progress to further strengthen the            
documentation of this indication and to prepare a corresponding application     
for registration in the U.S.                                                    

OTHER INDICATIONS RELATING TO PERIODONTAL DISEASE AND ORAL SURGERY              

Another indication for Emdogain is the treatment of periodontal defects         
between the dental roots, so-called furcation involvement, in a molar with      
several roots. Clinical results show that Emdogain can successfully be used     
in a mild form of furcation involvement that is also an approved indication     
in Europe and Canada. Preliminary studies are now in progress to                
investigate the possibility of using Emdogain in patients with more severe      
defects.                                                                        

When impacted wisdom teeth are extracted, there is a risk that the              
neighboring tooth will lose its attachment. This is because a wisdom tooth      
that cannot erupt in its normal upright position due to insufficient room       
in the jaw will injure the attachment of the neighboring tooth. A pilot         
study using Emdogain in connection with the surgical removal of impacted        
wisdom teeth has so far shown primarily positive effects on the healing of      
the wound. Further studies of this indication have been deferred as             
priority has been given to other indications.                                   

In addition, studies are underway to investigate the possibility of             
restoring lost tooth-supporting structures with Emdogain Gel in connection      
with non-surgical cleaning of the dental root.                                  

EMDOGAIN GEL - SIMPLIFIES THE PROCEDURE AND SAVES TIME                          

Emdogain Gel was introduced in June 2000 in Europe and in February 2001 in      
the United States. Instead of mixing two components, as done before,            
Emdogain Gel, which is a premixed gel filled in a syringe, offers the           
dentist a simplified solution with a premixed formulation in a unique           
syringe delivery system, which is easy to use and saves time for the            
dentist.                                                                        

The product has been well received in Europe. In Japan Emdogain Gel is          
expected to be launched during 2001.                                            

RESEARCH AND DEVELOPMENT    

Research and development at Biora is concentrated on dental diseases.           
Emdogain has been shown to stimulate the formation of soft tissue as well       
as hard tissue, which provides the possibility of the development of            
several indications.                                                            

GLOBAL CONTACT NETWORK FOR RESEARCH                                             

Biora maintains its own laboratory in Malmo, Sweden, which has ten              
researchers in biology and chemistry, as well as resources for the              
coordination of clinical research and registration. In addition, Biora has      
a large network of contacts among universities in Europe, the U.S., Japan       
and Australia with which Biora exchanges results as well as researchers.        
During the year, Biora has received external financing for research from,       
among others, a Marie Curie Industrial Host fellowship.                         

INCREASED KNOWLEDGE OF MATRIX PROTEINS                                          

The research on matrix proteins has gone from tissue level, with microscopy     
of tissue preparations, to cell and molecular level in order to study in        
detail how these proteins and various types of cells affect each other. A       
better understanding of the mechanisms involved and the similarities or         
differences among different cell types has so far resulted in six patent        
applications for use of Emdogain and other enamel matrix proteins in a          
range of new areas. Despite the fact that the proteins that Biora works         
with exist in the body only when the teeth are developing, they can be used     
to rebuild tissues in adults. This rebuilding of tissues is not limited to      
the teeth. Cell culture experiments show how cells, for example from skin       
or bone, that attach to a surface layer of enamel matrix protein also start     
synthesis of new proteins and form new tissues. Models can show how enamel      
matrix proteins during an early phase attach to newly formed tissues, and       
follow how the tissues develop to become functional units. The results of       
these models can then be transferred to clinical tests and the development      
of new products. Among other things, this work has resulted in the              
wound-healing project that is being carried out by BioEx.                       

DEVELOPMENT PROJECTS                                                            

EMDOGAIN GEL                                                                    

Biora's principal project, Emdogain Gel, a stabilized protein that is           
delivered as a pre-mixed gel in a sterile syringe, has recently been            
registered in major markets, including the European Community, Canada, the      
U.S. and Brazil. The work of registering Emdogain Gel in Japan is in            
progress. Since Emdogain Gel has to a large extent replaced Emdogain as it      
has been introduced to more and more markets, Emdogain Gel is now Biora's       
principal product.                                                              

WOUND HEALING IN TREATMENT OF MILD PERIODONTITIS                                

Patients who have a mild form of periodontal disease are treated by             
removing the bacterial deposits and tartar that accumulate in the               
periodontal pockets around the affected teeth. This treatment (scaling and      
root planing) cleans the tooth effectively but it may cause the patient to      
experience tenderness of the gum, pain and swelling for up to a week            
following treatment. It has been reported that enhanced wound healing is        
observed following periodontal surgery with Emdogain. Pilot studies have        
shown that Emdogain also accelerates the healing process after non-surgical     
periodontal treatment. A product based on enamel matrix proteins with           
improved effect on soft tissue healing will be tested in clinics in 2001.       

NEW TREATMENT TO PRESERVE DENTAL PULP                                           

During the development of caries ("cavities"), toxic substances can enter       
the dental pulp, which results in varying degrees of inflammation and pulp      
necrosis (pulp death).                                                          

The dentist often finds during treatment that the pulp has been damaged.        
Many believe that a damaged pulp must be removed and replaced with a root       
filling ("root canal"). Just as enamel matrix proteins can be developed for     
use with soft tissue healing, they can also be developed for formation of       
hard tissues. When Emdogain is used to regenerate new tooth-supporting          
structures, regeneration of both soft tissue (ligament) as well as hard         
tissue (root cementum and bone) is stimulated. The result from model            
studies within the tooth indicates that Emdogain can also stimulate the         
pulp to form new mineralized tissue (dentin), which protects the pulp and       
thereby can reduce the number of root canal procedures performed.               

The recently started project aims to demonstrate the clinical effect of         
Emdogain for this indication (endodontics).                                     

XEROSTOMIA - DRY MOUTH                                                          

The aim of Biora's xerostomia project is to develop a product that can be       
pre-scribed by dentists to patients who have discomfort caused by dry mouth     
(xerostomia). Like periodontitis, dry mouth is a very widespread problem. A     
normal flow of saliva is vital for a healthy mouth and therefore essential      
to the individual's wellbeing. Dry mouth is a hidden but very common            
disease that primarily affects older people but is also a common side           
effect of many different types of medicines and radiation treatment. The        
substance for which Biora has acquired the patent causes the saliva glands      
to be stimulated more effectively by local treatment in the mouth. The          
development of a formulation of the product is in its final phase and early     
clinical studies are in progress. Dry mouth can be caused by many               
underlying factors, and drugs for the treatment of this problem can be          
prescribed to patients who are not being treated by dentists. Therefore,        
Biora, in March, 2001, entered into a license agreement with a British          
biomedical development company, Medpharma, which receives the rights to         
sell to target groups other than dentists. Under the agreement Biora            
receives a one-time payment, to be paid in equal installments during 2001       
and 2002, as well as a royalty based on future sales once the drug has been     
introduced to the market. Development costs for the project up to and           
including early clinical tests will be shared between Biora and Medpharma.      
The agreement covers the whole world except Japan.                              

BIORA BIOEX                                                                     

Biora BioEx was formed in the spring of 1999 when international patent          
applications for wound healing with matrix proteins were being submitted.       
The intention was that Biora BioEx would develop products for indications       
outside the oral cavity. During 2000, the Swedish Industrial Development        
Fund granted a conditional loan of 15 million SEK to finance the                
wound-healing project. This project has advanced through further                
pre-clinical tests and is now in clinical phase II for the indication           
venous leg ulcers. Also included in the work of Biora BioEx are a project       
for stimulating bone formation and a patent application for the inhibition      
of certain cancer cells, based on preliminary studies. Biora's Board of         
Directors has decided to sell BioEx or to develop BioEx's projects in           
collaboration with one or several partners.                                     

CLINICAL EXPERIENCES OF EMDOGAIN    

DR ANDREAS PARASHIS, PERIODONTIST,                                              
ATHENS, GREECE                                                                  

Regeneration of the periodontium has always been a significant part of my       
practice and over the years I have tried different techniques, such as bone     
grafts and guided tissue regeneration. In 1995, I started using Emdogain        
for the treatment of intrabony defects and now it is the only regenerative      
modality I use. With Emdogain, I can consistently achieve clinical and          
radiographic results that are as good as or better than those obtained with     
other techniques, and with minimum time required and a considerably faster      
healing with minimum discomfort for my patients.                                

DR FRANK BECK, PERIODONTIST,                                                    
REGENSBURG, GERMANY                                                             

I started using enamel matrix derivatives (EMD) in 1996, initially in just      
a few periodontal cases, and now use it in every regenerative treatment and     
also in some plastic surgery. Based on my experience, I would recommend         
practitioners new to this form of treatment to use EMD in the following         
order:                                                                          

1.  for one wall defects*                                                       
2.  for multiple recession covering**                                           
3.  for two wall defects*                                                       
4.  for three wall defects*                                                     

The results obtained with EMD are generally the same as those obtained in       
traditionally guided tissue regeneration with non-resorbable/resorbable         
membranes. However, the benefits are a much easier treatment procedure and      
a better wound-healing reaction of the tissue, which may lead to better         
results. For practitioners, EMD treatment reduces the chair time                
dramatically as you do not have to spend time adapting a membrane.              
Furthermore, you do not have to deal with typical healing complications         
like membrane exposure.                                                         

In the future, I see opportunities to combine EMD with other new trends in      
periodontal surgery, such as minimally invasive techniques and growth           
factors.                                                                        

*    relates to the number of bony walls in the periodontal defect; the         
fewer walls, the harder it is to treat successfully.                  

**   this indication is presently in clinical development.                      

PROFESSOR DAVID COCHRAN, CHAIRMAN OF PERIODONTICS,                              
UNIVERSITY OF TEXAS HEALTH SCIENCE CENTER AT SAN ANTONIO DENTAL SCHOOL, U.S.    

The use of Emdogain in my patients has provided a refreshing and innovative     
approach to periodontal regeneration. In the past, problems with membranes      
and various bone-grafting materials have made regenerative procedures           
difficult and unrewarding. Emdogain's ease of use, the excellent response       
to it by the tissues and its advanced clinical healing make this protein        
formulation the unqualified choice for periodontal regenerative procedures.     

The scientific basis for Emdogain means that it occupies a unique position      
in the marketplace. No other product for peridontal regeneration stimulates     
both the hard and soft tissues of the periodontium at the same time. I use      
Emdogain in all my patients with infrabony pockets and some of the results      
have been remarkable. I think that Emdogain will maintain its unique            
position in the marketplace for the foreseeable future.                         

THE MARKET FOR EMDOGAIN     

About one in every ten individuals and about a third of individuals aged        
over 55 in the Western World suffer from periodontal disease                    
(periodontitis).Throughout the world, an estimated five million operations      
involving flap surgery are performed annually to treat severe                   
periodontitis.                                                                  

Most of these surgical procedures for severe periodontitis are still being      
treated without any addition of regenerative materials. When a regenerative     
procedure is performed, bone graft material or various types of membranes       
(GTR) are utilized even though these methods do not have the same               
capability as Emdogain of regenerating the tissues - bone, cementum and         
ligament - that make up the tooth-supporting structures. During 2000,           
Emdogain was used in approximately 75,000 flap surgeries. Biora estimates       
that Emdogain can be used successfully in more than half of all flap            
surgeries, especially among patients with local bony defects surrounding        
the tooth. This implies that with the current indication to regain lost         
tooth-supporting structures alone, Emdogain has a significant opportunity       
for growth.                                                                     

Three markets, the U.S., Germany and Japan, are among the largest for           
products used in connection with periodontal surgery. These markets             
together accounted for 75 per cent of the total sales of Emdogain during        
2000, and Biora is therefore focusing its marketing efforts on these three      
markets.                                                                        

It is Biora's intention to increase the number of indications and to            
clinically document Emdogain for other diseases of the oral cavity. Several     
projects are in progress with an expected introduction within the next few      
years.                                                                          

o    For teeth lost to trauma (avulsed teeth). This indication is currently     
approved in Europe, Canada and Brazil. Ongoing studies aim to further 
strengthen the documentation for this indication and to prepare for an
application for registration in the U.S. In Europe, marketing efforts 
for this indication will be increased during the fourth quarter of    
2001, which also coincides with the publication of studies that are   
currently in progress.                                                

o    To regenerate tooth-supporting structures in connection with               
non-surgical treatment of the dental root.                            

o    For surgical treatment of recession defects.                               

In most markets, the main target group for Emdogain is periodontists and        
dentists specializing in the treatment of periodontal diseases. In the          
U.S., there are approximately 4000 periodontists. In markets such as            
Germany, general practitioners with knowledge and experience of such            
treatments usually treat patients with periodontal disease.                     

SALES DEVELOPMENT DURING THE YEAR                                               

Sales for the year 2000 amounted to SEK 89.2 million, an increase in SEK of     
21% compared to 1999. Sales were especially strong in the U.S., and in          
Germany there was a turnaround in the fourth quarter from a negative sales      
trend to a sales increase. Emdogain Gel, which was introduced in Europe in      
June, has been well received and has virtually replaced the earlier             
formulation of Emdogain.                                                        

U.S.                                                                            

There are approximately 13 million patients in the U.S. diagnosed with          
periodontitis, and most of them have had some kind of treatment for their       
disease. The U.S. is Biora's largest single market, and sales in 2000 were      
SEK 43.8 million, an increase of 51% in SEK and 36% in US dollar compared       
to 1999. Approval of Emdogain was obtained in the U.S. in September 1996,       
and Emdogain Gel was approved in January 2001 and introduced to the market      
in February. Biora's primary target group is periodontists. A total of 670      
new customers purchased Emdogain in 2000, and of these, 475 were                
periodontists. Compared to 1999, Biora has increased the number of              
customers who purchased the product at least three times. The share of          
customers who bought Emdogain at least three times during 2000 was 43%          
compared to 36% during 1999. In total, about 3000 American periodontists        
have bought Emdogain at least once since its introduction. Emdogain is          
today an accepted product among periodontists in the U.S. Emphasis on           
existing key customers and the launch of Emdogain Gel are considered to be      
important factors for success in the U.S. in 2001.                              

GERMANY                                                                         

Germany has approximately 8000 dentists who perform surgical treatment for      
periodontal disease and is the largest market for Emdogain in Europe. Sales     
during the year amounted to SEK 16.8 million, a decrease of 13 per cent         
compared to the previous year. After reorganization of Biora in Germany,        
sales have increased again in SEK as well as in local currency, with a          
sales record being achieved in November 2000. During the last quarter of        
the year, sales in this market went from a negative sales trend to an           
increase in sales of 13 per cent compared to the same period in 1999.           

