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Neurochem reports results for third quarter of fiscal 2007
Date:11/7/2007

for the year ended December 31, 2006, as well as registration statements and other public filings, which are available on SEDAR at http://www.sedar.com or on EDGAR at http://www.sec.gov.

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 the third quarter financial statements and in this document, including comparative figures, are reported in US dollars, unless otherwise specified.

For the three-month period ended September 30, 2007, the net loss amounted to $13,889,000 ($0.29 per share), compared to $16,509,000 ($0.43 per share) for the corresponding period in the previous year. For the nine-month period ended September 30, 2007, the net loss amounted to $65,389,000 ($1.54 per share), compared to $49,458,000 ($1.28 per share) for the same period last year.

The net loss for the nine-month period ended September 30, 2007, includes a non-recurring charge in the second quarter of fiscal 2007 under Canadian GAAP of $10,431,000 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 $14,568,000 for the nine-month period ended September 30, 2007.

Revenue from collaboration agreement amounted to $228,000 for the current quarter ($913,000 for the nine-month period), compared to $542,000 for the same period in the previous year ($1,609,000 for the nine-month period). 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 re
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SOURCE NEUROCHEM INC.
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