Nymox Pharmaceutical Corp – ‘20-F’ for 12/31/97

As of:  Friday, 5/8/98   ·   For:  12/31/97   ·   Accession #:  950123-98-4728   ·   File #:  1-12033

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Annual Report of a Foreign Private Issuer   —   Form 20-F
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 20-F        Nymox Pharmaceutical Corporation                      56    208K 

Document Table of Contents

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Form 20-F   

[ ]  Registration statement pursuant to section 12(b) or (g) of the Securities  
Exchange Act of 1934 [Fee required]                                   

or

[X]  Annual report pursuant to section 13 or 15(d) of the Securities Exchange   
Act of 1934 [Fee required]                                            

For the fiscal year ended December 31, 1997                           

or

[ ]  Transition report pursuant to section 13 or 15(d) of the Securities        
Exchange Act of 1934 [No fee required]                                

For the transition period from                 to                     

Commission file number                                                          

NYMOX PHARMACEUTICAL CORPORATION
(Exact name of registrant as specified in its charter)

NOT APPLICABLE
(Translation of registrant's name into English) 

CANADA
(Jurisdiction of incorporation or organization) 

9900 Cavendish Blvd.
Suite 306 
St. Laurent, Quebec 
H4M 2V2 

Securities registered or to be registered pursuant to section 
12(b) of the Act. 

                                                   NAME OF EACH EXCHANGE
TITLE OF EACH CLASS                                    ON WHICH REGISTERED      

None                                                   Not Applicable           

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Securities registered or to be registered pursuant to         
section 12(g) of the Act

COMMON STOCK
(Title of Class)

Securities registered or to be registered pursuant to         
section 15(d) of the Act

NONE
(Title of Class)

   Indicate the number of outstanding shares of each of the issuer's classes
of capital or common stock as of the close of the period covered by the annual  
report: 18,632,873 shares as of December 31, 1997.                              

 Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by section 13 or 15(d) of the Securities Exchange Act of   
1934 during the preceding 12 months (or for such shorter period that the        
registrant was required to file such report(s)), and (2) has been subject to    
such filing requirements for the past 90 days.                                  

Yes  [X]            No __                                             

  Indicate by check mark which financial statement item the registrant has
elected to follow.                                                              

Item 17 __             Item 18  [X]                                   

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PART I                                                                          

ITEM 1. DESCRIPTION OF BUSINESS                                                 

INTRODUCTION                                                                    

NYMOX Pharmaceutical Corporation ("NYMOX" or the "Company", which terms include 
the Company's subsidiary) is a development stage biopharmaceutical company,     
based in Rockville, Maryland and Saint Laurent, Quebec, Canada with several     
major pharmaceutical projects in development in addition to expertise in        
diagnostic technology. The company specializes in the research and development  
of therapeutics and diagnostics for the aging population with emphasis on       
Alzheimer's disease. NYMOX is in the process of developing products which,      
subject to approval of regulatory authorities, will be targeted for the global  
market. NYMOX has completed the research and discovery phase of its Alzheimer's 
diagnostic AD7C(TM) test and anticipates that it will be seeking regulatory     
approval to permit the Company to sell the AD7C(TM) test kit to laboratories.   
Pending regulatory approval, the Company is marketing the AD7C(TM) test through 
a reference laboratory service. (See "Diagnostic Products" below.)              

The AD7C(TM) diagnostic test for Alzheimer's disease is currently offered in the
NYMOX reference laboratory in Rockville, Maryland and in association with SGS   
Lab Simon S.A. in Brussels, Belgium. AD7C(TM) is a unique test capable of       
helping doctors diagnose Alzheimer's disease with very high accuracy which saves
patients and families from prolonged uncertainty and anxiety that an average of 
three years of diagnostic workup often entails. The test is expected to help    
provide significant savings to health care payors because it can significantly  
impact the billions of dollars already spent annually on the process. The       
majority of people examined may not have the disease so that the test will often
help to bring quick and positive reassurance.                                   

NYMOX was incorporated in May 1995 for the purpose of acquiring all of the      
common shares of DMS Pharmaceuticals Inc.("DMS"), a private company which has   
been carrying on research and development since 1989 on neurological diagnostics
and pharmaceuticals for the aging population with emphasis on Alzheimer's       
disease. (See "Management Discussion and Analysis" below).                      

As used herein, the terms "NYMOX" and the "Company" refer to NYMOX              
Pharmaceutical Corporation and DMS, the predecessor of NYMOX Pharmaceutical     
Corporation.                                                                    

PRODUCTS IN DEVELOPMENT                                                         

The company's primary purposes are (i) to develop certain products based upon   
molecular systems incorporating extensive proprietary technologies discovered,  
researched, and developed by the company's scientists and their collaborators   
over the past several years, and (ii) to commercialize such products for use in 
the diagnosis, prevention, and treatment of Alzheimer's disease. Such           
commercialization efforts currently are being conducted with respect to the     
AD7C(TM) test through reference laboratory services and licensing arrangements. 
Following receipt of regulatory approvals, the company intends to engage in     
direct sales and marketing. None of the company's products are commercially     
available at the present time, although the AD7C(TM) test is available in the   
U.S. and Canada through the Company's reference laboratory service.             

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NYMOX research and development is categorized into four areas including         
characterization of biochemical markers of Alzheimer's disease from brain       
tissue, cerebrospinal fluid, urine and blood; development of commercially       
significant immunoassays based on the aforementioned characterizations;         
screening and clinical testing of new compounds for the treatment of Alzheimer's
disease; and general research utilizing proprietary opportunities in parallel   
technologies such as the commercial applications of technologies developed in   
the previous categories (e.g., application of methods initially formulated in   
Alzheimer's disease diagnostics or therapeutics research applied to other uses  
and markets, such as other diseases).                                           

NYMOX holds exclusive patent rights to several biochemical markers from the     
brain and also has extensive know-how in the development of these and other     
markers. In addition to AD7C(TM), NYMOX has several other assays at other stages
of research.                                                                    

NYMOX is currently developing new compounds for the possible treatment of       
Alzheimer's disease. This research is at the preclinical stage. Based on animal 
studies to date, the Company plans in the near term to seek regulatory authority
to begin human (clinical) studies. (See "Development of Therapeutic Products.") 

