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									                                                                                      NTII
                                                                     Neurobiological Technologies, Inc.


  February 10, 2005           A Convergence of Advancements

                              Royalty payments keep rolling in

Ranking:                      The continuous revenue stream from Namenda (Memantine) sales and a strong cash
BUY                           position allow NTII to concentrate on its clinical trial prospects. Three (3) phase III
                              clinical applications, including the Viprinex™ P III compound (Fast Track status
                              approved), focuses attention to potential share price appreciation. We emphasize that,
Price at 02/09/05:            due to FRX shipments, NTII should realize some dramatic milestone payments in 2005
$4.27                         and 2006. NTII continues to be a candidate for acquisition or consolidation into
                              another Biotech or Pharma in this weakened period of share price depreciation.
Price target:
$6.25-7.00                    A purposeful mission
Market Capitalization:        Neurobiological Technologies, Inc (NTII) is a drug development company focused on
$115.5 m                      the clinical evaluation and regulatory approval of neurological drugs. NTII develops
                              neuroprotective and neuromodulatory agents to treat progressive neurological
                              impairments characteristic of various nervous system disorders, including diabetic
Shares Outstanding:
                              neuropathy and brain cancer. NTII’s strategy is to in-license and develop later stage
26.85 m                       drug candidates that target major medical needs and that can be rapidly
                              commercialized. Currently, NTII receives revenues on the approved Namenda sales,
Exchange:                     has two product candidates in Phase lll clinical development and one partnered
                              compound in advanced trials.
NASDAQ
                              The pathways of progress

                              Namenda (Memantine) has been approved as a Neuroprotectant or neuromodulatory
                              drug to treat progressive neurological impairment due to neuronal injury. Memantine
                              is an orally-available compound that may restore functional neuronal impairment
                              associated with a number of disorders, including chronic conditions of neuropathic
                              pain, dementia, and Alzheimer's disease, as well as acute conditions of traumatic
                              brain injury and stroke. NTII is also developing XERECEPT®, its synthetic
                              preparation of the natural human peptide Corticotropin-Releasing Factor (CRF), for
                              reduction of cerebral edema associated with brain cancer (peritumoral brain edema).
                              A fourth compound, Viprinex™ is a late-stage perfusion therapy for use in the
                              treatment of acute ischemic stroke (AIS), which affects more than 600,000 patients in
                              the U.S. annually. AIS is an untreated (after 3 hours from time of stroke) and poorly
                              served condition.


                              Timing of clinical trials and collaborations
  Henry McCusker
  617.236.6396                The clinical protocol and outcomes of the XERECEPT® Phase III trials and the
  hwm@scimitarequity.com      initiation of Viprinex™ P III trials (now fast-tracked by the FDA) will play a major role in
                              2005. Opportune endpoint decisions and patient recruitment are being ramped-up.
                              Timing of these patients’ trials will significantly affect the share price. Looking forward,
  Please read the important   NTII’s clinical promise and stock performance remain closely linked to investors’
  Disclosures Section         perception of the three (3) late-stage clinical trial initiation and regulatory filings. On-
  At the end of this review   going partnering initiatives for Viprinex™ and the continuous progress of license
                              payments for Namenda product approval and launches will be occurring in the non
                              US markets.
                                                                                                           Neurobiological Technologies, Inc.


                                                               Financial Metrics

                                      SHARE PRICE


                                            $4.27                                                           SHARE STATISTICS
                                                                                          Average Volume (3 month)                       48,818
                                                                                          Average Volume ( 10 Day )                      82,000


                                                                                          Shares Outstanding                             26.85m
                                                                                          Float                                         23.70 m
                                MARKET CAPITALIZATION

                                                                                          % Held By Insiders                             11.11%
                                        $115.5 m                                          % Held By Institutions                         24.44%


                                                                                          Shares Short (10-Jan-05)                      103.00 k
                                                                                          Short Ratio (10-Jan-05)                         2.191

                                VALUATION STATISTICS
                                                                                          Beta                                            1.905

                 Enterprise Value (09-Feb-05)           114.56 m                          52-Week Change                                -29.27%
                                                                                          52-Week Change
                                                                                                                                        -32.61%
                                                                                          (relative to S&P500)
                 Price/Sales                               35.22
                 Price/Book                                 5.09                          52-Week High (11-Feb-04)                          6.65
                                                                                          52-Week Low (13-Aug-04)                           2.37

                 Enterprise Value/Revenue                  34.79
                                                                                          50-Day Moving Average                             4.30
                                                                                          200-Day Moving Average                            3.86




                                 INCOME STATEMENT                                                            BALANCE SHEET

                 Revenue                                  3.29 m                          Total Cash                                    15.13 m
                 Revenue Per Share                         0.143                          Total Cash Per Share                             0.56
                 Revenue Growth                          40.80%                           L-T Debt                                            0
                 Gross Profit                             2.79 m                          L-T Debt/Equity                                     0
                 EBITDA                                  -7.18 m                          Current Ratio                                  11.612
                 Net Income (Avl to
                                                         -6.69 m                          Book Value Per Share                             0.84
                 Common)
                 Diluted EPS                               -0.28




        MANAGEMENT EFFECTIVENESS                                        PROFITABILITY                                          CASH FLOW STATEMENT


  Return on Assets                           -43.90%    Profit Margin                                N/A
  Return on equity                           -48.16%    Operating Margin                             N/A              From Operations                -2.17 m




                                                                            FISCAL YEAR


                                                        Fiscal Year Ends:                         30-Jun



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2/10/2005                                                                          2
                                                                        Neurobiological Technologies, Inc.


                  Investment Thesis

                  A continuous revenue stream from Namenda (Memantine) sales and a strong cash position allow
                  NTII to concentrate on its clinical trial prospects. Three (3) phase III clinical applications, including
                  the P lll (Viprinex™) compound, focuses attention to potential share price appreciation. We
                  emphasize that, due to the level of Forest Laboratories, Inc. (FRX) shipments, NTII should realize
                  some dramatic milestone payments in 2005 and 2006.

                  Neurobiological Technologies, Inc. (NTII) is a small-cap stock that continues to be subjected to
                  the short term effects of investors agonizing over pharmaceutical stocks’ past performance in mid-
                  late 2004. Since that time, the healthcare and biotechnology sectors have rebounded modestly.
                  Potential lawsuits for makers of NSAIDS and COX-2 inhibitors drugs (VIOXX-Merck
                  Pharmaceuticals; and Bextra and Celebrex- Pfizer Pharmaceuticals) have still left investors shaky
                  in the healthcare market.

                  Profitable companies in the biotechnology arena, such as, Genentech and Amgen, will most likely
                  lead the way in 2005 for the sector and attract institutional investors. Small cap portfolios will also
                  likely invest in biotechnology companies with late stage development drugs such as NTII.
                  Companies with drugs focused on neurological disorders have significant growth prospects for
                  2005. NTII has several tangible milestones to meet during 2005, which should reaffirm our
                  confidence in its near and long term initiatives. The sector exhibits extremely volatile reactions to
                  clinical and regulatory developments.

