November 15, 2001

Neurochem announces first quarter results and selection as top 30 growth company by Montreal Business Magazine

Neurochem Inc. (TSX : NRM) announced today its results for the first quarter ended September 30, 2001. The Company reported a net loss of $1,660,000 or ($ 0.09) per share for the quarter, compared to a net loss of $1,602,000 or ($0.09) per share for the same quarter last year. Increased revenues of $1,017,000 from research contracts for the current period offset higher net research and development and general administrative expenses of $1,075,000 bringing the loss for the current period to approximately the same level as the comparable fiscal 2001 period.

During this quarter, the Company was selected by Montreal Business Magazine as one of the Top 30 Montreal-based growth companies. "Neurochem is honoured to receive this prestigious award," said Dr. Louis R. Lamontagne, President and CEO of Neurochem. "Since the beginning of Fiscal 2002, we have expanded our network of industry agreements and intellectual property base and established important collaborations with medical and scientific experts in the field. Neurochem continues to create value by building a solid base to accelerate clinical development of its drug candidates and lead compounds."

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 imaging tool for Alzheimer's Disease.
  
  

• Neurochem was awarded a CDN$1.4 million grant from the FDA in the U.S. for the pivotal Phase II/III study for Fibrillex™. Furthermore, the Company was recently granted Orphan Medicinal Product (OMP) designation in Europe, which typically allows for 10-year market exclusivity, in the 15-Member States of the European Community once a drug goes to market.
  
  

• Neurochem announced the establishment of a Clinical Advisory Board (CAB) for Alzhemed™ comprised of experienced and world-renown clinical physicians and scientists. The first meeting of the CAB is scheduled for January 2002. Subsequent to regaining the full rights from H. Lundbeck A/S, Neurochem now has full control of the development of the newly formulated Alzhemed™ and is currently advancing its pharmacological program with this lead drug candidate.
  
  

Financial Highlights

Revenues for the quarter ended September 30, 2001, amounted to $1,506,000 as compared to $489,000 for the same period last year. The $1,017,000 increase in quarter-to-quarter revenues represented revenues earned under research contracts for H. Lundbeck A/S ("Lundbeck"). With the recent agreement to terminate the Collaborative Research and License agreement with Lundbeck, the Company received its last payment for this contract research early in October 2001. This will be reflected in the second quarter. The Company has good financial resources to advance all of its programs forward. As at September 30, 2001, the Company had cash and short-term investments of $34.6 million, which compares to $36.1 million for the fiscal year ended June 30, 2001.

Research and development expenditures, before the application of research tax credits and grants, increased to $2,762,000 as compared to $1,987,000 for the comparable quarter last year. The $775,000 increase was primarily attributable to the on-going pivotal Phase II/III clinical trials for Fibrillex™. Research tax credits, federal grants and investment contributions amounted to $485,000 as compared to $391,000 for the quarter ended September 30, 2001.

General, administrative, and other corporate expenses increased to $889,000 for the quarter ended September 30, 2001, as compared to $495,000 for the comparable quarter last year. Higher depreciation expense related to the expansion of our research facilities last year, and the acquisition of research equipment in fiscal 2001 and the current quarter, accounted for $143,000 of the $394,000 quarter-to-quarter increase in expenses. The balance of the increase represented costs associated with being a public company ($148,000), including investor relations, as well as higher costs ($103,000) in corporate development related to increased activity in corporate partnering and external research agreements.

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

Three months Ended September 30

Statement of operations

2001

2000

Revenue:

   Research contracts

1,116

-

   Interest

390

489

1,506

489

Expenses:

   Research and development

2,762

1,987

   Research tax credits & grants

(485)

(391)

   General and corporate

889

495

3,166

2,091

Net loss

(1,660)

(1,602)

Net loss per common share:

   Basic and diluted

(0.09)

(0.09)

weighted average number of common shares outstanding

17,996,719

16,900,121

Balance sheets

At
September 30
2001

At
June 30
2001

Assets:

Cash, cash equivalents and
   marketable securities

34,590

36,147

Other current assets

2,343

2,353

Total current assets

36,933

38,500

Capital assets

5,492

4,963

Other long term assets

240

240

Total assets

42,665

43,703

Liabilities and Shareholders' Equity:

Current liabilities

3,866

3,194

Obligations under capital leases

117

168

Shareholders' Equity

38,682

40,341

Total liabilities and
shareholders' equity

42,665

43,703

1 Condensed from the Company's unaudited interim financial statements.

About Neurochem

Neurochem is an industry leader in the development of therapeutic drugs and diagnostic tools for central nervous system and amyloid-related diseases associated with aging. The Company has built a strong product pipeline by developing a novel, proprietary series of compounds that inhibit the formation, deposition and toxic effects of amyloid fibrils within the body. Neurochem's therapeutic programs target Alzheimer's Disease, Epilepsy, Systemic Amyloidosis, Diabetes Type II and Hemorrhagic Stroke (due to Cerebral Amyloid Angiopathy). Neurochem is using a multi-pronged approach towards the development of pharmaceuticals for Alzheimer's Disease, including glycosaminoglycans (GAGs) mimetics, a vaccine, an anti-inflammatory and a neuroprotective approach as well as the creation of a diagnostic imaging tool. The Company has advanced to date three drug candidates to clinical trials: Alzhemed™, for the treatment of Alzheimer's Disease, Fibrillex™, for the orphan disease 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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