DIAGNOSTIC PRODUCTS                                                             

Alzheimer's disease ("AD") is the most important cause of dementia in persons   
60 years of age and older. Despite the obvious need for an accurate clinical    
test, the definitive diagnosis of AD is currently possible only by pathologic   
examination of postmortem brain tissue. Medical literature addressing AD        
routinely emphasizes the current lack of a reliable antemortem diagnostic       
method, due to the lack of biochemical markers confirming the disease. At       
present, antemortem diagnosis is imperfect and is at best a process of exclusion
of other diagnoses.                                                             

Following extensive research with potential biochemical markers, NYMOX has      
developed a test known as AD7C(TM) which the Company believes reliably          
distinguishes Alzheimer's disease from normal individuals. In company funded    
trials to date, which have involved over 500 clinical samples, the test has been
positive in approximately 80% to 90% of verified Alzheimer patients with a low  
positive rate in normal controls (i.e., low false positives). These trials have 
been confirmed by postmortem brain verification and, therefore, NYMOX believes  
its AD7C(TM) test has the accuracy that is necessary for a test to be useful.   
The trials are, however, not complete and there can be no assurance that the    
level of success experienced to date will be repeated with the remaining study  
participants. In addition, there can be no assurances that regulatory           
authorities will accept NYMOX's test methodology or results in support of       
product applications. (See "Government Regulation.")                            

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A screening test offering a low false positive rate in normal patients would be 
a very useful aid to clinicians investigating patients with subtle or marginal  
symptoms: mental, emotional, cognitive, or behavioral. If the doctor can rule   
out Alzheimer's with more assurance, a great deal of patient and family anguish 
and anxiety will be avoided. A low test score will help the doctor be more      
certain that Alzheimer's disease is not the cause of the patient's symptoms.    

Assuming that future trials show a false positive rate consistent with that     
achieved by the AD7C(TM) test to date, the Company believes the test will have  
substantial appeal to the medical community. A reliable AD diagnostic test would
significantly streamline both the diagnostic work-up and follow-up management   
when used in conjunction with sound clinical judgment by a qualified physician. 
The AD7C(TM) test does not replace the doctor's diagnosis, which is a           
responsible medical decision based on patient history, physical examination and 
other relevant medical data. The test should be considered an integral and      
important component to the diagnosis.                                           

Regulatory approval is necessary before a test kit can be marketed for          
commercial distribution to other laboratories. (See "Government Regulation").   
It is, however, possible under FDA procedures for the AD7C(TM) test to be made  
available by NYMOX prior to FDA approval on the basis that samples are taken by 
doctors and sent to NYMOX for processing in its reference laboratory in         
Rockville, Maryland. The test is performed by NYMOX technical staff on patient  
samples sent by doctors and the results are reported to the doctor submitting   
the sample.                                                                     

NYMOX has also designed a urine test for Alzheimer's disease. The new test has  
been developed from NYMOX'S NTP based technologies. Another new NYMOX assay     
system for Alzheimer's disease which recognizes a distinctive brain antigen     
referred to as 35i9 is also in development.                                     

DEVELOPMENT OF THERAPEUTIC PRODUCTS                                             

In the field of neurodegenerative disease, including Alzheimer's disease, NYMOX 
has developed two new entities, NX-D3109 and NX-D1191, in addition to the lead  
drug candidate NX-D2858. These entities are each distinctive and are targeted   
for Phase 1 testing within one year. They are neurodegeneration inhibitors which
have been designed and tested in NYMOX proprietary screening systems. To date,  
there has been no significant toxicity demonstrated and animal testing results  
have been positive.                                                             

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The only FDA-approved drug treatments for Alzheimer's disease in use today are  
tacrine (brand-name Cognex) and donepezil (brand name Aricept). However, these  
compounds are effective only in managing the symptoms of AD, and do not arrest  
the underlying disease process. In contrast, NYMOX's research is aimed at       
compounds that could arrest the progression of Alzheimer's disease and hence are
targeted for long-term use. Such compounds are not expected to show dramatic    
immediate effects, however, because they would not provide improvement per se on
their own. Furthermore, adequate demonstration of arrest of progression         
sufficient to satisfy regulatory authorities may prove to be a difficult and    
comparatively long-term task. On the other hand, these "arrest of progression"  
compounds could be combined with shorter acting treatments, and, because there  
will be curtailed persistence of injury, the latter drugs could be active       
longer.                                                                         

In the field of infectious disease treatments, NYMOX has developed three new    
entities. The first is NX-B4221 for the treatment of chronic urinary tract      
infections. The second is NX-B5886 for the treatment of streptococcal infection.
The third is NX-T1021 for potential use against staphylococcus. NX-B4221,       
NX-B5886, and NX-T1021 have all shown bactericidal effects in culture and have  
thus far been non-toxic. Phase 1 testing is targeted in the next 12 to 18       
months.                                                                         

Once a product receives regulatory approval to begin clinical testing, four     
distinct development stages are followed:                                       

i) Product Evaluation. The objective of product evaluation is to conduct        
preliminary studies of potential screening candidates based on in vitro         
screening methods to determine the feasibility of such products for further     
testing, development and marketing.                                             

ii) Optimization of Product Formulation. The activities in this stage of        
development involve the Company in consultations with investigators and         
scientific personnel. Preliminary selection of screening candidates to become   
product candidates for further development and further evaluation of drug       
efficacy is based on a panel of research based biochemical measurements.        
Extensive formulation work and in vitro testing are conducted for each of       
various selected screening candidates and/or product candidates.                

