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Neurochem reports results for fourth quarter and fiscal year 2007 and important advances on corporate objectives
Date:2/20/2008

Neurochem will host a conference call Thursday, February 21, 2008, at 8:30

A.M. ET.

LAVAL, QC, Feb. 20 /PRNewswire-FirstCall/ - Neurochem Inc. (NASDAQ: NRMX; TSX: NRM) reports results for the fourth quarter and fiscal year ended December 31, 2007, and announces important advances regarding the Company's pharmaceutical and nutraceutical activities. The Company reports, for the fourth quarter, a net loss of $16,097,000 ($0.33 per share), compared to $17,011,000 ($0.44 per share) for the corresponding period in the previous year. For the year ended December 31, 2007, the net loss amounted to $81,486,000 ($1.85 per share), compared to $66,469,000 ($1.72 per share) for the same period last year. The net loss for the year ended December 31, 2007, includes a non-recurring charge in the second quarter of fiscal 2007 under Canadian GAAP of $10,430,000 relating to the $40 million 5% senior subordinated convertible notes, which were fully converted into common shares during the second quarter of 2007. In total, accretion expense amounted to $15,751,000 for the year ended December 31, 2007. As at December 31, 2007, the Company had available cash, cash equivalents and marketable securities of $58,672,000, compared to $48,758,000 at December 31, 2006. All figures are in U.S. dollars, unless otherwise specified.

Furthermore, the Company is pleased to announce the following important developments:

- The regulatory submission for the initiation of the Phase II clinical

trial with the investigational product candidate NC-503 in patients

with Type II Diabetes as well as certain features of Metabolic Syndrome

was accepted by the Therapeutic Products Directorate of Health Canada.

As a result, the first patient is expected to be enrolled shortly. The

key objectives of the study are to investigate the safety and proof-

of-concept efficacy of NC-503 on glycemic measures.

Foreign exchange loss amounted to $54,000 for the current quarter (gain of $1,130,000 for the year), compared to a gain of $245,000 for the same quarter in the previous year (loss of $280,000 for the year). Foreign exchange gains or losses arise on the movement in foreign exchange rates in relation to the Company's net monetary assets denominated in currencies other than US dollars, which is its functional and reporting currency, and consists primarily of monetary assets and liabilities denominated in Canadian dollars. Foreign exchange gains recognized for the year ended December 31, 2007, are mainly attributable to the strengthening of the Canadian dollar compared to the US dollar during the period.

Other income amounted to $287,000 for the current quarter ($1,274,000 for the year), compared to $282,000 for the same quarter in the previous year ($1,348,000 for the year). Other income consists of non-operating revenue, primarily sub-lease revenue. The 2006 income includes an amount of $293,000 in respect of the recovery of prior years' property taxes.

Share of loss in a company subject to significant influence amounted to nil for the current quarter ($327,000 for the year), compared to $489,000 for the corresponding quarter in the previous year ($2,440,000 for the year). Non-controlling interest amounted to nil for the current quarter ($109,000 for the year), compared to $162,000 for the corresponding quarter in the previous year ($801,000 for the year). These items result from the consolidation of the Company's interest in a holding company (Innodia Holding) that owns shares of Innodia Inc., for which Neurochem is the primary beneficiary. The share of loss recorded in the current year has reduced the Company's long-term investment in Innodia Holding to a nominal value. Innodia Inc. is a private, development-stage company engaged in developing novel drugs for the treatment of Type II diabetes and underlying diseases.

Liquidity and capital resources

As at December 31, 2007, the Company had available cash, cash equivalents and marketable securities of $58,672,000, compared to $48,758,000 at December 31, 2006. The increase is primarily due to proceeds received from the issue of convertible notes in May 2007 and is partially offset by funds used in operating activities.