                  NTII’s continued revenue growth and perceived undervaluation makes it an appropriate target
                  company for buy and hold investors who are looking for potential growth in their small-cap
                  portfolios. Forest (Namenda) and Lundbeck (Ebixa) are projected to continue growth in their
                  sales of the Memantine compound for Alzheimer’s in 2005 and the following years. Royalty
                  revenues, approximately 1% of sales, will help offset the costs of developing XERECEPT® and
                  Viprinex™. XERECEPT® and Viprinex™ are where we feel the long term value of NTII will lie.
                  Forest also expects Phase II results of Memantine for diabetic neuropathy to come out by the end
                  of the quarter ending 3/31/2005. Because of volatile past results, we are excluding the compound
                  from our valuation projections this quarter, and will wait patiently for upcoming results. Future
                  value to the firm will be added, if and when, Forest decides to commence a Phase III trial of
                  Memantine for diabetic Neuropathy.

                  NTII has developed XERECEPT®, a synthetic preparation of the natural peptide, Corticotrophin-
                  Releasing Factor (CRF), for reduction of cerebral edema associated with brain cancer.
                  XERECEPT® has also received orphan drug designation. Approximately 150,000 people each
                  year in the U.S. experience peritumoral brain swelling or edema (PBS). The first pivotal Phase III
                  trial for XERECEPT® commenced in April 2004 with 200 patients; the second pivotal Phase III
                  trial is scheduled to start in the first quarter of calendar year 2005 (originally scheduled at end of
                  2004, delayed because of supply of XERECEPT® for trial). An attractive feature of this clinical
                  trial is that there is no approved treatment for peritumoral brain swelling (PBS). NTII’s estimated
                  royalty rate from XERECEPT® will be 40% of sales. An NDA submission may occur within an 18-
                  24 month time frame (second half 2006 to early 2007). Pharmos' recent failure highlights NTII’s
                  viability as a comparable PBS.

                  Viprinex™ adds a tremendous potential value to NTII. The indication for its use is for ischemic
                  stroke. Stroke is the third leading cause of death in the United States and has a $53 billion annual
                  cost to the US economy. Currently, there are poor treatment options for ischemic stroke that have
                  high bleed rates and only a three hour treatment window from time of stroke. Viprinex™ obtained
                  Fast Track status by the FDA on 1/28/2005, and this new status can speed up the process for
                  possible FDA approval. Viprinex™ may have the potential for a 6 hour treatment window from
                  time of stroke. Phase III trials are expected to commence during the second half of 2005 and are
                  expected to run for a period of 12 to 18 months. If approved, NTII’s stock will go through the roof.




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2/10/2005                                               3
                                                                  Neurobiological Technologies, Inc.

                      Company Description

                      NTII was founded in 1988 and went public in February 1994. It is located in Richmond,
                      California employing eighteen people, sixteen of whom are full-time employees. In 1995,
                      NTII acquired commercial rights to Memantine, an orally available neuroprotective agent that
                      acts to modulate the N-methyl-D-aspartate ("NMDA") receptor in the central nervous system.
                      NTII licensed the rights to Memantine to development partners, but retained royalty rights
                      from the sale of Memantine (Namenda). In April 1998, NTII entered into a strategic research
                      and marketing alliance with Merz to further the development and commercialization of
                      Memantine. Merz has marketed Memantine in Germany since 1989 with the labeling
                      "dementia syndrome." Memantine received European marketing approval in May 2002 for
                      the treatment of moderate to severe Alzheimer’s disease. In June 2000, Merz + Co. entered
                      into an agreement with Forest Laboratories, Inc. for the development and marketing of
                      Memantine in the United States for the treatment of Alzheimer’s disease, neuropathic pain,
                      and AIDS-related dementia. In August 2000, Merz + Co. entered in an agreement granting H.
                      Lundbeck A/S exclusive rights to market Memantine in certain European markets and in
                      Canada, Australia and South Africa and semi-exclusive rights to co-market Memantine with
                      Merz + Co. in other markets worldwide excluding the United States. Lundbeck’s strategic
                      partner, Forest Laboratories, Inc., holds the right to the U.S. market for Memantine. Forest
                      Laboratories, the U.S. marketer, filed a New Drug Application with the FDA which was
                      approved in September 2003 for the use of Memantine in the treatment of Alzheimer's
                      disease. In Japan, Memantine is under development by Merz’s collaborative partner
                      Suntory/Dai-Ichi Ltd.

                      NTII’s Memantine has demonstrated positive results in treating patients suffering from painful
                      diabetic neuropathy. The neuropathic pain of diabetes is a chronic disorder that affects an
                      estimated 16 million Americans. One of its most common complications is nerve damage,
                      particularly damage to peripheral nerves that send sensory signals from the extremities to
                      the central nervous system, or CNS. This condition, referred to as peripheral diabetic
                      neuropathy, or PDN, is a large, unmet medical need. This condition most frequently
                      damages nerves in the feet, making walking or standing painful and difficult. We estimate
                      that approximately 800,000 patients in the US currently receives treatment for the symptoms
                      of PDN, including severe, chronic pain known as neuropathic pain (persistent pain in the
                      absence of an obvious stimulus).

                      NTII is developing XERECEPT®, its synthetic preparation of the natural human peptide
                      Corticotropin-Releasing Factor (CRF), for reduction of cerebral edema associated with brain
                      cancer (peritumoral brain edema). In April 1998, XERECEPT® received orphan drug
                      designation from the FDA for peritumoral brain edema. Orphan drug designation provides
                      NTII with seven years market exclusivity and makes NTII eligible to receive Orphan Drug
                      Grants to fund clinical research. In fiscal 2004, animal toxicology studies were completed and
                      the FDA undertook extensive review of the clinical trial designs for two pivotal trials for the
                      treatment of peritumoral brain edema. In April 2004, enrollment began in one trial, which has
                      a target enrollment of 200 patients. The second pivotal trial is scheduled to begin in early
                      2005 and is expected to enroll 120 patients. NTII completed a Phase II trial of XERECEPT®
                      and presented promising results at the annual meeting of the American Academy of
                      Neurology in May 2000. The Company expects the trial to be completed within eighteen
                      months.

                      Viprinex™ (Fast track status granted by FDA 1/28/2005), the recent NTII PIII compound
                      acquisition, is a thrombin-like enzyme that is highly specific to fibrinogen. A U.S. Phase III
                      clinical study was completed in 1998 to evaluate the safety and efficacy of Viprinex™ in 500
                      patients. In this study, Viprinex™ was shown to be effective in preserving neurological
                      function in this patient population. A separate Phase III study was completed in Europe in
                      2000, enrolling patients within six hours of onset of acute ischemic stroke. The trial was
                      stopped after a planned interim analysis indicated lack of efficacy and increased incidence of
                      intracranial hemorrhage. The higher dosing levels in the European trial and the protocol
                      criteria are thought to have contributed to the trial's failure. A review of the positive U.S.
                      findings versus the European findings has suggested the need for a revised Viprinex™
                      dosing strategy, which will be integrated into the new Phase III study.
_________________________________________________________________________
2/10/2005                                          4
                                                                    Neurobiological Technologies, Inc.