An important event took place in September when the German Periodontology       
Association (DGP) officially endorsed the use of Emdogain by making the         
following statement: "The evidence of histological and controlled clinical      
studies shows that the use of enamel matrix proteins, applied to a clean        
root surface during flap surgery, is an effective and reliable regenerative     
method for the treatment of vertical periodontal bone defects." This            
statement is significant in establishing Emdogain as a standard treatment       
and has resulted in several German insurance companies agreeing to now          
fully or partially reimburse patients for the cost of treatment with            
Emdogain Gel. Several university hospitals in Germany now use Emdogain Gel      
regularly.                                                                      

THE MARKET FOR EMDOGAIN     

JAPAN                                                                           

Emdogain was approved for treatment in Japan in January 1998 and Biora's        
Japanese partner, Seikagaku Corporation, introduced the product in April of     
that year. Biora's shipments to the Japanese distributor during 2000            
amounted to SEK 6 million, a reduction of 13 per cent compared to 1999. In      
November 2000, Seikagaku Corporation recalled Emdogain in order to follow       
the registration authority's guidelines which required the same production      
process for Emdogain distributed in Japan as had been implemented for other     
markets. Discussions with the Japanese registration authority have resulted     
in the decision to accelerate the registration process for Emdogain Gel,        
instead of applying for approval of a product produced by the changed           
process, as previously planned. This means that there will be a somewhat        
delayed reintroduction in the Japanese market, but that Seikagaku               
Corporation can introduce Emdogain Gel earlier than planned. Registration       
is expected during 2001.                                                        

OTHER MARKETS                                                                   

The Italian market for dental products is substantial. Of approximately         
35,000 dentists in the country, about 6,000 perform surgery for periodontal     
disease. Sales during the year amounted to SEK 6.4 million, an increase of      
18 per cent compared to the previous year. The increase in sales was mainly     
due to the introduction of Emdogain Gel.                                        

Sales in the Nordic markets were SEK 5.1 million, an increase of 6 per cent     
compared to the previous year. Marketing efforts during the year focused on     
existing customers, and it is among these that an increase in usage has         
occurred. The introduction of Emdogain Gel in June is believed by Biora to      
improve the conditions for establishing Emdogain as a standard treatment in     
the Nordic market.                                                              

Emdogain has been launched in approximately 30 countries. In markets where      
it does not have its own organization, Biora collaborates with partners and     
distributors. Total sales in these other markets amounted to SEK 11.1           
million, an increase of 36 percent compared to the previous year.               

INTERNATIONAL CUSTOMER CENTER AND BIORA.COM                                     

In November 2000, Biora opened its International Customer Center (ICC).         
This center provides Biora's customers with an improved service by, among       
other things, enabling customers in markets where Biora does not have its       
own marketing organization to order Emdogain directly and to have the           
product delivered directly to their offices. With a department dedicated to     
managing customer enquiries and processing orders, Biora's marketing            
organization will have additional opportunities to focus on customer needs      
and growth opportunities within their markets. This investment lowers           
Biora's inventory management and distribution costs and makes it possible       
to communicate directly with customers, especially in those markets where       
the company does not have its own marketing and sales subsidiaries. The         
goal is to improve the overall customer service level and at the same time      
take advantage of increased cost efficiencies.                                  

biora.com                                                                       

Biora's Internet portal, WWW.BIORA.COM, is an important communication           
channel for dentists, dental hygienists, patients and shareholders as well      
as other interested parties. Questions can be answered and literature           
ordered through the website. One objective of this channel is to eventually     
enable customers to purchase Biora's products on line.                          

QUALITY AND ENVIRONMENT     

Biora shall manufacture products that comply with a good margin with the        
laws and standards that regulate its operations.                                

QUALITY                                                                         

Biora has adopted a quality policy that states, among other things, that        
the company shall manufacture products that comply with a good margin with      
the national and international laws and standards that regulate its             
operations. For the manufacturing and marketing of Emdogain in the EU,          
Biora follows "Medical Device Directive 93/42EEC" and quality systems           
ISO9002/EN46002. Manufacturing must meet all of the requirements that are       
imposed, including Good Manufacturing Practice (GMP) and Quality System         
Regulation (QSR).                                                               

Biora will continually strive for high quality in all its activities. The       
quality system will enable Biora to maintain control and create stability,      
reliability and capacity. It is important to maintain a systematic focus on     
quality issues when a company is growing as rapidly as Biora. Quality           
targets are achieved by providing every employee with education, adequate       
training and experience and access to appropriate tools and equipment.          
Biora will measure and evaluate its success by regularly monitoring, for        
example, trends in the number of error-free products, the number of             
comments during inspections, feedback concerning distribution and customer      
satisfaction.                                                                   

ENVIRONMENT                                                                     

Greater attention is now being paid to the impact that the companies'           
operations have on the environment and it is important that both employees      
and suppliers engage in recycling and strive for growth that can be             
maintained over the long term.                                                  

Biora's production in Malmo, Sweden, is water-based and uses relatively         
large amounts of water. However, Biora's use of water is almost exclusively     
for cooling, which means that it is not contaminated with any environmental     
pollutants. The chemicals used most in Biora's quality and research             
laboratories are collected and sent away for disposal. An application for a     
permit for Biora's activities in accordance with the Swedish Environmental      
Code was submitted to the county administrative board during 2000.              

DIRECTORS' REPORT     

Biora AB (publ) is a Swedish biotechnology company that develops,               
manufactures and markets pharmaceutical products for the treatment of           
dental diseases. The company's principal product, Emdogain/Emdogain Gel, is     
marketed in approximately 30 countries throughout Europe, North and South       
America and Asia.                                                               

ORGANIZATION                                                                    

Biora had a total of 75 employees at the end of 2000 compared to 92 at the      
end of 1999. The head office is located in Malmo, Sweden, and consists of       
administration, marketing, research and development, manufacturing and          
quality control departments. Rickard Soderberg joined the company as            
President and Chief Executive Officer in August 2000.                           

SALES AND MARKETING                                                             

Biora has made the strategic decision to focus on the three key markets,        
the U.S., Germany and Japan. The company has built up its own marketing and     
sales organization in the U.S., Germany, Italy, the Benelux and Nordic          
countries. For other markets, Biora has chosen to collaborate with external     
distributors. In Japan, Biora's products are marketed by the biotechnology      
company Seikagaku Corporation.                                                  

The U.S. is the largest single market for Emdogain and during 2000 this         
market has experienced the fastest growth in sales - 51% in SEK and 36% in      
USD compared to 1999. The U.S. Food and Drug Administration, FDA, approved      
Emdogain Gel in January 2001.                                                   

Sales in Germany decreased by 13% compared to 1999. However, following a        
change in Biora's organization in Germany, sales have again increased, with     
record sales in November calculated in both SEK and local currency. During      
the fourth quarter, the negative sales trend was reversed and there was an      
increase of 13% compared to the fourth quarter in 1999.                         

In November, Seikagaku Corporation, Biora's marketing and sales partner in      
Japan, recalled all deliveries of Emdogain in order to comply with the          
registration authority's guidelines, which required the same changes to be      
made for the production process for deliveries to Japan as had previously       
been implemented for other markets. The Japanese registration authority has     
indicated during discussions that they will look favorably upon an              
accelerated approval process for Emdogain Gel, and registration is expected     
during 2001.                                                                    

RESEARCH AND DEVELOPMENT                                                        

From the latter part of 2000 onwards, Biora's research has concentrated on      
dental indications that support the use of Emdogain and are likely to have      
a shorter time to market introduction.                                          

NEW DENTAL INDICATIONS FOR EMDOGAIN                                             

Clinical studies are in progress for new dental indications for Biora's         
main product, Emdogain. These indications are;                                  

o    to regenerate tooth-supporting structures in connection with               
non-surgical treatment of periodontitis                               

o    surgical treatment of recession defects,                                   

o    teeth lost to trauma (avulsed teeth)                                       

o    treatment to preserve vital pulp                                           

o    a new product to accelerate the healing process after non-surgical         
treatment of the dental root.                                         

A pilot study using Emdogain in conjunction with the surgical removal of        
impacted wisdom teeth has so far demonstrated positive effects on               
post-operative wound healing. Further studies have been deferred, as            
priority has been given to other indications.                                   

EXPANDED PRODUCT PORTFOLIO WITHIN THE DENTAL FIELD                              

During the year, Biora acquired the rights to a patent-protected                
pharmaceutical project for the treatment of dry mouth. In March 2001, Biora     
entered into a licensing agreement under which Biora retains the right to       
sell the product to dentists and the licensee obtains the right to sell to      
other target groups.                                                            

DIVESTITURE OR PARTNERSHIP FOR BIOEX                                            

As part of a move to focus Biora's business activities, the Board of            
Directors intends to divest, or find a partner for, BioEx, the part of the      
research and development activities that cover non-dental indications. The      
process of finding a purchaser or partner is underway, and it is expected       
that a sale or partnership could improve Biora's financial position while       
at the same time enabling the development of BioEx's projects to be             
completed. There are ongoing discussions with several interested parties.       
No guarantees can be made that these will lead to a sale. Should these          
discussions not materialize in a divestiture, alternative strategies will       
have to be considered.                                                          

ENVIRONMENTAL PERMISSION                                                        

Biora's activities are affecting the environment through the waste of           
organic material and degradable solvent into water. In connection with the      
change in environmental laws in 1999, Biora was required to apply for an        
environmental permit. The application was submitted during 2000 and a           
permit is expected to be issued during 2001.                                    

The activity that requires the environmental permit is one important part       
of Biora's production process.                                                  

FOREIGN EXCHANGE MANAGEMENT                                                     

As a result of the EMU (European Monetary Unit) collaboration, the prices       
in the European countries have been harmonized. Prices have been adjusted       
to those prevailing in the largest markets within the currency area, where      
prices were somewhat higher than in the smaller markets.                        

Slightly more than 90% of Biora's turn-over in 2000 was invoiced in             
currencies other than SEK and 50% of the total costs were in foreign            
currencies. According to the company's financial guidelines, the currency       
risks should be minimized. The majority of debts and liabilities that are       
held in currencies other than SEK as well as expected cash flow in foreign      
currencies for the next twelve months are secured against currency              
fluctuations. When hedging currencies, the company uses forward cover           
contracts. The parent company is responsible for managing foreign exchange      
risk for the group.                                                             

THE BOARD OF DIRECTORS                                                          

The work of the Board is regulated by the General Corporation Act and the       
working program and working plan that the Board has approved.                   

The Board consists of eight members and one deputy member, chosen by the        
share-holders at the Annual General Meeting. During 2000, the Board has had     
five regular meetings in addition to the initial constituent meeting.           

There is a separate Audit Committee, consisting of three Board members. The     
Audit Committee met three times in 2000.                                        

The company's auditors report directly to the Board regarding their             
assessment of the company's internal controls. Each Board member has a          
special area of responsibility in addition to his or her general                
responsibilities as a member of the Board. The composition of the Board,        
its members and their specific areas of responsibility are described in         
more detail on pages 36-37.                                                     

NET SALES                                                                       

The group's net sales during 2000 increased to SEK 89.2 million (1999: SEK      
73.6 million). The increase was mainly in the U.S. market.                      

RESULTS                                                                         

Gross profit was SEK 68.0 million (1999: SEK 58.1 million). The improvement     
is attributable to the increased sales.                                         

The operating loss amounted to SEK 78.7 million (1999: SEK 91.8 million         
loss). The increase in administrative expenses results from different           
business development projects as well as severance payment to the previous      
President. Research and development costs decreased by 2% after deduction       
for amoritization of capitalized research and development costs. Net            
financial items were SEK 2.7 million (1999: SEK 5.2 million). The reduction     
was due to a lower level of interest-bearing assets.                            

Net loss after tax in 2000 was SEK 76.1 million (1999: SEK 86.7 million         
loss) corresponding to a loss of SEK 3.59 per share (1999: SEK 4.09 loss)       
calculated on the average number of shares outstanding.                         

CAPITAL EXPENDITURES                                                            

Capital expenditures in tangible long term assets and patents in 2000 were      
SEK 5.5 million (1999: SEK 4.3 million).                                        

FINANCIAL POSITION                                                              

The net change in cash and cash equivalents in 2000 was negative SEK 59.0       
million (1999: negative SEK 74.2 million).                                      

At year end, the group's liquid funds amounted to SEK 53.8 million (1999:       
SEK 112.8 million), the equity/assets ratio was 55.8% (1999: 78.3%) and the     
group's equity amounted to SEK 50.9 million (1999: SEK 127.4 million).          

PARENT COMPANY                                                                  

Net sales for 2000 amounted to SEK 53.6 million (1999: SEK 51.1 million)        
and its loss before appropriations and income taxes was SEK 79.9 million        
(1999: SEK 79.4 million loss).                                                  

Capital expenditures for tangible long-term assets and patents were SEK 2.8     
million (1999: SEK 2.6 million). Net change in cash and cash equivalents        
during 2000 was negative, in the amount of SEK 56.5 million (1999: negative     
SEK 77.9 million). At the end of the year, the parent company's liquid          
funds amounted to SEK 47.1 million (1999: SEK 103.6 million), the               
equity/assets ratio was 69.2% (1999: 85.8%) and shareholders' equity was        
SEK 65.5 million (1999: SEK 145.4 million).                                     

PROPOSED DIVIDEND                                                               

The group does not have any non-restricted retained earnings and therefore      
no dividends shall be proposed. The Board of Directors proposes that the        
accumulated loss on the balance sheet, SEK 79.9 million, be covered by          
charging the share premium reserve.                                             

FUTURE OUTLOOK                                                                  

Biora does not issue any earnings forecasts. During 2001, efforts will          
continue primarily in the U.S., German and Japanese markets. Biora now has      
a European marketing organization that coordinates sales with Biora             
international customer Center in Malmo and marketing with the U.S. market       
company.                                                                        

Furthermore, the process to divest BioEx continues. In addition, the Board      
of Directors proposes that the shareholders at the Annual General Meeting       
give the Board authority to issue new shares, if deemed necessary.              

