September 19, 2002

Neurochem Inc. Announces 2002 Year-end Results.
Strategic investment by Picchio Pharma and significant advances in Clinical Trial Programs.

Neurochem Inc. (TSX : NRM) announced today its results for the fiscal year, ended June 30, 2002, including a strategic investment by Picchio Pharma Inc., important clinical advances for Alzhemed™ with the filing of an Investigational New Drug (IND) application and unanimous recommendation from its Data Safety Monitoring Board (DSMB) to continue the Fibrillex™ trial. The Company reported a net loss for the year of $13,475,000, or $0.75 per share, compared to a net loss of $2,687,000, or $0.15 per share, for last year. Lower revenues of $4.9 million, due to the discontinuance of a collaborative research agreement, and higher research and development expenses of $5.4 million, as a result of the Company having three programs in clinical trials, accounted for the increase in the net loss over last year.

"This has been an exciting year for Neurochem," said Dr. Louis R. Lamontagne, President and CEO of Neurochem. "We are moving forward on all three of our clinical platforms with Fibrillex™, Cerebril™ and now Alzhemed™ in advanced drug development. We are actively developing a strong pipeline of products, and we remain focused on capitalizing on our strengths and working towards becoming an integrated biopharmaceutical company."

Recent Highlights

• Neurochem recently announced the filing of an IND application for Alzhemed™ to the Food and Drug Administration in the U.S. for the commencement of Phase II clinical trials in the U.S.
  
  

• The Company announced that Dr. Francesco Bellini, Chairman of Picchio Pharma Inc., has assumed the position of Chairman of the Board of Neurochem.
  
  

• The Company announced a significant strategic investment by Picchio Pharma Inc. The initial investment by Picchio is $7 million and with the full exercise of its warrants over the next three years, this investment could increase to $15.8 million.
  
  

• Neurochem announced the unanimous recommendation by its DSMB to continue the pivotal Phase II/III clinical trial for Fibrillex™, a potential treatment for secondary amyloidosis. The DSMB is responsible for monitoring the safety of patients participating in this study and reviewing the safety data throughout the duration of the study. The recommendation by the members of the DSMB was based on their first review of the safety data from 27 patients who completed at least four months of the study.
  
  

• Neurochem also recently received an additional U.S. patent for its phosphono-carboxylate compounds platform for treating Amyloidosis, bringing the total in Neurochem's intellectual portfolio to 14 issued patents.

Clinical Update

The pivotal Phase II/III clinical trial for the lead drug candidate Fibrillex™ is actively advancing. With 27 clinical sites around the world, patient recruitment is expected to be complete by the end of the 2002 calendar year.

Further, following the close of the year, the Company has submitted the IND for Alzhemed™. Neurochem expects to be commencing its Phase II clinical trial for this disease-modifying drug candidate for the treatment of Alzheimer's Disease in the fall. A similar submission is expected for Cerebril™ in the near future.

Financial Highlights

Revenues for the fourth quarter ended June 30, 2002, amounted to $199,000 as compared to $1,717,000 for the same period last year. The $1.5 million decrease in quarter-to-quarter revenues was primarily due to the discontinuance of a research contract with H. Lundbeck A/S ("Lundbeck") ($1,286,000), as well as $232,000 less in interest income as a result of lower average cash balances in the current period. For the twelve months ended June 30, 2002, revenues were $3,415,000, compared to revenues of $8,349,000 for the same period last year. The reduction of $4.9 million in revenues were also due to the discontinuance of the Lundbeck agreement ($4,099,000) in addition to lower interest income ($835,000). 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.