                        Investment Risks

                        While we believe that Neurobiological’s outlook is attractive, we retain an extra degree of
                        caution due to clinical expectations of any new and clinical testing compounds. It will take at
                        least six months to a year to define, administer, and recruit patients and measure clinical
                        endpoints for XERECEPT® and Viprinex™. Scimitar contends that NTII is currently
                        demonstrating its vision by managing clinical expectations. Shareholders should understand
                        and focus on regulatory timelines and managing platform integration.
                        Sufficient cash has been raised for the next two and maybe three years of burn. However,
                        the company will continue to expend funds for obtaining regulatory approvals, CRO
                        (clinical data and patient trials) costs, and continued development and integration
                        activities.
                        The company is no longer dependent on the approval of Memantine (Namenda). Forest
                        Labs (FRX) is shipping Namenda. However, its passive (Namenda) revenue continues but
                        the future product revenue stream is dependent on partnering capabilities, clinical trials and
                        timely approvals in alternate indications. Failure to meet these revenue goals could
                        adversely affect the stock price.
                        NTII faces competition from its own collaborators in developing drug candidates. NTII and its
                        collaborative partners will face intense competition from pharmaceutical, chemical and
                        biotechnology companies in both the United States and abroad. Companies that complete
                        clinical trials obtain required regulatory approvals and first commence commercial sales of
                        their products before their competitors may achieve a significant competitive advantage. In
                        addition, significant levels of research in biotechnology and medicine occur in universities
                        and other nonprofit research institutions. These entities have become increasingly active in
                        seeking patent protection and licensing revenues for their research results. Patent protection
                        and competition risk could adversely affect the stock price.

                        The clinical protocol and outcomes of the XERECEPT® Phase III trials and the initiation of
                        Viprinex™ P lll trials will affect its ultimate approval by the FDA. Delays and opportune
                        endpoint decisions have a ramp-up time. Slow and/or unfavorable timing of these patients’
                        trials could significantly depress the share price and its acquisition currency equivalent.
                        Looking forward, NTII’s clinical promise and stock performance are likely to remain closely
                        linked to investors’ perception of the three (3) late-stage products regulatory filings. However,
                        if a rash of clinical failures or a stingy FDA creates the perception that the industry is at risk,
                        then investor pessimism could likely drive stocks down.
                        Also, the drug Viprinex™ is a protease derived from the venom of the Malayan Pit Viper.
                        The raw venom that is extracted from the viper is the main agent in Viprinex™. There is no
                        present risk in the supply of this agent, which must be purified from the supply of raw venom
                        that the company has on hand. Currently, the company is using snake-farm facilities utilized
                        in the development of Viprinex™ to hedge this risk. A lack of supply could adversely affect
                        future clinical trials and/or future commercial sales for Viprinex™. Also, a lack of supply of
                        XERECEPT® could similarly affect the stock price of NTII.




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2/10/2005                                           5
                                                                 Neurobiological Technologies, Inc.



               NTII’s Pipeline

               Product / Indication          Development Status                    Primary Benefit Sought

               MEMANTINE (Namenda)


               Moderate-to-Severe Dementia   May 2002 - Memantine approved         Improvement in functional
               and Alzheimer's Disease*      for the treatment of Alzheimer's      independence and reduction in
                                             Disease by the regulatory             required level of care.
                                             authorities in the European
                                             Union.

                                             October 2003 - Memantine
                                             approved by U.S. FDA for
                                             moderate-to-severe Alzheimer's
                                             disease. Sold by Forest
                                             Laboratories under brand name
                                             Namenda.



               Diabetic Neuropathy           Phase II trials completed.            Analgesia

                                             Results show statistically
                                             significant improvement of 40 mg
                                             of Memantine over placebo in
                                             reducing chronic nighttime pain
                                             at the end of eight weeks.

               Product / Indication          Development Status                    Primary Benefit Sought

               XERECEPT®

               Peritumoral Brain Edema       Phase III began April 2004,           Stabilization or improvement of
                                             to be completed in Q1/06.             neurological function, steroid
                                                                                   sparing.



               Product / Indication          Development Status                    Primary Benefit Sought

               Viprinex™

               Ischemic Stroke               Completed a positive                  Minimize neurological damage
                                             Phase II program and a                and functional outcome while
                                             statistically significant Phase III   limiting adverse effects
                                             trial in the U.S., and a failed       (intracranial hemorrhage).
                                             Phase III trial in Europe             Significantly optimized safety
                                             (multiple-day dosing regimens).       and efficacy is expected with
                                             To undergo additional Phase III       single-administration dosing. 6-
                                             testing with single-administration    hour treatment window.
                                             dosing. Over 2000 patients
                                             studied to date.




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2/10/2005                                        6
                                                                      Neurobiological Technologies, Inc.

                Catalysts and Milestones




                (NTII’s Fiscal year ends on 6/30, all years are according to Fiscal Year)


                     DATE                                     EVENTS                          Status
                                    Canadian Health approval of Lundbeck’s Ebixa for
                 Q2/05                                                                       Completed
                                    treatment of moderate to severe Alzheimer’s


                 Q3/2005            FDA Fast track status for Viprinex™                      Completed


                                    Receipt of royalty stream from sales of Namenda in
                 On-going                                                                    On-Going
                                    the United States

                                    A Phase III second pivotal trial of XERECEPT® for
                 Q3/2005
                                    peritumoral brain edema

                 Q3/2005            FRX/Merz Neuropathic Pain Trial Results


                 Q3-4/05            EU/Asia Partnership for XERECEPT®


                 2005               Interim Results of Xerecept Trial


                                    Viprinex™ Trial Initiation
                 Q1/2006
                                    (12-18 month expected duration)

                 Q2/2006            Results of first pivotal Phase III trial for XERECEPT®


                                    Results of second pivotal Phase III trial for
                 Q4/06-Q1/07
                                    XERECEPT®

                 Q3-Q4/07           Viprinex™ potential FDA approval




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2/10/2005                                             7
                                                                     Neurobiological Technologies, Inc.

                   Valuation Analysis

                   I stand by a price appreciation target of $6.25-$7.00 for the calendar year 2005. We feel that our
                   missed target price of last year was due to multiple economic and political issues affecting the
                   markets. We believe investors should focus on NTII’s following issues: history of the management’s
                   consistency and ability to “do what they say and say what they did”; the on-going royalty stream of
                   Namenda sales from FRX, Lundbeck and Merz; quarterly reporting of regulatory end-point
                   definitions and filings, the time necessary to complete the required trials and regulatory status of
                   XERECEPT® and Viprinex™, initiatives for partnering in the EU and Asia for Viprinex™, and the
                   financial resources at NTII necessary to fund the clinical trials.