                      STATEMENTS OF OPERATIONS

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NOTE       (TSEK)                                                     CONSOLIDATED                 PARENT COMPANY       
------------------------------------------------------------------------------------------------------------------------
                                                                       2000            1999           2000          1999
                                                                                                                        
      2,3  Net Sales                                                 89,160          73,556         53,598        51,061
        8  Cost of goods sold                                       -21,148         -15,470        -19,688       -15,267
           GROSS PROFIT                                              68,012          58,086         33,910        35,794
           -------------------------------------------------------------------------------------------------------------

     6, 8  Selling expenses                                         -78,387         -90,783        -48,305       -58,972
        8  Administrative expenses                                  -25,437         -18,505        -24,715       -18,324
     7, 8  Research and development costs                           -42,789         -41,597        -40,600       -41,142
        9  Other operating income                                       643           4,001            636         3,622
        9  Other operating expenses                                    -753          -3,007           -565        -3,013
           LOSS FROM OPERATIONS                                     -78,711         -91,805        -79,639       -82,035
           -------------------------------------------------------------------------------------------------------------

       13  Result from participations in group companies                  -               -         -2,813        -2,390
           Interest income and similar profit/loss items              3,095           5,231          2,933         5,069
           Interest expenses and similar profit/loss items             -365             -11           -355            -7
           LOSS AFTER FINANCIAL ITEMS                               -75,981         -86,585        -79,874       -79,363
           -------------------------------------------------------------------------------------------------------------

       10  Appropriations                                                 -               -              -         1,535
       11  Incomes tax                                                 -168            -154              -             -
           NET LOSS FOR THE YEAR                                    -76,149         -86,739        -79,874       -77,828
           -------------------------------------------------------------------------------------------------------------

                    BALANCE SHEETS

ASSETS                                                                          

                                                        [Enlarge/Download Table]


NOTE        (TSEK)                                                 CONSOLIDATED                    PARENT COMPANY         
--------------------------------------------------------------------------------------------------------------------------
           ASSETS DECEMBER 31                                      2000             1999            2000              1999
           LONG-TERM ASSETS                                                                                               
                                                                                                                          
       12  INTANGIBLE ASSETS                                                                                              
           Capitalized research and development                                                                           
           costs                                                      -           10,514               -             6,481
           Patents                                                7,112            6,059           3,380             4,103
           TOTAL INTANGIBLE ASSETS                                7,112           16,573           3,380            10,584

           TANGIBLE ASSETS                                                                                                
           Plant and machinery                                    2,160            2,248           2,160             2,248
           Equipment, tools, fixtures and fittings                4,282            8,253           2,273             4,258
           Advance payments for tangible assets                       -              342               -               342
           TOTAL TANGIBLE ASSETS                                  6,442           10,843           4,433             6,848
           ---------------------------------------------------------------------------------------------------------------

           FINANCIAL ASSETS                                                                                               
           Shares in subsidiaries                                     -                -          12,511            17,258
       13  Receivables from group companies                           -                -          12,552            16,640
       14  Other long term receivables                            2,553            2,534           2,300             2,319
       15  TOTAL FINANCIAL ASSETS                                 2,553            2,534          27,363            36,217
           ---------------------------------------------------------------------------------------------------------------

           TOTAL LONG-TERM ASSETS                                16,107           29,950          35,176            53,649
           ---------------------------------------------------------------------------------------------------------------

           CURRENT ASSETS                                                                                                 
           INVENTORIES                                                                                                    
           Raw materials and consumables                          1,172            1,200           1,172             1,200
           Work in progress                                         666            2,761             666             2,761
           Finished products                                      5,040            1,214           4,633               275
           TOTAL INVENTORIES                                      6,878            5,175           6,471             4,236
           ---------------------------------------------------------------------------------------------------------------

           Current receivables                                                                                            
           Accounts receivable - trade                            9,173            9,281           2,198             3,654
           Other current receivables                              2,618            2,769           1,899             2,234
       16  Prepaid expenses and accrued income                    2,693            2,757           1,807             2,062
       17  TOTAL CURRENT RECEIVABLES                             14,484           14,807           5,904             7,950
           ---------------------------------------------------------------------------------------------------------------
           BANK DEPOSITS                                         40,000           90,000          40,000            90,000
           ---------------------------------------------------------------------------------------------------------------
       18  CASH AND BANKS                                        13,755           22,804           7,088            13,606
           ---------------------------------------------------------------------------------------------------------------
       18  TOTAL CURRENT ASSETS                                  75,117          132,786          59,463           115,792
           ---------------------------------------------------------------------------------------------------------------
           TOTAL ASSETS                                          91,224          162,736          94,639           169,441
           ---------------------------------------------------------------------------------------------------------------


                    BALANCE SHEETS

SHAREHOLDERS' EQUITY AND LIABILITIES                                            

                                                        [Enlarge/Download Table]


NOTE       (TSEK)                                                 CONSOLIDATED                    PARENT COMPANY          
--------------------------------------------------------------------------------------------------------------------------
           SHAREHOLDERS' EQUITY AND LIABILITIES                                                                           
           DECEMBER 31                                             2000             1999            2000              1999

                                                                                                                          
           SHAREHOLDER'S EQUITY                                                                                           
       19  RESTRICTED EQUITY                                                                                              
           Share capital                                            848              848             848               848
           Share premium reserve                                144,559          222,386         144,559           222,386
           Other restricted equity                                  303              173               -                 -
           TOTAL RESTRICTED EQUITY                              145,710          223,407         145,407           223,234
           ---------------------------------------------------------------------------------------------------------------

           ACCUMULATED LOSS                                                                                               
           Accumulated loss                                     -18,646           -9,262               -                 -
           Net loss for the year                                -76,149          -86,739         -79,874           -77,828
           TOTAL ACCUMULATED LOSS                               -94,795          -96,001         -79,874           -77,828
           TOTAL SHAREHOLDERS' EQUITY                            50,915          127,406          65,533           145,406
           ---------------------------------------------------------------------------------------------------------------

           PROVISIONS                                                                                                     
           Provisions for pensions                                  233              248               -                 -
           Other provisions                                          28              196               -                 -
           TOTAL PROVISIONS                                         261              444               -                 -
           ---------------------------------------------------------------------------------------------------------------

           LONG-TERM LIABILITIES                                                                                          
       20  Liabilities to credit institutions                     2,400                -           2,400                 -
           Other long-term liabilities                            5,506            5,505           7,320             7,320
           TOTAL LONG-TERM LIABILITIES                            7,906            5,505           9,720             7,320
           ---------------------------------------------------------------------------------------------------------------

           CURRENT LIABILITIES                                                                                            
           Accounts payable - trade                               8,973            7,600           7,629             4,860
           Income tax liability                                     150                -               -                 -
           Other current liabilities                              2,150            2,285             934               875
       21  Accrued expenses                                      20,869           19,496          10,823            10,980
       22  TOTAL CURRENT LIABILITIES                             32,142           29,381          19,386            16,715
           ---------------------------------------------------------------------------------------------------------------

           TOTAL SHAREHOLDERS'                                                                                            
           EQUITY                                                                                                         
           AND LIABILITIES                                       91,224          162,736          94,639           169,441
           ---------------------------------------------------------------------------------------------------------------

           PLEDGED ASSETS AND CONTINGENT                                                                                  
           LIABILITIES                                                                                                    
       26  Pledged assets                                          None             None            None              None
           Contingent liabilities                                 9,136           10,201           9,136            10,201


                    STATEMENTS OF CASH FLOWS

                                                        [Enlarge/Download Table]


(TSEK)                                                  CONSOLIDATED                    PARENT COMPANY         
---------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES                     2000             1999           2000              1999

                                                                                                               
Net loss                                              -76,149          -86,739        -79,874           -77,828
ADJUSTMENTS TO RECONCILE NET LOSS TO NET                                                                       
CASH FLOWS USED IN OPERATING ACTIVITIES                                                                        
Depreciation of tangible assets and                                                                            
amortization of  patents                                8,852            5,552          5,851             3,657
Change in capitalized research and                                                                             
development costs                                      10,514            8,595          6,481             5,298
Capital loss                                              257              221             84               200
Write-down of shares in subsidiary                          -                -          4,747                 -
Changes in receivables from group                                                                              
companies affecting net loss                                -                -         -4,041            12,724
Changes in other long term receivables                    -16               49             13                51
Changes in provisions                                    -190               87              -                 -
Changes in long-term liabilities                                                                               
concerning option premiums received                         1               30              -                 -
Appropriation to foreign exchange                                                                              
reserve                                                     -                -              -            -1,535
Taxes                                                     168              154              -                 -
CHANGE IN ASSETS AND LIABILITIES                                                                               
Accounts receivable - trade                               616           -3,137          1,456            -2,761
Inventories                                            -1,340           -1,031         -2,235              -612
Other current assets                                      284            3,707            590             3,412
Accounts payable and other current                                                                             
liabilities                                               545            2,908          5,326             4,890
NET CASH USED IN OPERATING ACTIVITIES                 -56,458          -69,604        -61,602           -52,504
---------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES                                                                           
Capital expenditures (tangible assets and                                                                      
patents)                                               -5,740           -4,024         -2,834            -2,508
Proceeds from sales of tangible assets                    242               32             24               283
Advance payments for tangible assets                        -             -342              -              -342
Shares in subsidiaries                                      -                -              -              -571
Transfer of cash to group companies                         -                -          5,488           -22,330
Payments concerning other long-term                                                                            
receivables                                                 6              -29              6                39
NET CASH USED IN / FROM INVESTING                                                                              
ACTIVITIES                                             -5,492           -4,363          2,684           -25,429
---------------------------------------------------------------------------------------------------------------
Cash flows from financing activities                                                                           
Issuance of debt                                        2,400                -          2,400                 -
NET CASH FROM FINANCING ACTIVITIES                      2,400                -          2,400                 -
---------------------------------------------------------------------------------------------------------------
Effect of exchange rate changes on cash                                                                        
and cash equivalents                                      501             -277              -                 -
NET CHANGE IN CASH AND CASH                                                                                    
EQUIVALENTS                                           -59,049          -74,244        -56,518           -77,933
---------------------------------------------------------------------------------------------------------------
Cash and cash equivalents, beginning of                                                                        
year                                                  112,804          187,048        103,606           181,539
Cash and cash equivalents, end of year                 53,755          112,804         47,088           103,606
NET CHANGE IN CASH AND CASH                                                                                    
EQUIVALENTS                                           -59,049          -74,244        -56,518           -77,933
---------------------------------------------------------------------------------------------------------------
Cash received for interest                              2,926            8,806          2,747             8,647
Cash paid for interest                                    392               11            381                 7
Cash paid for taxes                                        42               41              -                 -
NOTES                                                                                                          
(Amounts in SEK 000s where not otherwise indicated)                                                            


NOTE 1 ACCOUNTING PRINCIPLES                                                    

The accompanying financial statements of Biora AB (publ) (the Parent            
Company), and its subsidiaries (Biora AB and subsidiaries collectively          
referred to as the Company) have been prepared according to the Swedish         
Annual Accounts Act and the Swedish Financial Accounting Standards              
Council's recommendations, which means in accordance with generally             
accepted accounting principles in Sweden (Swedish GAAP).These accounting        
principles differ in certain significant respects from generally accepted       
accounting principles in the United States (U.S. GAAP). See note 25             
regarding differences between Swedish GAAP and U.S. GAAP affecting the          
Company's earnings and shareholders' equity.                                    

The accounting principles have been kept unchanged as compared to the           
previous year.                                                                  

CONSOLIDATION PRINCIPLES                                                        

The consolidated financial statements comprise the financial accounts for       
the Company. The consolidated financial statements have been prepared in        
accordance with the Swedish Financial Accounting Standards Council's RR         
1:96 recommendation. Consolidation has been carried out in accordance with      
the acquisition accounting method. Inter-company transactions have been         
eliminated in the consolidation.                                                

TRANSLATION OF THE ACCOUNTS OF FOREIGN SUBSIDIARIES                             

The Company applies the Current Method, which means that the Balance Sheets     
of the foreign operations have been translated at the average of the buy        
and sell exchange rates prevailing at the end of the year, and their            
Statements of Operations have been translated at the average exchange rate      
for the fiscal year. Resulting translation differences have been recorded       
directly to shareholders' equity, see note 19.                                  

REVENUE RECOGNITION                                                             

Revenue from the sale of goods is recorded upon delivery.                       

COST OF GOODS SOLD                                                              

With Emdogain becoming fully commercially available in 1996, the Company        
has accounted for production costs as costs of goods sold, with the             
exception of costs directly related to research and development. Cost of        
goods sold also includes 2.5% royalty to Astra on sales of Emdogain (see        
note 24).                                                                       

RESEARCH AND DEVELOPMENT (R&D) COSTS                                            

R&D costs consist of all costs attributable to the preclinical and clinical     
divisions in the Parent Company, including product development, costs           
relating to product registration and costs for clinical studies. R&D costs      
also include amortization of capitalized R&D costs and patents and              
depreciation of equipment for R&D purposes.                                     

CAPITALIZED RESEARCH AND DEVELOPMENT (R&D) COSTS                                

Capitalized costs in the Consolidated and Parent Company Balance Sheets         
comprise R&D costs and costs relating to the registration application for       
Emdogain. The capitalization of these costs began when the clinical tests       
were concluded and the registration application for Emdogain was prepared       
and submitted to the U.S. Food and Drug Administration (FDA). All R&D costs     
previously incurred by the Company have been charged to the Statement of        
Operations. The Company reviews the recoverability of the capitalized costs     
based upon projected future undiscounted cash flows of the related product.     
The capitalized costs are fully amortized in connection with the year end       
closing 2000. They have been amortized over a five-year period, based on        
the estimated sales revenue beginning in 1996 when Emdogain became fully        
commercially available. R&D costs attributable to the development of other      
products based on the Emdogain technology and to new formulations of            
Emdogain are currently expensed. Product registration costs are expensed as     
incurred.                                                                       

PATENTS                                                                         

Patents have been reported at original acquisition cost less accumulated        
amortization. Patents are amortized over the estimated economic life of the     
product to which the patent refers, which normally exceeds 5 years,             
beginning when the product becomes fully commercially available. The            
amortization period does neither exceed 10 years nor does it exceed the         
period of validity of the various patents.                                      

MACHINERY AND EQUIPMENT                                                         

Machinery and equipment are reported at original acquisition cost less          
accumulated depreciation. Maintenance and repair costs are expensed as          
incurred. New investments, improvements and major repurchases are               
capitalized. Computer equipment are depreciated over an estimated useful        
life of 3 years. Other machinery and equipment are as before depreciated        
over an estimated useful life of 5 years.                                       

LEASING AGREEMENTS                                                              

The Company leases certain plants and equipment under operating leases.         

RECEIVABLES                                                                     

If a subsidiary has a negative equity recorded, the Parent Company's            
receivable from the subsidiary is written down by the corresponding amount.     
All other receivables are recorded at their expected net realizable value.      

INVENTORIES                                                                     

Inventories are reported at the lower of cost and net realizable value. The     
"first in, first out" method has been applied for all inventories.              
Provision has been made for obsolete inventories.                               

CASH EQUIVALENTS                                                                

Cash and banks and Bank deposits are considered as cash equivalents. The        
cash equivalents have original maturity of 90 days or less.                     

INCOME TAXES                                                                    

Deferred income taxes reflect the impact of temporary differences between       
the amounts of assets and liabilities recognized for financial reporting        
purposes and such amounts recognized for tax purposes. Deferred tax             
liabilities are set off against deferred tax assets. Remaining deferred tax     
assets, which include the tax effect of tax loss carried forward, are           
reduced by a valuation allowance to the amount that is "more likely than        
not" to be realized. Tax legislation in Sweden offers the company the           
opportunity to defer its current tax liability by making tax deductible         
allocations to untaxed reserves. See note 11 and 25.                            

