May 15, 2002

Neurochem Announces Third Quarter Results.
Continued progress in clinical programs and signing of a testing & option agreement with Immtech-International.

Neurochem Inc. (TSX : NRM) announced today its results for the third quarter ended March 31, 2002, as well as pre-IND meetings for the Phase II clinical trials for Alzhemed™ and Cerebril™, and the signing of a new testing and option agreement with Immtech-International for Neurochem's novel non-GAG amyloid program. The Company reported a net loss for the quarter of $4,277,000, or $0.24 per share, compared to a net loss of $661,000, or $0.04 per share, for the same quarter last year. Lower revenues of $1.6 million and higher research and development expenses of $1.3 million accounted for the increase in the net loss over the quarter last year.

For the nine months ended March 31, 2002, research and development expenses before the application of research tax credits and grants amounted to $10,774,000, an increase of $3,965,000 or 58.2% over the same period last year, reflecting increased expenditures associated with the three programs in clinical trials. Lower revenues of $3.4 million and higher operating expenses of $4.3 million resulted in a net loss for the nine months ended March 31, 2002 of $8,781,000, or $0.49 per share, as compared to a net loss of $1,078,000, or $0.06 per share, for the same 2001 period.

Testing & Option Agreement in Place

Following the close of the quarter, Neurochem signed a testing and option agreement with Immtech- International of Illinois for the evaluation of a new class of compounds with potential anti-amyloid activity. Preliminary discovery work has indicated a good anti-fibrillogenic profile for this class of compounds.

Clinical Update

Alzheimer's Disease and Hemorrhagic Stroke due to Cerebral Amyloid Angiopathy:

• Neurochem has completed the protocol for the Phase II trials and has had pre-IND meetings with the Food and Drug Administration (FDA) in the U.S. and the Therapeutic Products Programme (TPP) in Canada.
  
  

• The Company also presented promising Phase I clinical results and newly released proof-of-concept data for Alzhemed™ (drug candidate for Alzheimer's) at the 7th International Geneva/Springfield Symposium on Advances in Alzheimer's Disease, in April. The presentations generated high interest from the medical community for Neurochem's Alzheimer's Disease program which translated into requests to participate in the Phase II clinical trial for Alzhemed™, for which the Company is in full preparation.

Other Advances in Neurochem's Comprehensive Alzheimer's Platform:

• During the quarter, a US patent was issued for Neurochem's amyloid program covering the use of phosphonocarboxylate compounds.
  
  

• Further, the Company is continuing to make progress for its Alzheimer's Disease diagnostic program currently being developed in collaboration with Amersham Health.

Pre-Clinical Update

At the recent Sixth Eilat Conference on New Anti-Epileptic Drugs, Neurochem presented pre-clinical studies demonstrating the promising dual anti-convulsant and anti-epileptogenic activity profiles for a series of compounds under development. The anti-epileptogenic profile of the compounds define them as a new class of drug candidate for the potential prevention and treatment of seizures and convulsions associated with Epilepsy caused by head trauma and acute brain injury.

Financial Highlights

Revenues for the third fiscal quarter ended March 31, 2002, amounted to $205,000 as compared to $1,857,000 for the same period last year. The $1.6 million decrease in quarter-to-quarter revenues resulted from the discontinuance of a research contract with H. Lundbeck A/S ("Lundbeck"), and $375,000 less in interest income as a result of lower average cash balances for the current period. These same factors accounted for the $3.4 million lower revenues for the nine months ended March 31, 2002, which amounted to $3,216,000, as compared to revenues of $6,633,000 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 $4,062,000 compared to $2,600,000 for the same quarter last year. Research tax credits, federal grants and investment contribution amounted to $1,042,000 as compared to $647,000 for the quarter ended March 31, 2001. The quarter-to-quarter increase in tax credits and grants was primarily due to a recovery of investment tax credits from prior periods ($273,000) and the receipt of the second 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 nine months ended March 31, 2002, research and development expenditures before the application of research tax credits and grants amounted to $10,774,000, as compared to $6,809,000 for the same 2001 period. The $4.0 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.

Total general and corporate expenses amounted to $1,458,000 for the quarter ended March 31, 2002, as compared to $937,000 for the same quarter last year. The $521,000 quarter-to-quarter increase was primarily due to higher consulting and legal fees ($185,000), higher investor relations expenses ($130,000), increases in personnel costs ($109,000), and additional depreciation expense ($97,000). For the nine months ended March 31, 2002, general and corporate expenses were $3,661,000, an increase of $1,046,000 over the comparable 2001 period. The year-to-year increase reflects increases in the same areas noted above, of which the largest was in depreciation expense ($376,000) associated with the additions to capital assets in the second half of fiscal 2001 for leasehold improvements and research equipment.

As at March 31, 2002, the Company had cash and short-term investments of $28.8 million, which compares to $36.1 million at 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 March 31

Nine months Ended March 31

Statement of Operations

2002

2001

2002

2001

Revenue:

   Milestone payment

-

-

-

3,807

   Research contracts

-

1,277

2,270

1,277

   Interest

205

580

946

1,549

205

1,857

3,216

6,633

Expenses:

   Research and
   Development

4,062

2,600

10,774

6,809

   Research tax credits
   & Grants

(1,042)

(647)

(2,309)

(1,504)

   General and
   corporate

1,458

937

3,661

2,615

   Foreign Exchange

4

(372)

(129)

(209)

4,349

3,103

7,515

5,194

Net Loss

(4,277)

(661)

(8,781)

(1,078)

Net Loss per common share

   Basic

(0.24)

(0.04)

(0.49)

(0.06)

   Diluted

(0.24)

(0.04)

(0.49)

(0.06)

Weighted average number of common shares outstanding

18,001,015

17,624,970

18,009,118

17,283,353

Balance Sheets

At March 31 2002

At June 30 2001

Cash, cash equivalents
   and marketable
   securities

28,753

36,147

Other current assets

1,699

2,353

Total current assets

30,452

38,500

Capital assets

5,730

4,963

Other long term assets

226

240

Total assets

36,408

43,703

Current liabilities

3,695

3,194

Obligations under
   capital leases

1,143

168

Shareholders' equity

31,570

40,341

Total liabilities and
   shareholders' equity

36,408

43,703

1 Condensed from the Company's audited financial statements.

About Neurochem

Neurochem is an industry leader in the development of therapeutic drugs and diagnostic tools for central nervous system (CNS) 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 overall therapeutic programs target CNS disorders including Alzheimer's disease, epilepsy caused by head trauma or acute brain injury, and hemorrhagic stroke (due to cerebral amyloid angiopathy), and other life-threatening diseases including systemic amyloidosis and amyloid-associated diabetes type II. 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 neuroprotective approaches. The Company is also collaborating with Amersham Health for the development of a diagnostic imaging tool for Alzheimer's disease. The Company has to date advanced three drug candidates to clinical trials: Alzhemed™, for the treatment of Alzheimer's disease in Phase I clinical trials, Fibrillex™, for the orphan disease secondary amyloidosis in a pivotal Phase II/III clinical trial, and Cerebril™, for hemorrhagic stroke in Phase I clinical trials.

At present, the Company employs over 77 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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