                   We believe the risk/reward relationship on NTII to be quite favorable. Shares of NTII have been
                   extremely volatile, and the stock has always been sensitive to news flow and could trade higher
                   based on NTII’s ability to deliver clinical execution. Markets in the last half of 2004 were quite harsh
                   in the healthcare and biotechnology sector. Although the healthcare sector may bode well in 2005,
                   we feel that companies with either approved or late stage development drugs will be sought by
                   “small-cap” portfolios. NTII’s pipeline of additional compounds, along with, revenues derived from
                   payments for on-going research and development through collaborations, which includes royalties
                   from licensing, adds value each quarter to the company’s stock price.

                   Stocks are trading at an extreme short term view of market potential, but with all these latest market
                   upheavals; near term clinical findings take more of a center stage. My conviction is the stock should
                   reflect a market or comparable value as NTII’s trials approach closer to fulfilling clinical indications.
                   NTII should also emerge as a company that acquirers are comfortable with having two (2) partnered
                   trials and two (2) Phase III trials on-going. Once on-going partnering initiatives are realized; the
                   economics of the stock will appreciate. Shares of NTII have been quite volatile with not enough
                   recognition of its value.

                   FRX recently announced that Namenda Q3 sales ending 12/31/2004 amounted to approximately
                   $100.6 million up from $80.8m in Q2 ended 9/30/2004. We estimate that Namenda sales will be in
                   the range of $120-125 million for the quarter ending 3/31/2005. We predict sales of Namenda, for
                   Forest’s fiscal year ending 3/31/2005, to be approximately $360 million. Those pro forma results
                   should result in royalty payments, which should be recorded for NTII’s fiscal year ending 6/30/2005;
                   of approximately $3.6 million (NTII receives royalty payments of approximately 1% on sales of
                   Namenda). The payments from partnerships continue. We also predict Forest sales of Namenda,
                   for the fiscal year ending 3/31/2006, to be approximately $550 million. That translates into
                   approximately $5.5 million in recorded revenue for NTII (for fiscal year ending 6/30/2005). Also,
                   NTII will probably earn additional revenue from the sale of Ebixa, (European Namenda version)
                   which is sold by Lundbeck. On December 10, 2004 Lundbeck announced that it received drug
                   approval in Canada by the Canadian Health authorities for Ebixa (Memantine) to treat Alzheimer’s
                   disease. Their royalty rate is also approximately 1% of sales, but certain foreign countries where
                   Merz Pharmaceuticals and its partners receive drug approval are not obligated to share royalty or
                   milestone payments with NTII. These countries are listed in section 5.2 of the License and
                   collaboration agreement with Merz dated 4/16/1998, but remain material and confidential
                   information hitherto. All royalty and milestone payments for Memantine to NTII are received from
                   Merz pursuant to Merz’s agreements with its marketing partners Forest and Lundbeck. An
                   approval decision by the FDA for Forest’s sNDA of Namenda, for use in mild to moderate
                   Alzheimer’s disease, is expected at the end of July. If approved, sales of Namenda will likely
                   increase and be better able to compete with Pfizer’s Aricept. Namenda currently has approximately
                   25% of the Alzheimer’s prescription drug market, while Aricept has over 50%.

                   XERECEPT® and Viprinex™ hold the potential for the firm’s long term value. XERECEPT® has
                   orphan drug status, and can increase the value of the company, while increasing stability.
                   Viprinex™ just acquired fast track status from the FDA. If Viprinex™ is approved, then NTII would
                   likely become a mid-cap stock.




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2/10/2005                                             8
                                                                  Neurobiological Technologies, Inc.

                            Top Institutional and Mutual Fund Holdings

                                                           Top Institutional Holders


                                                Holder                             Shares          % Out


                            Kilkenny Capital Management LLC                            1,299,014           4.87

                            BVF Inc.                                                   1,295,133           4.86

                            Knott (David M.)                                           1,058,655           3.97

                            Highbridge Capital Management, LLC.                         600,000            2.25

                            Barclays Bank Plc                                           596,797            2.24

                            Pequot Capital Management, Inc.                             579,000            2.17

                            Vanguard Group, Inc. (The)                                  349,664            1.31

                            Deutsche Bank Aktiengesellschaft                            299,210            1.12

                            Ramius Capital Group LLC                                    100,000            0.38

                            Northern Trust Corporation                                   65,031            0.24



                                                           Top Mutual Fund Holders


                                                Holder
                                                                                   Shares          % Out


                            Vanguard Total Stock Market Index Fund                      201,482            0.76

                            Vanguard Extended Market Index Fund                         133,982             0.5

                            Smith Barney Principal Return-Security and
                                                                                         50,000            0.19
                            Growth Fund

                            Advantage Advisers Multi-Sector-Fund I                       32,000            0.12

                            DFA U.S. Micro Cap Portfolio                                 14,600            0.05

                            Spartan Extended Market Index Fund                            4,585            0.02

                            Vanguard Balanced Index Fund                                  3,900            0.01

                            Vantagepoint Mid/Small Company Fund                           3,137            0.01

                            Vantagepoint Fds-Broad Market Index Fund                      3,136            0.01

                            DFA U.S. Small Cap Series                                     2,700            0.01



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2/10/2005                                        9
                                                          Neurobiological Technologies, Inc.

                Comparables




                                                Ticker    52-Week           Shares      Mkt Cap
                  Company Name
                                                PRICE     High-Low        Outstanding   ($ mm)

                  Pharmos Corp. (PARS)           $.88    $.80 –$4.98        94.14 m     $82.84 m


                  Neurochem (NRMX)              $20.04   $11.85 -$27.43     30.28 m     $606.85 m


                  Forest Rx (FRX)               $41.40   $36.10 – 78.81    368.41 m     $15.25 b


                  Neurobiological Tech (NTII)    $4.27   $2.37 -$6.65       26.85 m     $114.64 m


                  Elan Corp. (ELN)              $26.44   $8.30-$30.45      388.72 m      10.28 b


                  Renovis, Inc. (RNVS)          $11.51   $6.60-$16.80       24.32 m     $279.87 m




_________________________________________________________________________
2/10/2005                                       10
                                                        Neurobiological Technologies, Inc.



                             Comparables Chart and Index Performance Chart




Neurobiological Tech
(Blue)
Elan Corp
(Green)
Pharmos Corp
(Red)
Neurochem
(Orange)
Renovis Inc
(Red)




Comparables Chart
for Neurobiological:
Top

Index Performance
Chart for Neurobiological:
Bottom




Neurobiological (NTII)
BLUE

NASDAQ Biotechnology
Index (RED)

NASDAQ Composite
(GREEN)




_________________________________________________________________________
2/10/2005                                     11
                                                                                      Neurobiological Technologies, Inc.

               Financial Highlights

               Q4/04 Results
               Net loss for the fiscal fourth quarter ended June 30, 2004 was $1,015,000, or $0.04 per share, compared to net loss of $670,000, or
               $0.04 per share, for the same period last year. Fiscal 2004 fourth quarter revenue was $175,000, a 40 percent decrease reflecting no
               license income received and $175,000 of royalty income, compared to $281,000 of license income and $11,000 of royalty income for
               the same period in the prior fiscal year. Research and development expenses were $532,000 for the fiscal fourth quarter, an increase
               of 79 percent compared to $297,000 for the same period in the prior year. The increase was primarily due to costs associated with the
               initiation of a Phase III clinical trial of XERECEPT®. Interest income increased to $76,000 in the fiscal fourth quarter compared to
               $28,000 in the same period last year due to a higher cash balance as a result of money received in our March 2004 private placement
               financing and a license fee payment received for the approval of Memantine (Namenda(TM)) in the United States. General and
               administrative expenses increased 13 percent to $781,000 for the fourth quarter compared to $693,000 for the same period in the prior
               year reflecting higher expenditures for professional services.