On May 2, 2007, the Company issued $80,000,000 aggregate principal amount of convertible notes, consisting of $40,000,000 6% senior convertible notes due in 2027 and $40,000,000 5% senior subordinated convertible notes due in 2012. The 6% senior convertible notes have an initial conversion price equal to the lesser of $12.68 or the 5-day weighted average trading price of the common shares preceding any conversion, subject to adjustments in certain circumstances. The Company will pay interest on the 6% senior convertible notes until maturity on May 2, 2027, subject to earlier repurchase, redemption or conversion. The 5% senior subordinated convertible notes were subject to mandatory conversion into common shares under certain circumstances. In connection with this transaction, the Company issued warrants to purchase an aggregate of 2,250,645 common shares until May 2, 2012, at an initial purchase price of $12.68 per share, subject to adjustments in certain circumstances. . During the year ended December 31, 2007, $35,500,000 of the 6% senior convertible notes were converted into 5,619,321 common shares and the totality of the 5% senior subordinated convertible notes were converted into 4,444,449 common shares. Net proceeds from the offering were $74,279,000 and, as of December 31, 2007, $34,274,000 has yet to be spent. As at December 31, 2007, the use of proceeds has conformed in all material respects with the expectations set forth in the prospectus filed publicly.

In August 2006, the Company entered into a securities purchase agreement in respect of an equity line of credit facility (ELOC) with Cityplatz Limited (Cityplatz), that provides the Company up to $60,000,000 of funds in return for the issuance of common shares at a discount of 3.0% to market price at the time of draw downs over term, less a placement fee equal to 2.4% of gross proceeds payable to the placement agent, Rodman & Renshaw, LLC. The ELOC established by the securities purchase agreement will terminate on February 9, 2009. The ELOC shall also terminate if (i) the Company's common shares are de-listed from NASDAQ unless the common shares are listed at such time on another trading market specified in the agreement and such de-listing is in connection with a subsequent listing on another trading market specified in the agreement, (ii) the Company is subject to a change of control transaction or (iii) the Company suffers a material adverse effect which cannot be cured prior to the next drawdown notice. The Company may terminate the securities purchase agreement (i) if Cityplatz fails to fund a properly notified drawdown within five trading days of the end of the applicable settlement period or (ii) after it has drawn down at least $25,000,000 under the ELOC. Either party may also terminate the securities purchase agreement if the volume-weighted average price of the Company's common shares is below $5 per share for more than 30 consecutive trading days. Given that the current price per share has been below the minimum price as per the agreement, the agreement may be terminated at any time. As at December 31, 2007, the Company had not drawn any funds under the ELOC. See subsequent event note for terms of amendment.

"Restricted Cash" presented on the Consolidated Balance Sheet is composed of short-term investments pledged to a bank as collateral for two letters of credit; the first in the amount of $6,000,000 was issued in connection with the potentially refundable upfront payment received under the collaboration agreement with Centocor and the second in the amount of CDN$640,000 was granted in favour of a landlord in relation to the lease of a building. As at December 31, 2007, restricted cash is composed of third-party Asset-Backed Commercial Paper (ABCP). These investments were due to mature during the second quarter of 2007 but, as a result of a disruption in the credit markets, particularly in the ABCP market, they did not settle on maturity and currently remain outstanding. At the time these investments were acquired, the ABCP were rated R1-high by Dominion Bond Rating Service, which is the highest credit rating for this type of investment. The ABCP are currently subject to a restructuring proposal under a standstill agreement which is expected to result in the conversion of the ABCP into longer-term financial instruments with maturities corresponding to the underlying assets. A Pan-Canadian Investors Committee (the Committee) was established to oversee the orderly restructuring of these instruments during this standstill period. A restructuring plan was announced by the Committee on December 23, 2007, and is anticipated to be completed by the end of March, 2008. During the quarter ended December 31, 2007, the Company recorded a provision for losses in the amount of $1,184,000 in respect of ABCP, reflecting the Company's estimated reduction in the fair value of these investments as at December 31, 2007. The Company estimated the fair value of the ABCP using a probability weighted discounted cash flow approach, based on its best estimates of the time period over which the assets are going to generate cash flows ranging from 7 to 30 years based on the proposed restructuring, the coupon interest rate, the discount rate to apply to the net cash flows anticipated to be received commensurate with highly rated notes and other qualitative factors. This estimate of the fair value of the ABCP is not supported by observable market prices or rates, therefore is subject to uncertainty, including, but not limited to, the outcome of the restructuring plan being considered, the estimated amounts to be recovered, the yield of the substitute financial instruments and the timing of future cash flows. The resolution of these uncertainties could be such that the ultimate fair value of these investments may vary from the Company's current best estimate. Changes in the near term could require changes in the recognized amount of these assets. The Company does not expect there will be a material adverse impact on its business as a result of the Third Party ABCP liquidity issue. During the third and fourth quarter of 2007, both letters of credit were renewed upon their respective annual expiry, with the ABCP issued as collateral.

