February 13, 2003

Neurochem Reports on Second Quarter.
Major additions to senior management and board.
Additional financing.
Completed patient recruitment for Fibrillex™ pivotal phase II/III trial.

Neurochem Inc. (TSX : NRM) In announcing its results for the second quarter ended December 30, 2002, Neurochem Inc. (TSX: NRM) reported revenues of $229,000 and a net loss of $6,577,000 or $0.31 per share for the quarter, compared to revenues of $1,505,000 and a net loss of $2,844,000 or $0.16 per share for the same quarter last year. The Company completed strategic actions to transition its business from an R&D focused to a product-driven company including pre-commercialization activities for one of its key product candidates, Fibrillex™.

From an administrative point of view, the appointment of Dr. Francesco Bellini as CEO in addition to his position of Chairman of the Board, signaled Neurochem's decision to strategically position for the next stage of growth. During the quarter, Mr. Claude Michaud was also named Senior Vice-President, Finance and Chief Financial Officer, and later, following the close of the quarter, Dr. Philippe Calais was appointed President, further strengthening the Company's capacity to assume a more market and product-driven focus. At the same time, the Company added highly experienced new directors to its Board with the appointments of Mr. Ronald M. Nordmann, Co-President of Global Health Associates, LLC, Mr. Peter Kruyt, Vice-President of Power Corporation of Canada, and Dr. Emil Skamene, the Scientific Director at the McGill University Health Centre in Montreal.

"I believe we have taken major strides over the past few months to help Neurochem achieve the growth potential for its promising product pipeline," said Dr. Francesco Bellini. "It is important to remember that this Company has retained full rights to its products with 151 patents granted or filed worldwide. With its additional financial resources, senior management and strong shareholder base, we believe the Company is well positioned to become a leading specialty pharmaceutical company in North America," he added.

Additional Financial Resources

During the second quarter, Neurochem also announced an investment from Picchio Pharma Inc., subject to Neurochem disinterested shareholder approval and other customary closing conditions, of $8.148 million with the purchase of 1.2 million units of Neurochem at a cost of $6.79 per unit. The units are comprised of one Neurochem common share and one warrant to purchase an additional common share anytime within a three-year period at a price of $7.81, being a 15% premium over the issue price of the units, for a total possible investment of $17.52 million. Following the transaction and the exercise of all warrants, Picchio Pharma Inc. and associates would, directly or indirectly, hold approximately 33% of the common shares of Neurochem on a fully diluted basis.

Important Scientific Progress

Important scientific progress was made during the quarter on all three of Neurochem's key product candidates.

For Fibrillex™, Neurochem's most advanced project, the Company reported successful completion of enrollment of more than 150 patients required for its pivotal Phase II/III trial. The patients were recruited in 27 sites located in North America, Europe and Israel. Fibrillex™ is being developed for the treatment of Secondary Amyloidosis, a disease for which no cure exists and that often results in kidney failure, among other clinical effects. There are no competitive treatments for this disease at the present time.

Neurochem also received clearance by the U.S. Food and Drug Administration (FDA) during the second quarter, for its Investigational New Drug (IND) application on the drug candidate Alzhemed™ to be used in the treatment of Alzheimer's Disease (AD). Initiated in October 2002, the Phase II clinical trial investigates the safety, tolerability, pharmacokinetic and pharmacodynamic profile of Alzhemed™ in patients with mild to moderate AD. The study is designed as a multicenter, randomized, double-blind, placebo-controlled and parallel design study. Neurochem completed patient enrollment for the Phase II trial in January 2003.

The FDA also cleared Neurochem's IND application for Cerebril™, the Company's lead drug candidate for the prevention of Hemorrhagic Stroke due to Cerebral Amyloid Angiopathy (CAA). The clearance allowed the Company to proceed with the initiation of a Phase II clinical trial for patients suffering from this life-threatening disease in five U.S. centers.

Highlights

• Management Changes
  

• Dr. Francesco Bellini appointed CEO, maintains his position as Chairman

• Dr. Philippe Calais named President, following the close of the quarter

• Mr. Claude Michaud becomes Senior Vice-President, Finance and CFO




• Financing
  

• Investment of $8.148 million subject to Neurochem disinterested shareholder approval and other customary closing conditions, for a total possible $17.52 million from Picchio Pharma.




• Scientific Progress
  

• Fibrillex™ - over 150 patients enrolled for pivotal Phase II/III trial in 27 sites in North America, Europe and Israel. For the treatment of Secondary Amyloidosis, a disease for which no cure exists and that often results in kidney failure.

• IND application cleared for Alzhemed™, to be used in the treatment of Alzheimer's Disease. Phase II clinical trial initiated in six U.S. centers. Patient recruitment completed in January 2003.

• IND application cleared for Cerebril™, for the prevention of Hemorrhagic Stroke due to Cerebral Amyloid Angiopathy (CAA). Phase II clinical trial initiated in five U.S. centers.

Financial Results

The following information should be read in conjunction with the unaudited financial statements and related notes included herein, as well as the audited financial statements for the fiscal year ended June 30, 2002.

Revenues for the second quarter ended December 31, 2002, amounted to $229,000 as compared to $1,505,000 for the same period the previous year. The $1,276,000 decrease in revenues quarter-to-quarter was primarily due to the discontinuance of a research contract ($1,154,000) with H. Lundbeck A/S ("Lundbeck"). The Company did not perform any research contract work in the quarter ended December 31, 2002. In addition, the Company earned $122,000 less interest revenue as a result of lower average cash balances in the current period.