               FY 04 Results
               For the full fiscal 2004 year, revenue increased 41 percent to $2,787,000, compared to $1,980,000 in fiscal 2003. For the 2004 fiscal
               year, research and development expenses decreased 9 percent to $2,098,000 compared to $2,317,000 for fiscal 2003. The decrease
               was primarily due to the completion of manufacturing an additional supply of XERECEPT®. For the 2004 fiscal year, general and
               administrative expenses increased 24 percent to $3,102,000, compared to $2,493,000 in the prior year. The increase was primarily
               due to increased expenditures in professional services and employee benefits. Interest income decreased 11 percent to $128,000 for
               the 2004 fiscal year compared to $144,000 in the prior year primarily due to lower average cash balances. Subsequent to the end of
               the fiscal year, the company acquired Empire Pharmaceuticals, Inc., a privately held company, in a stock and cash transaction valued
               at up to approximately $22.8 million. As part of the transaction, NTI has acquired the exclusive worldwide rights to Viprinex™ (ancrod),
               a late-stage perfusion therapy for use in the treatment of acute ischemic stroke. Under the terms of the agreement, NTI initially issued
               2,339,168 shares of common stock and paid $2 million in cash to Empire stockholders. If pivotal Phase III trials for Viprinex™ are
               commenced as currently planned, NTI will issue an additional 2,375,176 shares and pay an additional $2 million to the Empire
               stockholders. At June 30, 2004, the company's cash and cash equivalents and investments were $20,734,000, with no long-term debt.

               Q1/05 Results
               NTII’s financial results for the first quarter ended September 30, 2004 are: Net loss for the quarter ending September 30, 2004 was
               $5,752,000 or $0.23 per share, basic and diluted, compared to net loss of $873,000 or $0.05 per share, basic and diluted, for the
               quarter ended September 30, 2003. Revenue increased to $517,000 for the quarter ended September 30, 2004, compared to $10,000
               for the same period in 2003. The revenues are from royalty fees earned on sales of Memantine for Alzheimer's disease by Merz and
               its marketing partners. Research and development expenses increased 255 percent to $1,164,000 for the quarter ended September
               30, 2004, compared to $328,000 for the same period in the prior year. The increase of $836,000 was due primarily to expenses
               incurred to prepare for Phase III clinical trials of Viprinex™, which are anticipated to commence within the next twelve months, and for
               the Phase III clinical trials for XERECEPT® which were initiated during April 2004. The Company expensed $4,251,000 of in-process
               research and development expenses in connection with the purchase of Empire Pharmaceuticals, Inc. in July 2004. General and
               administrative expenses increased 62 percent to $931,000 for the quarter ended September 30, 2004, compared to $576,000 for the
               same period in 2003. The increase was due to an increase in performance-based compensation, professional service and consulting
               fees for marketing advisory services and reporting requirements resulting from the Sarbanes-Oxley Act of 2002, and expenses relating
               to establishing new operating facilities in the New York area. Interest income increased 267 percent for the quarter ended September
               30, 2004 to $77,000, compared to $21,000 for the same period in 2003. The increase was due to a higher cash balance as a result of
               money received in our March 2004 private placement financing. At September 30, 2004, the company had cash, cash equivalents and
               investments of $16.6 million.


               Q2/05 Results
               Revenues of $694,000 in the quarter ended December 31, 2004 increased by $394,000 compared
               to revenues of $300,000 in the same quarter of 2003 and consist of royalty fees from the sale of
               Memantine in the U.S. and in certain European countries. Revenues of $300,000 in the quarter
               ended December 30, 2003 consist of $281,000 of license fees relating to the approval for sale of
               Memantine and $19,000 of royalty fees from the sale of Memantine in certain European countries.
               Research and development expenses of $2,269,000 in the quarter ended December 31, 2004
               increased by $1,756,000 compared to expenses of $513,000 in the same quarter of 2003. The
               increase resulted from expenses incurred to prepare for Phase III clinical trials of Viprinex™,
               which are anticipated to commence within the next nine months, and for continuing the Phase III
               clinical trials for XERECEPT®, the first of which was initiated during April 2004. General and
               administrative expenses of $1,090,000 in the quarter ended December 31, 2004 increased by
               $235,000 compared to $855,000 for the same quarter in 2003, and resulted primarily from expense
               for the administrative operations of the New Jersey office established for the development of
               Viprinex™ subsequent to our acquisition of Empire in July 2004, together with professional fees
               related to public reporting and compliance with the Sarbanes-Oxley Act of 2002.




_________________________________________________________________________
2/10/2005                                                          12
                                                                                                                                                                                 Neurobiological Technologies, Inc.

Financials

     NEUROBIOLOGICAL TECHNOLOGIES, INC.
     UNAUDITED CONDENSED STATEMENTS OF OPERATIONS
     Three Months Ended
                                                                    2003                   FY ended                             2003                                2004               FY ended               FY 2005
                                                             Mar             Jun           30-Jun-03             Sep                   Dec                  Mar            Jun         30-Jun-04       Sep              Dec
     Revenues
     License income                                           281230          281000          1969000                       0             281230             2250000             —         2531000            —               —
     Royalty income                                                0           11000             11000                 9784                  18659             52000         175000         256000       517000           694000
     Total revenues                                           281230          292000          1980000                  9784               299889            2302000          175000        2787000       517000           694000
     Expenses
     Research and development                                 434675          297000          2317000              327925                 513365              725000         532000        2098000      1164000          2269000
     Acquired in-process R&D                                                                                                                                                                            4251000
     General and administrative                               623550          693000          2493000              576238                 854842              890000         781000        3102000       931000          1090000
     Total Expenses                                          1058225          990000          4810000              904163                1368207            1615000         1313000        5200000      6346000          3359000
     Operating Loss                                          -776995         -698000          -2830000             -894379              -1068318              687000       -1138000        -2413000    -5829000          -2665000
     Interest Income                                           30072           28000            144000               21263                   9270              21000          76000         128000        77000            -10000
     Derivative Income                                                                          477000                                                                        47000
     Other Non-Cash Income                                                                                                                                   431,000
     Net loss                                                -746923         -670000          -2686000             -873116              -1059048            1139000        -1015000        -1808000    -5752000          -2675000
     Basic and diluted net loss per common share              ($0.04)         ($0.04)           ($0.15)             ($0.05)               ($0.06)               $0.05        ($0.04)         ($0.09)     ($0.23)          ($0.10)
     Shares used in computing basic loss per common share   17984938       18523542          18015644            18833423              19206054            23608871        23918104       20678914     25169734         26846878
                                                                                                                                                                                                                   `