As at December 31, 2007, the Company's workforce comprised 170 employees.

As at January 31, 2008, the Company had 48,848,095 common shares outstanding, 220,000 common shares issuable to the Chief Executive Officer upon the achievement of specified performance targets, 2,815,233 options granted under the stock option plan, 2,884,471 shares currently issuable under the convertible notes, and 2,250,645 warrants outstanding, for a total of 57,018,444 common shares, on a fully diluted basis.

The Company believes that its available cash and short-term investments, expected interest income, potential revenues from commercialization of nutraceutical products, potential funding from partnerships, research collaborations and licensing agreements, potential proceeds from the equity line of credit facility, potential revenue from commercialization of nutraceutical products, research tax credits, grants, and access to capital markets should be sufficient to finance the Company's operations and capital needs during the ensuing fiscal year. However, in light of the uncertainties associated with the regulatory approval process, clinical trial results, commercialization of nutraceutical products, and the Company's ability to secure additional licensing, partnership and/or other agreements, further financing may be required to support the Company's operations in the future.

Change in functional and reporting currency

Effective July 1, 2007, the Company adopted the US dollar as its functional and reporting currency, as a significant portion of its revenues, expenses, assets, liabilities and financing are denominated in US dollars. Prior to that date, the Company's operations were measured in Canadian dollars and the consolidated financial statements were expressed in Canadian dollars. The Company followed the recommendations of the Emerging Issues Committee (EIC) of the Canadian Institute of Chartered Accountants (CICA), set out in EIC-130, "Translation method when the reporting currency differs from the measurement currency or there is a change in the reporting currency". In accordance with EIC-130, assets and liabilities as of June 30, 2007 were translated in US dollars using the exchange rate in effect on that date; revenues, expenses and cash flows were translated at the average rate in effect during the six-month period ended June 30, 2007, and equity transactions were translated at historical rates. For comparative purposes, historical financial statements have been restated into US dollars using the current rate method. Under this method, assets and liabilities are translated at the closing rate in effect at the end of these periods, revenues, expenses and cash flows are translated at the average rates in effect during these periods and equity transactions are translated at historical rates. Any exchange differences resulting from the translation are included in accumulated other comprehensive income presented in shareholders' equity.

Subsequent event

On February 20, 2008, the Board of Directors approved the following transactions:

(a) The issuance of 2,445,000 options to purchase common shares to be

issued under the stock option plan of the Company. The option price

per share will be determined based on the weighted average trading

price of common shares for the five days preceding the date of grant

during which the common shares were traded on the Toronto Stock

Exchange.

(b) The Company renewed the management services agreement entered into

with Picchio International Inc. to November 30, 2008.

(c) The Company entered into an amendment with respect to the

ELOC facility. The term of the ELOC facility has been extended to

February 2010. The minimum draw-down obligation by the Company has

been reduced to $15,000,000 over the term. The maximum amount of each

monthly draw-down is limited to the lower of $6,000,000 or 12.5% of

the volume-weighted price calculation of the common shares at the

time of draw-down. The common shares will be issued at a discount of

4.0% to market price if the volume-weighted average price (VWAP)

per share is $6 or higher, and 7% if the VWAP per share is lower than

$6 at the time of draw-down

Neurochem Inc.

Consolidated Financial Information(1)

(in thousands of US dollars, except per share data)

Three-month

period ended Year ended

December 31 December 31

-------------------------------------------------------------------------

Consolidated Statements

of Operations 2007 2006 2007 2006

-------------------------------------------------------------------------

-------------------------------------------------------------------------

(unaudited) (unaudited)

Revenues:

Collaboration

agreement $206 $497 $1,119 $2,106

Reimbursable costs 64 178 396 712

-------------------------------------------------------------------------

270 675 1,515 2,818

-------------------------------------------------------------------------

Expenses:

Research and

development 12,199 14,142 55,732 51,688

Research tax credits

and grants (727) (607) (2,161) (1,899)

