May 11, 2004

Following Change in Year-end.
Neurochem reports results for first quarter of fiscal year 2004.
Neurochem will host a conference call today at 4:30 P.M. EDT.

- Neurochem, Inc. (NASDAQ: NRMX, TSX: NRM) - announced today results for the first quarter, ended March 31, 2004, of its current fiscal year. For the quarter, the Company reported a net loss of $9,164,000 ($0.31 per share), compared to $5,609,000 ($0.25 per share) for the same period the previous year.

The first quarter saw significant progress being made on each of Neurochem's three clinical programs, as well as important management appointments and, following the close of the quarter, the move to new headquarters for the Company that will consolidate operations under one roof and improve overall efficiency.

"We have been moving quickly on all fronts and I am very pleased with our achievements overall and with the results from our clinical programs," said Dr. Francesco Bellini, Neurochem's Chairman and CEO. "While we are waiting for the completion of the on-going Phase II/III clinical trial for Fibrillex™, a large portion of our financial and human resources has been concentrated on the initiation of the Phase III clinical trials in North America and Europe for Alzhemed™. The two studies are designed to enroll about 950 mild-to-moderate Alzheimer's Disease patients each. The North American Phase III trial is planned to start in June 2004, to be followed shortly thereafter by the European Phase III study in early 2005. These near-term and large drug development activities will result in an increase in our monthly cash burn-rate and overall expenses," he added.

Progress on Product Candidates

Fibrillex™
For Fibrillex™, the Company received its third and fourth unanimous recommendations from its Data Safety Monitoring Board (DSMB) of independent medical experts to continue the Phase II/III clinical trial on its orphan drug candidate Fibrillex™, for the treatment of Amyloid A (AA) Amyloidosis, a serious consequence of chronic inflammatory and infectious diseases. Each recommendation was made following a review of safety data by the DSMB. Positive recommendations following earlier reviews were also unanimous. The Phase II/III clinical trial, designated as Fast Track by the U.S. Food and Drug Adminisration, is on target and is scheduled to end in January 2005. Assuming positive clinical outcomes from the Phase II/III trial, Neurochem expects regulatory approvals by the end of 2005.

Alzhemed™
Progress in developing Neurochem's product candidate for Alzheimer's Disease (AD), Alzhemed™, was also very encouraging as the Company reported positive interim results in Alzheimer's patients after 12 months of treatment and, later, following the close of the quarter, after 16 months of treatment. Overall, 82% of the mild AD patients experienced stabilized or improved cognitive function tests after 16 months of treatment with Alzhemed™. Alzhemed™ is presently in a 21-month, open-label Phase II extension study and a North American Phase III study is planned to begin in June 2004. During the quarter, Neurochem formed a strategic alliance for the prevention and treatment of AD with the National Research Council of Canada's Institute for Biological Sciences, and more specifically with Dr. Harold J. Jennings, a world leader in the development of innovative conjugated vaccines. To add to its vaccine strategy, Neurochem also announced an in-licensing agreement with PRAECIS PHARMACEUTICALS INCORPORATED, related to certain amyloid peptides for use in the development of a novel synthetic vaccine to prevent and treat AD.

Cerebril™
After the close of the quarter, Neurochem reported promising Phase II clinical results and a good safety profile for Cerebril™, Neurochem's product candidate for Hemorrhagic Stroke due to Cerebral Amyloid Angiopathy(HS-CAA). There were no safety findings of concern in patients treated with Cerebril™. The pharmacokinetic profile of this product candidate has been well characterized, with Cerebril™ being detected in the cerebrospinal fluid (CSF) of the patients, suggesting its ability to cross the blood-brain-barrier. The Company is expected to initiate a Phase IIb clinical trial in early 2005 designed to determine whether Cerebril™ can prevent recurrence of stroke in patients suffering from CAA.

Enhancing the Infrastructure

The Company announced a conditional agreement to purchase the Shire BioChem facilities located in Laval, Quebec. The transaction is expected to close in May, 2004. This opportunity allows Neurochem to bring together employees into one site and to house its growing number of employees within one state-of-the-art facility. Two important additions to the Company's management team were also announced during the quarter with the arrival of Ms. Christine Lennon as Vice President, Business Development, and Ms. Judith Paquin as Vice President, Human Resources.

Conference Call

Neurochem will host a conference call today at 4:30 P.M. EDT. The telephone number to access the conference call is 1 (800) 291-5032. A replay of the call will be available until May 18, 2004. The telephone number to access the replay of the call is 1 (800) 558-5253, code 21195095.

Financial Results Highlights

The following information should be read in conjunction with the selected financial information contained herein.

For the three month-period ended March 31, 2004, net loss amounted to $9,164,000 ($0.31 per share), compared to $5,609,000 ($0.25 per share) for the same period last year.

Research and development expenses, before research tax credits and grants, amounted to $5,577,000 for the current quarter, compared to $4,656,000 for the same period last year. The increase is mainly due to hiring additional employees in clinical development. In the three month-period ended March 31, 2004, the research and development expenses incurred were mainly to support: the on-going Fibrillex™ Phase II/III clinical trials and open-label extension study; the on-going Alzhemed™ Phase II extension study and advancement towards its Phase III clinical trials; the successful completion of the Cerebril™ Phase II clinical trial which ended in January 2004, as well as on-going drug discovery programs. As at March 31, 2004, Neurochem had 162 patients in clinical trials.

