NeuroSearch A/S - Financial statements 2009

Below please find the first part of NeuroSearch's financial statements 2009.
The full text can be seen from the enclosed PDF document. 

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The Board of Directors of NeuroSearch A/S today considered and adopted the
audited Annual Report for the year ended 31 December 2009. 

The NeuroSearch Group posted an operating loss of DKK 355.8 million in 2009
(2008: DKK 366.0 million), which was on a level with the forecast of a loss in
the region of DKK 350 million. NeuroSearch posted a loss after tax of DKK 287.1
million (2008: DKK 382.0 million). 

In 2009, NeuroSearch passed the most important milestone so far in the
company's history, as the first Phase III study, the MermaiHD study, of
Huntexil® for the treatment of Huntington's disease was successfully completed.
The top line results from the study, available and published in early February
2010, were positive and showed that six months' treatment with Huntexil® leads
to a significant improvement of motor symptoms in Huntington patients, and that
the drug is very well tolerated and has a very good safety profile.
Subsequently, further findings from the study have demonstrated that in
addition to a substantial symptomatic effect, Huntexil® also has potential
disease modifying properties. 

NeuroSearch is also evaluating Huntexil® in a clinical Phase IIb study in North
America and in a six-month extension phase of the MermaiHD study from which
results are expected in the second half of 2010. Based on the results from the
MermaiHD study, NeuroSearch has initiated talks with the relevant regulatory
authorities about the further process towards market registration of Huntexil®
as a new and better therapy for Huntington's disease. 

With the positive outcome of the MermaiHD study, NeuroSearch has now taken a
crucial further step towards its goal of supplying novel innovative and
effective drugs for the benefit of patients and of creating a profitable
pharmaceutical business. 

The year 2009 was also a successful year for NeuroSearch in other fields. In
June, the FDA approved the Phase III programme for tesofensine for the
treatment of obesity and based upon this NeuroSearch is evaluating the
development plan and the regulatory strategy for the product. The first Phase
III study can be initiated in the course of 2010. 

In January, an agreement was signed with GSK to increase the number of drug
candidates in development under the alliance, and in February and August new
drug discovery and development alliances were entered into with Eli Lilly and
Janssen respectively. These agreements have generated close to half a billion
Danish kroner of guaranteed funding to NeuroSearch. 

The company's capital base was further strengthened through a successful rights
issue in November 2009 with proceeds to the company of more than DKK 400
million. NeuroSearch thus entered 2010 with sound capital resources of almost
DKK 1 billion, which are to contribute to ensuring that the development of the
company's pipeline can be accelerated. This includes the initiation of Phase
III with tesofensine and of Phase II studies with ACR343 and ACR325, both of
which are new drug candidates from the same class as Huntexil®, and which are
being developed for the treatment of schizophrenia and for dyskinesias in
Parkinson's disease. 

Outlook for 2010
NeuroSearch expects a loss before financials and other shares of results in the
region of DKK 400 million in 2010. NeuroSearch expects a continuously high
level of activity in the development and commercialisation of Huntexil® and an
increased level of activity for other pipeline programmes. The drug discovery
activities are expected at the same level as in 2009 and to be related
primarily to programmes covered by agreements with external partners. 


Flemming Pedersen
CEO


Contacts persons:

Flemming Pedersen, CEO, tel: +45 4460 8214 or +45 2148 0118

Hanne Leth Hillman, Vice President, Director of Investor & Capital Market
Relations, tel: +45 4460 8212 or +45 4017 5103 


Telephone conference:
A telephone conference will be held this afternoon at 3 pm Copenhagen time (2
pm London time, 9 am New York time) during which Flemming Pedersen, CEO, Anita
Milland, Vice President & CFO and Hanne Leth Hillman, Vice President and
Director of Investor & Capital Market Relations, will present the financial
statements and answer questions. The telephone conference will be conducted in
English and the telephone number is UK: +44 207 509 5139, US: +1 718 354 1226,
International: +44 207 509 5139. The related PowerPoint presentation will be
available via www.neurosearch.com. 


About NeuroSearch - Company profile
NeuroSearch (NEUR) is a Scandinavian biopharmaceutical company listed on NASDAQ
OMX Copenhagen A/S. The core business of the company covers the development of
novel pharmaceutical agents, based on a broad and well-established drug
discovery platform, focusing on ion channels and central nervous system (CNS)
disorders. A substantial share of the activities is partner financed through
strategic alliances with Janssen Pharmaceutica, Eli Lilly and Company and
GlaxoSmithKline, and licence collaboration with Abbott. The drug pipeline
comprises eight clinical (Phase I-III) development programmes: Huntexil®
(pridopidine) for Huntington's disease (Phase III), tesofensine for obesity
(ready for Phase III), ABT-894 for ADHD (Phase II) in partnership with Abbott,
ACR343 for schizophrenia (ready for Phase II), ACR325 to treat dyskinesias in
Parkinson's disease (Phase Ib), ABT-560 for the treatment of cognitive
dysfunctions (Phase I) in collaboration with Abbott, NSD-788 for
anxiety/depression (Phase I) and NSD-721 for social anxiety disorder (Phase I)
in partnership with GSK. In addition, NeuroSearch has a broad portfolio of
preclinical drug candidates and holds equity interests in several biotech
companies.