Other research and

development charges - - - 1,127

-------------------------------------------------------------------------

11,472 13,535 53,571 50,916

General and

administrative 1,397 2,819 10,581 11,522

Arbitral award - - - 1,835

Reimbursable costs 64 178 396 712

Stock-based

compensation 1,421 924 4,275 3,569

Depreciation,

amortization

and patent cost

write-off 611 386 1,698 1,556

-------------------------------------------------------------------------

14,965 17,842 70,521 70,110

-------------------------------------------------------------------------

Loss before

undernoted items (14,695) (17,167) (69,006) (67,292)

Interest income 756 574 3,341 2,077

Interest and

bank charges (52) (68) (202) (133)

Accretion expense (1,183) (550) (15,751) (550)

Change in fair

value of embedded

derivatives 28 - (870) -

Change in fair

value of third

party asset-backed

commercial paper (1,184) - (1,184) -

Foreign exchange

gain (loss) (54) 245 1,130 (280)

Other income 287 282 1,274 1,348

Share of loss

in a company

subject to

significant

influence - (489) (327) (2,440)

Non-controlling

interest - 162 109 801

-------------------------------------------------------------------------

Net loss ($16,097) ($17,011) ($81,486) ($66,469)

-------------------------------------------------------------------------

-------------------------------------------------------------------------

Net loss per share:

Basic and diluted ($0.33) ($0.44) ($1.85) ($1.72)

-------------------------------------------------------------------------

-------------------------------------------------------------------------

Weighted average

number of

common shares

outstanding 48,896,595 38,845,937 44,030,474 38,654,063

-------------------------------------------------------------------------

-------------------------------------------------------------------------

At At

December 31 December 31

Consolidated Balance Sheets 2007 2006

-------------------------------------------------------------------------

-------------------------------------------------------------------------

Cash, cash equivalents and marketable

securities $58,672 $48,758

Other current assets 3,933 10,460

-------------------------------------------------------------------------

Total current assets 62,605 59,218

Capital assets and patents 9,996 8,992

Other long-term assets 5,830 3,192

-------------------------------------------------------------------------

Total assets $78,431 $71,402

-------------------------------------------------------------------------

-------------------------------------------------------------------------

Current liabilities $21,240 $22,377

Long-term liabilities 52,602 50,017

Non-controlling interest 680 725

Shareholders' equity 3,909 (1,717)

-------------------------------------------------------------------------

Total liabilities and shareholders' equity $78,431 $71,402

-------------------------------------------------------------------------

-------------------------------------------------------------------------

(1) Condensed from the Company's unaudited quarterly consolidated

financial statements and audited consolidated financial statements

available on SEDAR and EDGAR.

About Neurochem

Neurochem Inc. is a global health company focused on the research, development and commercip>- In order to more accurately reflect the Company's expanded business

strategy and core programs that encompass both therapeutics and branded

nutraceutical products, and following the approval by Neurochem's Board

of Directors, the name-change from Neurochem to BELLUS HEALTH(TM),

pending shareholder approval at the next annual meeting.

- Approval by Neurochem's Board of Directors for the creation of

subsidiaries for the purposes of carrying on the Company's

nutraceutical business, and as part of these new developments, the

nutraceutical business will be named OVOS NATURAL HEALTH(TM).

- An amendment under the Equity Line of Credit Facility, extending the

term to February 2010. The minimum draw-down obligation by the Company

has been reduced to $15,000,000 over the term. The maximum amount of

each monthly draw-down is limited to the lower of $6,000,000 or

12.5% of the volume-weighted price calculation of the common shares at

the time of draw-down. The common shares will be issued at a discount

of 4.0% to market price if the volume-weighted average price (VWAP)

per share is $6 or higher and 7% if the VWAP per share is lower than $6

at the time of draw-down.

"Neurochem is making significant progress in the implementation of the strategy that aims to make homotaurine available to consumers. Our drive towards the commercialization of this brand under the leadership of Mr. Gary Schmid as CEO of our nutraceutical business is geared towards potentially selling homotaurine via the Internet as early as the second quarter of 2008 and made available at retail in Canada during the third quarter of 2008," said Dr. Francesco Bellini, Chairman, President and CEO of Neurochem. "With respect to our pharmaceutical activities, we are continuing to accelerate the development of our product candidates in the field of Diabetes and Alzheimer's disease aalization of products to provide innovative health solutions to address critical unmet medical needs.

