Announcement

-- The strategic goal of NeuroSearch is to become a profitable CNS speciality
pharma company following first product launch
-- The pharma business will be strengthened to advance its portfolio of CNS
speciality drugs and to build commercial competence
-- Huntexil® for Huntington's disease is the lead asset, and meetings with
the major regulatory agencies are planned for the first half of 2011 to
define the strategy until registration of the drug
-- From January 2011, all ion channel drug discovery activities and existing
partner alliances will be organised in a new division, NsDiscovery
-- Cost reductions, including a planned reduction of the work-force of
approximately 20%, are expected to reduce the annual cost base for
NeuroSearch by approximately DKK 100 million, with the full benefit being
realised in 2012
-- The management team has been realigned and strengthened to support the new
corporate structure


Copenhagen, 11 January 2011 - Today, NeuroSearch (NEUR), a European based
biopharmaceutical company, announced a re-structuring of the organisation to
ensure full support to the strategy of becoming a profitable speciality pharma
company focused on diseases of the central nervous system (CNS). The lead asset
to realise this strategic objective is Huntexil®, a unique orphan product which
holds promise as an important therapeutic advance for patients with
Huntington's disease.

The basis for the restructuring of NeuroSearch is to ensure that optimal
resources are placed behind Huntexil® on its path towards commercialisation.
This includes working towards filing and regulatory approval as soon as
possible and, over time, the building of an in-house marketing and sales
organisation to cover key markets, including those of North America and Europe.
Furthermore, NeuroSearch intends to strengthen and re-focus its clinical and
business development activities with a view to advancing the pipeline of CNS
speciality drugs to follow after Huntexil®.

With immediate effect, the Ballerup, Copenhagen-based drug discovery activities
of NeuroSearch will be organised in a new division, NsDiscovery. NsDiscovery
will build on the unique capabilities of NeuroSearch in CNS related and ion
channel based drug discovery and the long standing track record of the company
to secure partner alliances with pharmaceutical companies. The current
collaboration alliances with Eli Lilly and Janssen as well as the license
agreement with Abbott will be managed by the NsDiscovery division.

NeuroSearch Sweden AB will continue as a speciality CNS focused research unit
organised as part of the pharma business and separate from NsDiscovery.

The NeuroSearch pipeline of drug candidates for non-speciality indications,
including tesofensine for the treatment of obesity, will be managed under
NsDiscovery as part of this division's intensified partner activities.
NeuroSearch will not alone invest further in the development of tesofensine and
is in dialogue with potential partners to ensure that the product can be
appropriately developed.

The organisational re-structuring is planned to include a staff reduction of
approximately 20%. Combined with a number of other initiatives, this is
expected to reduce the annual cost base of the NeuroSearch organisation by
approximately DKK 100 million, with full benefits being realised in 2012.

Patrik Dahlen, CEO of NeuroSearch, commented:
“The re-organisation of NeuroSearch into two separate business units with
individual business models will enable us to make better use of our resources
in support of our corporate strategy. We remain fully committed to bringing
Huntexil® to the market as soon as possible to benefit patients with
Huntington's disease. We look forward to the planned dialogue with regulators
in the months to come and to defining the best path towards registration of the
drug as the first product to be commercialised by NeuroSearch.

At the same time, we believe NsDiscovery provides a strong foundation for the
continued development of our drug discovery platform, with world-class
competences in the field of ion-channel research and CNS diseases. This
platform has continuously attracted strong collaborative interest and financial
support from large pharmaceutical and biopharmaceutical companies, and we see
this as the basis for the division's continued success.

I regret that as part of our effort to conserve cash we expect to reduce the
number of our highly skilled and dedicated NeuroSearch employees, all of whom
have played such an important role in the development of the company. We will
now work together with our staff to provide those leaving with the best
possible prospects for a future career outside NeuroSearch.”

