September 27, 2001

Neurochem Inc. Announces Year end Results
Important advances in clinical & drug development and new collaborations in place

Neurochem Inc. (TSX : NRM) announced today its results for the fiscal year ended June 30, 2001, indicating significant growth and progress in its clinical and drug development as well as important new strategic research collaborations with Nycomed Amersham Imaging and the University Medical Center, Utrecht in The Netherlands.

"With a strong financial base in place and a growing network of strategic and research alliances, Neurochem has had an important year of growth in fiscal 2001," said Dr. Louis R. Lamontagne, President and CEO of Neurochem. "Not only have we doubled our facilities in size, expanding from 10,000 to 20,000 square feet, we have also doubled our scientific and technical staff in order to keep up with the pace of development of our science. Three of our lead drug candidates, Fibrillex™, Alzhemed™, and Cerebril™ are progressing well in clinical trials, and our Diabetes and Epilepsy programs are showing promise in pre-clinical toxicology and pharmacology studies."

Recent highlights:

• Following the close of the year, Neurochem announced an important new collaboration with the U.K.-based Nycomed Amersham Imaging (NAI), for the creation of a diagnostic tool for Alzheimer's Disease.
• Neurochem also entered into a new research collaboration with the University Medical Center, Utrecht in The Netherlands for its Diabetes Type II platform. The collaboration will focus on the effects of Neurochem's GAG mimetic compounds on islet amyloid formation, and further expand Neurochem's diabetes research analysis on an accelerated timeline.

R&D Update:

Progress in fiscal 2001, in the development of multiple therapeutics for the treatment of Alzheimer's Disease include the development of an improved formulation of Alzhemed™, with Neurochem's partner, H. Lundbeck A/S. The Company also received milestone and research support payments from Lundbeck following its "proof-of-concept" with its transgenic mouse model of amyloid plaques as announced in December 2000.

A pivotal phase II/III clinical trial is actively advancing for the drug candidate Fibrillex™ towards the treatment of Secondary Amyloidosis. Neurochem received approval to initiate the trial in the United States, many countries in Europe and in Israel, bringing the total to 14 sites worldwide.

Cerebril™ is advancing to Phase II clinical trial recruitment at 12 investigational sites in the U.S. and Canada and Neurochem is preparing to submit and Investigational New Drug Submission to the FDA in the U.S. and TPP in Canada in fiscal 2002.

The Company is developing lead compounds for the treatment of Epilepsy and Diabetes Type II. Lead compounds are in pre-clinical toxicology and pharmacology animal studies. During fiscal 2001, Neurochem received peer-reviewed recognition from the Natural Sciences and Engineering Research Council (NSERC) and will receive funding from the Council for further research on its Epilepsy program.

Financial Highlights

Revenues for the twelve-month period ended June 30, 2001, were $8,349,000 compared to $569,000 for the twelve-month period ended June 30, 2000, representing an increase of $7,780,000. The year-to-year increase in revenues was principally due to a $3.8 million milestone payment received from H. Lundbeck A/S and $2.6 million in research support payments triggered by the achievement of this milestone. Additionally, interest income on the company's cash and short term investments was $1,586,000 higher than the amount earned in fiscal 2000, due principally to a significantly higher average cash balance in fiscal 2001 resulting from the successful initial public offering on June 22, 2000. Higher revenues of $8.3 million reduced the net loss for the 12 months ended June 30, 2001 to $2,687,000 or ($0.15) per share compared to a net loss of $5,581,000 or ($0.44) per share for the same period last year.

Research and development expenditures before the application of research tax credits and federal grants, amounted to $9,926,000 for the twelve-month period ended June 30, 2001, as compared to $6,857,000 for fiscal 2000. The $3,069,000 increase in development expenditures reflect increased expenses incurred on our development programs to combat Alzheimer Disease ($1.5 million), which includes the advancement of Alzhemed™. Expenditures for Fibrillex™ increased $0.5 million over the prior fiscal year reflecting preparation costs and initiation of a pivotal phase II/III in a number of countries. Phase II preparation cost for Cerebril™, including manufacturing and formulation costs, accounted for increased expenditures of $0.3 million over the prior year. The balance of the year-to-year increase of $0.7 million was accounted for by increases in our drug development programs for Diabetes Type II and Epilepsy. Research tax credits, federal grants and investment contributions amounted to $2.6 million which were at the same level as fiscal 2000.

General administration and other corporate expenses increased to $3,699,000 for fiscal 2001 as compared to $1,901,000 for the fiscal 2000 period. A significant portion of the $1.8 million year-to-year increase represented costs associated with being a public company ($1.2 million), including investor relations, as well as higher costs ($0.4 million) in corporate development related to increased activity in corporate partnering and external research agreements.

As at June 30, 2001, the company had cash and short-term investments of $36.1 million, which compares to $32.9 million for the fiscal year ended June 30, 2000. The net increase in cash resources since June 30, 2000 is due in part to the exercise of the underwriters' 15% over-allotment option in August 2000, which raised an additional $4.8 million, and the various payments received from Lundbeck, including a US $2.5 million equity investment.

Neurochem Inc.
Selected Financial Highlights ($'000CDN)1

Three months Ended June 30

Twelve months Ended June 30

Statement of Operations

2001

2000

2001

2000

Revenue:

   Milestone payment

-

-

3,807

-

   Research contracts

1,286

176

2,563

176

   Interest

431

116

1,979

393

1,717

292

8,349

569

Expenses:

   Research and
   development

3,027

1,991

9,926

6,857

   Research tax credits
   & grants

(1,085)

(695)

(2,589)

(2,608)

   General and
   corporate

1,385

309

3,699

1,901

3,327

1,605

11,036

6,150

Net Loss

(1,610)

(1,313)

(2,687)

(5,581)

Net Loss per common share:

   Basic

(0.09)

(0.10)

(0.15)

(0.44)

   Diluted

(0.09)

(0.10)

(0.15)

(0.44)

Weighted average number of common shares outstanding

17,898,377

13,081,409

17,436,716

12,65408,330

Balance Sheets

At June 30 2001

At June 30 2000

Assets:

   Cash, cash
   equivalents and
   marketable securities

36,147

32,929

   Other current assets

2,353

2,447

Total current assets

38,500

35,376

Capital assets

4,963

2,214

Other long term assets

240

176

Total assets

43,703

37,766

Liabilities and Shareholders' Equity:

   Current liabilities

3,19408

2,496

   Obligations under
   capital leases

168

568

   Shareholders' equity

40,341

34,702

Total liabilities and shareholders' equity

43,703

37,766

1 Condensed from the Company's audited financial statements.

The annual general meeting of shareholders will be held at 10 a.m. on December 5, 2001 at the Queen Elizabeth Hotel, 900 René-Lévesque Blvd. West, Montréal, Québec.

About Neurochem

Neurochem is an industry leader in the development of products for central nervous system and amyloid-related diseases associated with aging. The Company has developed a novel, proprietary series of compounds that inhibit the formation, deposition and toxic effects of amyloid fibrils within the body. Neurochem's research and clinical teams are best known for their development of therapeutic and diagnostic drug candidates for 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 70 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.

For further Information, please contact:
Dr. Lise Hébert
Vice President, Corporate Communications
lhebert@neurochem.com

275 Armand-Frappier
Laval (Quebec)
H7V 4A7
Tel: (450) 680-4500
Fax: (450) 680-4501

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