RECEIVABLES AND LIABILITIES IN FOREIGN CURRENCY                                 

Assets and liabilities denominated in foreign currencies have been              
translated at the year-end exchange rate. Currency-hedged balances have         
been translated at the spot rate when the balance occurred with adjustment      
for the accrued deduction or addition agreed upon in the hedge contract.        
Exchange gains/losses pertaining to operating assets and liabilities are        
included in consolidated Other operating income by 198 (3,987) and in Other     
operating expenses by 484 (2,770). Exchange gains pertaining to current         
financial assets have been included in consolidated Interest income by 127      
(312). In the Parent company, the foreign exchange reserve for unrealized       
exchange gains related to long-term receivables was resolved in 1999 in         
accordance with the Swedish Financial Accounting Standards Council's RR 8       
recommendation.                                                                 

HEDGING OF FUTURE CASH FLOW                                                     

Certain expected future cash flows in foreign currency concerning               
anticipated transactions are hedged using forward exchange contracts.           
Unrealized gains and losses on such financial instruments that are              
designated as a hedge are deferred and are recognized as an adjustment of       
the measurement of the transaction when it actually occurs. It is the           
policy of the Parent Company to hedge 75% of anticipated, budgeted future       
cash inflows in foreign currency the following twelve months. Additionally      
part of the anticipated cash inflows in YEN in the year 2001 was hedged as      
per Dec 31, 1999, after decision by the Board of Directors. To avoid            
currency risks in the net receivables from the subsidiaries (receivables        
after deduction of write-downs made) the Parent Company has, in accordance      
with this policy, hedged the main part of the net receivables in accordance     
with forward exchange contracts. The forward exchange contracts prevailing      
on December 31, 2000, had a duration up until March 30, 2001. During 1999       
and 2000 budgeted inflows in YEN were hedged by foreign exchange contracts.     
The corresponding inflows budgeted for the year 2001 have been hedged by        
foreign exchange contracts.                                                     

NOTE 2 SALES TO SUBSIDIARIES                                                    

Of the Parent Company's sales, sales to subsidiaries accounted for SEK 37.0     
million (36.6), in per cent 69(72). The Parent Company has no purchases         
from the subsidiaries.                                                          

NOTE 3 GEOGRAPHIC SEGMENT INFORMATION                                           

The Company's manufacturing facilities are located in Sweden.                   

                                                        [Enlarge/Download Table]


                               CONSOLIDATED                     PARENT COMPANY          
NET SALES                       2000             1999              2000             1999

                                                                                        
U.S.                          43,778           28,952            23,878           18,821
Germany, Austria              16,789           19,360             6,998           11,844
Japan                          6,034            6,902             6,034            6,902
Italy                          6,390            5,427             3,242            2,910
Nordic countries               5,062            4,759             5,062            4,759
Benelux countries              3,146            3,398             1,701            1,931
Canada, Mexico                 2,239            1,308             2,196            1,308
Switzerland                    1,234            1,126               680              655
UK                             1,159              875               525              482
Other countries                3,329            1,449             3,282            1,449
----------------------------------------------------------------------------------------
TOTAL                         89,160           73,556            53,598           51,061
----------------------------------------------------------------------------------------


NOTE 4 PERSONNEL                                                                

The average number of employees during the fiscal year at each working          
site.                                                                           

                                                        [Enlarge/Download Table]


                                                2000                                        1999                 
                                      Number of        Of which men %            Number of        Of which men % 
                                      employees                                  employees                       
---------------------------------------------------------------------------------------------------------------- 
PARENT COMPANY                             38                    24                     40                    26 
---------------------------------------------------------------------------------------------------------------- 
SUBSIDIARIES                                                                                                     
                                                                                                                 
Germany                                    13                    48                     18                    45 
Switzerland                                 -                     -                      0                    50 
U.S.                                       26                    54                     22                    59 
Italy                                       1                     7                      2                    50 
Netherlands                                 4                    54                      3                    47 
UK                                          -                     -                      2                     0 
TOTAL, SUBSIDIARIES                        44                    51                     47                    50 
---------------------------------------------------------------------------------------------------------------- 
CONSOLIDATED                               82                    38                     87                    39 
---------------------------------------------------------------------------------------------------------------- 

WAGES, SALARIES, OTHER REMUNERATION AND SOCIAL INSURANCE COSTS DURING THE       
FISCAL YEAR.                                                                    

                                                        [Enlarge/Download Table]


                                                 2000                                          1999                   
                             Wages, salaries, and       Social insurance   Wages, salaries, and       Social insurance
                               other remuneration               expenses     other remuneration               expenses
                                                       (of which pension                             (of which pension
                                                                   costs                                         costs
----------------------------------------------------------------------------------------------------------------------
                                                                                                                      
Parent Company                             17,721                  9,225                 18,712                  9,203
                                                                (3,490)*                                      (3,695)*
----------------------------------------------------------------------------------------------------------------------
Subsidiaries                               25,157                  3,071                 29,346                  4,765
                                                                   (715)                                         (897)
----------------------------------------------------------------------------------------------------------------------
CONSOLIDATED                               42,878                 12,296                 48,058                 13,968
                                                               (4,205)**                                     (4,592)**
----------------------------------------------------------------------------------------------------------------------

*    1,434 (781) of the Parent Company's pension cost refer to the category                                           
     Board of Directors and President. The Parent Company did not have any                                            
     outstanding pension obligations neither at December 31, 1999 nor at                                              
     December 31, 2000.                                                                                               
**   1,623 (1,260) of the consolidated pension cost refer to the category                                             
     Board of Directors and President. The consolidated outstanding pension                                           
     obligations to this category amount to 233 (248).                                                                

WAGES, SALARIES, OTHER REMUNERATION AT EACH WORKING SITE DISTRIBUTED            
BETWEEN THE PARENT COMPANY AND THE SUBSIDIARIES AND BETWEEN BOARD MEMBERS       
ETC. AND OTHER EMPLOYEES                                                        

                                                        [Enlarge/Download Table]


                                                         2000                                       1999                
                                               Board of                                    Board of                     
                                          Directors and                               Directors and                     
                                              President       Other employees             President      Other employees
------------------------------------------------------------------------------------------------------------------------
PARENT COMPANY                                    4,893                12,828                 3,165               15,547
------------------------------------------------------------------------------------------------------------------------
SUBSIDIARIES                                                                                                            
                                                                                                                        
Sweden                                                -                     -                    25                    -
Germany 1)                                         -135                 5,528                 2,600                8,435
Switzerland                                           -                     -                   340                  182
U.S.                                             1.,800                14,895                 1,623               12,408
Italy 2)                                             81                   175                   972                  189
Netherlands 3)                                    1,916                   897                   843                  782
UK                                                    -                     -                     -                  947
TOTAL, SUBSIDIARIES                               3,662               21, 495                 6,403               22,943
------------------------------------------------------------------------------------------------------------------------
CONSOLIDATED                                      8,555                34,323                 9,568               38,490
------------------------------------------------------------------------------------------------------------------------

1)   Severance pay amounting to 1,382 was included in the remuneration to                                               
     the President in Germany 1999. The final settlement resulted in two in                                             
     stead of twelve months severance pay. Accordingly the year 2000                                                    
     remuneration to the President has been reduced by 1,105.                                                           
2)   The employment contract with the President in Italy was transformed                                                
     into a consultancy agreement as from February 1 2000.                                                              
3)   Severance pay amounting to 1,316 is included in the year 2000                                                      
     remuneration to the employees in Holland, including 1,154 to the                                                   
     President.                                                                                                         


Information below regarding benefits expensed for senior executives refers      
to 2000 and has been reported in accordance with the recommendation of the      
Swedish Industry and Commerce Stock Exchange Committee.                         

A fee of 150 has been expensed regarding Per Wahlstrom, Chairman of the         
Board of Biora. In addition to the ordinary fee three Board members have        
received remuneration for their services as members of the Audit Committee      
of Biora as follows: Svein G. Eskedal 40, Bertil Koch Konsult 25,Toni           
Weitzberg 25. Additionally Eskedal Consult A/S has received 1,082 for           
consultancy assignments.                                                        

The salary expensed for Tomas Hammargren, President of Biora until August       
13, 2000, amounted to 2,506, including severance pay of 1,758. In addition      
he received pension benefits paid by Biora in accordance with an individual     
plan prepared by Forsakrings AB Skandia, for which the Company expensed         
738, including 522 concerning the severance pay. In accordance with the         
employment contract, Tomas Hammargren was entitled to severance pay equal       
to 18 months' salary.                                                           

The salary expensed for Rickard Soderberg, President of Biora as from           
August, 14, 2000, amounted to 650. In addition he received pension benefits     
paid by Biora in accordance with an individual plan prepared by Forsakrings     
AB Skandia, for which the Company expensed 135. In accordance with the          
employment contract, Rickard Soderberg is entitled to a six months mutual       
period of notice and in addition a severance pay equal to 18 months'            
salary. Rickard Soderberg is also entitled to the customary company car.        

The salary expensed for Anders Agering, Executive Vice President of Biora,      
amounted to 882. In addition he received pension benefits paid by Biora in      
accordance with an individual plan prepared by SPP Liv, for which the           
Company expensed 286. In accordance with the employment contract, Anders        
Agering is entitled to severance pay equal to one year's salary plus a          
further six months salary after the age of 50. Other senior executives          
employed by the Parent Company are also entitled to a severance pay not         
exceeding 18 months' salary. Future pension benefits are based on               
individual plans.                                                               

NOTE 5 REMUNERATION TO THE AUDITORS OF THE COMPANY                              

The following remuneration to the auditors of the Company, KPMG, are            
included in the Loss from operations:                                           

                                                        [Enlarge/Download Table]


                                                  CONSOLIDATED                              PARENT COMPANY         
----------------------------------------------------------------------------- -------------------------------------
                                           2000               1999                 2000                  1999      

                                                                                                                   
Audit assignments                               423                  461                   215                  215
Other assignments                               338                  658                   195                  159
-------------------------------------------------------------------------------------------------------------------
TOTAL                                           761                1,119                   410                  374
-------------------------------------------------------------------------------------------------------------------

NOTE 6 SELLING EXPENSES                                                         

Marketing expenses of the subsidiaries have to a large extent been covered      
by cash and inventory provided by the Parent Company. The Parent Company's      
receivables from the subsidiaries have been written down in the 1998 years      
result by the same amount as the negative equity in the subsidiaries, SEK       
84.1 million. The year end closings of 1999 and 2000 have resulted in           
reversal of some of the write-downs made.                                       

NOTE 7 RESEARCH AND DEVELOPMENT (R&D) COSTS                                     

In the Statements of Operations, R&D costs have been reported as net            
amounts, after deductions for costs capitalized during the year, in             
accordance with the following:                                                  

                                                        [Enlarge/Download Table]


                                                  CONSOLIDATED                              PARENT COMPANY              
------------------------------------------------------------------------------------------------------------------------
                                           2000                  1999                 2000                  1999        
                                                                                                                        
Total research and development                                                                                          
costs                                            42,789                41,597                40,600               41,142
------------------------------------------------------------------------------------------------------------------------
Capitalized research and                                                                                                
development costs                                     -                     -                     -                    -
------------------------------------------------------------------------------------------------------------------------
NET                                              42,789                41,597                40,600               41,142
------------------------------------------------------------------------------------------------------------------------


Concerning progressive amortization of capitalized R&D costs included in        
research and development costs, see note 8.                                     

NOTE 8 DEPRECIATION / AMORTIZATION                                              

In the Statements of Operations, the following depreciation / amortization      
has been included in the cost of goods sold, selling expenses,                  
administrative expenses and research and development costs:                     

                                                        [Enlarge/Download Table]


                                                  CONSOLIDATED                              PARENT COMPANY              
------------------------------------------------------------------------------------------------------------------------
                                           2000                  1999                 2000                  1999        
                                                                                                                        
Cost of goods sold                                 1,072                  844                1,072                   844
------------------------------------------------------------------------------------------------------------------------
Selling expenses                                   3,235                2,049                  378                   304
------------------------------------------------------------------------------------------------------------------------
Administrative expenses                              552                  358                  552                   358
------------------------------------------------------------------------------------------------------------------------
Research and development                                                                                                
costs                                             14,507               10,896               10,330                 7,449
------------------------------------------------------------------------------------------------------------------------
TOTAL                                             19,366               14,147               12,332                 8,955
------------------------------------------------------------------------------------------------------------------------

Included in depreciation / amortization accounted for as research and           
development costs are amortization of capitalized R&D costs amounting to        
10,514 (8,595) Consolidated and 6,481 (5,298) in the Parent Company. In the     
year 2000 depreciation / amortization is included a write-down of the           
Amelin-patent by 1,430 in the Parent Company as well as Consolidated. Due       
to the computer equipment being depreciated over an estimated useful life       
of 3 years as from year 2000, the depreciations are approximately SEK 1.7       
million larger than would have been the case if the useful life had still       
been estimated to 5 years. See note 12 concerning the distribution of           
depreciation / amortization between the other different kinds of long-term      
assets.                                                                         

NOTE 9 OTHER OPERATING INCOME AND EXPENSES                                      

A pension fee surplus at SPP of 446 has been disclosed as other operating       
income during year 2000. Concerning exhange rate differences see note 1.        

NOTE 10 APPROPRIATIONS                                                          

Pertain for 1999 to resolving of foreign exchange reserve in the Parent         
Company.                                                                        

NOTE 11 INCOME TAXES                                                            

The loss before income taxes consists of the following:                         

      2000                  1999
Sweden                              -88,449               -87,649               
-----------------------------------------------------------------               
Foreign                              12,468                 1,064               
-----------------------------------------------------------------               
TOTAL                               -75,981               -86,585               
-----------------------------------------------------------------               

Income taxes are distributed as follows:                                        

      2000                  1999
-----------------------------------------------------------------               
Current                                                                         
Sweden                                   -4                     -               
-----------------------------------------------------------------               
Foreign                                -164                  -154               
-----------------------------------------------------------------               
TOTAL                                  -168                  -154               
-----------------------------------------------------------------               
Deferred                                                                        
Sweden1)                                  -                     0               
-----------------------------------------------------------------               
Foreign                                   -                     -               
-----------------------------------------------------------------               
TOTAL                                  -168                  -154               
-----------------------------------------------------------------               

1) Deferred tax liability concerning untaxed reserves was resolved by 430       
in 1999. In 1998 this deferred tax liability was netted against deferred        
tax asset from non utilized tax losses carried forward. See also note 25        
e).                                                                             

The foreign income taxes are state taxes and federal "Alternative Minimum       
Tax" in the U.S. and local tax ("IRAP") in Italy.                               

Deferred taxes on losses have not been recorded.                                

A reconciliation of the nominal tax expected, 28 %, compared with the           
Company's effective tax is shown below:                                         

                              2000                  1999
EXPECTED INCOME TAX BENEFIT 1)                21,275                24,244      
--------------------------------------------------------------------------      
Effect of:                                                                      
Difference in tax rates for foreign                                             
subsidiaries                                  -1,645                  -369      
--------------------------------------------------------------------------      
Losses not currently utilized                -23,091               -24,825      
--------------------------------------------------------------------------      
Utilized losses from earlier years             5,585                 2,065      
--------------------------------------------------------------------------      
Non-deductible items                          -2,294                -1,273      
Non-taxable income                                 2                     4      
--------------------------------------------------------------------------      
ACTUAL TAX ACCORDING TO STATEMENTS              -168                  -154      
OF OPERATIONS                                                                   
--------------------------------------------------------------------------      

1) Expected income tax benefit is determined by applying the statutory          
federal Swedish tax rate of 28% to the net loss before tax.                     

The Company had tax loss carried forward in The Netherlands, Germany,           
Italy, UK, Switzerland and U.S., that amounted to 176,864 at December 31,       
2000. These tax losses carried forward are, however, still subject to audit     
and approval by the relevant tax authorities. The applicable tax rates for      
the foreign subsidia-ries are 35% in The Netherlands, 37% in Germany, 40.5%     
in Italy, 30% in UK, 25% in Switzerland and 42% in U.S.                         