NeuroSearch - A focused CNS speciality pharma organisation
The NeuroSearch speciality pharma organisation will strengthen its business
focus on the development and the commercialisation of novel drugs for the
treatment of selectedneurological and psychiatric disorders. The primary
strategic objective is to build a profitable business based on revenues from
the sale of our own products and to grow our portfolio of speciality CNS drugs,
through in-house drug discovery and research, as well as from external drug
discovery and development partnerships and in-licensing/product acquisitions.

With Huntexil®(pridopidine) as the lead product, the speciality CNS drug
portfolio comprises the following candidates:

(Please see PDF version for graphic illustration of the pipeline)

Huntexil®
In a large Phase II/III programme Huntexil® has shown promising and beneficial
effects on motor function in patients with Huntington's disease and a
favourable safety profile. Huntington's disease is an orphan indication,
representing an area of significant unmet medical need. Only very limited
treatment options exist for these patients, and based on the results seen with
Huntexil®, NeuroSearch believes that this drug shows promise as an important
advance in the treatment of this disease.

NeuroSearch is planning to present and discuss the existing data package on
Huntexil® with regulatory authorities in the US and Europe during the first
half of 2011. The outcome of these discussions will be important in defining
the best strategy to obtain regulatory approval of the drug as a novel
treatment for Huntington's disease. Huntexil® is the most advanced drug from a
novel class of pharmaceutical agents, the dopidines, established by
NeuroSearch, and having unique dopaminergic stabilising properties

Ordopidine and seridopidine
Ordopidine and seridopidine both belong to the same drug class as Huntexil® and
are targeting speciality neurology indications. These drug candidates are
expected to be the first in-house discovered speciality products to follow
after Huntexil®.

With ordopidine, NeuroSearch is currently conducting a Phase Ib safety study in
patients with Parkinson's disease and plans to initiate a Phase II study in the
treatment of L-Dopa induced dyskinesias in Parkinson's disease in 2011. For
seridopidine, NeuroSearch is evaluating several selected speciality CNS
indications, including Tourette's syndrome and freezing of gait/postural
dysfunction in Parkinson's disease. The first Phase II Proof of Concept study
is expected to be initiated in 2011.

Other speciality drug candidates
NSD-726, identified by NsDiscovery, is a selective modulator of a specific ion
channel. Preclinical experiments have indicated promising neuroprotective
effects of this mechanism of action in the treatment of Huntington's disease.

NSD-801 is a novel drug candidate selected from another NsDiscovery ion channel
programme, representing a new approach in the treatment of movement disorders.
The drug candidate has shown promising effect in models of ataxia, a complex
group of rare neurological diseases involving lack of muscle coordination.
Today, no medical treatment exists for ataxia.

NsDiscovery - A partner focused drug discovery organisation
The establishment of NsDiscovery will create a highly specialised CNS focused
drug discovery entity based on partnerships. NsDiscovery will manage all the
ion channel drug discovery activities of NeuroSearch and build its business on
the company's
long-standing track record of successful drug discovery and development
collaborations with pharmaceutical companies. The objective is to obtain
research funding as well as milestone and royalty payments from products
marketed by partners in large pharmaceutical markets.

NsDiscovery has ongoing drug discovery and development alliance agreements with
Eli Lilly and Janssen and a license agreement with Abbott.

The NeuroSearch management team and the management structure of NsDiscovery
As part of the corporate re-structuring and to support the two separate
business organisations and the strategy of NeuroSearch, a number of changes
have been implemented to the company's management:

René Schneider will be appointed to the position of Executive Vice President
and Chief Financial Officer effective from 1 February 2011. René Schneider
comes from Novo Nordisk, where he held the position of Vice President,
Corporate Finance. He holds a M.Sc in Economics and Management from the Aarhus
University, Denmark, and has almost ten years of experience from different
financial management positions in NNIT and Novo Nordisk.

Karin Garre, who joined NeuroSearch as ad interim Chief Medical Officer on 1
December 2010, has been confirmed to the position of Executive Vice President,
Drug Development and Chief Medical Officer.

Nicholas Waters continues as Head of NeuroSearch Sweden AB with the title of
Executive Vice President, Drug Research.

