TMX group

TORONTO, Jan. 31 /CNW/ - NeuroMedix Inc. ("NeuroMedix") (TSXV: NMX) today
announced its financial results for the fiscal year ended September 30, 2005.

During fiscal 2005, NeuroMedix achieved the following milestones:

    -  Licensed technology from Northwestern University ("Northwestern"),
       Chicago IL;
    -  Sponsored research which has resulted in the selection of an
       orally active lead compound for clinical development for the
       treatment of Alzheimer's disease ("Alzheimer's");
    -  Completed a private placement raising gross proceeds of $500,000;
       and
    -  Assembled a core management team.

In addition, subsequent to September 30, 2005, the Company completed its
initial public offering ("IPO") which resulted in gross proceeds of
$3,300,000, including the exercise of an over-allotment option, and expected
net proceeds of approximately $2.7 million. The Company's common shares also
commenced trading on the TSX Venture Exchange under the symbol "NMX".
"The milestones we have achieved since inception in February 2005,
including the completion of our IPO, have created the basis of a strong
biotechnology company", said Dr. Mark L. Pearson, Chief Executive Officer of
NeuroMedix. "In the year ahead we look forward to initiating a Phase I
clinical trial to advance the development of our Alzheimer's therapeutic
candidate."

Technology Overview
-------------------
NeuroMedix's technology, which was licensed from Northwestern in June
2005, is based on a proprietary class of small molecules discovered by a team
of leading experts in the field of neuroinflammation. The compounds are based
on an aminopyridazine scaffold that has proven to be highly modifiable, to be
orally bio-available and to cross the blood-brain barrier, while retaining
anti-neuroinflammatory activity. Using rational drug design methodologies,
this chemical scaffold has produced a number of product candidates which
NeuroMedix has screened in vitro and in an Alzheimer's mouse model. These
in vitro and animal studies have demonstrated that NeuroMedix's product
candidates are able to reduce the activation of glial cells, inhibit cytokine
production, protect neuronal cells against death, maintain cognitive function
and ultimately protect against the progression of Alzheimer's in a mouse
model. In such mice, these compounds have demonstrated the ability to protect
neurons and restore normal neuronal activity.
NeuroMedix has identified a lead compound and is currently optimizing the
manufacturing process for that lead compound and expects to commence       
pre-clinical toxicology studies by the end of the first quarter of calendar
2006. NeuroMedix then expects to initiate a Phase I human clinical trial
during the third quarter of calendar 2006.

Financing Activities
--------------------
During the period ended September 30, 2005, the Company's financing
activities included founding share issuances and the completion of a private
placement which raised gross proceeds of $500,000.
Subsequent to September 30, 2005, the Company filed a final prospectus,
and completed its IPO. Under the terms of an agency agreement, the Company
issued 13,200,000 common shares, including 1,200,000 common shares on the
exercise of an over-allotment option, at a price per share of $0.25 for total
gross proceeds of $3,300,000. The Company received cash proceeds of
$2.9 million, net of agent's commissions, legal fees and expenses, and expects
to have net proceeds of $2.7 million, after payment of all expenses related to
the Offering.
After completion of its IPO, NeuroMedix currently believes, that it has
adequate financial resources to meet anticipated expenditures until June 2007.

Financial Review
----------------
For the period from February 11, 2005 to September 30, 2005, NeuroMedix
recorded a net loss of $462,408, which amounts to a loss of $0.04 per common
and Class B share for the period. The loss is reflective of costs associated
with licensing technology, research contracts, intellectual property
development, management and employee expenses and general administrative
costs.
Research and development expenses were $407,782 for the period ended
September 30, 2005. The research and development expenses for this period
consisted primarily of fees paid to external service providers for items such
as licensing technology, research, research management and intellectual
property.
General and administrative expenses were $54,738 for the period ended
September 30, 2005. The general and administrative expenses for this period
consisted primarily of payroll, legal and consulting fees and general office
expenses.