The Company had tax loss carried forward in Sweden that amounted to 260,519     
at December 31, 2000. This tax loss carried forward is, however, also           
subject to audit and approval by the Swedish tax authorities. Under the tax     
laws of The Netherlands, Germany, Italy, UK and Sweden tax losses carried       
forward do not expire. For Switzerland the time limit is 7 years and for        
U.S. 15 years.                                                                  

NOTE 12 ACQUISITION VALUE OF LONG-TERM ASSETS, ETC.                             

CAPITALIZED R&D COSTS                                                           

                                                        [Enlarge/Download Table]


                                                  CONSOLIDATED                              PARENT COMPANY              
------------------------------------------------------------------------------------------------------------------------
                                           2000                  1999                 2000                  1999        

                                                                                                                        
Accumulated acquisition cost,                                                                                           
beginning and end of year                         23,094               23,094               14,236                14,236
------------------------------------------------------------------------------------------------------------------------
Accumulated amortization,                                                                                               
beginning of year                                -12,580               -3,985               -7,755                -2,457
------------------------------------------------------------------------------------------------------------------------
Amortization for the year                        -10,514               -8,595               -6,481                -5,298
------------------------------------------------------------------------------------------------------------------------
Accumulated amortization,                                                                                               
end of year                                      -23,094              -12,580              -14,236                -7,755
------------------------------------------------------------------------------------------------------------------------
NET BOOK VALUE, END OF YEAR                            -               10,514                    -                 6,481
------------------------------------------------------------------------------------------------------------------------

PATENTS                                                                                                                 

                                                  CONSOLIDATED                              PARENT COMPANY              
------------------------------------------------------------------------------------------------------------------------
                                           2000                  1999                 2000                  1999        
Accumulated acquisition cost,                                                                                           
beginning of year                                  8,463                7,571                5,999                 6,002
------------------------------------------------------------------------------------------------------------------------
Capital expenditures for the                                                                                            
year                                               3,589                1,040                1,799                   248
------------------------------------------------------------------------------------------------------------------------
Sales / disposals                                      0                    0                 -104                  -251
------------------------------------------------------------------------------------------------------------------------
Translation differences for the                                                                                         
year                                                  32                 -148                    -                     -
------------------------------------------------------------------------------------------------------------------------
ACCUMULATED ACQUISITION                                                                                                 
COST, END OF YEAR                                 12,084                8,463                7,694                 5,999
------------------------------------------------------------------------------------------------------------------------
Accumulated amortization,                                                                                               
beginning of year                                 -2,404               -1,343               -1,896                  -943
------------------------------------------------------------------------------------------------------------------------
Amortization for the year                         -1,132               -1,103                 -988                  -953
------------------------------------------------------------------------------------------------------------------------
Write-downs for the year                          -1,430                    -               -1,430                     -
------------------------------------------------------------------------------------------------------------------------
Translation differences for the                                                                                         
year                                                  -6                   42                    -                     -
------------------------------------------------------------------------------------------------------------------------
ACCUMULATED AMORTIZATION,                                                                                               
END OF YEAR                                       -4,972               -2,404               -4,314                -1,896
------------------------------------------------------------------------------------------------------------------------
NET BOOK VALUE, END OF YEAR                        7,112                6,059                3,380                 4,103
------------------------------------------------------------------------------------------------------------------------

Concerning write-downs for the year see note 8.                                                                         

PLANT AND MACHINERY                                                                                                     

                                                  CONSOLIDATED                              PARENT COMPANY              
------------------------------------------------------------------------------------------------------------------------
                                           2000                  1999                 2000                  1999        
Accumulated acquisition cost,                                                                                           
beginning of year                                  6,013                4,931                6,013                 4,931
------------------------------------------------------------------------------------------------------------------------
Capital expenditures for the                                                                                            
year                                                1984                1,181                  984                 1,181
------------------------------------------------------------------------------------------------------------------------
Sales / disposals                                    -50                 -134                  -50                  -134
------------------------------------------------------------------------------------------------------------------------
Reclassification                                      -7                   35                   -7                    35
------------------------------------------------------------------------------------------------------------------------
ACCUMULATED ACQUISITION                                                                                                 
COST, END OF YEAR                                  6,940                6,013                6,940                 6,013
------------------------------------------------------------------------------------------------------------------------
Accumulated depreciation,                                                                                               
beginning of year                                 -3,765               -2,994               -3,765                -2,994
------------------------------------------------------------------------------------------------------------------------
Sales / disposals                                     50                   87                   50                    87
------------------------------------------------------------------------------------------------------------------------
Reclassification                                       7                  -14                    7                   -14
------------------------------------------------------------------------------------------------------------------------
Depreciation of the year                          -1,072                 -844               -1,072                  -844
------------------------------------------------------------------------------------------------------------------------
ACCUMULATED DEPRECIATION,                                                                                               
END OF YEAR                                       -4,780               -3,765               -4,780                -3,765
------------------------------------------------------------------------------------------------------------------------
NET BOOK VALUE, END OF YEAR                        2,160                2,248                2,160                 2,248
------------------------------------------------------------------------------------------------------------------------

EQUIPMENT, TOOLS, FIXTURES AND FITTINGS                                                                                 

                                                  CONSOLIDATED                              PARENT COMPANY              
------------------------------------------------------------------------------------------------------------------------
                                           2000                  1999                 2000                  1999        
Accumulated acquisition cost,                                                                                           
beginning of year                                 18,507               17,463                9,923                 9,502
------------------------------------------------------------------------------------------------------------------------
Capital expenditures for the                                                                                            
year                                               1,510                1,802                  485                 1,078
------------------------------------------------------------------------------------------------------------------------
Sales / disposals                                 -1,217                 -688                 -304                  -622
------------------------------------------------------------------------------------------------------------------------
Reclassification                                       7                  -35                    7                   -35
------------------------------------------------------------------------------------------------------------------------
Translation differences for the                                                                                         
year                                                 735                  -35                    -                     -
------------------------------------------------------------------------------------------------------------------------
ACCUMULATED ACQUISITION                                                                                                 
COST, END OF YEAR                                 19,542               18,507               10,111                 9,923
------------------------------------------------------------------------------------------------------------------------
Accumulated depreciation,                                                                                               
beginning of year                                -10,254               -7,131               -5,665                -4,257
------------------------------------------------------------------------------------------------------------------------
Sales / disposals                                    718                  464                  195                   437
------------------------------------------------------------------------------------------------------------------------
Reclassification                                      -7                   14                   -7                    14
------------------------------------------------------------------------------------------------------------------------
Depreciation of the year                          -5,218               -3,586               -2,361                -1,859
------------------------------------------------------------------------------------------------------------------------
Translation differences for the                                                                                         
year                                                -499                  -15                    -                     -
------------------------------------------------------------------------------------------------------------------------
ACCUMULATED DEPRECIATION,                                                                                               
END OF YEAR                                      -15,260              -10,254               -7,838                -5,665
------------------------------------------------------------------------------------------------------------------------
NET BOOK VALUE, END OF YEAR                        4,282                8,253                2,273                 4,258
------------------------------------------------------------------------------------------------------------------------


NOTE 13 SHARES IN SUBSIDIARIES                                                  

                                                        [Enlarge/Download Table]


                                            Registration No.      Number    Holding    Book value 
                                                                                                  
Bioventures BV, Amsterdam, The Netherlands                 59621       400       100%       11,452
Biora Benelux Dental Products BV,                                                                 
Amsterdam, The Netherlands 1)                             261502         -       100%            -
Biora GmbH, Bad Homburg, Germany HBR                        5584         1       100%          237
Biora SA Ltd, Johannesburg, South Africa             96/06582/07   360,000       100%            -
Biora Inc, Chicago, U.S.                               364104072     1,000       100%            7
Biora Srl, Milano, Italy                              60630/1997    20,000       100%           89
Biora Limited, London, UK                                3399381         2       100%            0
Biora AG, Zurich, Switzerland                      CH02030200827       200       100%          526
Biora Option AB, Malmo, Sweden                       556555-0729     1.000       100%          100
Biora BioEx AB, Malmo, Sweden                        556566-6202     1.000       100%          100
TOTAL                                                                                       12,511

1) Subsidiary to Bioventures BV                                                                   

The book value of the shares in Biora Srl has been written down by 4,747,       
an amount corresponding to the shareholders' contributions made by the          
Parent Company during 1997-1999.                                                

NOTE 14 RECEIVABLES FROM GROUP COMPANIES                                        

The Parent Company's receivables from the subsidiaries have been written        
down by the same amount as the negative equity in the subsidiaries, see         
note 6.                                                                         

NOTE 15 OTHER LONG-TERM RECEIVABLES                                             

                                                        [Enlarge/Download Table]


                                                  CONSOLIDATED                              PARENT COMPANY              
------------------------------------------------------------------------------------------------------------------------
                                           2000                  1999                 2000                  1999        
                                                                                                                        
Opening balance                                    2,534                2,571                2,319                 2,409
Deposits repaid                                       -6                  -39                   -6                   -39
------------------------------------------------------------------------------------------------------------------------
Deposits expensed                                    -14                  -51                  -13                   -51
Capital value of paid pension                                                                                           
insurance fees in Germany                             30                   68                    -                     -
------------------------------------------------------------------------------------------------------------------------
Translation differences for the                                                                                         
year                                                   9                  -15                    -                     -
CLOSING BALANCE                                    2,553                2,534                2,300                 2,319
------------------------------------------------------------------------------------------------------------------------


NOTE 16 OTHER CURRENT RECEIVABLES                                               

                                                        [Enlarge/Download Table]


                                                  CONSOLIDATED                              PARENT COMPANY              
------------------------------------------------------------------------------------------------------------------------
                                           2000                  1999                 2000                  1999        
                                                                                                                        
Tax receivables                                      678                  292                  663                   403
------------------------------------------------------------------------------------------------------------------------
V.A.T.                                             1,548                2,133                  895                 1,739
------------------------------------------------------------------------------------------------------------------------
Receivables from employees                            59                   77                   48                    17
Receivable from SPP                                  250                    -                  250                     -
------------------------------------------------------------------------------------------------------------------------
Other current receivables                             83                  267                   43                    75
TOTAL                                              2,618                2,769                1,899                 2,234
------------------------------------------------------------------------------------------------------------------------


NOTE 17 PREPAID EXPENSES AND ACCRUED INCOME                                     

                                                        [Enlarge/Download Table]


                                               CONSOLIDATED                            PARENT COMPANY              
-------------------------------------------------------------------------------------------------------------------
                                         2000                 1999                2000                1999         
                                                                                                                   
Prepaid leasing and property                                                                                       
rental expenses                                  1,012                 947               1,012                  909
Prepaid insurances                                 482                 674                 281                  466
Prepaid marketing expenses                         352                 579                 126                  216
Prepaid travel expenses                             60                 144                  60                  144
Other prepaid expenses                             739                 405                 280                  319
Accrued interest income                             48                   8                  48                    8
TOTAL                                            2,693               2,757               1,807                2,062

NOTE 18 CASH AND CASH EQUIVALENTS                                               

                                                        [Enlarge/Download Table]


                                                  CONSOLIDATED                              PARENT COMPANY              
------------------------------------------------------------------------------------------------------------------------
                                           2000                  1999                 2000                  1999        
                                                                                                                        
Bank deposits                                    40,000                90,000                40,000               90,000
Cash and banks                                   13,755                22,804                 7,088               13,606
TOTAL                                            53,755               112,804                47,088              103,606

The following amounts were invested short-term at a fixed rate of interest:     

                                                     PERIOD       AMOUNT
Handelsbanken Markets        December 22, 2000- January 2, 2001      40,000     
TOTAL                                                                40,000     

As per December 31, 2000, as well as per December 31, 1999, Biora GmbH had      
unutilized bank overdraft facilities amounting to 30,000 DEM.                   

NOTE 19 SHAREHOLDERS' EQUITY                                                    

                                                        [Enlarge/Download Table]


                                                                      RESTRICTED EQUITY                      ACCUMULATED LOSS 
                                          Share      Share                                                                    
                               Number of  capital    premium      Other     Translation   Accumulated    Translation          
CONSOLIDATED                   shares     reserve    equity    restricted   differences       loss       differences    Total 
----------------------------------------------------------------------------------------------------------------------- ------
                                                                                                                              
Balance at December 31, 1999  21,203,800    848      222,387           -           173        -92,024        -3,978    127,406
Disposition of loss in                                                                                                        
the Parent Company                                   -77,828                                   77,828                        0
------------------------------------------------------------------------------------------------------------------------------
Change in translation                                                                                                         
differences                                                                        130           -472                     -342
Net loss for the year                                                                         -76,149                  -76,149
------------------------------------------------------------------------------------------------------------------------------
BALANCE AT DECEMBER 31, 2000  21,203,800    848      144,559           -           303        -90,345        -4,450     50,915
------------------------------------------------------------------------------------------------------------------------------

                                                         RESTRICTED EQUITY                        ACCUMULATED LOSS            
                                          Share      Share                                                                    
                              Number of   capital    premium      Other                   Accumulated                         
PARENT COMPANY                shares      reserve    equity    restricted                     loss                 Total      
----------------------------------------------------------------------------------------------------------------------------  
Balance at December 31, 1999  21,203,800    848      222,387           -                      -77,828             145,407     
Disposition of loss in                                                                                                        
the Parent Company                                          -77,828                            77,828                   0     
----------------------------------------------------------------------------------------------------------------------------  
Net loss for the year                                                                                             -79,874     
----------------------------------------------------------------------------------------------------------------------------  
BALANCE AT DECEMBER 31, 2000  21,203,800    848      144,559           -                       79,874              65,533     
----------------------------------------------------------------------------------------------------------------------------  

The par value of an Ordinary Share is SEK 0.04.                                 

On January 24, 1997, the Company's Board of Directors, acting in accordance     
with the authorization of the shareholders of the Company, approved the         
issuance of an aggregate of 500 principal amount of subordinated debentures     
at an interest rate of 7% with 560,000 accompanying warrants to                 
Euroventures Nordica. On the same date, Biora and Euroventures Nordica          
entered into an agreement (the "Key Employee Incentive Plan") pursuant to       
which Euroventures Nordica agreed to offer all the warrants to officers and     
other key employees of the Company. These key employees were required to        
purchase the warrants at their fair value at the grant using the                
Black-Sholes valuation model. All of the 560.000 warrants have been             
subscribed for. Also non-employee members of the Board of Directors hold        
warrants. Each warrant entitles the holder to acquire one Ordinary Share of     
the Company, at an exercise price of SEK 70.00. Under Swedish law a             
corporation cannot issue warrants separately from debentures, but               
accompanying warrants may be detached from the debentures. The warrants         
were exerciseable for Ordinary Shares at any time up until January 31,          
2001. None of these warrants were exercised. See also note 20.                  