iii) Clinical Screening and Evaluation. During this phase of development,       
portions of which may overlap with product evaluation and optimization of       
product formulation, initial clinical screening on product candidates is        
undertaken and full scale clinical trials commence.                             

iv) Final Product Development. The activities to be undertaken in final product 
development include making final clinical evaluations, performing large-scale   
experiments to confirm the reproducibility of clinical responses, fabricating   
clinical lots for any additional extensive clinical testing that may be         
required, conducting any further safety studies required by the FDA, performing 
process development work to allow pilot scale production of the product,        
completing production demonstration runs for each potential product, filing new 
drug applications ("NAS"), product license applications ("PLAs"),               
investigational device exemptions ("IDEs") (and required supplements or         
amendments thereto) and undergoing comprehensive regulatory approval programs   
and processes.                                                                  

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There can be no assurance that NYMOX will be able to complete successful        
development and commercialization of any therapeutic products.                  

In total, NYMOX currently has six therapeutic entities in development, one test 
being launched (AD7C(TM)), two tests in development, and several major drug     
screening  programs, including drug screening related to the NTP gene in        
association with the Massachusetts General Hospital.                            

GOVERNMENTAL REGULATION                                                         

The design, development, testing, manufacturing and marketing of pharmaceutical 
compounds are regulated by governmental regulatory agencies. In the United      
States, the Federal Food, Drug and Cosmetic Act, the Controlled Substances Act  
and other United States federal statutes and regulations impose requirements on 
the testing, manufacture and approval of the Company's products marketed in the 
United States. Non-compliance with applicable requirements can result in fines  
and other judicially imposed sanctions, including the initiation of product     
seizures, injunction actions and criminal prosecutions based on products or     
manufacturing practices that violate statutory requirements. In addition,       
informal administrative remedies can involve voluntary recall of products, as   
well as the refusal of the government to enter into supply contracts or to      
approve NAS.                                                                    

The FDA also has the authority to withdraw approval of drugs in accordance with 
statutory due process procedures. Similar consumer protection regulation in     
other countries exists, and approval will need to be acquired in each relevant  
market. SGS Lab Simon S.A. is required by the terms of its license agreement    
with the Company to assist the Company in obtaining the necessary government    
approvals for the Company's marketing effort in Europe.                         

In the United States, the FDA approval procedure is a two-step process. During  
the initial product development stage, an investigational new drug application  
(an "IND") for each product is filed with the FDA. A 30-day waiting period      
after the filing of each IND is required by the FDA prior to the commencement of
initial (Phase I) clinical testing in healthy subjects. If the FDA has not      
commented on or questioned the IND within such 30-day period, initial clinical  
studies may begin. If, however, the FDA has comments or questions, the questions
must be answered to the satisfaction of the FDA before initial clinical testing 
can begin. In some instances, this process could result in substantial delay and
expense. Phase I studies are intended to demonstrate the functional             
characteristics and safety of a product.                                        

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After Phase I testing, extensive efficacy and safety studies in patients must be
conducted. After completion of the required clinical testing, an NDA is filed,  
and its approval, which is required for marketing in the United States, involves
an extensive review process by the FDA. The Company expects that most of its new
drug formulations will require NDA filings. There can be no marketing in the    
United States of any product for which an NDA is required until the NDA has been
approved by the FDA. The NDA itself is a complicated and detailed document and  
must include the results of extensive clinical and other testing, the cost of   
which is substantial. The FDA is required to review applications within 180 days
of their filing. However, in the process of reviewing applications, the FDA     
frequently requests that additional information be submitted and starts the     
180-day regulatory review period anew when the requested additional information 
is submitted. The effect of such request and subsequent submission can          
significantly extend the time for the NDA review process. Until an NDA is       
actually approved, there can be no assurance that the information requested and 
submitted will be considered adequate by the FDA to justify approval. The       
packaging and labeling of products are also subject to FDA regulation. It is    
impossible to anticipate the amount of time that is required until the NDA has  
been approved by the FDA.                                                       

Whether or not FDA approval has been obtained, approval of a pharmaceutical     
product by comparable regulatory authorities must be obtained in any foreign    
country prior to the commencement of marketing of the product in that country.  
The approval procedure varies from country to country and can involve additional
testing, and the time required may differ from that required for FDA approval.  
Although there are some procedures for unified filings for certain European     
countries, in general each country has its own procedures and requirements, many
of which are time-consuming and expensive. Thus, there can be substantial delays
in obtaining required approvals from both the FDA and foreign regulatory        
authorities after the relevant applications are filed. After such approvals are 
obtained, further delays may be encountered before the products become          
commercially available. If, subsequent to approval, new information becomes     
available concerning the safety or effectiveness of any approved product,       
labeling for the affected product may need to be revised, or approval of that   
product may be withdrawn.                                                       

All facilities and manufacturing techniques used for the manufacturing of       
products for clinical use or for sale in the United States must be operated in  
conformity with good manufacturing practice ("GMP") regulations, the FDA        
regulations governing the production of pharmaceutical products.                