To Contact Neurochem

For additional information on Neurochem and its drug development programs, please call the North American toll-free number 1-877-680-4500 or visit our Web Site at: http://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 Inc.'s control. Such risks include but are not limited to: the impact of general economic conditions, general conditions in the pharmaceutical and/or nutraceutical industry, changes in the regulatory environment in the jurisdictions in which the Neurochem group does business, stock market volatility, fluctuations in costs, and changes to the competitive environment due to consolidation, that actual results may vary once the final and quality-controlled verification of data and analyses has been completed, as well as other risks disclosed in public filings of Neurochem Inc. Consequently, actual future results may differ materially from the anticipated results expressed in the forward-looking statements. The reader should not place undue reliance, if any, on any forward-looking statements included in this news release. These statements speak only as of the date made and Neurochem Inc. is under no obligation and disavows any intention to update or revise such statements as a result of any event, circumstances or otherwise, unless required by applicable legislation or regulation. Please see the Annual Information Form of Neurochem Inc. for further risk factors that might affect the Neurochem group and its business.

CONTACT: Lise Hebert, Ph.D., Vice President, Corporate Communications, (450) 680-4572, lhebert@neurochem.com

nd closely working with the regulatory agencies in Europe and the United States to hopefully be in a position to make KIACTA(TM) available to patients suffering from Amyloid A (AA) amyloidosis. The launch of a Phase II study for NC-503 as a treatment for Type II Diabetes as well as certain features of Metabolic Syndrome is very encouraging. As a natural extension of our work in the field of AA amyloidosis, we start with a solid base of knowledge and research already completed," Dr. Bellini concluded.

Phase II Study for Type II Diabetes as well as certain features of

Metabolic Syndrome Underway

The Phase II clinical trial is a 26 weeks multi-center, randomized, double blind, placebo-controlled and parallel-designed study that will involve approximately 200 patients with Type II Diabetes as well as certain features of Metabolic Syndrome in about 15 clinical sites in Canada.

Conference Call

Neurochem will host a conference call Thursday, February 21, 2008, at 8:30 A.M. Eastern Time. The telephone numbers to access the conference call are 1-416-644-3416 or 1-800-732-9303. A replay of the call will be available until Thursday, February 28, 2008. The telephone numbers to access the replay of the call are 1-416-640-1917 or 1-877-289-8525, for which the passcode is 21263770#. Please dial-in approximately 15 minutes before the teleconference is scheduled to begin.

Consolidated Financial Results Highlights

The following discussion and analysis should be read in conjunction with the Company's audited consolidated financial statements for the year ended December 31, 2007, which have been prepared in accordance with Canadian generally accepted accounting principles (GAAP).

Results of operations

As previously reported, effective July 1, 2007, the Company adopted the US dollar as its functional and reporting currency, as a significant portion of its revenue, expenses, assets, liabilities and financing are denominated in US dollars. All currency figures reported in this document, including comparative figures, are reported in US dollars, unless otherwise specified.

For the three-month period ended December 31, 2007, the net loss amounted to $16,097,000 ($0.33 per share), compared to $17,011,000 ($0.44 per share) for the corresponding period in the previous year. For the year ended December 31, 2007, the net loss amounted to $81,486,000 ($1.85 per share), compared to $66,469,000 ($1.72 per share) for the same period the previous year.

The net loss for the year ended December 31, 2007, includes a non-recurring charge in the second quarter of fiscal 2007 under Canadian GAAP of $10,430,000 relating to the $40 million 5% senior subordinated convertible notes, which were fully converted into common shares during the second quarter of 2007. In total, accretion expense amounted to $15,751,000 for the year ended December 31, 2007.

Revenue from collaboration agreement amounted to $206,000 for the current quarter ($1,119,000 for the year), compared to $497,000 for the same period in the previous year ($2,106,000 for the year). This revenue is earned under the agreement with Centocor, Inc. (Centocor) in respect of eprodisate (KIACTA(TM)), an oral investigational product candidate for the treatment of Amyloid A (AA) amyloidosis. Revenue recognized is in respect of the non-refundable upfront payment received from Centocor, which is being amortized over the estimated period through to the anticipated regulatory approval date of the investigational product candidate. The estimated period is subject to change based on additional information that the Company may receive periodically. The other portion of the upfront payment received from Centocor ($6,000,000) has been classified as deferred revenue and is not being amortized as earned revenue given that it is potentially refundable. In the event that the Company receives an approval letter issued by the US Food and Drug Administration (FDA), the amount would no longer be refundable and would be amortized as earned revenue.