On April 23, 1998, the Company's Board of Directors, acting in accordance       
with the authorization of the shareholders of the Company, approved the         
issuance of an aggregate of 50 principal amount of subordinated debentures      
with 200,000 accompanying warrants to Biora Option AB. On the same date,        
Biora and Biora Option AB entered into an agreement pursuant to which Biora     
Option AB agreed to offer all the warrants at a price which reflects the        
premium to employees of the Company to provide them with appropriate            
incentives to encourage them to continue in the employ of the Company and       
to acquire a proprietary interest in the long-term success of Biora.            
Accordingly the employees were required to purchase the warrants at their       
fair value at the grant using the Black-Sholes valuation model. Employees       
of the Company have subscribed for 89,250 (71,250) warrants of this             
program. Each warrant entitles the holder to acquire one Ordinary Share of      
the Company, at an exercise price of SEK 130.00.The warrants are                
exerciseable for Ordinary Shares at any time during May 2002. If all of         
these warrants are fully exercised, the total number of shares outstanding      
will increase to 21,403,800. See also note 20.                                  

NOTE 20 LONG-TERM LIABILITIES                                                   

The liabilities to credit institutions are the only interest bearing            
liabilities of both the Parent Company and the Company, amounting to 2,400      
on December 31, 2000 (0 on December 31, 1999). This amount is the first         
payment of the total conditional loan of SEK 15 million, granted by the         
Swedish Industrial Fund for the project "Emdogain for extra-oral                
woundhealing applications". SEK 4 million of the loan mature on December        
30, 2004, SEK 5 million on December 30, 2005 and remaining amount on            
December 30, 2006. In addition to interest the Swedish Industrial Fund is       
entitled to royalty based on net sales as follows:                              

- 3% of the net sales from the product, from raw material, chemicals,           
components etc for the product and from services related to the product.        

- 12% of all revenues from agreements concerning option to or concerning        
grant of licence to produce or sell the product, components, chemicals etc      
for the product as well as services related to the product.                     

- When the Parent Company has paid a royalty of totally 167% of the loan        
obtained from the Swedish Industrial Fund the above mentioned royalty rates     
shall be reduced from 3 to 0.5% and from 12 to 2.4% respectively.               

- The royalty right of the Swedish Industrial Fund expires four calendar        
years after the calendar year when the Parent Company has repaid the            
outstanding loan including accrued interest, however not before December 30     
2010. Other long-term liabilities amounting to 5,320 in the Parent Company      
and Consolidated apply to option premiums received from the warrant program     
approved in January 1997, 560,000 warrants a SEK 9.50. Other long-term          
liabilities amounting to 2,000 in the Parent Company apply to option            
premiums received from the warrant program approved in April 1998, 200,000      
warrants a SEK 10.00. The consolidated Other long-term liabilities, 186         
(185), apply to the warrants which so far have been subscribed for by the       
employees of the Company.                                                       

NOTE 21 OTHER CURRENT LIABILITIES                                               

                                                        [Enlarge/Download Table]


                                      CONSOLIDATED                              PARENT COMPANY           
---------------------------------------------------------------------------------------------------------
                                 2000                  1999                 2000                  1999   

                                                                                                         
Employee withholding taxes              1,138                 1,282              918                  866
V.A.T.                                    767                   418                -                    -
Liabilities to customers                  161                   447                5                    7
Other current liabilities                  84                   138               11                    2
TOTAL                                   2,150                 2,285              934                  875

Biora did not have any short term interest bearing liabilities neither on       
December 31, 2000, nor on December 31, 1999.                                    

NOTE 22 ACCRUED EXPENSES                                                        

                                                        [Enlarge/Download Table]


                                    CONSOLIDATED                              PARENT COMPANY          
------------------------------------------------------------------------------------------------------
                                2000                 1999                 2000            1999        
                                                                                                      
Accrued personnel-related                                                                             
expenses                              8,971                8,879               6,017           4,833  
Accrued administrative                                                                                
expenses                              2,574                2,604               1,924           2,036  
Accrued R&D costs                     2,104                3,794               1,407           3,108  
Accrued marketing expenses            2,477                1,845               1,015             539  
Accrued royalty expenses              4,062                1,737                  16              12  
Other accrued expenses                  681                  637                 444             452  
TOTAL                                20,869               19,496              10,823          10,980  

NOTE 23 OPERATING LEASES                                                        

The Company leases certain plants and equipment in accordance with leasing      
contracts which expire in the year 2005.                                        

The most material leasing contracts concern rent of offices. The total          
amount of future minimum rental commitments on December 31, 2000,               
pertaining to office rental agreements are listed below.                        

YEAR              CONSOLIDATED                 PARENT COMPANY                   
---------------------------------------------------------------                 
2001                        5,072                         3,620                 
---------------------------------------------------------------                 
2002                          925                           273                 
2003                          652                             -                 
---------------------------------------------------------------                 
2004                          494                             -                 
2005                          391                             -                 
---------------------------------------------------------------                 
TOTAL                       7,534                         3,893                 
---------------------------------------------------------------                 

In 2000 the corresponding office rent expenses amounted to 5,472                
Consolidated and 3,433 in the Parent Company. The office rental agreements      
include conditions concerning index regulation of the rent and in some case     
regulation of the rent due to increase in direct property expenses and          
taxes. There are possibilities to prolong all office rental agreements.         
There are no restrictions in consequence of the office rental agreements.       

Remaining leasing contracts concern leasing of cars, copying machines and       
other office equipment. The total amount of future minimum rental               
commitments on December 31, 2000, pertaining to car and office equipment        
leasing agreements are listed below.                                            

YEAR             CONSOLIDATED                 PARENT COMPANY                    
-------------------------------------------------------------                   
2001                        1,174                         759                   
-------------------------------------------------------------                   
2002                          811                         679                   
2003                          491                         485                   
-------------------------------------------------------------                   
2004                          108                         108                   
2005                           30                          30                   
-------------------------------------------------------------                   
TOTAL                       2,614                       2,061                   
-------------------------------------------------------------                   

In 2000 the corresponding leasing expenses amounted to 1,702 Consolidated       
and 530 in the Parent Company.                                                  

NOTE 24 COMMITMENTS                                                             

In addition to the agreements concerning operating leases mentioned in note     
23, the Company has entered into research and development agreements,           
agreements with sub- contractors and agreements concerning purchases of         
other services. In 2000 the expenses for these agreements amounted to           
17,505 Consolidated and 16,125 in the Parent Company. The total amount of       
future expense commitments on December 31, 2000, pertaining to these            
agreements are listed below.                                                    

YEAR              CONSOLIDATED                 PARENT COMPANY                   
--------------------------------------------------------------------            
2001                            10,501                         9,814            
--------------------------------------------------------------------            
2002                             3,249                         2,632            
2003                               148                            97            
--------------------------------------------------------------------            
TOTAL                           13,898                        12,543            
--------------------------------------------------------------------            

From 1989 to 1992, Astra was a shareholder in the Company and contributed       
to the financing of the initial research behind and development of              
Emdogain. On December 31, 1992, Astra, the Company and certain of the           
Company's other shareholders signed an agreement under the terms of which       
Astra withdrew from its commitment to finance R&D for products relating to      
Emdogain, as well as other license agreements between the Company and           
Astra. As a part of the final settlement with Astra, it was agreed that,        
until December 31, 2009, Astra would receive a royalty of 2.5% of all           
commercial revenues (minus deductions for V.A.T. and customs duty) from the     
dental application areas of the two patents pertaining to Emdogain owned by     
the Company as at December 31, 1992. For 2000 the above royalty amounted to     
2,167 (1,779).                                                                  

In September 1998 Biora acquired the remaining 50% of the shares in Biora       
SA Ltd for the price of SEK 0. Concurrently a royalty agreement with the        
former minority owners was signed. It was agreed that the former minority       
owners would receive a royalty of totally 15% of the invoiced sales of          
Biora to the new external distributor in South Africa during the years          
1999-2001 and totally 10% royalty of these sales in the years 2002-2003.        
For 2000 this royalty amounted to 16 (12). During the year 2000 the Parent      
Company acquired the rights to a patent-protected pharmaceutical project        
for treating dry mouth (xerostomia). In the purchase agreement the Parent       
Company made a commitment to pay 3% royalty of the Net Sales Price of the       
products based on the acquired rights. If the sales rights of the products      
are out licensed, the royalty commitment of the Parent Company amounts to       
3% of the Net Sales Price of the licensees.                                     

See note 20 concerning commitments in connection with the conditional loan      
from the Swedish Industrial Fund.                                               

NOTE 25 U.S. GAAP INFORMATION                                                   

The accompanying consolidated financial statements have been prepared in        
accordance with Swedish GAAP, which differs in certain significant respects     
from U.S. GAAP. The following is a summary of the adjustments to the            
reported consolidated net loss and shareholders' equity that would have         
been required if U.S. GAAP had been applied instead of Swedish GAAP in the      
preparation of the consolidated financial statements.                           

                                                                [Download Table]


                                                      2000         1999       
                                                                              
Net loss under Swedish GAAP                               -76,149      -86,739
Capitalization of certain R&D costs (a)                    -1,355         -462
Reversal of R&D expenses (b)                               11,349        9,406
Hedging of future cash flows (g)                              378         -652
Receivable on SPP concerning pension fee surplus (i)         -250            -
NET LOSS UNDER U.S. GAAP                                  -66,027      -78,447
Basic EPS (d)                                                                 
Net loss per Ordinary Share                                 -3.11        -3.70
Net loss per ADS                                            -6.23        -7.40
Diluted EPS (d)                                                               
Net loss per Ordinary Share                                 -3.11        -3.70
Net loss per ADS                                            -6.23        -7.40

Shareholders' equity under Swedish GAAP                    50,915      127,406
Capitalization of certain R&D costs (a)                    -2,503      -12,497
Amortization of patents (c)                                -1,715       -1,715
Conditional shareholders' contribution (f)                 -7,510       -7,510
Hedging of future cash flows (g)                             -274         -652
Option premiums received (h)                                5,506        5,505
Receivable on SPP concerning pension fee surplus (i)         -250            -
SHAREHOLDERS' EQUITY UNDER U.S. GAAP                       44,169      110,537


(A) CAPITALIZATION OF CERTAIN R&D COSTS                                         
In accordance with Swedish GAAP, the Company has capitalized certain R&D        
costs. Equipment solely intended for R&D purposes is reported as tangible       
long-term assets. According to U.S. GAAP, R&D costs are expensed as             
incurred.                                                                       

(B) REVERSAL OF R&D EXPENSES                                                    
According to Swedish GAAP, capitalized R&D costs are amortized over their       
estimated useful lives. Since such costs have been previously expensed for      
U.S. GAAP purposes, amortization of capitalized R&D costs recorded for          
Swedish GAAP puposes is reversed in the reconciliation to U.S. GAAP.            

(C) AMORTIZATION OF PATENTS                                                     
The Company commences the amortization of patents when the products             
relating to the patents are fully commercially available. Under U.S. GAAP       
amortization of patents should commence at the date of acquisition.             

(D) BASIC / DILUTED EPS                                                         
In March 1997 the Financial Accounting Standards Boards ("FASB") issued         
Statement of Financial Accounting Standards ("SFAS") No. 128, "Earnings Per     
Share", which established new standards for computing and presenting            
earnings per share. SFAS No. 128 has been applied in the computation of net     
loss per Ordinary Share (basic EPS), net loss per ADS and net loss per          
Ordinary Share (diluted EPS). Net loss per Ordinary Share has been              
calculated on the basis of the weighted average number of shares                
outstanding, 21,203,800. Net loss per ADS is based upon a ratio of two          
Ordinary Shares to each ADS. The impact of options (see note 19) has not        
been taken into consideration, as the effect would be antidilutive.             

(E) INCOME TAXES                                                                
The Company does neither account for any deferred tax liability resulting       
from untaxed reserves nor account for any other deferred taxes, since the       
amounts concerned are immaterial. The Company has not recorded any deferred     
tax benefits from tax loss carry forwards and does not have any deferred        
tax liabilities recognized for Swedish purposes. Under U.S. GAAP, deferred      
taxes are established on all differences between the book basis and the tax     
basis of assets and liabilities. Deferred tax assets, which include the tax     
effect of tax loss carried forward, are reduced by a valuation allowance to     
the amount that is "more likely than not" to be realized. There is no           
effect on earnings or shareholders' equity of the Company due to                
differences between Swedish GAAP and U.S. GAAP for defer-red income taxes.      
A valuation allowance has been established for U.S. GAAP purposes for all       
of the Company's gross potential deferred tax assets (including the tax         
effect of U.S. GAAP adjustments) due to a history of losses from operations     
of the Company. The following table summarizes the components of the            
Company's deferred taxes for U.S. GAAP purposes:                                

Gross deferred tax assets:                    2000                 1999         
-----------------------------------------------------------------------         
Tax loss carried forward                   136,916              110,273         
-----------------------------------------------------------------------         
Capitalized costs for tax purposes               -                2,944         
-----------------------------------------------------------------------         
TOTAL                                      136,916              113,217         
-----------------------------------------------------------------------         
Less valuation allowance                  -136,916             -113,217         
-----------------------------------------------------------------------         
NET DEFERRED TAX ASSETS                          -                    -         
-----------------------------------------------------------------------         
NET DEFERRED TAX ASSETS                          -                    -         

F) CONDITIONAL SHAREHOLDERS' CONTRIBUTION                                       
The conditional shareholders' contribution increases shareholders' equity       
under Swedish GAAP. Under U.S. GAAP such shareholders' contribution is          
classified outside of Shareholders' equity due to the conditional nature of     
the potential repayment.                                                        

(G) HEDGING OF FUTURE CASH FLOWS                                                
Under Swedish GAAP unrealized gains and losses on forward exchange              
contracts that are used to hedge anticipated transactions are deferred and      
are recognized as an adjustment of the measurement of the transaction when      
it actually occurs. Under U.S. GAAP such unrealized gains and losses may be     
deferred only for firm commitments.                                             

(H) OPTION PREMIUMS RECEIVED                                                    
Option premiums received are accounted for as long-term liabilities until       
the options are exercised. Under U.S. GAAP option premiums are disclosed as     
equity.                                                                         

(I) RECEIVABLE ON SPP CONCERNING PENSION FEE SURPLUS                            
A pension fee surplus at SPP has been disclosed as Other operating income       
in accordance with Swedish GAAP. Under U.S. GAAP such pension fee surplus       
can only be accounted for as income if cash has been received by the            
Company.                                                                        

NOTE 26 PLEDGED ASSETS AND CONTINGENT LIABILITIES                               

On September 30, 1996, Euroventures Nordica made a conditional                  
share-holders' contribution of SEK 7,510,052 to Biora by converting             
outstanding loans, including accrued interest, with a total capital debt of     
SEK 7,160,419 and accrued interest of SEK 349,633.The shareholders'             
contribution is conditional in that it must only be repaid to Euroventures      
Nordica if the Company has sufficient reserves to pay a dividend, and such      
repayment is in turn conditional on the Annual General Meeting's decision       
regarding repayment to shareholders.                                            

The Parent Company's contingent liability pertains mainly to the                
shareholders' contribution described above.                                     

