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

merican 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 tot
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SOURCE NEUROCHEM INC.
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