February 13, 2002

Neurochem Annonces Second Quarter Results.
Continued progress in clinical programs and expanded intellectual property protection.

Neurochem Inc. (TSX : NRM) announced today its results for the second quarter ended December 31, 2001, as well as continued progress in its drug development programs and patent portfolio. The Company reported a net loss of $2,844,000 or $0.16 per share on a diluted basis for the quarter, compared to a net income of $1,184,000 or $0.06 per share for the same quarter last year. The net income for the comparable quarter last year was due to a $3.8 million milestone payment received from H. Lundbeck A/S ("Lundbeck") for the successful completion of a proof of concept study for an anti-amyloid compound to treat Alzheimer's Disease.

With three programs in clinical trials, research and development expenses before the application of research tax credits and grants amounted to $6,712,000 for the six months ended December 31, 2001, an increase of $2,503,000 over the same period last year. Lower revenues of $1.8 million from research contract and interest income and higher operating expenses of $2.3 million resulted in a net loss for the six months ended December 31, 2001, of $4,504,000 or $0.25 per share on a diluted basis as compared to a net loss of $418,000 or $0.02 per share in 2000.

During this quarter, the Company achieved important advances in its Alzhemed™ and Cerebril™ clinical programs and continued progress with patient recruitment for Fibrillex™ at 24 clinical sites around the world. The Company has also significantly expanded its IP portfolio with the receipt of two U.S. patents, one for its Epilepsy program and the other is applicable to its GAG mimetics core technology.

Clinical Update

Alzhemed™: With the completion of elaboration of the Phase II protocol, Alzhemed™ continues to be on schedule for an IND submission in the first half of 2002 to U.S. and Canadian regulatory authorities. After regaining full control from Lundbeck over the Alzhemed™ clinical program, the Company initiated the Phase I trial with the enteric coated tablet. Neurochem has completed the single-dose trial with the new formulation and a Phase I multiple-dose trial has been initiated and results are expected to be available in April 2002.

Cerebril™: The Phase II protocol was completed and the Company is on track for an IND submission to the regulatory authorities in Canada and the U.S. in the first half of 2002. The protocol aims at the prevention of the recurrence of hemorrhagic strokes due to Cerebral Amyloid Angiopathy.

Fibrillex™: During the quarter, the Company was awarded a CDN$1.4 million grant from the Food and Drug Administration (FDA) in the U.S. for a pivotal Phase II/III study of Fibrillex™, which is currently underway. The grant was approved by a panel of outside experts and funded on a high priority basis. Funds under the grant will be received by the Company over a period of 3 years.

Pre-Clinical Update

Neurochem's Epilepsy program continues to advance well. In addition to the receipt of a U.S. patent for its technology, the Company has identified lead drug candidates and pre-clinical toxicology and pharmacokinetic studies are ongoing.

Significant Scientific Results in Alzheimer's Disease Programs Presented at International Conferences

Following the close of the quarter, Neurochem participated in the 5th International Symposium on Medicinal Chemistry of Neurodegenerative Diseases in Cancun, Mexico. Company researchers explained the significant inhibitory effect of Neurochem's proprietary GAG-derived compound on amyloid fibril formation in genetically-engineered mice expressing the human amyloid precursor protein (hAPP) as well as the impact on brain tissue of the inflammatory response triggered by amyloid. In a mouse model that has 10 times more Aß in the plasma compared to other currently known transgenic mouse models of brain amyloid deposition, the Company's drug candidate could induce a significant 61% reduction in Aß plasma levels and a 30% reduction in Aß brain soluble and insoluble fractions after only 8 weeks of treatment. These results were well received by the scientific community at the Symposium and reinforced the potential of an anti-amyloid approach using GAG mimetics towards the treatment of Alzheimer's Disease.

Company researchers also presented important research findings at the 31st Society for Neurosciences Annual Meeting, in November 2001, in San Diego, U.S. The new data that was presented regarding the early onset of inflammation in the amyloid deposition process suggests that amyloid plays an important role in neurotoxicity and acts as a trigger for inflammation very early in the progression of Alzheimer's Disease.