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In vitro diagnostic products, medical nutrition devices and certain delivery    
systems are regulated or potentially regulated under the Federal Food, Drug and 
Cosmetic Act as medical devices. As medical devices, these products would be    
subject to premarketing and postmarketing requirements applicable to such       
devices, including those governing:                                             

i)   clinical testing;                                                          

ii)  prior FDA approval in the form of                                          

a) an FDA determination through the 510(k) process of substantial     
equivalence to a marketed device or                             

b) an approved premarket approval application ("PMA");                

iii) postmarketing record and reporting obligations; and                        

iv)  GMP obligations.                                                           

The failure to adhere to these requirements can result in a refusal of          
permission to market, a withdrawal of permission to market and the imposition of
sanctions, including seizure, recall, notification, injunction, and civil and   
criminal penalties. Additionally, as a condition to marketing or continued      
marketing, the FDA may impose certain postmarket surveillance and/or tracing    
requirements that may significantly increase the regulatory costs associated    
with a product. The PMA approval requirements are generally analogous to the NDA
approval requirements. The 510(k) process, while generally less burdensome than 
the PMA requirements, requires affirmative FDA approval and may be dependent    
upon the generation of safety and effectiveness data, as well as manufacturing  
and quality assurance data and information. The Company believes it has         
assembled all the necessary information regarding the AD7C(TM) test in order to 
apply for PMA approval, and expects to file that application with the FDA within
the next three to six months. The PMA requires documentation of four categories 
of information required by the approval application, specifically indications   
for use, a description of device characteristics and manufacturing methods,     
facilities and controls, a discussion of alternative practices and procedures   
already available to the market, and summaries of safety reports and both       
clinical and nonclinical studies. There can be no assurance that the AD7C(TM)   
test or any other medical device that may be developed by the Company in the    
future will obtain the necessary approvals or that any approval will be obtained
within a specified time framework.                                              

Under the Federal Food, Drug and Cosmetic Act, it is possible for a given       
product to be regulated both as a drug and a medical device subject to the      
corresponding requirements applicable to the respective categories.             

The diagnostic and pharmaceutical products and services of the Company will, to 
a significant degree, address conditions often experienced by the elderly. Thus,
in the United States, the Medicare program, which funds health insurance for the
aged and disabled, is likely to be a source of reimbursement for these products 
and services. Further, because a significant percentage of the elderly are      
financially needy, the Medicaid program may also provide a source of            
reimbursement for the Company's products and services.                          

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In general, any restriction on reimbursement, coverage or eligibility under     
either program could adversely affect reimbursement to the Company for products 
and services provided to beneficiaries of the Medicare and/or Medicaid programs.
In response to rising health care costs, several legislative proposals have been
put forward in recent years that would have substantially reduced overall       
federal Medicare and Medicaid funding. Such proposals have included, for        
example, provisions to reduce payment amounts for clinical diagnostic laboratory
tests under the Medicare program. Additionally, various proposals would grant   
states substantially increased flexibility in managing their Medicaid programs, 
subject to a cap on federal spending. In response to such legislation, states   
may reduce payments under their Medicaid programs by imposing additional limits 
on coverage, eligibility and/or payments. Any legislative action to reduce      
federal spending under either program could adversely affect the amount of the  
Company's reimbursement under the programs and/or the Company's ability to      
participate in the program as a provider or supplier of services or products.   

Moreover, the Company may be required to provide certain of its products or     
services through reference laboratories. Such laboratories are regulated under  
the Clinical Laboratories Improvement Act of 1988 ("CLIA"). CLIA imposes        
requirements for certification, licensure and maintenance of medical records    
regarding the accuracy of the tests performed. Medicare and Medicaid            
reimbursement may be conditioned upon compliance with the requirement of CLIA.  
Additionally, the laboratories may be required to meet applicable state law     
requirements for diagnostic facilities. Any changes in CLIA or state law        
requirements in this regard could have an impact on the Company's ability to    
obtain reimbursement from the Medicare and Medicaid programs.                   

The Company's ability to obtain payment under the Medicare and Medicaid programs
may also be affected by regulatory action at the federal or state level. For    
example, new products and services developed by the Company will be subject to  
coverage determinations under both programs. Medicare prohibits payment for any 
expenses incurred for items or services that are not reasonable and necessary   
for the diagnosis or treatment of illness or injury or to improve the           
functioning of a malformed body member. Historically, HCFA interpreted this     
section of the Act to exclude from Medicare coverage those medical and health   
care services that are not demonstrated to be safe and effective by acceptable  
clinical evidence. In 1989, HCFA proposed a change to its criteria for coverage 
of new technologies. The three-part test for coverage would require that the    
product or service be medically effective, appropriately furnished, and cost    
effective as compared to an equivalent service already covered by the program.  
The final rule is expected in the near future. It is unknown what criteria the  
final rule will adopt or whether the Company's products and services will meet  
the new requirements.                                                           

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PATENTS AND PROPRIETARY INFORMATION                                             

NYMOX pursues a policy of seeking patent protection for valuable patentable     
subject matter of its proprietary technology, and requires all employees,       
consultants and other persons who may have access to its proprietary technology 
to sign confidentiality agreements. NYMOX believes that patent and trade secret 
protection is important in its business, and that its success will depend, in   
part, on its ability to obtain strong patents, to maintain trade secret         
protection and to operate without infringing the proprietary rights of others.  
The Company has certain patents issued and a number of applications pending in  
the areas of therapeutics and diagnostics in the United States. The Company     
possesses rights to a diagnostic patent for the AD7C(TM) test, which patent     
expires in the year 2013. The Company possesses several patents for screening   
technologies used for finding therapeutic drugs for Alzheimer's disease. These  
screening technologies consist of biological systems and defined conditions used
to determine if a drug possesses a useful action that can predict its potential 
for use in humans or animals. For example, the Company has patented screening   
methods that show whether a potential drug can inhibit or arrest some of the    
pathological changes of Alzheimer's disease. As a second example, the Company   
has patented screening methods that show whether a potential drug can modify in 
a useful way the amounts of chemical markers of Alzheimer's disease in a        
subject. While no proven therapeutic drugs for AD have yet been found using     
these screening technologies, they are a useful component to the Company's      
therapeutic product development. (See "Development of Therapeutic Products.")   
The Company also possesses patents for unique proteins which are related to     
Alzheimer's disease and which may, after further research and clinical trials,  
prove useful in either diagnostic or therapeutic applications. The Company has  
filed patent applications for other technologies in the fields of diagnosis and 
therapeutics similar to those described above. Similar patent applications have 
also been filed in most European countries, Canada, Japan and selected countries
worldwide depending on the patent application in question.                      

