For the full Financial Statements 2008, please see the attathed pdf document. ------ The Board of Directors of NeuroSearch A/S today considered and adopted the audited financial statements for the year ended 31 December 2008. In 2008, the NeuroSearch Group posted a consolidated operating loss of DKK 366.0 million (2007: DKK 253.5 million), which was a slightly lower loss than the previously announced financial guidance for 2008 of a loss before financials in the region of DKK 400 million. NeuroSearch posted a loss after tax of DKK 382.0 million (2007: DKK 268.4 million). Through 2008, NeuroSearch took important steps towards attaining its primary goal of bringing new and better drugs to the market. Most important was the initiation of a pivotal clinical Phase III programme with ACR16, which is being developed as a novel treatment of Huntington's disease. NeuroSearch holds all rights to ACR16 and believe the product to be of high value and to have a very attractive commercial potential. NeuroSearch also added to the extensive clinical data package behind tesofensine for the treatment of obesity, further strengthening and advancing the drug towards initiation of Phase III development. Another late-stage product, ABT-894, in development under a collaboration with Abbott, saw mid-2008 positive results from a Phase II study in adult patients with ADHD. NeuroSearch is pursuing a strategy of continuous pipeline expansion and risk sharing, while striving also to secure sufficient financing of its drug discovery and development activities until the first product is on the market. This has led to the signing of two important agreements with GlaxoSmithKline and Eli Lilly and Company (Lilly) in the beginning of 2009. The current capital resources including research funding from partners are expected to finance the company's ongoing discovery and pipeline activities until the second half of 2010. It is NeuroSearch's goal to secure sufficient funding through partnerships until ACR16 is ready for market launch in 2011. Key pipeline milestones in 2008: ACR16 - Huntington's disease • Treatment of the first Huntington patients in MermaiHD, a European Phase III clinical study and, thus, start-up of a comprehensive pivotal Phase III programme with ACR16. • FDA approval and the start-up of HART, a clinical Phase IIb study in North America and part of the ongoing pivotal Phase III development programme with ACR16. Tesofensine - Obesity • Positive results from TIPO-2, a clinical metabolic study in overweight subjects showing significant weight loss. • A complete analysis of data from TIPO-1 (a Phase II clinical Proof of Concept study). • Positive mid-term results from TIPO-4 (a 48-week Phase II extension study of TIPO-1) - and later, in 2009, confirmatory results from the full TIPO-4. • Positive results from an abuse liability study with tesofensine. • Publication of TIPO-1 results in the peer reviewed scientific journal, The Lancet. • Positive results from a cardiovascular evaluation study supporting tesofensine's good safety profile. Other products in development • Initiation of a Phase I clinical study of NSD-788 with a view to developing this drug candidate as a new treatment for anxiety. • Positive Proof of Concept results from a Phase II study of ABT-894 for the treatment of adults suffering from ADHD was reported in June 2008. ABT-894 is licensed to Abbott. • Successful completion of Phase I studies with ACR325 and the decision to advance clinical development of the drug in Parkinson's dyskinesias. • Successful completion of Phase I studies with ACR343. Phase II development is expected initiated in 2009. • Selection of two new product candidates from NeuroSearch's drug discovery activities; NSD-847, a dopaminergic stabiliser for the treatment of psychoses and NSD-867, a cortical enhancer for the treatment of ADHD. Business events in 2008: • In January 2008, NeuroSearch issued 185,755 new shares at DKK 319.21 per share to the sellers of Carlsson Research AB as a milestone payment in connection with the start-up of Phase I clinical studies of ACR343. • Two new members were elected to NeuroSearch's Board of Directors, both with broad experience from the international pharmaceutical industry: Dr. Anders Ullman, Executive Vice President, Nycomed Altana GmbH and Dr. Gerard van Odijk, President & CEO of Teva Pharmaceuticals Europe B.V. Further, Thomas Hofman-Bang, CEO of NKT Holding A/S was elected new chairman of the Board. • NeuroSearch's