Financial Highlights

Revenues for the second fiscal quarter ended December 31, 2001, amounted to $1,505,000 as compared to $ 4,287,000 for the same period last year. The $2.8 million decrease in quarter-to-quarter revenues resulted from the receipt of a $3.8 million milestone payment from Lundbeck in the 2000 period, and $129,000 less in interest income as a result of lower average cash balances for the current period. These same factors accounted for the $1.8 million lower revenues for the six months ended December 31st, 2001, which amounted to $3,011,000, as compared to revenues of $4,776,000 for the same period last year. As a result of the agreement to terminate the collaborative research and license agreement with Lundbeck, the Company received the last payment for this research contract in October, 2001. As previously reported, since regaining full ownership and control of its anti-amyloid drug molecules program for Alzheimer's Disease, the Company has taken many steps to accelerate the clinical development timelines for its lead drug candidate Alzhemed™.

Research and development expenditures, before the application of research tax credits and grants, increased to $3,950,000 as compared to $2,222,000 for the comparable quarter last year. Research tax credits, federal grants and investment contribution amounted to $782,000 as compared to $466,000 for the quarter ended December 31, 2000. Part of the quarter-to-quarter increase in tax credits and grants was due to a higher investment contribution from Technology Partnership Canada ($97,000) and the receipt of the first payment ($118,000) from a $1.4 million grant from the FDA to support the pivotal Phase II/III clinical trials in the U.S. for Fibrillex™.

For the six months ended December 31, 2001 research and development expenditures before the application of research tax credits and grants amounted to $6,712,000, as compared to $4,209,000 for the same 2000 period. The $2.5 million year-to-year increase is largely the result of the Company having three of its programs in clinical trials versus two during the same period last year.

General and administrative expenses amounted to $1,181,000 for the quarter ended December 31, 2001, as compared to $1,347,000 for the comparable quarter last year. The $166,000 quarter-to-quarter decrease was primarily due to lower consultant fees ($200,000) offset by increases in depreciation expense and personnel costs. For the six months ended December 31, 2001, general and administrative expenses were $2,070,000, an increase of $228,000 over the comparable 2000 period. The year-to-year increase primarily reflects increases in depreciation expense associated with the additions to capital assets during the past eight months for leasehold improvements and acquisitions of research equipment.

As at December 31, 2001, the Company had cash and short-term investments of $32.0 million, which compares to $36.1 million for the fiscal year ended June 30, 2001. During December 2001, the Company took the opportunity to increase its cash position by entering into a sales-lease back agreement with a Canadian chartered bank to sell recently acquired research equipment and concurrently lease the same equipment back over a four year period. The Company received net proceeds from the sale in the amount of $1,649,000.

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

Three months Ended December 31

Six months Ended December 31

Statement of Operations

2001

2000

2001

2000

Revenue:

   Milestone payment

-

3,807

-

3,807

   Research contracts

1,154

-

2,270

-

   Interest

351

480

741

969

1,505

4,287

3,011

4,776

Expenses:

   Research and
   Development

3,950

2,222

6,712

4,209

   Research tax credits
   & Grants

(782)

(466)

(1,267)

(857)

   General and
   corporate

1,181

1,347

2,070

1,842

4,349

3,103

7,515

5,194

Net Income (Net Loss)

(2,844)

1,184

(4,504)

(418)

Earnings (Net Loss) per common share

   Basic

(0.16)

0.07

(0.25)

(0.02)

   Fully diluted

(0.16)

0.06

(0.25)

(0.02)

Weighted average number of common shares outstanding

   Basic

17,997,219

17,332,307

17,996,969

17,116,214

   Fully Diluted

18,593,037

19,466,908

19,037,803

19,269,500

Balance Sheets

At Dec. 31 2001

At June 30 2001

Cash, cash equivalents
   and marketable
   securities

31,967

36,147

Other current assets

2,655

2,353

Total current assets

34,622

38,500

Capital assets

5,664

4,963

Other long term assets

240

240

Total assets

40,526

43,703

Current liabilities

3,384

3,194

Obligations under
   capital leases

1304

168

Shareholders' equity

35,838

40,341

Total liabilities and
   shareholders' equity

40,526

43,703

1 Condensed from the Company's audited financial statements.

About Neurochem

Neurochem is a leader in the development of novel, proprietary compounds that inhibit the formation, deposition and toxic effects of amyloid fibrils 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 Alzheimer's Disease, Fibrillex™, in a pivotal Phase II/III clinical trial, for Secondary Amyloidosis and Cerebril™, for Hemorrhagic Stroke.

At present, the Company employs over 75 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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