Neurochem Inc and Innodia Inc announced the conclusion of an agreement whereby Neurochem has licensed to Innodia Inc its intellectual property rights relating to Neurochem's pre-clinical diabetes project in exchange for an important stake in Innodia. In addition to licensing its diabetes technology to Innodia, Neurochem is also participating in the $7.0-million private placement announced today by Innodia. Neurochem becomes Innodia's largest shareholder as a result of these two transactions with 31.1% of Innodia's total issued capital. Dr. Francesco Bellini, Chairman and CEO of Neurochem, and Dr. Francine Gervais, Neurochem's Vice President of Research and Development, will join Innodia's Board of Directors.

"This transaction clearly demonstrates Neurochem's determination to strategically focus on its core expertise and to become a focal point for excellence on diseases of the central nervous system," said Dr. Francesco Bellini, Chairman and CEO of Neurochem. "We are aligning all of our human and financial resources toward the development and commercialization of our current product pipeline, including Fibrillex for the treatment of secondary AA amyloidosis.

"At the same time, the structure of this agreement underscores Neurochem's confidence in the strong potential of this technology for the treatment of diabetes. Within Innodia, Neurochem's diabetes project will receive the benefits of focused resources and proven scientific expertise in the field of diabetes. We strongly believe that by contributing our diabetes project to a company with expertise and focus in the growing field of diabetes, we are considerably enhancing the value of this project," he added.

"Innodia is committed to discovering and developing innovative new medicines to improve the lives of the millions of people with diabetes," said Dr. Claude Vezeau, President and Chief Executive Officer of Innodia. "The acquisition of this technology from Neurochem will help us achieve our mission and is an excellent opportunity to leverage our extensive experience in diabetes drug development."