Neurochem's losses hit $17.1 in 1st-qtr 2006

Canadian pharmaceutical firm Neurochem says that it made a loss of C$17.1 million ($15.5 million), or C$0.45 per share, in the first quarter of 2006, an increase on the C$16.9 million in losses it recorded in the comparable period last year. The firm attributes the higher losses to growth in its R&D investment in relation to European and US Phase III trials of its drug Alzhemed (tramiprosate) as a treatment for Alzheimer's disease.

In addition, the company's revenue in the period from its collaboration agreement with USA-based Centocor dropped to C$607,000 from C$1.2 million in the first three months of 2005. The collaboration relates to the co-development of Fibrillex (eprodisate), an oral investigational product candidate for the treatment of amyloid A amyloidosis, where the revenue is derived from a non-refundable upfront payment fee from the US company. This is being amortized over the estimated period prior to the product's anticipated regulatory approval.

The firm's general and administrative expenses totalled C$3.4 million for the quarter, a decline from the C$5.2 million which it spent last year. The group's depreciation, amortization and write-off of patents also dropped to C$493,000 from C$570,000 in the same period last year, mainly due to its entry into a sale-leaseback transaction in November 2005, with respect to its research facilities and campus located in Laval, Quebec.