NYMOX currently has numerous patent applications in the United States claiming  
brain markers and screening and diagnostic technologies. NYMOX also has patent  
applications pending covering therapeutics and diagnostics in Alzheimer's       
disease and related conditions. NYMOX has eight issued patents. NYMOX also has  
other patents in a number of countries and has applications on file in numerous 
other countries. NYMOX also has an exclusive license to patents from the        
Massachusetts General Hospital covering rights to the  AD7C(TM) diagnostic and  
related therapeutic products. Under this license, the Massachusetts General     
Hospital ("MGH") benefits from research funding and collaboration from NYMOX and
is entitled to royalties of 4% from worldwide sales of the AD7C(TM) test.       

The commercial success of products incorporating the technologies may depend, in
part, upon NYMOX's ability to obtain strong patent protection. Although NYMOX   
patents, pending patent applications, and patents obtained in the future        
covering the NYMOX technologies may be of importance to future operations, there
can be no assurance that any additional patents will be issued or that any      
patents, now or hereafter issued, will be of commercial benefit.                

Numerous other companies are believed to be working in the fields of diagnostics
and therapeutics for Alzheimer's disease and related conditions. These companies
have obtained patents covering various technologies. The Company believes that  
the patents issued to date will not preclude the Company from developing and    
marketing its technologies; however, it is impossible to predict at this time   
the extent to which licenses from third parties will be necessary. If licenses  
were to be needed from third parties there can be no assurance that such license
could be obtained or could be obtained on commercially reasonable terms.        

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There has been, and the Company believes that there may be in the future,       
significant litigation in the industry regarding patent and other intellectual  
property rights and that, if the Company becomes involved in such litigation, it
could consume substantial resources. Significant legal issues remain as to the  
extent to which patent protection may be afforded in the field of biotechnology 
in the United States, Canada and other countries, and the scope of any such     
protection has not yet been broadly tested. The Company, therefore, also relies 
upon trade secrets, know-how, and continuing technological advancement to       
develop and maintain its competitive position. Disclosure and use of the        
Company's know-how is generally controlled under agreements with the parties    
involved. In addition, the Company has confidentiality agreements with its key  
employees, consultants, officers and directors. There can be no assurance,      
however, that all confidentiality agreements will be honored, that others will  
not independently develop equivalent technology, that disputes will not arise as
to the ownership of intellectual property, or that disclosure of the Company's  
trade secrets will not occur. Furthermore, there can be no assurance that others
have not obtained or will not obtain patent protection that will exclude the    
Company from using its trade secrets and confidential information. To the extent
that consultants or research collaborators use intellectual property owned by   
others in their work with the Company, disputes may also arise as to the rights 
to related or resulting know-how or inventions.                                 

COMPETITION                                                                     

The pharmaceutical and biotechnology industries are characterized by rapidly    
evolving technology and intense competition. The Company's competitors include  
major pharmaceutical, diagnostic, chemical and biotechnology companies, many of 
which have financial, technical and marketing resources significantly greater   
than those of the Company. In addition, many biotechnology companies have formed
collaborations with large, established pharmaceutical companies to support      
research, development and commercialization of products that may be competitive 
with those of the Company. Academic institutions, government agencies and other 
public and private research organizations are also conducting research          
activities and seeking patent protection and may commercialize products on their
own or through joint ventures. The Company is aware of certain products         
manufactured or under development by competitors that are used for the          
prevention, treatment or detection of AD. The existence of these products, or   
other products or treatments of which the Company is not aware, or products or  
treatments that may be developed in the future, may adversely affect the        
marketability of products developed by the Company.                             

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For certain of the Company's potential products, an important factor in         
competition may be the timing of market introduction of the Company's or        
competitors' products. The Company's competition will be determined in part by  
the potential indications for which the Company's products are developed and    
ultimately approved by regulatory authorities. The development by competitors of
new treatment methods for those indications for which the Company is developing 
products could render the Company's products noncompetitive or obsolete. The    
Company expects that competition among products approved for sale will be based,
among other things, on product efficacy, safety, reliability, availability,     
price and intellectual property protection.                                     

In the field of AD diagnostics, the competition consists of other proposed      
biochemical markers being tested and hypothesized to be of use in either        
diagnosing or ruling out the diagnosis of Alzheimer's. This distinction is      
highly relevant because the Company believes data which refer only to AD cases  
is misleading. In reality, the diagnosis is unknown prior to testing (hence the 
need for testing in the first place), and therefore data on accuracy must       
reflect positives and negatives. In other words, a test which diagnoses a       
certain percentage of only the positives, and is uncertain or non-contributory  
on the negatives will in fact have accuracy inversely proportional to the number
of normals. Therefore, in the usual clinical setting where the vast majority of 
lab tests are normal (i.e., negative), the accuracy of any test which only      
diagnoses a proportion of the positives will turn out to be very small and      
therefore not useful.                                                           

MARKETING                                                                       

NYMOX's commercial activities with respect to any product are subject to        
regulatory approval in each national market. (See "Government Regulation.") The 
Company has not yet begun to commercially market or distribute any products     
although it is in the process of implementing a reference laboratory service    
with respect to the AD7C(TM) test. (See "Diagnostic Products.") Assuming        
regulatory approval, the Company will employ a variety of marketing approaches  
depending on the product and the market.                                        

