May 14, 2003

Neurochem Reports on Third Quarter.
Finalizes additional financing, further strengthens senior management, reinforces focus on diseases of the central nervous system.

Neurochem Inc. (TSX : NRM) In announcing its results for the third quarter ended March 31, 2003, Neurochem Inc. (TSX: NRM) reported the finalization of additional financing during the quarter, the continued strengthening of its senior management and Board of Directors and the reinforcement of its focus on diseases of the central nervous system. The Company reported a net loss of $5,609,000 or $0.25 per share for the quarter, compared to a net loss of $4,277,000 or $0.24 per share for the same quarter last year.

During the quarter, the Company completed the previously announced transaction for the acquisition of 1.2 million units of Neurochem by a subsidiary of Picchio Pharma Inc. at a cost of $6.79 per unit, for a total of $8.148 million.

The Company also continued to reinforce its management team with the appointments of Dr. Philippe Calais as President, in January, and Mr. David Skinner as Director of Legal Affairs and General Counsel, shortly after the close of the quarter. Neurochem named Mr. Richard Cherney, a partner with the law firm of Davies Ward Phillips & Vineberg LLP, to the Board. Mr. Cherney was replaced by Mr. Skinner as Corporate Secretary of Neurochem.

Following the close of the quarter, the Company announced the conclusion of two transactions: first, an agreement whereby Neurochem has transferred to Innodia Inc., its intellectual property rights relating to Neurochem's pre-clinical diabetes project and second, a participation of $500,000 in the $7.0-million private placement concluded by Innodia. Innodia Inc. is a biopharmaceutical company engaged in the discovery and development of novel therapeutics for the treatment of type 2 diabetes.

With the completion of these two transactions, Neurochem strongly focuses its activities on diseases of the central nervous system, while becoming Innodia's largest shareholder with 31.1% of Innodia's total issued capital. Dr. Francesco Bellini, Chairman and CEO of Neurochem, and Dr. Francine Gervais, Neurochem's Vice President of Research and Development, will join Innodia's Board of Directors.

"We have continued to align both the financial and human resources necessary to bring our product candidates to market as quickly as possible while focusing on diseases of the central nervous system, an area in which we believe Neurochem is rapidly becoming a focal point for excellence," said Dr. Francesco Bellini, Chairman and CEO of Neurochem.

Update on Scientific Progress

Neurochem's drug development programs for its three key product candidates continued to make good progress during the past three months.

Fibrillex™

The pivotal Phase II/III clinical trial for Fibrillex, Neurochem's most advanced project, completed recruitment in January as reported and has 183 patients enrolled. This two-year study is planned to end in January 2005.

Fibrillex™ is being developed for the treatment of secondary AA amyloidosis, a fatal condition which develops in people suffering from chronic inflammatory and infectious diseases which are refractory to current treatments. No cure exists for secondary AA amyloidosis and the disease commonly results in kidney failure, among other serious clinical effects. It has been estimated that the cost in the United States for health care associated with secondary AA amyloidosis is more than US$1B.

During the quarter, Neurochem again received a second unanimous recommendation from its independent Data Safety Monitoring Board (DSMB) to continue the trial based on safety data from 59 patients who had completed at least four months of the study. The DSMB comprises independent medical experts and was established by Neurochem as part of the Company's compliance with good clinical practice guidelines. The DSMB meets every eight months to monitor the safety of patients participating in the trial and to review safety data related to the trial. The next report is planned for December 2003.

Alzhemed™

By the close of the quarter, Neurochem completed the Phase II trial for Alzhemed™, the Company's drug candidate for the treatment of Alzheimer's Disease (AD). The trial was designed to evaluate the safety, tolerability, pharmacokinetic and pharmacodynamic profile of Alzhemed in 58 patients with mild to moderate AD. The pharmacokinetic analysis of Alzhemed in the Phase II clinical trial revealed the presence of Alzhemed™ in the cerebrospinal fluid (CSF) of AD patients.This important finding strongly supports the brain bioavailibility of Alzhemed in AD patients. Neurochem is now evaluating the data related to the primary and secondary objectives of the trial and plans to publish the results during the month of June 2003.

Cerebril™

Steven M. Greenberg, M.D., Ph.D., Associate Professor of Neurology at Harvard Medical School and Co-Director of the Neurology Clinical Trials Unit at the Massachusetts General Hospital has been awarded a grant of approximately US$1 million from the National Institutes of Health in support of Neurochem's U.S. Phase II clinical trials for Cerebril™.

Recruitment for the Phase II clinical trial for Cerebril™, the Company's lead drug candidate for the prevention of recurrence of Hemorrhagic Stroke due to Cerebral Amyloid Angiopathy, is on-going. The Company expects recruitment to be completed by the summer of 2003 and to report on data from the trial by end of 2003.

Financial Results

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

Revenues for the third quarter ended March 31, 2003, amounted to $161,000 as compared to $205,000 for the same period the previous year. The decrease results from lower average cash balances in the current period, combined with lower average interest rates, compared to the same period last year.

For the nine-month period ended March 31, 2003, revenues totaled $643,000 compared to $3,216,000 for the same period the previous year. The $2,573,000 decrease in revenues is primarily due to the discontinuance in the second quarter of 2002 of a research contract with H. Lundbeck A/S ($2,270,000). In addition, the Company earned $303,000 less interest revenue as a result of lower average cash balances and lower average interest rates in the current period, compared to the same period last year.