     Balance Sheet Metrics                                          2003                   FY ended                             2003                                2004               FY ended               FY 2005
                                                             Mar             Jun           30-Jun-03             Sep                   Dec                  Mar            Jun         30-Jun-04       Sept             Dec
     Cash & Equivalents                                      1262754           66138             66138            1359114                 806803           13509558         2012452        2012452      1092877         15127000
     short term investments                                  3352437         4336127          4336127             2122057                1811532            6804145        11849763       11849763     13443849
     Long-term Investments                                    500069               —                —                   —                      —            1886185         6871344        6871344      2043850
     Total Assets                                            5446823         4813210          4813210             3774701                2787483           22407000        21384000       21384000     25809000         24110000
     Shareholders Equity                                     4846647         4247615          4247615             3378356                2420014           20009000        20723000       20723000     24496000         22527000


                                                                        The information contained herein is believed to be reliable, but is not guaranteed by us.
                                                                                        Please review our multiple disclosures section. 2/9/05


 _______________________________________________________________________________________________________
 2/10/2005                                                                                                       13
                                                                     Neurobiological Technologies, Inc.

                  Product Technology/ Platform

                  The Importance of Neuroprotection

                  Neuronal injury contributes significantly to functional impairment in a wide variety of peripheral and
                  central nervous system disorders. Such disorders include chronic diseases such as diabetes, AIDS,
                  Parkinson's and Alzheimer's. Neurological impairments characteristic of these disorders include loss
                  of coordination and inability to walk, memory loss, inability to concentrate and other cognitive
                  deficits. Such impairments often become progressively worse over weeks and years thus leading to
                  chronic dysfunction. An effective neuroprotectant may be able to slow this progression of functional
                  capacity. Current therapies do not adequately treat such dysfunctional neurological conditions.
                  Thus, an effective neuroprotectant drug could provide substantial new therapeutic benefit for many
                  groups of patients.

                  Cells communicate by sending signals that excite or inhibit each other via chemical messengers
                  called neurotransmitters. Neurotransmitters bind to receptors embedded in the cell membranes of
                  neurons. The most common excitatory neurotransmitter, glutamate, binds to the NMDA receptor.
                  When activated by glutamate, the NMDA receptor opens a channel in the cell membrane through
                  which electrically charged calcium ions pass. Calcium flows into the cell, reversing the electrical
                  charge of the neuron. This process stimulates the neuron to send signals to adjacent neurons.
                  Normal functioning of NMDA receptors is essential to cognitive activities of thought, movement and
                  perception. Normally, neurotransmitter levels are highly regulated by the nervous system. In certain
                  medical conditions, injured nerve cells become unable to control the normal release of
                  neurotransmitters and "dump" excess glutamate into the extracellular environment. Excess
                  glutamate results in over excitation of the NMDA receptor allowing excess calcium to enter the
                  affected neurons (see drawing). These neurons may then swell and rupture, releasing more
                  glutamate into the surrounding area, which in turn overexcites NMDA receptors on adjacent
                  neurons. This cascade of neuronal injury, referred to as "excitotoxicity," follows acute conditions
                  such as stroke and traumatic brain injury. Damaged nerve cells also appear to release excess
                  glutamate in certain chronic conditions such as neuropathic pain and dementia.




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2/10/2005                                             14
                                                                       Neurobiological Technologies, Inc.

               Product Technology/ Platform (continued)

               MEMANTINE
               Memantine belongs to a class of compounds called NMDA receptor antagonists. Research indicates that
               these compounds have the potential to prevent the injury and death of neurons related to a variety of
               conditions, including neuropathic pain, Alzheimer's disease, Huntington's disease, Amyotrophic Lateral
               Sclerosis (ALS), and AIDS dementia.

               In the condition of neuropathic pain, abnormal pain signals from peripheral nerves often overexcite
               neurons in the brain and spinal cord (central nervous system or CNS). When this occurs, injured CNS
               neurons may generate abnormal pain signals along with injured peripheral nerve cells, resulting in the
               experience of neuropathic pain. Although the precise mechanism of this process is unknown, excessive
               activation of NMDA receptors is believed to play an important role.

               Many NMDA receptor antagonists previously evaluated in human clinical trials prevented this neuronal
               injury and death by blocking the NMDA receptor channel. However, they blocked the channel for a
               longer period of time than was safe. While they protected neurons from excitotoxicity, they also
               prevented normal signal communications and interfered with essential functioning. Such interference
               resulted in some cases in hallucinations, psychosis or even coma.

               Unlike these NMDA receptor antagonists, Memantine acts to modulate the function of the NMDA
               receptor calcium channel, rather than to block it. Memantine stays in the channel long enough to reduce
               the calcium influx, but not so long that it blocks calcium flow completely, interfering with normal
               functioning. The psychotic side effects associated with many other calcium channel blockers have only
               been rarely reported with therapeutic doses of Memantine. Merz has marketed Memantine in Germany
               since 1989 with the labeling "dementia syndrome."

               XERECEPT®
               Results from preclinical studies and human clinical trials previously sponsored by the Company have
               demonstrated the compound’s potential to reduce swelling in brain tissue and to be well-tolerated and
               apparently safe. Thus, XERECEPT® has the potential to significantly improve the quality of life for brain
               edema patients with dysfunction due to brain swelling. In the United States, approximately 30,000
               patients are diagnosed every year with brain tumors. Patients with this condition are in need of a safe
               alternative to corticosteroids, which have serious adverse effects at the high, chronic doses required for
               efficacy.

               The FDA has approved orphan drug designation for XERECEPT® to treat this unmet medical need.
               Orphan drug designation provides NTII with seven years market exclusivity and eligibility to receive
               federal monies for clinical research under the Orphan Drug Grant Program. CRF is a natural
               neuroendocrine peptide hormone found in humans both centrally (within the brain) and peripherally
               (outside the brain). Researchers discovered anti-edema affects of CRF through systemic administration.
               Research by scientific collaborators of NTII has revealed that XERECEPT® significantly reduces edema
               or swelling of damaged tissue in animal models. Edema is a condition characterized by swelling after
               tissue injury when fluid, plasma proteins, and white blood cells flow from small blood vessels into the
               surrounding tissues, further contributing to the destruction of these tissues.

               Preclinical studies sponsored by the Company have shown that XERECEPT® reduces the flow of fluid
               through blood vessels at sites of traumatic tissue injury. Specifically, these studies have shown that
               XERECEPT® injected systemically into animals can reduce brain edema after injury, brain edema
               associated with cancer tumors, and swelling in muscle tissue following surgical trauma.




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2/10/2005                                               15
                                                                       Neurobiological Technologies, Inc.

               Product Technology/ Platform (continued)
               VIPRINEX™
               Viprinex™ represents a significant and much needed advancement in the field of stroke treatment.




               Viprinex™ has been studied in more than 2,000 patients in various clinical studies in the U.S. and
               Europe and has the potential to double the available treatment window following the onset of stroke
               symptoms. Currently, the only available therapy for stroke must be administered within the initial three
               hours, significantly limiting the number of patients that may be treated.