MALMO MARCH 15, 2001                                                            

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Per Wahlstrom                          Svein G. Eskedal  Tomas Hammargren  Lars Hammarstrom
Chairman of the                                                                            
Board                                                                                      

Lars Ingelmark          Bertil Koch    Per Lojdquist     Toni Weitzberg                    

Rickard Soderberg                                                                          

President and Chief Executive Officer                                                      

OUR AUDITOR'S REPORT WAS SUBMITTED ON MARCH 22, 2001                            

KPMG                                                                            

Alf Svensson                                                                    
Authorized Public Accountant                                                    

AUDITORS' REPORT    

TO THE GENERAL ANNUAL MEETING OF THE SHAREHOLDERS OF BIORA    
AB (PUBL)     
Reg No. 556289-8998     

We have audited the annual accounts, the consolidated accounts, the             
accounting records and the administration of the Board of Directors and the     
President of Biora AB for 2000.These accounts and the administration of the     
company are the responsibility of the Board of Directors and the President.     
Our responsibility is to express an opinion on the annual accounts, the         
consolidated accounts and the administration based on our audit.                

We conducted our audit in accordance with generally accepted auditing           
standards in Sweden. Those standards require that we plan and perform the       
audit to obtain reasonable assurance that the annual accounts and the           
consolidated accounts are free of material misstatement. An audit includes      
examining, on a test basis, evidence supporting the amounts and disclosures     
in the accounts. An audit also includes assessing the accounting principles     
used and their application by the Board of Directors and the President, as      
well as evaluating the overall presentation of information in the annual        
accounts and the consolidated accounts. As a basis for our opinion              
concerning discharge from liability, we examined significant decisions,         
actions taken and circumstances of the company in order to be able to           
determine the liability, if any, to the company of any Board member or the      
President. We also examined whether any Board member or the President has,      
in any way, acted in contravention of the Companies Act, the Annual             
Accounts Act or the Articles of Association. We believe that our audit          
provides a reasonable basis for our opinion set out below.                      

The annual accounts and the consolidated accounts have been prepared in         
accordance with the Annual Accounts Act and, thereby, give a true and fair      
view of the company's and the group's financial position and results of         
operations in accordance with generally accepted accounting principles in       
Sweden.                                                                         

We recommend to the Annual General Meeting of shareholders that the             
statements of operations and balance sheets of the parent company and the       
group be adopted, that the loss for the parent company be dealt with in         
accordance with the proposal in the Board of Directors report and that the      
members of the Board of Directors and the President be discharged from          
liability for the financial year.                                               

Malmo, March 22, 2001                                                           

KPMG                                                                            
Alf Svensson                                                                    
Authorized Public Accountant                                                    

BOARD OF DIRECTORS    

PER WAHLSTROM, CHAIRMAN                                                         
b. 1946                                                                         
No. of shares: 0                                                                
No. of options: 0                                                               

Per Wahlstrom has been Chairman of the Board since 1994 and a Board member      
since 1987. On the Board's behalf, he also has special responsibility for       
company management. He has extensive experience of venture-capital funds,       
having held a number of positions within the Svetab-group from 1980 to 1995     
and having subsequently managed Euroventures Nordica-funds. Per Wahlstrom       
is also Chairman of the Board of Fruitline AB and of Primus AB and a Board      
member of Studsvik AB (publ), Kirk Acoustics AS, SAAS Asa,Volvo Technology      
Transfer AB and the JK Foundation.                                              

SVEIN G. ESKEDAL                                                                
b. 1951                                                                         
No. of shares: 142,000                                                          
No. of options: 0                                                               

Svein G. Eskedal has been member of the Board since 1997. He is Chairman of     
the Audit Committee. On the Board's behalf he also has a special                
responsibility for financial matters. He has broad experience of Board          
membership in several different industries. He holds a Master's degree in       
business and since 1979 he has operated as an independent consultant            
providing corporate advisory services. His assignments focus on two areas:      

o    Ownership changes in conjunction with the purchase and sale of             
companies, share issues, mergers, etc. involving both private and     
publicly-listed companies.                                            
o    Turn-arounds and corporate reconstructions, Svein G Eskedal performed      
these assigments as Board Chairman.                                   

LARS HAMMARSTROM                                                                
b. 1936                                                                         
No. of shares: 805,900                                                          
No. of options: 0                                                               

Lars Hammarstrom is one of the founders of Biora and has been a Board           
member since its foundation. On the Board's behalf he is also responsible       
for research and development. Lars Hammarstrom was President of Biora from      
1990 to 1994. He holds a dentistry degree and a PhD in odontology from the      
College of Dentistry at the Karolinska Institute in Stockholm. From 1972 to     
1975, he was Professor of Oral Pathology at the Odontology Faculty at Lunds     
University and between 1974 and 1975 its President. Since 1975, he has been     
Professor of Oral Pathology at the Karolinska Institute. Between 1992 and       
1998, he was CEO of the Centre of Oral Biology at Karolinska Institute in       
Stockholm. In 1993, Lars Hammarstrom was made an Honorary Doctor of the         
University of Turku, Finland, and in 1998 he was awarded The Jens Waerhaug      
Research Prize from the Scandinavian Society of Periodontal Research. In        
2000 he received the Frederick Birnberg Award for Excellence in Dental          
Reserach by Columbia University in New York.                                    

TOMAS HAMMARGREN                                                                
b. 1952                                                                         
No. of shares: 138,220                                                          
No. of options: 50,000                                                          

Tomas Hammargren has been a member of the Board since 1994 and was              
previously President and Chief Executive Officer of the company. He has         
wide experience of international marketing in the pharmaceutical industry.      
From 1979 to 1986, he was involved, in various capacities, in the               
international marketing of Pharmacia's ophthalmic surgery product,              
Healon(R), a product that, conceptually and from a marketing perspective,       
has many similarities to Emdogain(R). During this period, he served as          
international marketing manager at Pharmacia Ophthalmics, and from 1983 to      
1986, as Vice President of Pharmacia Japan. From 1986 to 1989, he was           
president of Nobel Medica AB, a company in the Nobel group that produces        
and distributes medical products. From 1989 to 1991, he worked as a             
consultant with SIAR-Bossard, where he was responsible for projects in          
strategic development in Japan and Europe. From 1991 to 1994, he served as      
Industrial Counselor with the Swedish Ministry of Industry and Trade, based     
in Japan.                                                                       

BERTIL KOCH                                                                     
b. 1932                                                                         
No. of shares: 1,700                                                            
No. of options: 0                                                               

Bertil Koch is a dentist and former Director of Dental care for the             
Stockholm County Council. He now works as a consultant in dental care           
administration. Bertil Koch is a member of Biora's Audit Committee and as       
Board member he is also responsible for dental matters. He has considerable     
experiences in this area, from both the private and public sectors. Most        
recently, Bertil Koch was Chief Secretary of the government report on the       
future of the Swedish national dental insurance scheme. For several years       
he has been a Board member of the Center for Oral Biology (COB) of the          
Karolinska Institute in Stockholm.                                              

PER LOJDQUIST                                                                   
b. 1949                                                                         
No. of shares: 2,000                                                            
No. of options: 4,000                                                           

Per Lojdquist has been a Biora Board member since 1997, and is also             
responsible for corporate finance communications and investor relations. He     
is a Senior Vice President of AB Volvo and a member of the Group executive      
committee, responsible for corporate communications and investor relations.     
He has extensive experience of corporate communications and investor            
relations primarily from Volvo, where he served as Public Relations             
Officer, Head of Investor Relations and Head of Corporate Communications.       
Per Lojdquist is also a Board member of the Swedish Association for Share       
Promotion, Nilorngruppen AB (publ) and the West Sweden Chamber of Commerce      
and Industry.                                                                   

TONI WEITZBERG                                                                  
b. 1950.                                                                        
No. of shares: 0                                                                
No. of options: 1,000                                                           

Toni Weitzberg has been member of the Board of Directors of Biora AB since      
1998 and as Board member also responsible for organizations and marketing       
matters. Toni Weitzberg has extensive experience of the pharmaceutical          
industry and is Chairman of the Board of Nycomed Pharma A/S and responsible     
for Nordic Capitals activities within health care. Between 1983 and 1999,       
he held several senior positions with Pharmacia & Upjohn. Between 1997 and      
1999, he was Senior Vice President and responsible for Pharmacia & Upjohn       
in Europe, the Middle East and Africa. Prior to that, he was President of       
Pharmacia Ophthalmics, Pharmacia Peptide Hormones, Pharmacia                    
Biopharmaceuticals and Pharmacia & Upjohn S.r.l. in Italy.                      

LARS INGELMARK                                                                  
b. 1949                                                                         
No. of shares: 1,000                                                            
No. of options: 0                                                               

Lars Ingelmark has been Board member since 1999. Since 1998, he is Head of      
AP Life Science at The National Pension Insurance Fund, Sixth Fund Board.       
From 1974 to 1984 he held several marketing and sales positions with Ciba       
Geigy Pharmaceuticals, and was Head of the Pharmaceutical division from         
1983-84. From 1985 to 1986, Mr. Ingelmark was CEO of Janssen Pharma in          
Sweden and Norway. During 1987 and 1998 he held several positions in the        
Management Group of Kabi, Kabi-Pharmacia and Pharmacia & Upjohn, such as        
deputy CEO, Head of Pharmaceutical Division, Responsible for the Asian          
region and Senior Vice President, Corporate Projects. For several years he      
has been member and Chairman of the Swedish Pharmaceutical Industry             
Society. Other Board positions include: Chairman of Svensk Vatmarknadsfond,     
Board member of A+ Science Invest AB, Health Cap AB, Clinical Data Care AB,     
Karo Bio AB, Nycomed Holding A/S, Molnlycke Health Care AB and Capio AB.        

LENNART JACOBSSON                                                               
b. 1955                                                                         
No. of shares: 200                                                              
No. of options: 0                                                               

Lennart Jacobsson has been deputy Board member of Biora since 1987 and has      
followed Biora since then as a partner and employee of Euroventures             
Management. Lennart Jacobsson is currently President of Swedestart              
Management, which operates the Swedestart AB, Swedestart II KB, Swedestart      
Tech KB and Swedestart Life Science KB venture-capital companies. Lennart       
Jacobsson is chairman of the board of Multichannel Instrument AB and            
QlikTech International AB. He is also a Board member of Read Soft AB            
(publ), LGP Telecom Holding AB and several newly established high-tech          
companies.                                                                      

Shareholding information reported is valid at December 31, 2000 and             
includes families', spouses' or closely related companies' holdings. Issued     
options expired on January 31, 2001.                                            

Shareholding information reported is valid at December 31, 2000 and             
includes families, spouses or closely related companies holdings. Issued        
options expired on January 31, 2001.                                            

MANAGEMENT GROUP    

RICKARD SODERBERG                                                               
PRESIDENT AND CHIEF EXECUTIVE OFFICER                                           
b. 1958                                                                         
No. of shares: 2,000                                                            
No. of options: 0                                                               
Rickard Soderberg has been President and Chief Executive Officer of Biora       
since August 2000. He has more than 15 years' experience in the                 
pharmaceutical industry. From 1986 to 1997, Rickard Soderberg worked in         
various positions at Pharmacia, including director of international             
marketing and was responsible for M&A at PharmaCenter, Sweden. During           
1996-1997 he was President of Pharmacia & Upjohn's subsidiary in Austria.       
In 1997 Rickard Soderberg became President of Hassle Lakemedel, a Swedish       
subsidiary within the Astra group, and in 1999 he became Vice President and     
Director of Marketing for AstraZeneca Sweden.                                   

ANDERS AGERING,                                                                 
EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER                            
b. 1951                                                                         
No. of shares: 0                                                                
No. of options: 20,000                                                          

Anders Agering has been Executive Vice President and Chief Financial            
Officer of Biora AB since May 1998 and since January 1, 1999, also Head of      
Production. Anders Agering has a Business degree from the University of         
Lund. He has long experience of international operations and of both small      
and large companies and eight year's experience from positions in the           
U.S. and Europe. Prior to joining Biora, he held positions as CFO and           
Business Unit Manager in one of the business areas in the Cardo Group.          
Anders Agering has previously served in various business control and            
finance positions in the Volvo Group, Scan Coin, the Swiss Group Oerlikon       
and Kockums.                                                                    

LARS HEIJL,                                                                     
MEDICAL DIRECTOR                                                                
b. 1945                                                                         
No. of shares: 0                                                                
No. of options: 40,000                                                          

Lars Heijl has been Vice President and Medical Director since April 1996.       
He has extensive and wide-ranging international experience in                   
periodontology. He obtained a undergraduate degree in dentistry from the        
University of Gothenburg in 1972, a Master's degree in dental research from     
the University of Rochester 1976 and a PhD in periodontal research from the     
University of Gothenburg, 1981. During 1975 and 1976 he was teaching            
periodontology at the Eastman Dental Center in Rochester, New York. From        
1976 to 1986, he served as Assistant Chief Dentist and Associate Professor      
at the Faculty of Odontology in Gothenburg. From 1986 to 1989, he served as     
Assistant Director of the Toxicology division of Astra Hassle AB. Between       
1989 and 1992 he was a project manager of "the Emdogain-project" and from       
1993 to 1996 he served as a project manager within pain research at Astra,      
and as dental advisor with Astra Pain Control AB.                               

STINA GESTRELIUS,                                                               
R&D AND REGULATORY AFFAIRS                                                      
b. 1949                                                                         
No. of shares: 63,400                                                           
No. of options: 100,000                                                         

Stina Gestrelius has been Vice President -Research and Development and          
Regulatory Affairs since 1988. She has long experience of medical research      
and development in the corporate sector. She holds a Master's degree in         
chemical engineering and a PhD in biochemical engineering from the Lund         
Institute of Technology. From 1977 to 1982, she served as Director of           
enzyme immobilization/ R&D at Novo Nordisk A/S in Copenhagen, and from 1983     
to 1987, Director of peptide synthesis development at Ferring AB in Malmo.      
In 1995, she was awarded the Gosta Virding scholarship for engineering and      
commercial entrepreneurship in medicine and the natural sciences for her        
work on Emdogain with Biora. She is also a member of the Boards of the          
Medicon Valley Accademy's and the Medical Faculty of the University of          
Lund.                                                                           

TOMMIE JOHANSSON,                                                               
CORPORATE COMMUNICATIONS AND INVESTOR RELATIONS                                 
b. 1952                                                                         
No. of shares: 0                                                                
No. of options: 0                                                               

Tommie Johansson has been responsible for information and investor              
relations at Biora since November 2000. He has been active for more than 20     
years in the pharmaceutical industry. From 1977 to 1984, he held positions      
in sales and marketing at Merck in Sweden. During the period from 1984          
until 1996, he was international marketing manager at Pharmacia & Upjohn        
and in connection with the merger of Pharmacia and Upjohn he was project        
leader for the new corporate identity at PharmaCenter Sweden. From 1997 to      
1998 he was responsible for investor relations at P&U in Sweden and from        
1998 to 2000 Tommie Johansson was Global Brand Director at AstraZeneca.         