associated company NsGene A/S (25% interest) reached an important milestone with its successful Phase Ib dosing of NsG0202 in Alzheimer patients. • In May 2008, NeuroSearch issued 300,000 new shares in a directed offering subscribed for by institutional investors at a price of DKK 280 per share to finance an ACR16 Phase III related milestone payment of SEK 100 million (approximately DKK 80 million/approximately EUR 10.7 million) to the sellers of Carlsson Research AB. Important events after 2008: • In January 2009, NeuroSearch announced an expansion of the alliance agreement with GSK, adding a number of novel compounds to the existing portfolio of drug candidates in development under the collaboration. The expansion included a conditional share put option for NeuroSearch to sell shares to GSK totalling up to DKK 149 million (EUR 20 million) until the end of November 2010. Under the collaboration, NeuroSearch may receive milestone payments from GSK of more than DKK 6 billion plus double-digit royalties on global sales of products from the alliance. • In February 2009, NeuroSearch reported the results from Phase II studies with ABT-894 in diabetic neuropathic pain, conducted and financed by Abbott under an existing license collaboration. In the studies, ABT-894 was well tolerated and demonstrated a good safety profile, but the drug's effect on pain reduction did not support continued development in neuropathic pain. • Further in February 2009, NeuroSearch announced a new three-year drug discovery and development alliance with Lilly focusing on new CNS therapeutics based upon defined ion channel targets. Under the alliance, NeuroSearch is eligible to receive upfront payment and research funding of up to USD 30 million (DKK 175.1 million) over three years plus substantial milestone payments and sales royalties on any product from the alliance. • On 23 February 2009, NeuroSearch announced the results from two Phase II Proof of Concept studies with NS2359 in Major Depressive Disorder, which were conducted by GSK under the existing collaboration. The results showed no statistically significant effect from treatment with NS2359 compared to placebo and no further development of the drug will be pursued in this indication. • On 2 March 2009, NeuroSearch regained global rights to ACR16, in Phase III development for the treatment of Huntington's disease, following former license partner Astellas' decision to discontinue development of ACR16 in schizophrenia after a strategic assessment of the potential for the compound in this indication. Outlook for 2009 NeuroSearch expects a loss before financials and other shares of results in the region of DKK 350 million. Flemming Pedersen CEO Contact persons: Flemming Pedersen, CEO, telephone: +45 4460 8214 or +45 2148 0118 Hanne Leth Hillman, Vice President, Director of Investor Relations & Corporate Communications, telephone: +45 4460 8212 or +45 4017 5103 Teleconference A teleconference will be held today at 3 pm Copenhagen time (2 pm London time, 9 am New York time). Flemming Pedersen, CEO, Anita Milland, Vice President, CFO and Hanne Leth Hillman, Vice President, Director of IR & Corporate Communications, will present the 2008 announcement and answer questions. The telephone conference will be conducted in English and the telephone number is +44 (0)20 7162 0077. The corresponding PowerPoint presentation will be available via www.neurosearch.com. NeuroSearch - Company profile NeuroSearch (NEUR) is a Scandinavian biopharmaceutical company listed on Nasdaq OMX Copenhagen. The company's core business covers the development of novel drugs, based on a broad and well-established drug discovery platform focusing on ion channels and CNS disorders. A substantial share of NeuroSearch's activities is partner financed through an alliance with Eli Lilly and Company and collaborations with GlaxoSmithKline (GSK) and Abbott. The drug pipeline comprises 8 clinical (Phase I-III) development programmes: ACR16 for Huntington's disease (Phase III), tesofensine for obesity (Phase III ready), ABT-894 for ADHD (Phase II) in partnership with Abbott, ACR325 for Parkinson's disease (Phase II ready), ABT-107 and ABT-560 for the treatment of various CNS disorders - both (Phase I) in collaboration with Abbott, ACR343 for Parkinson's disease (Phase I) and NSD-788 for anxiety/depression (Phase I). In addition, NeuroSearch has a broad portfolio of preclinical drug candidates and holds equity interests in several biotech companies.