With respect to the AD7C(TM) test, the Company intends to retain primary        
responsibility for all commercial activities conducted in North America. The    
Company currently has established an AD7C(TM) Clinical Reference Laboratory     
service in Rockville, Maryland (U.S.). The laboratory is fully operational and  
has been CLIA certified, which is a level of certification necessary in the     
United States medical market. The Company intends to establish additional       
laboratory facilities in other countries, although at present the company is    
focusing its efforts on finding suitable overseas licensees who have both the   
economic and scientific resources to effect a more rapid penetration of the     
AD7C(TM) test in their home markets. The Company has signed a non-exclusive     
license agreement with SGS Lab Simon S.A. of Belgium to perform and market the  
AD7C(TM) test in Europe. SGS Lab Simon S.A. is a leading supplier of laboratory 
services in Europe, and is part of the SGS Group (Societe Generale de           
Surveillance), the world's largest control and inspection organization, based in
Geneva, Switzerland. Additional license relationships may be arranged in the    
future, although there can be no assurance that the Company will be able to     
enter into agreements with other licensees on terms acceptable to the Company or
that any license revenues will be derived from either SGS Lab Simon S.A. or any 
other licensee.                                                                 

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NYMOX plans to market and sell certain of its therapeutic products, if          
successfully developed and approved, directly or through co-promotion           
arrangements or other licensing arrangements with third parties. In cases where 
NYMOX has sole or shared marketing rights, it plans to build a small, focused   
sales force if and when such products approach marketing approval in some       
markets, including Europe. Implementation of this strategy will depend on many  
factors, including the market potential of any products the Company develops as 
well as on the Company's financial resources. To the extent the Company will    
enter into co-promotion or other licensing arrangements, any revenues received  
by the Company will be dependent on the efforts of third parties.               

ITEM 2. DESCRIPTION OF PROPERTY                                                 

a)   NYMOX laboratories in Rockville, Maryland comprise 5,500 square feet of    
leased space. The lease agreement expires in March 31, 2000. The facility in    
Saint Laurent, Quebec, Canada comprises 3,700 square feet of leased space. The  
lease agreement expires in August 1998. The Company owns a full complement of   
equipment used in all aspects of its R&D and its reference laboratories. The    
Company believes that its facilities are adequate for its current needs and that
additional space, if required, would be available on commercially reasonable    
terms.                                                                          

b)   Not applicable.                                                            

ITEM 3. LEGAL PROCEEDINGS                                                       

There are no material legal proceedings involving NYMOX or any of its assets.   

ITEM 4. CONTROL OF REGISTRANT                                                   

a), b) The following table sets forth information as of March 31, 1998          
regarding ownership of the common shares by Dr. Paul Averback (see Item 10), who
is the only person known to the Company to own more than 10% of the common      
shares, and by all directors and officers as a group.                           

                                                                [Download Table]


NAME                                       NO. SHARES     PERCENT OF CLASS
                                                                          
Dr. Paul Averback                          12,643,895           67.8%     

All directors and officers as a group      12,725,850           68.3%     


In addition, as of such date Dr. Averback's wife owned 1,154,297 common shares  
(6.2%) and 9022-1433 Canada Inc., a company owned by Dr. Averback and his wife, 
owns 500,000 common shares (2.7%).                                              

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Pursuant to an escrow agreement (the "Escrow Agreement") dated December 18, 1995
an aggregate of 11,522,331 common shares of the Company owned by Dr. Paul       
Averback and his wife were placed in escrow by the Montreal Trust Company of    
Canada, of which 3,840,777 shares (the "Escrowed Shares") presently remain in   
escrow. The Escrowed Shares generally may not be sold, assigned, hypothecated,  
pledged, charged, alienated, released from escrow, transferred within escrow or 
otherwise in any manner dealt with without the express consent, order, direction
in writing of the Montreal Exchange. The escrow arrangement provides for        
automatic release upon the following terms:                                     

                                                                [Download Table]

Release Date                     Number of Shares
------------                     ----------------

                                                 
December 18, 1996                     3,840,777  
     (Released As Scheduled)                     
December 18, 1997                     3,840,777  
     (Released As Scheduled)                     
December 18, 1998                     3,840,777  

To the knowledge of the Company, no other shareholder beneficially owns more    
than 10% of the shares of the Company.                                          

c) Not applicable.                                                              

ITEM 5. NATURE OF TRADING MARKET                                                

The Common Shares of NYMOX have been listed and posted for trading on the       
Montreal Exchange since December 18, 1995 and on The Nasdaq Stock Market since  
November 25, 1997. The following tables set out the high and low reported       
trading prices of the common shares on The Nasdaq Stock Market and the Montreal 
Exchange during the periods indicated.                                          

THE NASDAQ STOCK MARKET:                                                        

                                                                [Download Table]
                                                                          
                         High (US$)        Low (US$)       Volume (Shares)
                         ----------        ---------       ---------------
1997 4th quarter         $8.750            $6.250          134,276        
1998 1st quarter         $13.625           $5.688          5,561,919      

THE MONTREAL EXCHANGE:                                                    

                         High (CDN$)       Low (CDN$)      Volume(Shares) 
                         -----------       ----------      -------------- 
1996 1st quarter         $9.50             $2.80           2,179,929      
     2nd quarter         $19.40            $8.00           1,758,384      
     3rd quarter         $20.00            $14.75          1,164,185      
     4th quarter         $17.75            $10.00          543,799        
1997 1st quarter         $15.50            $10.95          347,969        
     2nd quarter         $11.25            $6.00           477,108        
     3rd quarter         $10.50            $7.50           326,504        
     4th quarter         $12.40            $7.25           588,709        
1998 1st quarter         $19.00            $8.15           1,478,377      

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According to information furnished to the Company by the transfer agent for the 
common shares, as of March 31, 1998, there were approximately 904 holders of    
record of the common shares and 314 beneficial shareholders in total of which 76
were holders of record of the common shares  and 54 were beneficial shareholders
with addresses in the United States and such holders owned an aggregate of      
1,481,836 shares, representing 7.7% of the outstanding shares of common stock.  