In December 2007, the Company received an acknowledgement from the FDA that Neurochem's response to the approvable letter received in July 2007 for the New Drug Application (NDA) for eprodisate (KIACTA(TM)) for the treatment of AA amyloidosis is a complete, Class 2 response. The PDUFA (Prescription Drug User Fee Act) goal date by which the FDA is expected to render a decision is April 2, 2008. In the second approvable letter (July 2007), the FDA indicated that an additional efficacy trial will be necessary before the FDA could approve the investigational product candidate. The approvable letter also states that additional submissions, filed by Neurochem as part of its response to this approvable letter, may address issues raised in this letter. The FDA has indicated that additional submissions could persuade the agency to eliminate the requirement for an additional trial. The FDA also asked for additional information, including further pharmacokinetic studies, and again acknowledged that a QT clinical study should be submitted as part of a Phase IV (post-approval) commitment.

Neurochem has also submitted for marketing approval eprodisate (KIACTA(TM)) for the treatment of AA amyloidosis in the European Union and Switzerland. In December 2007, the Committee for Medicinal Products for Human Use (CHMP), the scientific committee of the European Medicines Agency (EMEA), issued a negative opinion recommending refusal of the marketing authorization application (MAA) for eprodisate (KIACTA(TM)) for the treatment of AA amyloidosis in the European Union and concluded that another study would be needed to demonstrate eprodisate's (KIACTA(TM)) effectiveness. The Company requested a re-examination of the opinion by CHMP. As provided by the European regulations, the Company requested that the CHMP consult a Scientific Advisory Group in connection with the re-examination. The MAA is being reviewed under the EMEA's centralized procedure. An authorization from the EMEA would apply to all 27 European Union member states, as well as Norway and Iceland.

The decrease in revenue from collaboration agreement for the current periods compared to the same periods in the previous year is mainly attributable to a change in the estimated period over which the non-refundable upfront payment received from Centocor in respect of eprodisate (KIACTA(TM)) is being amortized.

Reimbursable costs revenue amounted to $64,000 for the current quarter ($396,000 for the year), compared to $178,000 for the same period in the previous year ($712,000 for the year) and consists of costs reimbursable by Centocor in respect of eprodisate (KIACTA(TM))-related activities. The Company earns no margin on these reimbursable costs.

Research and development expenses, before research tax credits and grants, amounted to $12,199,000 for the current quarter ($55,732,000 for the year), compared to $14,142,000 for the same period in the previous year ($51,688,000 for the year). The decrease in the current quarter compared to the same period the previous year is mainly attributable to a reduction in expenses incurred in relation to the development of tramiprosate (ALZHEMED(TM)), primarily in respect of the North American Phase III clinical trial. Also, during the second quarter of 2007, the workforce was reduced due to delay encountered in the product candidate development programs. The increase in the current year compared to the same period the previous year is due to expenses incurred in relation to the development of tramiprosate (ALZHEMED(TM)), primarily in respect of the Phase III clinical trial in Europe and the North American open-label extension of the Phase III study, as well as the conduct of a QT cardiac status Phase I study. For the year ended December 31, 2007, research and development expenses also included costs incurred to support the North American Phase III clinical trial for tramiprosate (ALZHEMED(TM)), the open-label extension of the eprodisate (KIACTA(TM)) Phase II/III study, as well as ongoing drug discovery programs.

In November 2007, the Company announced important initiatives following key events that took place over the past year. The Company announced the termination of the tramiprosate (ALZHEMED(TM); homotaurine) pharmaceutical drug development program, including the early termination of its European Phase III clinical trial, and the advancement of its next generation prodrug of tramiprosate (ALZHEMED(TM)) into preclinical development for the treatment of Alzheimer's disease (AD). Also, the Company announced its decision to take steps to commercialize homotaurine as a branded nutraceutical, potentially starting as early as 2008.

Research tax credits and grants amounted to $727,000 this quarter ($2,161,000 for the year), compared to $607,000 for the corresponding period in the previous year ($1,899,000 for the year). Research tax credits represent refundable tax credits earned under the Quebec Scientific Research and Experimental Development Program for expenditures incurred in Quebec. The increase is due to higher eligible expenditures in the current periods and the realization of tax credits from prior years that met the criteria for recognition in the current year.

