June 23, 2003

Neurochem reports promising findings from Alzhemed™ Phase II Study for Alzheimer's Disease.

- Neurochem, Inc. (TSX: NRM) - announced today a preliminary analysis of the data from its recently completed Phase II clinical trial for the investigational drug candidate, Alzhemed™, in patients with mild-to-moderate Alzheimer's disease (AD). The study revealed promising results for both the primary and secondary objectives of the trial. There were no safety findings of concern in patients treated with Alzhemed™. The pharmacokinetic profile of Alzhemed™ has been well characterized and it was detected in the cerebrospinal fluid (CSF) of the patients, suggesting an ability to cross the blood brain barrier. Patients with the greatest decrease in amyloid protein in the CSF were all on Alzhemed™. Furthermore, the majority of patients on the highest dose of Alzhemed™ showed, at the six- month time point of the ongoing open-label extension study, stable results on cognitive function test (as measured by the ADAS-Cog *).

"We are extremely pleased with the preliminary results of the Phase II clinical trial for Alzhemed™. The results on the cognitive function tests (ADAS-Cog) of the AD patients are encouraging and promising for the future treatment of the disease. These results are critical in directing the design of the next trial as they indicate, at this time, a potential for Alzhemed™ to act on amyloid, which is the underlying pathology of AD," said Denis Garceau, Ph.D., Vice-President of Drug Development at Neurochem. "The preliminary results of this trial represent encouraging developments for the scientific community worldwide working on Alzheimer's disease, and we are planning to publish the results in a peer-reviewed journal," he concluded.

Dr. Paul Aisen, Professor of Neurology and Medicine at Georgetown University Medical Center said, "The most promising target in AD therapeutics is the amyloid protein. This investigational drug candidate has been shown in preclinical development to target amyloid. This Phase II study demonstrates that Alzhemed™ is well tolerated in individuals with AD, and is able to cross into the brain." Dr. Aisen concluded, "The findings of the Phase II study are consistent with a favorable influence of Alzhemed™ on amyloid. The need to study the impact of this investigational agent on disease progression in a larger clinical trial is clear."

*Alzheimer's Disease Assessment Scale, cognitive subpart (ADAS-Cog)

Study Design and Results

This Phase II clinical trial was a multi-centre, randomized, double-blind, placebo-controlled and parallel-designed study. A total of 58 patients with mild-to-moderate AD were randomized to receive either placebo or Alzhemed™ at daily doses of 100 mg, 200 mg or 300 mg for 12 weeks. Patients who completed the three-month study were invited to participate in an open-label extension study for an additional nine months. In this ongoing open label study, all patients receive 300 mg of Alzhemed™ daily.

PRIMARY OBJECTIVES
The primary objectives of this Phase II clinical trial were to evaluate the safety, tolerability and pharmacokinetics of Alzhemed™ in patients with mild-to-moderate AD.

Safety and tolerability
There were no safety findings of concern at the three doses tested. The most frequent adverse events reported on Alzhemed™ were nausea and vomiting and their occurrence was dose-dependent. These adverse events were usually temporary and mild-to-moderate in severity. Only three patients (6.7%) experienced an adverse event (i.e. nausea or weakness/weight loss) that caused them to discontinue taking Alzhemed™.

Pharmacokinetic profile
The pharmacokinetic profile of Alzhemed™ was well characterized in this AD patient population. The extent of systemic exposure was approximately proportional to the administered dose. The bioanalysis revealed the presence of Alzhemed™ in the CSF of AD patients and the levels appeared to be dose-related. This important finding suggests that Alzhemed™ crosses the blood brain barrier.

SECONDARY OBJECTIVES
Secondary objectives of the study include assessing the effect of Alzhemed™ on levels of amyloid ß (Aß42) protein (an important biomarker for AD) in the CSF. Tests on cognitive function (i.e. ADAS-Cog) and a global measure of performance (CDR-SB**) were also included on an exploratory basis, although the study was neither powered nor designed to detect clinical improvement in psychometric tests.
** (Clinical Deterioration Scale Sum of Boxes (CDR-SB))

Biomarker
Patients who had a marked decrease of Aß42 (= 50 pg/ml) in the CSF at the three-month time point were all on Alzhemed™. A reduction as high as 70% was seen in the two highest dose groups. These results suggest that Alzhemed™ has the ability to act on Aß42 levels in humans. This reduction is consistent with the previously reported ability of Alzhemed™ to significantly decrease Aß42 levels in the brain of a transgenic mouse model of brain amyloid.

Cognitive function and global measure of performance
As expected for a disease-modifying therapeutic approach, there was no difference on cognitive function or global measure of performance between the placebo and treated groups after three months.

Interestingly, patients in the 300 mg treatment group, with stable or declining levels of Aß42 levels in the CSF at three months, and who have continued in the open-label extension study, showed a stabilization on cognitive function tests(ADAS-Cog) at the six-month time point. This compares favorably with a 2-3 point deterioration in cognitive function test scores over the same time period, in published reports of large cohorts of control patients.***.

Live Web Conference

Neurochem will host a teleconference and web cast at 10:00 A.M., E.T., today, June 23, 2003, to discuss the findings of this Phase II study. To participate in the teleconference and webcast, please dial 1 888-575-8232 or alternatively 1-416-406-6819 approximately 10 minutes prior to the start of the teleconference AND access Neurochem's website at www.neurochem.com. The dial-in will allow the participants to listen and ask questions, while webcast will host a visual presentation.

A replay of the web cast will be available on Neurochem's web site one hour following the conference call. This webcast will include the conference call and the visual presentation.

About Alzhemed™

Alzhemed™ is an orally administered, small synthetic molecule that has been specifically designed to modify the course of AD by interfering with the association between glycosaminoglycans (GAGs) and Aß protein. As part of a "disease modifying" class of product candidates, Alzhemed™ is expected to act at two levels: in preventing and stopping the formation and deposit of amyloid fibrils in the brain and in binding to soluble Aß protein to inhibit the inflammatory response associated with amyloid build-up in AD. Its anti-amyloid potential has been demonstrated in an aggressive transgenic mouse model of brain amyloid with a significant (61%) reduction in Aß plasma levels and a 30% reduction in Aß brain soluble and insoluble fractions after only eight weeks of treatment.

*** Rogers SL, Doody RS, Mohs Rc. Arch Intern Med 1998; 158: 1021-31.

About Neurochem

Neurochem is focused on the development and commercialization of innovative therapeutics for neurological disorders. The Company's staged pipeline of proprietary, disease-modifying, oral products addresses critical unmet medical needs. Fibrillex™, designated an orphan drug, is in a pivotal Phase II/III clinical trial for AA amyloidosis. Alzhemed™ has completed a Phase II clinical trial. Cerebril™ is in a Phase II trial for the prevention of hemorrhagic stroke caused by cerebral amyloid angiopathy. Neurochem is also developing a product for the potential treatment of epileptic seizures induced by traumatic brain injury. For additional information on Neurochem, please visit our website at: (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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