Finn E. Sørensen continues in the position of Executive Vice President and
Chief Business Officer.

NeuroSearch is in the process of recruiting an internationally experienced
senior individual to the position of Executive Vice President, Marketing and
Sales.

Thomas Varming is appointed to the position of Executive Vice President,
NsDiscovery. He holds a Ph.D in Neuropharmacology and has worked for
NeuroSearch for more than 17 years, including several years in key corporate
positions, including Head of Research Administration and Head of Corporate
Affairs.

The management team of NsDiscovery will consist of Thomas Varming, Jørgen
Drejer and Daniel B. Timmermann.

Jørgen Drejer, who is a co-founder of NeuroSearch, is appointed to the position
of Senior Vice President, Chief Science and Business Officer in NsDiscovery. On
corporate matters, including the associated companies of NeuroSearch, Jørgen
Drejer will report directly to Patrik Dahlen.

Daniel B. Timmermann has been appointed to the position of Senior Vice
President, Chief Operating Officer and will hold responsibility for the line
organisation of NsDiscovery. Daniel B. Timmermann, who holds a Ph.D in
Neuropharmacology, has worked for NeuroSearch for ten years, where he has held
senior line positions and headed several projects and partner alliance
programmes.

(Please see PDF version for graphic illustration of the organisation)

Anita Milland, who has held the title as Vice President and CFO of NeuroSearch
for the past four and a half years, will continue in her current function and
with the title of Vice President, Accounting, Administration and Human Resource
Management.

Executive Vice President, Director of Drug Development and co-founder, Frank
Wätjen, will leave NeuroSearch.

Hanne Leth Hillman, Vice President and Director of IR & Capital Market
Relations, has resigned from her position at NeuroSearch and will be leaving
the company on 28 February 2011 to assume new responsibilities externally.

Patrik Dahlen commented further:
“When the new management team is complete, I believe that NeuroSearch will
benefit from the right leadership competences to continue the successful
development of the company and accelerate our progress towards profitability.”

Planned cost reductions
As part of the organisational restructuring and the related initiatives to
re-focus the businesses, the management of NeuroSearch plans to reduce
head-count by about 20%.

NeuroSearch will as soon as possible initiate negotiations with employee
representatives in accordance with prevailing rules and legislation and to
ensure the best possible support for all the employees involved.

Financial guidance
NeuroSearch will give financial guidance for 2011 in connection with the
company's Annual Report for 2010 on 10 March 2011.

Patrik Dahlen
CEO



Contact persons:
Patrik Dahlen, CEO, telephone: +45 4460 8214 or +45 2629 7296

Conference call
NeuroSearch will host a conference call today, 11:30 am local time (10:30 am UK
time/5:30 am EST) to further present and discuss the announced corporate
restructuring. Participating in the call will be CEO Patrik Dahlen and the
other appointed members of the new executive management team. The conference
call will be conducted in English and the dial-in numbers are: UK and
International +44 208 817 9301, US +1 718 354 1226 and DK +45 3271 4767. The
conference call can also be followed on the company's website via the following
link: http://webcast.zoomvision.se/denmark/clients/neurosearch/11_797


About NeuroSearch
NeuroSearch A/S is a European based biopharmaceutical company, specialising in
CNS diseases, and listed on NASDAQ OMX Copenhagen A/S (NEUR). The company has a
pipeline of speciality CNS drugs, including the lead product Huntexil®
(pridopidine), a unique orphan drug in Phase III for the treatment of
Huntington's disease. NeuroSearch is building commercial competences with a
view to commercialising Huntexil® through an in-house marketing and sales
organisation.

NeuroSearch has a well-established drug discovery division, NsDiscovery, with
unique capabilities in the field of ion channels and monoamine transporters.
The company has strategic drug discovery and development alliances with Janssen
Pharmaceutica and Eli Lilly as well as a licence collaboration with Abbott.
NeuroSearch also has equity interests in a number of private companies in the
Life Science industry.