Research and development expenses, before the application of research tax credits and grants, amounted to $4,656,000 for the quarter ended March 31, 2003, compared to $4,062,000 for the same period last year. The increase reflects the additional external costs associated with Alzhemed™ and Cerebril™ being in Phase II clinical trial this quarter versus Phase I clinical trial last year, and the costs of conducting Fibrillex™'s Phase II/III clinical trial. For essentially the same reasons, research and development expenses increased to $14,106,000 in the nine-month period ended March 31, 2003 compared to $10,774,000 for the same period last year.

Research tax credits amounted to $266,000 this quarter, compared to $157,000 for the same quarter last year. The increase is in line with the corresponding increase, quarter-to-quarter, in research and development expenses qualifying for such tax credits. For the first three quarters of 2003, research tax credits totaled $689,000, compared to $465,000 for the same period the previous year.

Research grants and other amounted to $623,000 this quarter ($1,773,000 for the nine-month period), compared to $885,000 for the same quarter last year ($1,844,000 for the nine-month period in 2002). 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 US Food and Drug Administration for the development of Fibrillex™.

General, administrative and other expenses (excluding depreciation and amortization) for the quarter totaled $1,682,000, compared to $1,239,000 for the same quarter last year. The increase is mainly due to the hiring of new employees and the increased activity level related to the pre-commercialization of Fibrillex™. For the nine-month period ended March 31, 2003, these expenses increased to $4,270,000 from $2,874,000 in the corresponding period last year, and include a non-recurring expense ($873,000) incurred in connection with the termination of employment of two senior executives of the Company.

Depreciation and amortization for the current quarter increased to $321,000 ($877,000 for the first nine months) from $223,000 for the comparable quarter last year ($658,000 for the first nine months last year). The increase reflects the depreciation and amortization associated with the acquisition of additional property and equipment, as well as additions to patent costs, during the past year.

As a result, the net loss for this quarter amounts to $5,609,000 ($0.25 per share), compared to $4,277,000 ($0.24 per share) for the same quarter last year. The loss for the first nine months of the current year amounted to $16,148,000 ($0.76 per share), compared to $8,781,000 ($0.49 per share) for the same period last year.

Liquidity and Capital Resources

As at March 31, 2003, the Company had cash, cash equivalents and marketable securities of $23,151,000 compared to $24,162,000 as at June 30, 2002. The $1,011,000 decrease is the net result of funds used in operations ($15,641,000) and investing activities ($1,644,000), net of funds raised from financing activities of $16,274,000, including the $7,000,000 equity investment by Picchio Pharma in July 2002 and an additional equity investment of $8,148,000 in February 2003.

As at April 30, 2003, the number of shares outstanding reached 23,204,024 common shares while outstanding options granted under the stock option plan reached 2,197,529. In addition, 4,155,976 warrants were also outstanding.

Risks and uncertainties

This quarterly report contains forward-looking information, which reflects the Company current expectations regarding future events. Because of risks and uncertainties related to the business of the Company, actual results could differ materially from the statements provided herein.

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

Three months Ended March 31

Nine months Ended March 31

Statement of Operations

2003

2002

2003

2002

Revenues:

   Research contracts

-

-

-

2,270

   Interest

161

205

643

946

161

205

643

3,216

Expenses:

   Research and
   Development

4,656

4,062

14,106

10,774

   Research tax credits
   & Grants

(889)

(1,042)

(2,462)

(2,309)

   General and
   corporate

2,003

1,462

5,147

3,532

5,770

4,482

16,791

11,997

Net Loss

(5,609)

(4,277)

(16,148)

(8,781)

Net Loss per common share

   Basic

(0.25)

(0.24)

(0.76)

(0.49)

   Diluted

(0.25)

(0.24)

(0.76)

(0.49)

Weighted average number of common shares outstanding

   Basic

22,296,061

18,009,118

21,264,431

18,001,015

   Diluted

25,539,217

19,373,675

23,826,594

19,297,964

Balance Sheets

At Mar. 31 2003

At June 30 2002

Cash, cash equivalents and marketable securities

23,151

24,162

Other current assets

2,878

2,389

Total current assets

26,029

26,551

Capital assets

6,723

5,956

Other long term assets

243

226

Total assets

32,995

32,733

Current liabilities

4,800

4,812

Obligations under
   capital leases

738

1,044

Shareholders' equity

27,457

26,877

Total liabilities and
   shareholders' equity

32,995

32,733

1 Condensed from the Company's audited financial statements.

About Neurochem

Neurochem is a product-driven, specialty pharmaceutical company offering 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 aims at fulfilling unmet medical needs and is focused on disorders of the central nervous system and amyloid-related diseases. Neurochem's most advanced drug candidate is Fibrillex™, currently in pivotal Phase II/III clinical development for the treatment of secondary AA amyloidosis, a fatal disease. Two other programs include Alzhemed™, which has completed a Phase II clinical trial for the treatment of Alzheimer's disease; and Cerebril™, which is undergoing a Phase II clinical trial for the treatment of hemorrhagic stroke due to cerebral amyloid angiopathy. At the pre-clinical development stage, the Company has an innovative neurological program aimed at treating 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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