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November 24, 1999
Neurochem Inc. announces strategic alliance targeting Alzheimer's Disease
Neurochem Inc., a Canadian-based biopharmaceutical company, has signed a research and
development agreement in the field of neurological therapeutics with H.Lundbeck A/S, a
leading Danish pharmaceutical company focused on diseases of the central nervous system,
with sales of Cdn. $650 million. Neurochem is actively involved in the discovery, the
development and the commercialization of innovative health therapeutics for amyloid-related
diseases. The agreement specifically focuses on the development of therapeutic drugs for
the treatment of Alzheimer's disease.
The research and licensing agreement provides for milestone payments to Neurochem by
Lundbeck of up to U.S. $17 million upon achieving certain goals, in addition to U.S.
$7.5 million in research support programs over a three-year period. The agreement also
calls for equity investments in Neurochem and royalty payments based on sales. At the
same time, it provides Lundbeck with an exclusive right to develop and commercialize any
products resulting from the project except in Canada where Neurochem has retained the
rights to co-commercialize the products resulting from the collaboration.
"We at Neurochem are very excited about this agreement," said Company President
and CEO, Dr. Louis R. Lamontagne. "Lundbeck is a world leader in CNS drug discovery
and commercialization. Its support shows confidence in our technology and will accelerate
the development of our therapeutic strategy for Alzheimer's disease. We believe that
our alliance will result in a much awaited treatment for this devastating
illness."
Dr. Claus Braestrup, Lundbeck's Executive Vice President, Research and Development stated
that he is "very pleased to have entered into a research and development agreement
with an innovative company on the North American continent. The agreement is a successful
step in Lundbeck's endeavour to strengthen its neurology pipeline through the acquisition
of new technology," he indicated.
Common to all Alzheimer's disease patients are the extensive amyloid deposits and
degenerating nerve endings in their brain tissue. Neurochem's lead compound in the
area of Alzheimer's disease, Alzhemed™ , has been shown to enter the brain and
inhibit the toxic effects caused by amyloid fibrils. Based on the extensive toxicity
and pharmacokinetic investigations in animal species, Neurochem is especially proud
of the compound's excellent safety profile. Alzhemed™ has advanced to Phase I
clinical trials in June 1999.
Alzheimer's disease is a neurological disorder characterized by pathological alterations
in the brain. The progressive degeneration causes the patient to suffer gradual and
irreversible cognitive and motor deterioration. Alzheimer's disease is presumed to affect
approximately 5 to 10 percent of the population above 65 years of age. It is also reported
that more than 20 percent of people above the age of 85 develop the disorder. It has thus
been estimated that over 4 million North Americans today suffer from Alzheimer's disease.
Currently there are no therapeutic cures for Alzheimer's disease.
H. Lundbeck A/S is one of the world's leading providers of drugs for the treatment of
diseases in the central nervous system. The Company deploys significant resources in
research and development and markets its highly specialized products in 70 countries.
Total revenues amounted to DKK 3.2 billion in 1998 (Cdn. $650 million). The Lundbeck Group
has 3,000 employees, half of whom are located in Denmark.
Neurochem was established in 1993 and is an industry leader in the development of a novel,
proprietary series of compounds that prevent and inhibit the formation, deposit and toxic
effects of amyloid fibrils on cells of different organs within the body. Neurochem's
research team has been working with international amyloid experts on the development of
therapeutic cures to several diseases including: Alzheimer's disease, Secondary Amyloidosis
and other amyloid-related diseases. Neurochem has advanced two drug candidates to clinical
trials: Alzhemed™, for the treatment of Alzheimer's disease and the orphan drug
Fibrillex™, for the Orphan Disease Secondary Amyloidosis. Neurochem is located
in Montréal, Québec, Canada.
Neurochem's financial investors comprise Atlas Venture, the Business Development Bank of
Canada, BioCapital, le Fonds de solidarité des travailleurs du Québec (FTQ),
Quorum Group of Companies, la Société Financière d'Innovation Inc.,
and la Société Innovatech du Grand Montréal.
Contacts for Neurochem Inc:
Dr. Louis Lamontagne
President & CEO
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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