For the six-month period ended December 31, 2002, revenues totaled $482,000 compared to $3,011,000 for the same period the previous year. The $2,529,000 decrease in revenues is due to the Company not performing any research contracts in its first two quarters of 2002 ($2,270,000) and earning less interest revenue ($259,000) as a result of lower cash balances.

Research and development expenses, before the application of research tax credits and grants, increased to $5,487,000 for the quarter ended December 31, 2002, compared to $3,950,000 for the same quarter last year. The increase of $1,537,000 reflects the additional external costs, including patient recruitment expenses, associated with Alzhemed™ and Cerebril™ being in a Phase II clinical trial this quarter versus a Phase I clinical trial last year, and the costs of conducting Fibrillex™'s Phase III clinical trial, for which patient recruitment was essentially completed by the end of the quarter. For the same reasons, research and development expenses increased to $9,450,000 in the six-month period ended December 31, 2002, compared to $6,712,000 for the same period in 2001.

Research tax credits amounted to $210,000 this quarter compared to $165,000 for the same quarter last year. The increase of $45,000 is in line with the corresponding increase, quarter-to-quarter, in research and development expenses qualifying for such tax credits. For the first two quarters of 2002, research tax credits totaled $423,000 compared to $308,000 for the same period the previous year.

Research grants and others amounted to $577,000 this quarter ($1,150,000 for the first six months) compared to $617,000 for the same quarter last year ($959,000 for the first six months in 2001). Research grants refer to investment contributions under the Technology Partnerships Canada Program received by the Company for the development of Alzhemed™ as well as payments received from the FDA for the development of Fibrillex™.

General, administrative and other expenses for the quarter totaled $1,800,000 compared to $958,000 for the same quarter last year. The increase of $842,000 is mainly due to a non-recurring expense ($685,000) incurred in connection with the termination of employment of a senior executive of the Company. For the six-month period ended December 31, 2002, general, administrative and other expenses increased to $2,588,000 from $1,635,000 in 2001.

Depreciation and amortization for the current quarter increased to $306,000 ($556,000 for the first six months) from $223,000 for the comparable quarter in 2001 ($435,000 for the six-month period ending December 31, 2001). The increase reflects the acquisition of additional property and equipment, as well as additions to patent costs, over the last twelve months.

As a result, the net loss for this quarter amounted to $6,577,000 ($0.31 per share) compared to $2,844,000 ($0.16 per share) for the same quarter last year, and the loss for the first two quarters of this year amounted to $10,539,000 ($0.52 per share) compared to $4,504,000 ($0.25 per share) for the same period last year.

Liquidity and Capital Resources

As at December 31, 2002, the Company had cash, cash equivalents and marketable securities of $21,470,000 compared to $24,162,000 as at June 30, 2002. The $2,692,000 decrease is the net result of funds used in operations ($8,969,000) and investing activities ($1,194,000), as well as net funds raised from financing activities of approximately $7,471,000 including the $7 million equity investment by Picchio Pharma in July 2002. Further, the Company announced in December 2002 that Picchio Pharma agreed to make an additional investment of $8,148,000 in exchange for 1,200,000 units ($6.79 per unit). The units will be comprised of one common share and one warrant to purchase an additional common share for a three-year period at a price of $7.81. The transaction is subject to a disinterested shareholders' vote which is scheduled to be held on February 18, 2003.

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

Three months Ended December 31

Six months Ended December 31

Statement of Operations

2002

2001

2002

2001

Revenues:

   Research contracts

-

1,154

-

2,270

   Interest

229

351

482

741

229

1,505

482

3,011

Expenses:

   Research and
   Development

5,487

3,950

9,450

6,712

   Research tax credits
   & Grants

(787)

(782)

(1,573)

(1,267)

   General and
   corporate

2,106

1,181

3,144

2,070

6,806

4,349

11,021

7,515

Net Loss

(6,577)

(2,844)

(10,539)

(4,504)

Net Loss per common share

   Basic

(0.31)

(0.16)

(0.52)

(0.25)

   Diluted

(0.31)

(0.16)

(0.52)

(0.25)

Weighted average number of common shares outstanding

   Basic

21,361,469

17,997,219

20,353,835

17,996,969

   Diluted

24,120,291

18,593,037

22,591,719

19,037,803

Balance Sheets

At Dec. 31 2002

At June 30 2002

Cash, cash equivalents and marketable securities

21,470

24,162

Other current assets

2,004

2,389

Total current assets

23,474

26,551

Capital assets

6,594

5,956

Other long term assets

226

226

Total assets

30,294

32,733

Current liabilities

5,350

4,812

Obligations under
   capital leases

842

1,044

Shareholders' equity

24,102

26,877

Total liabilities and
   shareholders' equity

30,294

32,733

1 Condensed from the Company's audited financial statements.

About Neurochem

Neurochem is a product-driven, specialty pharmaceutical company which offers a new class of drug candidates to prevent and stop the progression of diseases for which no cure exists. The Company's strong and growing pipeline will meet unmet medical needs and is focused on disorders of the central nervous system and amyloid-related diseases. Neurochem's most advanced product candidate is Fibrillex™, in pivotal Phase II/III clinical development for the treatment of Secondary Amyloidosis, a fatal kidney disease. Two other product candidates in Phase II clinical development are Alzhemed™ for the treatment of Alzheimer's disease and Cerebril™ for Hemorrhagic Stroke due to Cerebral Amyloid Angiopathy. At the pre-clinical development stage, the Company has two potential products targeting Diabetes Type 2 and Epileptic Seizures induced by traumatic brain injury (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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