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2/10/2005                                               16
                                                                       Neurobiological Technologies, Inc.

             Product Technology/ Platform (continued)
             One of the primary goals for the treatment of acute ischemic stroke is improving blood flow through a
             blocked vessel so that the flow of oxygen and nutrient supply to brain tissue is not interrupted or
             compromised. Brain tissue starved of oxygen can cause loss of neurological function such as speech and
             mobility. Fibrinogen, a protein involved in blood clotting, has been known to contribute to high blood
             viscosity, which in turn may impede blood flow to critical regions of the brain. Thus, an agent that reduces
             fibrinogen levels may significantly impact stroke treatment.




             Derived from the venom of the Malayan pit viper, Viprinex™ is a thrombin-like enzyme that is highly
             specific to fibrinogen. When administered systemically, Viprinex™ has been shown to rapidly deplete
             plasma fibrinogen (it is a defibrinogenating agent). The effects are anticoagulation, improved blood
             viscosity and a secondary fibrinolytic or clot lysing action. Combined, these effects constitute a perfusion
             strategy that appears to restore and enhance oxygen flow to the affected area of the brain. Studies have
             shown that in patients receiving Viprinex™ within six hours of stroke onset, blood viscosity is progressively
             reduced by 20-30% from pretreatment levels, resulting in an improvement in blood flow and
             microcirculation. After stopping treatment with Viprinex™, viscosity levels have been shown to return to
             pretreatment levels very slowly, within about 10 days.




_________________________________________________________________________
2/10/2005                                               17
                                                                          Neurobiological Technologies, Inc.

               Product Technology/ Platform (continued)
               A randomized, double-blind, placebo-controlled U.S. Phase III clinical study was completed in 1998 to
               evaluate the safety and efficacy of Viprinex™ given within three hours after the onset of acute, ischemic
               stroke in 500 patients. In this study, Viprinex™ was shown to be effective in preserving neurological
               function in this patient population. A separate randomized, double-blind, placebo-controlled Phase III
               study was completed in Europe in 2000, enrolling patients within six hours of onset of acute ischemic
               stroke. The trial was stopped after a planned interim analysis indicated lack of efficacy and increased
               incidence of intracranial hemorrhage. The higher dosing levels in the European trial and the use of
               protocol criteria that permitted entry of patients at higher risk of hemorrhage are thought to have
               contributed to the trial's failure. A retrospective review of the relative strength of the positive U.S. findings
               versus the European findings has suggested the need for a revised Viprinex™ dosing strategy, which will
               be one objective of further Phase III study.




               Empire acquired the exclusive worldwide rights to Viprinex™ in a royalty-bearing license from Abbott
               Laboratories in March 2002. The prior development work on Viprinex™ was conducted by Knoll AG,
               prior to its acquisition by Abbott in 2001. (Empire the acquired the rights in a spin-out post this
               acquisition.




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2/10/2005                                                 18
                                                              Neurobiological Technologies, Inc.

               Competitive Overview



               Memantine

               Company                   Drug/Candidate                     Clinical Stage

               PFE/Eisai                        Aricept                       Launched 1997

               NVS                              Exelon                        Launched 2000

               JNJ/Shire                        Reminyl                       Launched 2001

               FRX                             Namenda                  Approved and Launched 2003

               FRX/Lundbeck                   Monotherapy                     Prelim Results

               ELN                             AN-1792                          Pre-clinical

               FRX                            Neramexane                           P II/III

               Praecis                           APAN                               P Ia

               MRK/Sibia                      Compound(s)                       Pre-clinical

               Other Agents                Target Auxiliary                     Symptoms




               XERECEPT®

               Company                    Drug/Candidate                    Clinical Stage
               Pharmos                        Dexanabinol                            P III

               Bayer                            Repintan                      Additional P II/III

               PFE                             CP101-606                         Pre-clinical

               Guilford Pharm                   GP 1485                     Questionable Status




               Viprinex™

               Company                    Drug/Candidate                    Clinical Stage
               Forest                         Demoteplase                            P II

               DNA                                TPA                            Approved

               Renovis (Astra Zeneca)           Cerovive                             P III




_________________________________________________________________________
2/10/2005                                19
                                                                                      Neurobiological Technologies, Inc.

             Quarterly Press Releases
             Neurobiological Technologies Reports Fiscal 2005 Second Quarter Results
             Wednesday February 9, 8:02 am ET


             RICHMOND, Calif., Feb. 9 /PRNewswire-FirstCall/ -- Neurobiological Technologies, Inc. (NTI(R)) (NASDAQ: NTII - News) today
             announced a net loss of $2,675,000, or $0.10 per basic and diluted share, for its quarter ended December 31, 2004. This compares with
             a net loss of $1,059,000, or $0.06 per basic and diluted share, for the same quarter one year ago.


             Neurobiological Technologies Inc. Receives $765,425 Royalty Payment Related to Memantine
             Tuesday February 1

             RICHMOND, Calif., Feb. 1 /PRNewswire-FirstCall/ -- Neurobiological Technologies, Inc. (NASDAQ: NTII - News) today announced that it
             had received a royalty payment of $765,425 from Merz Pharmaceuticals GmbH (Merz) for sales in the quarter ended September 30, 2004
             of Memantine for the treatment of moderate-to-severe Alzheimer's disease.

             Neurobiological Technologies Receives FDA Fast-Track Status For Anti-Stroke Treatment in Development, Viprinex(TM)
             (ancrod) Friday January 28

             RICHMOND, Calif., Jan. 28 /PRNewswire-FirstCall/ -- Neurobiological Technologies, Inc. (NASDAQ: NTII - News), a biotechnology
             company engaged in the business of acquiring and developing central nervous system related drug candidates, today announced that the
             U.S. Food and Drug Administration has granted the investigational drug, Viprinex(TM) (ancrod), fast-track status for its intended use in
             patients suffering from ischemic stroke. The fast-track designation provides for expedited regulatory review for new drug candidates
             demonstrating the potential to address unmet medical needs for the treatment of serious or life-threatening conditions. Viprinex (ancrod)
             is under development for decreasing disability in patients with acute non-hemorrhagic stroke, treated within six hours of symptoms.

             Neurobiological Technologies, Inc. Appoints Director of Regulatory Affairs
             Wednesday January 5

             RICHMOND, Calif., Jan. 5 /PRNewswire-FirstCall/ -- Neurobiological Technologies, Inc. (NASDAQ: NTII - News), a biotechnology
             company engaged in the business of acquiring and developing central nervous system (CNS) related drug candidates, today announced
             that it has appointed Karl G. Trass as Director of Regulatory Affairs.

             Neurobiological Technologies, Inc. Reports H. Lundbeck's Ebixa(r) Has Health Canada Approval to Treat Moderate-to-Severe
             Alzheimer's Disease Monday December 13

             RICHMOND, Calif., Dec. 13 /PRNewswire-FirstCall/ -- Neurobiological Technologies, Inc. (NASDAQ: NTII - News), a biotechnology
             company engaged in the business of acquiring and developing central nervous system (CNS) related drug candidates, today reports that
             Canada's healthcare system, Health Canada, recently approved H. Lundbeck's Ebixa® (Memantine HCl) to treat moderate-to- severe
             Alzheimer's Disease.

