Neurex Reports Financial Results for Quarter Ended September 30, 1996; CORLOPAM European Licensing Deal Finalized.

MENLO PARK, Calif.--(BUSINESS WIRE)--Nov. 12, 1996--Neurex Corporation (NASDAQ/NM: NXCO) today reported its financial results for the quarter ended September 30, 1996.

Previously Neurex announced a change in its fiscal year end to December 31. As a result of this change, 1996 operations will be audited and reported as a December 31 annual report. In addition, the Company announced that it has finalized its deal to license CORLOPAM to Beaufour Ipsen in Europe.

CORLOPAM in Europe

Neurex and Beaufour Ipsen have finalized their licensing agreement that sets the stage for the commercialization of CORLOPAM in Europe and Asia with the exception of Japan. Neurex has retained manufacturing rights and will realize manufacturing and royalty revenues from the agreement and could also receive up to $7.5 million in milestone payments and licensing fees to Neurex. The license is for intravenous and alternative delivery forms of CORLOPAM.

"CORLOPAM is a product ideally suited for Beaufour Ipsen in Europe," commented Stephane Francois, Managing Director, Beaufour Ipsen. "We already have a focus on the hospital market in Europe. CORLOPAM with its properties in managing blood pressure while maintaining kidney function during and after surgery will be a valuable addition to our portfolio," he added.

Neurex filed a New Drug Application (NDA) with the U.S. Food and Drug Administration (FDA) for CORLOPAM in June 1996 and registration has also been granted in three European countries.

Financial Results for the Quarter Ending September 30th 1996

Revenues were $1,679,000 and the net loss was $3,156,000 or $0.14 per share, for the three months ended September 30, 1996, compared to revenues of $26,000 and a net loss of $2,983,000 or $0.23 per share, for the same period in the prior year. Revenues consisted primarily of a license fee from Grunenthal for Pro-urokinase in Europe.

Research and development expenses were $4,949,000 for the three months ended September 30, 1996, compared to $2,356,000 for the same period in the prior year. The increase was a result of the growing clinical study programs. This includes CORLOPAM Phase III clinical studies, Phase III clinical studies for SNX-111 in the treatment of malignant pain, and Phase II clinical studies for SNX-111 in the prevention of brain damage following closed head trauma and CABG surgery.

General and administrative expenses were $1,164,000 for the three months ended September 30, 1996, compared to $571,000 for the same period in the prior year. The increase is primarily due to commercialization preparation and business development activities, general and patent legal fees, other professional fees and employment related expenses. Interest income was $1,335,000 for the three months ended September 30, 1996, compared to $142,000 for the same period in the prior year.

Neurex Corporation is developing products for acute care, principally in the areas of cardiorenal and neurological diseases. The Company focuses on the discovery, development and commercialization of products for acute care therapies, including emergency room, intensive care unit and pain clinic settings. Neurex' products under development, CORLOPAM and SNX-111, are currently in advanced stage human trials, each with the potential to treat multiple indications. -0-

                        Neurex Corporation
         Condensed Consolidated Statements of Operations
                           (unaudited)

                        Three Months Ended    Nine Months Ended
                           September 30,        September 30,
                        1996         1995        1996         1995

Total Revenues      $ 1,679,000    $ 26,000  $ 2,778,000  $ 2,588,000
Cost and Expenses:
 Research and
  Development         4,949,000   2,356,000   12,892,000  $ 8,207,000
 General and
  Administrative      1,164,000     571,000    2,588,000    1,538,000
 Total Costs and
  Expenses            6,113,000   2,927,000   15,480,000    9,745,000
Loss from Operations (4,434,000) (2,901,000) (12,702,000)  (7,157,000)
Interest Income       1,335,000     142,000    2,518,000      208,000
Interest Expense        (57,000)   (224,000)    (153,000)    (252,000)
Net Loss            $(3,156,000)$(2,983,000)$(10,337,000) $(7,201,000)
Let Loss Per Share       $(0.14)     $(0.23)      $(0.51)      $(0.57)
Shares used in net
loss per share
computation          22,013,000  13,065,000   22,230,000   12,565,000

                  Condensed Consolidated Balance Sheets
                               (unaudited)

                                September 30,        December 31,
Assets                              1996                1995

Cash, Cash Equivalents and
 Short-Term Investments         $90,990,000         $24,711,000
Other Current Assets                421,000             717,000
Property and Equipment, Net       1,772,000           1,629,000
Other Assets                        376,000             255,000
                                -----------         -----------
                                $93,559,000         $27,312,000

Liabilities and Stockholders'
Equity

Current Liabilities              $5,563,000           4,793,000
Long-Term Capital Lease
Obligations                         334,000             517,000
Prepaid Milestone                 1,619,000           1,468,000
Stockholders' Equity             86,043,000          20,534,000
                                -----------         -----------
                                $93,559,000         $27,312,000

Note: During 1996, the Company announced a change in its fiscal year
end to December 31.

CONTACT: Neurex Corp.

Paul Goddard Ph.D., 415/853-1500 (Chairman and CEO)