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November 14, 2000
Annual General meeting and First Quarter Results
Neurochem Inc. (TSX : NRM) held its first annual general meeting today in Montreal. Dr.
Louis R. Lamontagne, Neurochem's President and Chief Executive Officer, outlined the
Company's strategy for growth over the coming years and indicated that Neurochem has been
successful in achieving important milestones. The Company has made significant progress in
developing its product pipeline, with important advances in research on its lead drug
candidates Alzhemed™, Fibrillex™, Cerebril™, and its
Diabetes Type II program. Neurochem has also been successful in securing key research and
corporate agreements and partnerships over the course of fiscal 2000. Of particular
significance was the successful IPO closed June 22, 2000, generating CDN $36.8 million,
with the over-allotment option fully exercised.
"In addition to strengthening our financial base, in the first quarter of fiscal 2001,
the Company filed for an Investigational New Drug (IND) application to the Food and Drug
Administration of the United States for Fibrillex™," stated Dr. Louis R.
Lamontagne. "The approval was received in early October 2000 and has helped Neurochem
achieve a major milestone in its drug development process for the treatment of patients
suffering from Secondary Amyloidosis." The company also filed 15 additional patent
applications in the first quarter of fiscal 2001.
The Company reported a net loss of $1,602,000 or ($0.09) per share, for the first quarter
ended September 30, 2000, compared to a net loss of $1,561,000 or ($0.13) per share for same
quarter last year. The slightly higher net loss in the current year was attributable to
higher research and development expenditures over the 1999 comparable period, offset by
increased revenue and grants.
As at September 30, 2000, the Company had cash and short-term investments of $34 million,
representing an increase of $1.1 million over the last quarter ended June 30, 2000 and an
increase of $28.5 million over the comparable September 30, 1999, period. This increase
resulted from the Company's successful completion of an initial public offering on June 22,
which, when combined with the underwriters' 15% over-allotment option exercised on August
24, increased the gross proceeds by $4.8 million from the IPO to $36.8 million.
Revenues for the quarter ended September 30, 2000, were $489,000 as compared to $128,000
for the comparable 1999 period. Revenues for both periods represented interest income only,
with the year-to-year increase being accounted for by the significantly higher average cash
balance for the current period, due to the successful completion of the IPO.
Research and development expenditures, before the application of research tax credits and
grants, increased to $1,987,000 as compared to $1,405,000 for the comparable 1999 quarter.
Research tax credits and federal grants increased to $391,000 for the quarter ended
September 30, 2000, from $160,000 for the quarter ended September 30, 1999. The increase
is primarily accounted for by the investment contribution received from Technology
Partnerships Canada towards the development of effective oral therapeutics for Alzheimer's
disease.
General and administrative expenses were $495,000 for the quarter ended September 30, 2000,
as compared to $444,000 for the comparable 1999 period. The increase in expenses is largely
attributable to costs associated with being a public company.
Neurochem is an industry leader in the development of a novel, proprietary series of
compounds that inhibit the formation, deposit and toxic effects of amyloid fibrils on
cells within the body. Neurochem's research team has been working with international
amyloid experts on the development of therapeutic cures to amyloid-related diseases,
including Alzheimer's disease, Secondary Amyloidosis , Diabetes Type II and Hemorrhagic
Stroke (due to Cerebral Amyloid Angiopathy). Neurochem has advanced three drug candidates to
clinical trials: Alzhemed™, for the treatment of Alzheimer's disease,
Fibrillex™, for Secondary Amyloidosis, and Cerebril™, for
Hemorrhagic Stroke. At present, the Company employs over 50 people and is located in
Saint-Laurent, Canada (www.neurochem.com).
All of the statements contained in this news release, other than statements of fact which
are independently verifiable at the date hereof, are forward-looking statements. Such
statements, based as they are on the current expectations of management, inherently involve
numerous risks and uncertainties, known and unknown. Some examples of known risks are: the
impact of general economic conditions, general conditions in the pharmaceutical industry, changes
in the regulatory environment in the jurisdictions in which Neurochem does business, stock
market volatility, fluctuations in costs, and changes to the competitive environment due to
consolidation or otherwise. Consequently, actual future results may differ materially from
the anticipated results expressed in the forward-looking statements.
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