ITEM 6. EXCHANGE CONTROLS AND OTHER LIMITATIONS AFFECTING SECURITY HOLDERS      

a) Canada has no system of exchange controls. There are no exchange restrictions
on borrowing from foreign countries nor on the remittance of dividends,         
interest, royalties and similar payments, management fees, loan repayments,     
settlement of trade debts or the repatriation of capital.                       

b) There are no limitations on the rights of non-Canadians to exercise voting   
rights on their shares of NYMOX.                                                

ITEM 7. TAXATION                                                                

CANADIAN FEDERAL INCOME TAXATION                                                

The following discussion is a fair summary of the principal Canadian federal    
income tax considerations generally applicable to purchasers of the Company's   
Common Stock who, for purposes of the Income Tax Act (Canada) (the "Canadian    
Act"), deal at arm's length with the Company, hold shares of Common Stock as    
capital property, are not residents of Canada at any time when holding Common   
Stock and do not use or hold and are not deemed to use or hold Common Stock in  
or in the course of carrying on business in Canada and, in the case of insurers 
who carry on an insurance business in Canada and elsewhere, do not hold Common  
Stock that is effectively connected with an insurance business carried on in    
Canada.                                                                         

This summary is based on the current provision of the Canadian Act, the         
regulations thereunder, the Canada-United States Income Tax Convention (1980)   
(the "Treaty"), and the third protocol signed August 31, 1994 (the "Protocol"), 
as amended. This summary takes into account specific proposals to amend the     
Canadian Act and the regulations thereunder publicly announced by the Minister  
of Finance prior to the date hereof and on counsel's understanding of the       
current published administrative and assessing practices of Revenue Canada,     
Taxation. This summary does not take into account Canadian provincial income tax
laws or the income tax laws of any country other than Canada.                   

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A shareholder of the Company will generally not be subject to tax pursuant to   
the Canadian Act on a capital gain realized on a disposition of Common Stock    
unless the Common Stock is "taxable Canadian property" to the shareholder for   
purposes of the Canadian Act and the shareholder is not eligible for relief     
pursuant to an applicable bilateral tax treaty. The Common Stock will not be    
taxable Canadian property to a shareholder provided that the Company is a       
"public corporation" within the meaning of the Canadian Act and provided that   
such shareholder, or persons with whom such shareholder did not deal at arm's   
length (within the meaning of the Canadian Act), or any combination thereof, did
not own 25% or more of the issued shares of any class or series of the Company  
at any time within five years preceding the date of disposition. The Company    
qualifies as a "public corporation" within the meaning of the Canadian Act. In  
addition, the Treaty will generally exempt a shareholder who is a resident of   
the United States for purposes of the Treaty from tax in respect of a           
disposition of Common Stock provided that the value of the shares of the Company
is not derived principally from real property (including resource property)     
situated in Canada.                                                             

Any dividend, including stock dividends, paid or credited, or deemed to be paid 
or credited, by the Company to a shareholder will be subject to Canadian        
withholding tax at the rate of 25% on the gross amount of the dividend, subject 
to the provisions of any applicable income tax convention. Pursuant to the      
Treaty, the rate of withholding tax generally will be reduced to 15% in respect 
of dividends paid to a shareholder who is a resident of the United States for   
purposes of the Treaty and further reduced to 10% if the beneficial owner of the
shares is a corporation owning at least 10% of the voting shares of the Company.
Pursuant to the Protocol, the rate of withholding tax will generally be reduced 
to 5%, if the beneficial owner of the shares is a corporation owning at least   
10% of the voting shares of the Company.                                        

The foregoing discussion is limited to Canadian federal taxation and does not   
deal with provincial or local taxes or United States federal, state or local    
taxes. It is of a general and summary nature only and is not intended to be, nor
should it be considered to be, legal or tax advice to any particular            
shareholder. Accordingly, prospective investors should consult their own tax    
advisors as to the tax consequences of receiving dividends from the Company or  
disposing of their common stock.                                                

ITEM 8. SELECTED FINANCIAL DATA                                                 

The following table sets forth selected financial data for the Company (which   
data are comprised of the data of DMS prior to its September 1995 acquisition by
the Company), for the periods indicated, derived from financial statements      
prepared in accordance with Canadian Generally Accepted Accounting Principles   
that have been audited by KPMG, Montreal, Canada in the case of the years ended 
December 31, 1996 and 1997, by Deloitte & Touche, Montreal, Canada, in the case 
of the periods ended July 31, 1995 and December 31, 1995, and by Bergeron &     
Senecal, Brossard, Canada, in the case of the periods ended July 31, 1993 and   
1994. The selected financial data for the period ended July 31, 1992 is         
unaudited. The data set forth below should be read in conjunction with the      
Company's financial statements and notes thereto and "Management's Discussion   
and Analysis of Financial Conditions and Results of Operations" included        
elsewhere herein.                                                               

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Effective August 1, 1995, the Company changed its fiscal year from a July 31    
year end to a December 31 year end.                                             

NYMOX PHARMACEUTICAL CORPORATION                                                
Selected Financial Data                                                         
(expressed in Canadian dollars)                                                 

                                                        [Enlarge/Download Table]