About NeuroMedix:

NeuroMedix is a biotechnology company focused on the development of
therapeutic agents for the treatment of degenerative and inflammatory diseases
of the central nervous system, such as Alzheimer's disease, multiple sclerosis
and Parkinson's disease. Our therapeutic drug candidates are based on research
from a team of leading experts in the field of neuroinflammation and have been
demonstrated to reduce brain inflammation, to protect neuronal cells, and to
prevent the loss of cognitive function in an Alzheimer's disease animal model
in mice. Based on these findings, NeuroMedix is pursuing the development of a
lead compound for the prevention of Alzheimer's disease in humans.
NeuroMedix's shares are listed on the TSX Venture Exchange under the symbol
"NMX".

Financial Information to follow:

<<

NeuroMedix Inc.
(formerly BioQuest Therapeutics Inc.)
(a development stage company)

                            BALANCE SHEET

                                                            September 30,
                                                                    2005
                                                                       $
-------------------------------------------------------------------------

ASSETS
Current
Cash                                                              18,099
Receivables                                                        4,611
Deposits on collaborations                                        26,051
Deferred financing costs                                          17,625
Prepaid expenses                                                  12,500
-------------------------------------------------------------------------
Total current assets                                              78,886
-------------------------------------------------------------------------
Property and equipment, net                                        2,451
-------------------------------------------------------------------------
                                                                  81,337
-------------------------------------------------------------------------
-------------------------------------------------------------------------

LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Accounts payable and accrued liabilities                          51,776
-------------------------------------------------------------------------
Total liabilities                                                 51,776
-------------------------------------------------------------------------

Shareholders' equity
Share capital
  Common shares                                                        1
  Class B shares                                                 491,968
Deficit                                                         (462,408)
-------------------------------------------------------------------------
Total shareholders' equity                                        29,561
-------------------------------------------------------------------------
                                                                  81,337
Commitments
Guarantees
Subsequent events
-------------------------------------------------------------------------
-------------------------------------------------------------------------



NeuroMedix Inc.
(formerly BioQuest Therapeutics Inc.)
(a development stage company)

                    STATEMENT OF LOSS AND DEFICIT


                                                             Period from
                                                       February 11, 2005
                                                   to September 30, 2005
                                                                       $
-------------------------------------------------------------------------

EXPENSES
Research and development                                         407,782
General and administrative                                        54,738
Amortization                                                         259
-------------------------------------------------------------------------
                                                                 462,779
-------------------------------------------------------------------------
Loss before the following                                       (462,779)
Interest income                                                      371
-------------------------------------------------------------------------
Net loss for the period                                         (462,408)
Deficit, beginning of period                                           -
-------------------------------------------------------------------------
Deficit, end of period                                          (462,408)
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Basic and diluted net loss per common and Class B share            (0.04)
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Weighted average common and Class B shares outstanding        13,170,690



NeuroMedix Inc.
(formerly BioQuest Therapeutics Inc.)
(a development stage company)

                       STATEMENT OF CASH FLOWS


                                                             Period from
                                                       February 11, 2005
                                                   to September 30, 2005
                                                                       $
-------------------------------------------------------------------------

OPERATING ACTIVITIES
Net loss for the period                                         (462,408)
Add amortization not involving cash                                  259
-------------------------------------------------------------------------
                                                                (462,149)
Changes in non-cash working capital items                         (9,011)
-------------------------------------------------------------------------
Cash used in operating activities                               (471,160)
-------------------------------------------------------------------------

INVESTING ACTIVITIES
Purchase of property and equipment                                (2,710)
-------------------------------------------------------------------------
Cash used in investing activities                                 (2,710)
-------------------------------------------------------------------------

FINANCING ACTIVITIES
Proceeds from issuance of common shares                                1
Proceeds from issuance of Class B shares, net                    491,968
-------------------------------------------------------------------------
Cash provided by financing activities                            491,969
-------------------------------------------------------------------------

Net increase in cash during the period                            18,099
Cash, beginning of period                                              -
-------------------------------------------------------------------------
Cash, end of period                                               18,099
-------------------------------------------------------------------------
-------------------------------------------------------------------------


The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.

Except for historical information, this press release may contain  
forward-looking statements, which reflect the Company's current expectation
regarding future events. These forward-looking statements involve risks and
uncertainties, which may cause but are not limited to, changing market
conditions, the successful and timely completion of clinical studies, the
establishment of corporate alliances, the impact of competitive products and
pricing, new product development, uncertainties related to the regulatory
approval process and other risks detailed from time to time in the Company's
ongoing quarterly and annual reporting.

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%SEDAR: 00022976E