Research tax credits amounted to $312,000 this quarter, compared to $266,000 for the comparable quarter last year. Research tax credits represent tax credits earned under the Quebec Scientific Research and Experimental Development program. The increase is due to higher eligible expenses during the current period.

Research grants and other amounted to $119,000 this quarter, compared to $623,000 for the same quarter last year. In the prior year, research grants consisted principally of investment contributions under the Technology Partnerships Canada (TPC) Program received by the Company for the development of Alzhemed™, as well as payments received from the FDA for the development of Fibrillex™, whereas the amount reported for the current period consists only of grants received from the FDA for Fibrillex™ and from the National Sciences and Engineering Research Council (NSERC).

General and administrative expenses for the quarter totaled $3,965,000, compared to $1,718,000 for the same quarter last year. The increase is essentially due to the expansion of the corporate infrastructure necessary to support growth and the overall activity level increase at the Company, in particular, in the legal, administrative, marketing, and senior management functions of the Company. More specifically, year over year, the increase is due in part to higher legal fees incurred in relation to the Immtech litigation and other corporate matters, higher Directors' and Officers' insurance costs resulting from our U.S. financing and NASDAQ listing and increased awareness, educational and medical conference activities related to AA Amyloidosis, Fibrillex™'s target indication

Depreciation and amortization for the current quarter increased to $368,000 from $321,000 for the comparable quarter last year. The increase reflects the depreciation and amortization associated with the acquisition of additional property and equipment, as well as increases in patent costs, during the past year.

Interest income amounted to $322,000, compared to $161,000 for the comparable quarter last year. The increase results from higher average cash balances in the current period, compared to the same period last year and is offset by a larger portion of the investment portfolio denominated in US dollars, which earned a lower yield.

Foreign exchange gains amounted to $441,000 for the current quarter, compared to $67,000 for the same quarter last year. The increase is attributable to higher average cash and investment balances denominated in US dollars, along with the weakening of the Canadian dollar versus the US dollar during the period.

Stock-based compensation
As of January 1, 2004, the Company implemented the new accounting policy requiring the use of the fair value based method for recording stock options. One of the transitional options available to the Company was to retroactively apply the fair value based method to all employee stock options granted on or after July 1, 2002 without restatement of prior periods. As a result, $2,162,000 was recorded as an adjustment to the opening deficit and additional paid-in capital at January 1, 2004. In the current quarter, an amount of $424,000 was expensed as a result of the new policy. See notes 2 and 4 of our interim Consolidated Financial Statements.

Liquidity and capital resources

As at March 31, 2004, the Company had cash, cash equivalents and marketable securities of $68,367,000 compared to $77,594,000 at December 31, 2003. The decrease is due to funds used in operations and in investing activities, net of proceeds received from the issue of additional share capital during the period pursuant to the exercise of employee stock options.

As at April 30, 2004, the Company had 30,056,906 common shares outstanding, 2,491,747 options granted under the employee stock option plan and 4,000,000 warrants.

Neurochem Inc.
Selected Unaudited Financial Highlights
($'000CDN, except per share data)

Three-month period ended March 31

Consolidated Statement
of Operations

2004

2003

Expenses:

   Research and development

5,577

4,656

   Research tax credits & grants

(431)

(889)

   General, administrative

3,965

1,718

   Stock based compensation

424

-

   Depreciation and amortization

368

321

   Interest and bank charges

24

31

9,927

5,837

   Interest income

322

161

   Foreign exchange gain

441

67

   Net loss

(9,164)

(5,609)

   Net loss per share

      Basic

(0.31)

(0.25)

      Diluted

(0.31)

(0.25)

   Weighted average number of
   common shares outstanding

      Basic

29,863,793

22,296,061

      Diluted

34,817,965

25,551,169

Consolidated Balance Sheet

At March 31, 2004

At Dec. 31, 2003

   Cash, cash equivalents and
   marketable securities

68,367

77,594

   Other current assets

5,349

4,503

   Total current assets

73,716

82,097

   Long-term investment

4,421

4,421

   Capital assets

7,816

7,481

   Other long-term assets

226

226

   Total assets

86,179

94,225

   Current liabilities

6,525

6,244

   Obligations under
   capital leases

305

416

   Shareholders' equity

79,349

87,565

   Total liabilities and
   shareholders' equity

86,179

94,225

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 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).

Certain statements contained in this news release, other than statements of fact that are independently verifiable at the date hereof, may constitute forward-looking statements. Such statements, based as they are on the current expectations of management, inherently involve numerous risks and uncertainties, known and unknown, many of which are beyond Neurochem's control. Such risks include but are not limited to: 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 as well as other risks included in public filings of Neurochem. Consequently, actual future results may differ materially from the anticipated results expressed in the forward-looking statements. The reader should not place undue reliance on the forward-looking statements included in this news release.

These statements speak only as of the date made and Neurochem is under no obligation and disavows any intention to update or revise such statements as a result of any event, circumstances or otherwise.

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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