Research and development expenditures, before the application of research tax credits and grants, increased to $4,529,000 for the quarter ended June 30, 2002, compared to $3,027,000 for the same quarter last year. The Company now has three of its programs in clinical trials versus two in 2001. Research tax credits, federal grants and investment contribution amounted to $808,000 for the current quarter as compared to $1,085,000 for the quarter ended June 30, 2001. The quarter-to-quarter decrease in tax credits and grants was primarily due to a recovery of research tax credits from prior periods ($365,000) received in the fiscal 2001 period. For the twelve months ended June 30, 2002, research and development expenditures before the application of research tax credits and federal grants amounted to $15,304,000, as compared to $9,926,000 for fiscal 2001. The $5.4 million year-to-year increase in development expenditures is largely the result of the Company having three of its programs in clinical trials versus two in fiscal 2001. Research tax credits, federal grants and investment contribution amounted to $3.1 million which were $530,000 higher over the amount received in fiscal 2001.

General and other corporate expenses for the fiscal quarter ending June 30, 2002 were $941,000 as compared to $1,244,000 for the same fiscal 2001 quarter. The $303,000 decrease was due to lower corporate communication expenses incurred in the current quarter ($149,000) and the avoidance of a currency loss ($154,000) incurred in the comparable fiscal 2001 quarter. For fiscal year ended June 30, 2002, general and other corporate expenses increased to $3,817,000 in 2002 as compared to $3,277,000 for the fiscal 2001 period. The $540,000 year-to-year increase is largely accounted for by increased salary costs ($195,000), higher corporate communications expenses ($159,000) and higher legal fees ($103,000) due to increased corporate development activities.

Depreciation for the current quarter increased to $230,000 from $141,000 incurred for the comparable 2001 fiscal period as a result of additions to capital equipment for research and development acquired during the current fiscal year. Depreciation expense for the fiscal year 2002 increased to $888,000 compared to $422,000 for fiscal 2001. The $466,000 increase in depreciation costs was primarily due to the acquisition of major research equipment acquired towards the end of fiscal 2001 and during the course of fiscal 2002.

As at June 30, 2002, the Company had cash and short term investments of $24.2 million, which compares to $36.1 million at June 30, 2001. The decrease is primarily due to funds used in operations. Following the close of fiscal 2002, the Company increased its cash position by $7 million with the completion of an equity financing agreement with Picchio Pharma Inc. This strategic investment further enhances the Company's Board of Directors with the appointment of Dr. Francesco Bellini to Chairman of the Board at Neurochem.

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

Three months Ended June 30

Twelve months Ended June 30

Statement of Operations

2002

2001

2002

2001

Revenue:

   Milestone payment

-

-

-

3,807

   Research contracts

-

1,286

2,271

2,563

   Interest

199

431

1,144

1,979

199

1,717

3,415

8,349

Expenses:

   Research and
   Development

4,529

3,027

15,304

9,926

   Research tax credits
   & Grants

(808)

(1,085)

(3,119)

(2,589)

   General and
   corporate

941

1,244

3,817

3,277

   Depreciation
   & amortization

230

141

888

422

4,892

3,327

16,890

11,036

Net Loss

(4,693)

(1,610)

(13,475)

(2,687)

Net Loss per common share

   Basic

(0.26)

(0.09)

(0.75)

(0.15)

   Diluted

(0.26)

(0.09)

(0.75)

(0.15)

Weighted average number of common shares outstanding

   Basic

18,026,432

17,819,990

18,007,392

17,436,716

   Diluted

19,094,831

19,431,258

19,247,302

19,412,996

Balance Sheets

At June 30 2002

At June 30 2001

Cash, cash equivalents
   and marketable
   securities

24,162

36,147

Other current assets

2,389

2,353

Total current assets

26,551

38,500

Capital assets

5,956

4,963

Other long term assets

226

240

Total assets

32,733

43,703

Current liabilities

4,812

3,194

Obligations under
   capital leases

1,044

168

Shareholders' equity

26,877

40,341

Total liabilities and
   shareholders' equity

32,733

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 to date advanced three drug candidates to clinical trials: Fibrillex™, for the life-threatening orphan disease, secondary amyloidosis in a pivotal Phase II/III clinical trial, Alzhemed™, for the treatment of Alzheimer's Disease advancing to Phase II clinical trials, and Cerebril™, for hemorrhagic stroke also advancing to Phase II clinical trials. 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, epileptic seizures 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

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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