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October 4, 2000
Neurochem Inc announces year-end results
strategic alliances, completion of Phase I Clinical Trials for
Alzhemed™, Fibrillex™, Cerebril™ and
closing of CDN$36.8 Million IPO.
Neurochem Inc. (TSX : NRM) today reported its year-end results for fiscal year 2000.
The Company reported a net loss of $ 5,581,000 or $ 0.44 per common share for the year
ended June 30, 2000 ("fiscal 2000"), compared to a net loss of $ 3,584,000 or $ 0.32 per
common share for the nine months ended June 30, 1999 ("fiscal 1999"). In 1999,
the Company changed its year-end from September 30 to June 30, which accounts for the three
month shorter fiscal period.
Commenting on the past year, Dr. Louis R. Lamontagne, Neurochem's President and CEO, said
"Neurochem has made great strides forward and has been highly successful in achieving
significant milestones. The Company has secured key strategic research agreements and
corporate alliances and has completed Phase I clinical trials for its lead compounds
Fibrillex™, Alzhemed™ and Cerebril™, for the treatment
of Secondary Amyloidosis, Alzheimer's Disease and Hemorrhagic Stroke due to Cerebral
Amyloid Angiopathy respectively. With the strong alliances and collaborative agreements
we have established and the enthusiastic response of the market to our Initial Public
Offering, we have the means to move forward with our drug development programs."
As at June 30, 2000, the Company had cash and short-term investments of $32,929,000 an
increase of $26,871,000 from June 30, 1999. This increase resulted from the Company's
successful completion of an initial public offering on June 22, 2000, which raised gross
proceeds of $32,000,000.
Neurochem Inc.
Selected Financial Highlights ($'000CDN)(1)
At June 30
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1 Condensed from the Company's audited financial statements.
2 Loss per share is based on the weighted average number of common shares outstanding
during the period including the Company's shares held in escrow. Since the Company's stock
options, special warrants, warrants and after-market support options are anti-dilutive,
fully diluted loss per common share has not been presented.
For the fiscal year ended June 30, 2000, Neurochem recorded revenues of $569,000 compared to
$1,435,000 for the nine-month period ended June 30, 1999, representing a decrease of $866,000.
This decrease is due to the fact that Neurochem received its first technology access payment in
fiscal 1999 resulting from the Collaborative Research and License Agreement with H. Lundbeck A/S.
No payment was received in fiscal 2000.
Interest income on the company's cash and short term investments for the current twelve-month
period amounted to $393,000, which was $140,000 higher than the amount earned in the 1999
nine-month period, due principally to a higher average cash balance and a longer fiscal
period in 2000.
Research and development expenditures amounted to $6,857,000 before the application of research
tax credits and federal grants during the last fiscal year as compared to $5,721,000 for the 1999
nine-month period. On an annualized basis direct research and development expenditures are at
approximately the same levels for both fiscal periods.
General and administrative expenses were $1,901,000 for the twelve-month period ended June 30,
2000, compared to $2,243,000 incurred in the nine-month 1999 period. The $ 342,000 decrease
is primarily accounted for by costs associated with a delayed initial public offering in the
1999 nine-month period.
The Company further reported that on August 24th, 2000, the underwriters exercised their option to
purchase an additional 581,818 common shares at the offering price, which resulted in additional
gross proceeds of $4,800,000. The Company also has outstanding warrants which, if fully
exercised, would result in the receipt of $2,176,000. The Company believes that the net
proceeds of the initial public offering, together with its available cash and short-term
investments, expected interest income and estimated funding from research contracts, tax
credits and grants should enable the Company to finance its operations and capital needs
through the end of fiscal 2003.
The Annual General Meeting of Shareholders will be held at 10 a.m. on November 14, 2000, at
the Queen Elizabeth Hotel, 900 René-Lévesque West, Montréal,
Québec.
Neurochem is an industry leader in the development of a novel, proprietary series of
compounds that inhibit the formation, deposit and toxic effects of amyloid fibrils on
cells within the body. Neurochem's research team has been working with international
amyloid experts on the development of therapeutic cures to amyloid-related diseases,
including Alzheimer's disease, Secondary Amyloidosis , Diabetes Type II and Hemorrhagic
Stroke (due to Cerebral Amyloid Angiopathy). Neurochem has advanced three drug candidates to
clinical trials: Alzhemed™, for the treatment of Alzheimer's disease,
Fibrillex™, for Secondary Amyloidosis, and Cerebril™, for
Hemorrhagic Stroke. At present, the Company employs over 50 people and is located in
Saint-Laurent, Canada (www.neurochem.com).
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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