Other research and development charges amounted to nil for the current quarter and year, compared to $1,127,000 for the quarter and year ended December 31, 2006. In 2006, the Quebec taxation authorities confirmed their position in the application of the tax credit program that denied tax credits on research and development taxable benefits relating to stock options for 2005 and prior years. Accordingly, management determined at that time that the criteria for recognition of these credits were no longer met and recorded a provision for these research tax credits.

General and administrative expenses totaled $1,397,000 for the current quarter ($10,581,000 for the year), compared to $2,819,000 for the same quarter in the previous year ($11,522,000 for the year). These costs are incurred to support the overall activities of the Company. The decrease is mainly attributable to a reduction in management bonuses, and in performance-based fees due to Picchio International Inc.

Arbitral award amounted to nil for the current quarter and year compared to nil for the quarter ended December 31, 2006 and $1,835,000 for the year ended December 31, 2006. This expense related to the dispute with Immtech Pharmaceuticals, Inc. (formerly known as Immtech International, Inc. (Immtech), which came to a conclusion in January 2007 when Immtech, the University of North Carolina at Chapel Hill (UNC), and Georgia State University Research Foundation, Inc. filed with the Federal District Court for the Southern District of New York, U.S.A. a Notice of Voluntary Dismissal. The plaintiffs voluntarily dismissed their complaint against Neurochem in the Federal District Court without any payment, license, business agreement, concession or compromise by Neurochem.

Reimbursable costs amounted to $64,000 for the current quarter ($396,000 for the year), compared to $178,000 for the same period in the previous year ($712,000 for the year), and consist of costs incurred on behalf of Centocor in respect of eprodisate (KIACTA(TM))-related activities and reimbursable by Centocor.

Stock-based compensation amounted to $1,421,000 for the current quarter ($4,275,000 for the year), compared to $924,000 for the corresponding quarter in the previous year ($3,569,000 for the year). This expense relates to stock options and stock-based incentives, whereby compensation cost in relation to stock options is measured at fair value at the date of grant and is expensed over the award's vesting period. The increase is due to new stock options granted during the past year.

Depreciation, amortization and patent cost write-off amounted to $611,000 for the current quarter ($1,698,000 for the year), compared to $386,000 for the corresponding quarter in the previous year ($1,556,000 for the year). The increase is attributable to patent cost of $239,000 written off during the year, for which no future benefit was expected to be realized.

Interest income amounted to $756,000 for the current quarter ($3,341,000 for the year), compared to $574,000 for the same quarter in the previous year ($2,077,000 for the year). The increase is mainly attributable to higher average cash balances during the current periods, compared to the same periods in the previous year.

Accretion expense amounted to $1,183,000 for the current quarter ($15,751,000 for the year), compared to $550,000 for the same quarter in the previous year ($550,000 for the year). Accretion expense represents the imputed interest under GAAP on the $42,085,000 aggregate principal amount of 6% convertible senior notes issued in November 2006, as well as on the $40,000,000 6% senior convertible notes (Senior Notes) and $40,000,000 5% senior subordinated convertible notes (Junior Notes) issued in May 2007. The Company accretes the carrying values of the convertible notes to their face value through a charge to earnings over their expected lives of 60 months, 54 months and 1 month, respectively. Of the total accretion expense recorded in the year ended December 31, 2007, $10,430,000 relates to accretion expense on the Junior Notes, which were fully converted during the second quarter of 2007. Refer to the Liquidity and Capital Resources section for more details on the convertible notes.

Change in fair value of embedded derivatives amounted to a gain of $28,000 for the current quarter (loss of $870,000 for the year) and represents the variation in the fair value of the embedded derivatives included in the aggregate $80,000,000 Senior and Junior Notes issued in May 2007.

Change in fair va
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SOURCE NEUROCHEM INC.
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10. Platinum Underwriters Holdings, Ltd. Reports Record Fourth Quarter and Year Ended December 31, 2007 Financial Results
11. Onyx Pharmaceuticals Reports Fourth Quarter and Twelve-Month 2007 Financial Results
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(Date:2/8/2016)... a historic vote among its members this weekend, the Shinnecock Indian Nation ... and dispensary on tribal land near Southampton . ... for patients in the state,s Medical Cannabis Program. --> ... in the state,s Medical Cannabis Program. --> Tribal members ... designation from the State of New York as ...
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