             Neurobiological Technologies, Inc. Announces Election of Dr. Ronald E. Cape to Board of Directors
             Friday November 19

             RICHMOND, Calif., Nov. 19 /PRNewswire-FirstCall/ -- Neurobiological Technologies, Inc. (NASDAQ: NTII - News), a biotechnology
             company engaged in the business of acquiring and developing central nervous system (CNS) related drug candidates, today announced
             the election of Dr. Ronald E. Cape to its board of directors at the company's annual meeting. The board now consists of 8 directors.

             Neurobiological Technologies, Inc. Appoints Vice President and CFO
             Thursday November 18

             RICHMOND, Calif., Nov. 18 /PRNewswire-FirstCall/ -- Neurobiological Technologies, Inc. (NASDAQ: NTII - News), a biotechnology
             company engaged in the business of acquiring and developing central nervous system (CNS) related drug candidates, today announced
             that it has appointed Jonathan R. Wolter as its vice president and Chief Financial Officer effective December 15, 2004.

             Neurobiological Technologies, Inc. Reports FDA Has Accepted Forest Lab's sNDA Filing to Expand Namenda's Indication to
             Include Mild Alzheimer's Disease
             Monday November 15

             RICHMOND, Calif., Nov. 15 /PRNewswire-FirstCall/ -- Neurobiological Technologies, Inc. (NASDAQ: NTII - News), a biotechnology
             company engaged in the business of acquiring and developing central nervous system (CNS) related drug candidates, today reports that
             the U.S. Food and Drug Administration has accepted Forest Laboratories' filing of a supplemental New Drug Application (sNDA) that
             would expand the indication of Namenda® (Memantine HCl) to include treatment for mild Alzheimer's Disease.

             Neurobiological Technologies, Inc. Receives $694,000 Royalty Payment for Anti-Alzheimer Product
             Thursday November 4
             Payment From Merz Covers Sales Made in Second Quarter 2004

             RICHMOND, Calif., Nov. 4 /PRNewswire-FirstCall/ -- Neurobiological Technologies, Inc. (NASDAQ: NTII - News) today announced that it
             had received a royalty payment of $694,000 from Merz Pharmaceuticals for sales in the second quarter of 2004 of Memantine for the
             treatment for moderate-to-severe Alzheimer's disease.




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2/10/2005                                                          20
                                                                   Neurobiological Technologies, Inc.

                     Management




                                                  Years Industry
                      Name/ Position                               Years with NTII          Prior Companies
                                                   Experience

                      Abraham E. Cohen
                      Chairman of the Board of          40               12          Merck & Co.
                      Directors

                      Paul E. Freiman
                      President and Chief               38                7          Syntex Corporation
                      Executive Office

                      Lisa U. Carr, M.D., Ph.D.
                      Sr. Vice President, Chief         16                7          Syntex Corporation
                      Medical Officer
                                                                                     BearingPoint, Inc.; TS Software,
                      Jonathan R. Wolter, CPA
                                                                                     Bindo Corp; Tanon Manuf.,
                      VP And Chief Financial            29              9 mo
                                                                                     Electronic Assoc; Exponent, Inc;
                      Officer
                                                                                     First Republic Corp; AA
                      Stephen J. Petti
                                                                                     DOV Pharmaceuticals; Parexel;
                      VP –Product                       18              8 mo.
                                                                                     AC/ Lederle; Wyeth-Ayers
                      Development
                                                                                     Eisai Medical Research; Empire
                      David E. Levy, MD
                                                                                     Pharmaceuticals; DOV
                      VP – Clinical                     14              7 mo.
                                                                                     Pharmaceuticals; Knoll
                      Development
                                                                                     Pharmaceuticals;
                      Karl G. Trass                                                  Sangamo BioSciences; Gilead
                      Director of Regulatory            12              2 mo.        Sciences; Tularik; Genentech;
                      Affairs                                                        Syntex Corporation




_________________________________________________________________________
2/10/2005                                              21
                                                                                                  Neurobiological Technologies, Inc.


        Please Read these Important Disclosures!


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        I, Henry W. McCusker, hereby certify that all the views expressed in this review, accurately reflect my personal views about the
        subject Company or companies and its or their securities. No part of my compensation was, is, or will be, directly or indirectly, related
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_________________________________________________________________________
2/10/2005                                                                     22
                                                                                                    Neurobiological Technologies, Inc.

        Please Read these Important Disclosures! (continued)


        Research Dissemination
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        not to be used or considered as an offer to sell or solicitation of an offer to buy any financial products. Clients may also receive our research
        via Thomson Financial: FirstCall- Investext. Security laws of these resident countries vary significantly. This site is intended to be accessed
        by residents of the United States and by residents of other jurisdictions only where permitted by law.


        Rating Definitions
        Informational: It has been our practice to generate an informational company review when we initiate coverage. A "Buy" ranking could
        accompany a price target but these company reviews generally entail that additional information is needed to determine or clarify the
        companies approach to the growth opportunity.
        Buy: Stocks ranked "Buy" are those stocks Scimitar recommend actively buying. These are stocks that are demonstrating their vision while
        meeting expectation and should appreciate at least 10% over the next 6 months.
        Hold: Stocks ranked "Hold" are those stocks Scimitar would continue to hold in a portfolio. These are stocks that are making progress
        strategically and operationally but are not expected to demonstrate significant appreciation in the next 6 months.
        Sell: Stocks ranked "Sell" are those Scimitar would sell; these are stocks that appear not to be able to fulfill or deliver on their disclosed
        milestones and are expected to depreciate at least 10% over the next 6 months.
        Termination (of coverage): In the event an analyst's coverage is terminated, there is a requirement that firms notify investors when
        coverage is dropped. This notice must include a final ranking or recommendation. The rule specifically calls for notice to be made in the
        same manner as in research coverage was first initiated.




        Valuation Methodology
        Projecting the future valuation of companies and their innovative technology is at best an “inexact science” and needs to be understood in
        terms of its intent and vulnerabilities. Scimitar accepts its responsibility to research and prudently perform analysis while incorporating due
        diligence. The value of science or technology platform, product development cycles, regulatory timelines and filings, collaboration partners,
        management team and ultimately market initiatives should not be quantitatively modeled too early. Projecting “true” value…




                         CONFERENCE               INFORMATIONAL                   BUY                     BUY                    BUY
                            4.7.03                    4.13.04                    8.20.04                11.09.04                2.10.04
                               1                         2                          3                      4                       5




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        Obtaining Current Disclosures
            http://scimitarequity.virtual.vps-host.net/content/disclosure/disclosure.jsp
        Applicable current disclosures can be downloaded from our website, by calling the telephone number listed below, or by writing to the
        address listed below:
        Scimitar Equity Research, Inc.
        216 Commonwealth Ave.
        Boston MA, 02116
        617.236.6396
        info@scimitarequity.com
        www.scimitarequity.com




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2/10/2005                                                                       23

								
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