KERSTIN PALSSON,                                                                
GROUP CONTROLLER                                                                
b. 1957                                                                         
No. of shares: 500                                                              
No. of options: 3,000                                                           

Kerstin Palsson has been Group Controller since March 1997. She holds a         
Graduate degree in Business Administration from the University of Lund.         
Between 1986 and 1997 Kerstin Palsson was an authorized public accountant       
at the international public accounting firm BDO. Within BDO, she served         
both publicly listed clients and clients within the dental care industry.       
Through the accounting profession, Kerstin Palsson has extensive experience     
of both small and large companies from a wide range of businesses.              

HELENE SVAHNQVIST,                                                              
INTERNATIONAL MARKETING                                                         
b. 1967                                                                         
No. of shares: 750                                                              
No. of options: 3,000*                                                          
* Options expire in May 2002                                                    

Helene Svahnqvist has worked with Biora since 1995 and since January 1,         
2000, has been responsible for the Nordic countries, Great Britain and the      
International distributors for the "rest of Europe", Africa and Asia,           
excluding Japan. Between 1994 and 1995, she worked as pharmaceutical            
consultant with Jansen-Cilag AB. From 1989 to 1990, Helene Svahnqvist           
worked as a consultant at Small Business Development Center, Conway, U.S.A.     
She has recently completed a leadership program (EMBA) and holds a Bachelor     
of Science degree in Business Administration from the University of South       
Carolina, Conway, South Carolina, and a Bachelor of Science in Business         
Education from the University of Lund.                                          

Shareholding information reported is valid at December 31 2000 and includes     
families, spouses or closely related companies holdings. Issued options         
expired on January 31, 2001.                                                    

SHARES AND SHAREHOLDERS     

SHARE DATA                                                                      
Biora's shares have been listed on the U.S. NASDAQ since February 4, 1997       
and on the O- list of the Stockholm Stock Exchange since February 10, 1997.     
On the U.S. NASDAQ, two shares are represented by one depositary receipt, a     
so-called ADS (American Depositary Share).                                      

SHARE CAPITAL                                                                   
In connection with Biora's listing on NASDAQ and the Stockholm Stock            
Exchange, the number of shares outstanding was increased by a concurrent        
equity offering from 14,206,500 to 21,203,800. The nominal value of each        
share is SEK 0.04. After this offering, Biora's share capital amounts to        
SEK 848,152. All shares entitle the holder to one vote and carry equal          
rights to share in the company's assets and income.                             

OWNERSHIP STRUCTURE                                                             
At the end of 2000, Biora AB had approximately 9,500 shareholders, an           
increase of about 3,500 shareholders compared to the corresponding period       
in 1999. The largest single shareholder is The National Pension Insurance       
Fund, Sixth Fund Board, with 22.2 percent of capital and votes, and the         
second largest is Euroventures Nordica I B.V., with 19.2 percent of capital     
and votes.                                                                      

An estimated 60 percent of shares are owned by Swedish investors, 37            
percent by investors from other European countries and 3 percent by             
American investors.                                                             

DIVIDEND POLICY                                                                 
Biora has not distributed any share dividends to date as the company has        
not yet made a profit, and consequently no funds are available for              
distribution. The Board proposes no distribution of dividends for 1999.         

In September 1996, Euroventures Nordica made a conditional contribution to      
the shareholders' equity of Biora of SEK 7,510,052 through the conversion       
of outstanding loans, including accrued interest of SEK 349,633. To the         
extent that Biora has funds available for distribution, and under the           
condition that the shareholders at the annual general meeting so direct,        
Biora will make repayment of these funds to Euroventures Nordica in             
accordance with the terms of the capital contribution.                          

FINANCIAL ANALYSTS COVERING BIORA                                               

o     Alfred Berg                                                               
o     Aragon                                                                    
o     Matteus                                                                   
o     Nordiska FK                                                               
o     Swedbank Markets.                                                         

THE TEN LARGEST SHAREHOLDERS AT DECEMBER 31, 2000                               

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---------------------------------------------------------------------------------------
                                                            Number             Percent 
                                                                                       
The National Pension Insurance Fund, Sixth Fund Board      4,715,940              22.24
---------------------------------------------------------------------------------------
Euroventures Nordica                                       4,074,140              19.21
---------------------------------------------------------------------------------------
Lars Hammarstrom and family                                  805,900               3.80
---------------------------------------------------------------------------------------
BG Bank *                                                    446,000               2.10
---------------------------------------------------------------------------------------
Arosmaizels*                                                 425,900               2.00
---------------------------------------------------------------------------------------
Bank of NewYork*                                             417,670               2.00
---------------------------------------------------------------------------------------
Clearstream Banking*                                         313,615               1.47
---------------------------------------------------------------------------------------
Danske Andelskasse*                                          264,500               1.24
---------------------------------------------------------------------------------------
Reabourne Melin Life Science*                                250,000               1.17
---------------------------------------------------------------------------------------
SEB Private Bank Lux.*                                       225,300               1.05
---------------------------------------------------------------------------------------
Others                                                     9,264,835              43.70
---------------------------------------------------------------------------------------
TOTAL                                                     21,203,800             100.00
---------------------------------------------------------------------------------------

* Investment holders                                                                   


                                                        [Enlarge/Download Table]


CHANGES IN SHARE CAPITAL                                                                                                    

----------------------------------------------------------------------------------------------------------------------------
  Year           Transaction          Increase of      Increase of       Total share        Number of        Total value    
----------------------------------------------------------------------------------------------------------------------------
                                                                                                                            
1986       Incorporation                         500           50,000            50,000               500            100.00 
----------------------------------------------------------------------------------------------------------------------------
1988       New share issue                       215           21,500            71,500               715            100.00 
----------------------------------------------------------------------------------------------------------------------------
1988       New share issue                        55            5,500            77,000               770            100.00 
----------------------------------------------------------------------------------------------------------------------------
1989       New share issue                        95            9,500            86,500               865            100.00 
----------------------------------------------------------------------------------------------------------------------------
1995       New share issue                       203           20,300           106,800             1,068            100.00 
----------------------------------------------------------------------------------------------------------------------------
1995       Split 10:1                          9,612                -           106,800            10,680             10.00 
----------------------------------------------------------------------------------------------------------------------------
1996       Split 10:1                         96,120                -           106,800           106,800               1.0 
----------------------------------------------------------------------------------------------------------------------------
1996       Conversion of loan                 18,600           18,600           125,400           125,400               1.0 
----------------------------------------------------------------------------------------------------------------------------
1996       New share issue                    16,665           16,665           142,065           142,065               1.0 
----------------------------------------------------------------------------------------------------------------------------
1996       Bonus share issue                 426,195          426,195           528,260           568,260               1.0 
----------------------------------------------------------------------------------------------------------------------------
1996       Split 25:1                     13,638,240                -           568,260        14,206,500              0.04 
----------------------------------------------------------------------------------------------------------------------------
1997       New share issue                 6,997,300          279,892           848,152        21,203,800              0.04 
----------------------------------------------------------------------------------------------------------------------------

                     FIVE YEARS IN REVIEW AND KEY RATIOS

                                                        [Enlarge/Download Table]


CONSOLIDATED                                                                                                              

(TSEK)                                           1996            1997          1998 1)           1999           2000      
--------------------------------------------------------------------------------------------------------------------------

STATEMENTS OF OPERATIONS                                                                                                  
                                                                                                                          
Net sales                                            4,561          16,499          50,119          73,556          89,160
Cost of goods sold                                  -4,513          -5,533         -10,864         -15,470         -21,148
GROSS PROFIT                                            48          10,966          39,255          58,086          68,012
--------------------------------------------------------------------------------------------------------------------------
Selling and administrative expenses                -28,176         -83,003        -111,755        -109,288        -103,824
Research and development costs 2)                  -10,884         -21,207         -39,980         -41,597         -42,789
Other operating income and expenses 3)                -880            -475          40,952             994            -110
Capitalized R&D costs                                4,059             914               -               -               -
LOSS FROM OPERATIONS                               -35,833         -92,805         -71,528         -91,805         -78,711
--------------------------------------------------------------------------------------------------------------------------
LOSS AFTER FINANCIAL ITEMS                         -37,352         -75,406         -59,956         -86,585         -75,981
--------------------------------------------------------------------------------------------------------------------------
NET LOSS FOR THE YEAR                              -37,073         -75,358         -59,998         -86,739         -76,149
--------------------------------------------------------------------------------------------------------------------------

BALANCE SHEETS                                                                                                            

Long-term assets                                    32,515          42,096          40,177          29,950          16,107
Other current assets                                16,090          10,928          19,961          19,982          21,362
Cash and cash equivalents                            5,342         286,310         187,048         112,804          53,755
TOTAL ASSETS                                        53,947         339,334         247,186         162,736          91,224
--------------------------------------------------------------------------------------------------------------------------
Shareholders' equity                               -18,437         277,935         213,970         127,406          50,915
Long-term liabilities                               53,565           5,642           5,872           5,949           8,167
Short-term liabilities                              18,819          55,757          27,344          29,381          32,142
TOTAL SHAREHOLDERS' EQUITY AND                                                                                            
LIABILITIES                                         53,947         339,334         247,186         162,736          91,224
--------------------------------------------------------------------------------------------------------------------------

KEY RATIOS                                                                                                                

Gross margin, % 4)                                     1.1            66.5            78.3            79.0            76.3
Return on capital employed, % 5)                    -266.2           -53.2           -40.0           -50.7           -83.7
Return on equity, % 6)                                 neg           -58.1           -40.0           -50.8           -85.4
Equity/assets ratio, % 7)                            -34.2            81.9            86.6            78.3            55.8
Net debt/equity ratio, % 8)                          -84.3          -103.0           -87.4           -88.5          -100.9
Total equity                                       -18,437         277,935         213,970         127,406          50,915
Average number of shares                                                                                                  
outstanding(000s) 9)                                14,207          20,571          21,204          21,204          21,204
Equity per share, SEK 9)                             -1.30           13.51           10.09            6.01            2.40
Loss per share, SEK 9)                               -2.61           -3.66           -2.83           -4.09           -3.59
Cash flow per share, SEK 10)                          0.16           13.66           -4.68           -3.50           -2.78

1)   Return on capital employed and return on equity 1998 have been                                                       
     adjusted for the effect of the nonrecurring revenue from Seikagaku                                                   
     Corporation.                                                                                                         
2)   In R&D-costs 1998 are included MSEK 6.3 in remuneration to Eastham                                                   
     Corporation Ltd in connection with the registration of Emdogain in the                                               
     U.S.                                                                                                                 
3)   In 1998 a nonrecurring revenue from Seikagaku Corporation of MSEK 39.4                                               
     is included in Other operating income and royalty expense to Astra of                                                
     MSEK 1.0 on this revenue is included in Other operating expenses.                                                    
4)   Gross profit divided by net sales.                                                                                   
5)   Operating income plus financial income divided by average total assets                                               
     (total assets less non-interest-bearing operating liabilities                                                        
     including deferred taxes).                                                                                           
6)   Net loss divided by average equity.                                                                                  
7)   Shareholders' equity divided by total assets.                                                                        
8)   Interest-bearing liabilities less cash and cash equivalents divided by                                               
     shareholders' equity.                                                                                                
9)   The number of Ordinary shares outstanding used in determination of                                                   
     loss and equity per Ordinary share is calculated on a proforma basis                                                 
     by giving effect to a 25:1 share split and the 3:1 bonus issue                                                       
     completed by the Company during 1996. The dilution effects of                                                        
     outstanding convertible loans and warrants have not been considered                                                  
     when calculating equity, loss and cash flow per share for the years                                                  
     1996-2000 as this would reduce the loss per share.                                                                   

10)  Net change in cash and cash equivalents the respective year divided by                                               
     the average number of shares in accordance with note 9).                                                             

ADDRESSES     

PARENT COMPANY/NORDIC SALES OFFICE                                              
Biora AB                                                                        
Medeon Science Park                                                             
SE-205 12 Malmo                                                                 
Tel: +46-40-32 13 33                                                            
Fax: +46-40-32 13 55                                                            
e-mail: info@biora.com                                                          
www.biora.com                                                                   

INVESTOR RELATIONS                                                              
Tommie Johansson                                                                
Tel: +46 40-32 13 65                                                            
Mobil: +46-703 22 13 65                                                         
e-mail: tommie.johansson@biora.com                                              

US INVESTOR RELATIONS                                                           
Elisabeth Lavers                                                                
Tel: +1 203 977 7797                                                            
e-mail: ebetlaver@aol.com                                                       

ITALY                                                                           
Biora S.r.l                                                                     
Via Durini 15                                                                   
IT-201 22 Milano                                                                
Tel: +39-02-760 28576                                                           
Fax: +39-02-760 17526                                                           
emdogain@biora.it                                                               

GERMANY                                                                         
Biora GmbH                                                                      
Audenstr. 2-4                                                                   
DE-61348 Bad Homburg v. d. H                                                    
Tel: +49-6172 9026 0                                                            
Fax: +49-6172 9026 26                                                           
medinfo@biora.de                                                                

U.S.                                                                            
Biora, Inc.                                                                     
415 North Lasalle Street                                                        
Suite 615                                                                       
US-Chicago, IL. 60610                                                           
Tel: +1-312 832 1414                                                            
Fax: +1-312 832 1429                                                            

JAPAN                                                                           
Seikagaku Corp.                                                                 
Biora Business Development Dept.                                                
1-5, Nihonbashi-honcho                                                          
2-chome, Chuo-ku                                                                
Tokyo 103                                                                       
Tel: +81-3 3270 0966                                                            
Fax: +81-3 3270 0538                                                            

The Bank of New York maintains a Global BuyDIRECT Plan for Biora AB. For        
additional information, please contact at +1-800-345-1612 or write to:THE       
BANK OF NEW YORK, Shareholder Relations Department, Global BuyDIRECT,           
Church Street Station, P.O. Box 11009, New York, NY 10286-1009, U.S.A.          

This annual report may contain certain information and claims regarding the     
companies products which not are approved by the United States Food and         
Drug Administration.                                                            

DESIGN: BYSTED AB, Malmo                                                        
PRINT: RAHMS, Lund                                                              
PHOTOS : Photonica, cover                                                       
Sjogren Bildbureau AB, p. 10                                                    
Johner Bildbyra AB, p. 6, 18, 34                                                
Lasse Davidsson                                                                 

Biora AB registered the Emdogain(R) and PrefGel(TM) trademarks. In the          
present Annual Report, the trademark registration is mentioned only here.       

BIORA                                                                           

Medeon Science Park                                                             
SE 205 12 MALMO                                                                 
Tel +46-40-32 13 33                                                             
Fax +46-40-32 13 55                                                             
www.biora.com                                                                   

Dates Referenced Herein   and   Documents Incorporated By Reference

This 6-K Filing		Date		Other Filings
		12/31/92
		9/30/96
		1/24/97
		2/4/97
		2/10/97
		4/23/98
		1/1/99
		12/31/99		20-F
		1/1/00
		8/13/00
		12/22/00
		12/31/00		20-F, 20-F/A
		1/31/01		6-K
		3/15/01
		3/22/01
		3/30/01
Filed On / Filed As Of / For The Period Ended		4/10/01
		4/23/01
		4/26/01		6-K
		5/3/01		6-K
		12/30/04
		12/30/05
		12/30/06
		12/31/09
Top				List All Filings