                         JULY 31  JULY 31  JULY 31    DEC. 31     DEC. 31      DEC. 31  
                           1993    1994     1995       1995        1996         1997    
                                                    (5 months)  (12 months)  (12 months)
                         -------  -------  -------  ----------  ----------   -----------
                                                                                        
CANADIAN GAAP                                                                           
Current Assets            - 0 -    - 0 -    11,963   2,268,097   2,896,234    2,470,335 
Capital & Other Assets    12,576   12,576  338,953     366,155   1,317,973    1,475,462 
Total Assets             251,352  239,403  350,916   2,634,252   4,214,207    3,945,797 
Liabilities                9,000   95,376  121,589     151,297     384,226      292,330 
Shareholders' Equity     242,352  194,027  229,327   2,482,955   3,829,981    3,653,467 
Revenues                  - 0 -    - 0 -    - 0 -       - 0 -      226,940      101,110 
Research & Development                                                                  
Expenditures (note 1)     32,519   55,325  371,939     571,215   2,116,000    2,412,349 
Net Loss                  34,519   58,325  377,570     693,846   3,699,064    4,999,455 
Loss Per Share (note 2)   - 0 -    - 0 -      0.03        0.04        0.21         0.27 

US GAAP (note 3)                                                                        
Net Loss                  47,862   71,668  393,841   1,639,194   4,330,230    5,198,988 
Loss per share (note 2)   - 0 -    - 0 -      0.03        0.11        0.25         0.28 
Shareholders' equity     188,980  127,312  146,341   2,391,515   3,107,375    2,731,328 

[FN]                                                                            
Notes:                                                                          
1) Amounts shown are net of investment tax credits.                             

2) For periods prior to the reverse acquisition of NYMOX by DMS, the number of  
shares outstanding is assumed to be 15,000,000 representing the number of 
 shares issued by NYMOX to DMS in September 1995. The Company has never paid
dividends on its common stock.                                            

3) Reference is made to Note 9 of the Company's audited financial statements as 
at and for the year ended December 31, 1997 and to Note 8 of the Company's
 audited financial statements as at and for the year ended December 31, 1996
and to Notes 10 and 11 of the Company's audited financial statements as of
   and for the five month period ended December 31, 1995 for a reconciliation of
differences between Canadian and US GAAP.                                 
</FN>                                                                           

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As of March 31, 1998 the exchange rate is CAN$1.4198 to US$1.00. The following  
table sets forth certain information regarding exchange rates for the periods   
reflected in the preceding financial data.                                      

FOR THE PERIOD ENDED                                                            

                                                        [Enlarge/Download Table]

                       July 31,  July 31,  July 31,    Dec.31,     Dec.31,      Dec.31,  
CAN$ TO US               1993      1994      1995       1995        1996         1997    
                                                     (5 Months)  (12 Months)  (12 Months)
                       --------  --------  --------  ----------  -----------  -----------
                                                                                         

Period end             $1.2817   $1.3825   $1.3609     $1.3695     $1.3618     $1.4291   
Average During Period  $1.2563   $1.3465   $1.3775     $1.3548     $1.3636     $1.3850   
High                   $1.2945   $1.3990   $1.4267     $1.3820     $1.3747     $1.4291   
Low                    $1.1813   $1.2839   $1.3395     $1.3271     $1.3383     $1.3400   


ITEM 9. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION             
AND RESULTS OF OPERATIONS                                       

GENERAL                                                                         

The Company was formed for the purpose of acquiring all of the common shares of 
DMS Pharmaceutical Inc. (DMS), a private company carrying on research and       
development in the field of neurological diagnostics and pharmaceuticals for the
aging population. This acquisition was completed during September 1995 for a    
consideration of 15,000,000 common shares of the Company, resulting in the      
shareholders of DMS owning substantially all the shares of the Company. This    
transaction was accounted for under the purchase method of accounting with DMS  
as the acquiror.                                                                

Immediately following the acquisition, the Company acquired a controlling       
interest in Monterey Capital Inc. ("Monterey"), an unaffiliated public company  
engaged in the real estate business, for cash of CAN$383,000. The purpose of the
transaction was to cause NYMOX to take over Monterey's public company status.   
The purchase price was determined through arm's-length negotiations between the 
parties. Monterey was then merged with a wholly-owned subsidiary of the Company 
with the result that the non-controlling shareholders of Monterey received      
468,447 common shares of the Company. The transaction was accounted for as a    
share issuance of the Company for nominal consideration of CAN$1. It was not    
considered to be part of the acquisition and sale of Monterey, as that          
transaction was an intermediary step in meeting the objective of rendering the  
Company a public company. Concurrently, the shares of the surviving company     
carrying on the business of Monterey were sold to one of the former Monterey    
shareholders for cash of CAN$383,000. The sale of the surviving company did not 
give rise to a gain or loss, since the sale price was equal to its carrying     
value.                                                                          

Simultaneously, NYMOX completed a private placement of 1,578,635 common shares  
at a price of CAN$2.00 per share for net proceeds of CAN$2,947,474 to finance   
its activities.                                                                 

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The shares of NYMOX were listed on the Montreal Stock Exchange on December 18,  
1995.                                                                           

In April 1996, NYMOX completed private placements totaling 877,300 common shares
at a per share price of CAN$6.00 for aggregate net proceeds of CAN$5,263,800.   

In May 1997, NYMOX completed a private placement totaling 696,491 units for a   
total consideration of CAN$4,527,191. Each unit was comprised of one common     
share of NYMOX and one common share purchase warrant entitling the holder to    
subscribe to one common share of NYMOX at a per share price of $8.50 until May  
15, 1998.                                                                       

In April 1998, NYMOX completed private placements totaling 217,000 common shares
and 255,384 warrants were exercised for total proceeds of CAN$4,037,864. In the 
private placements, 60,000 units comprised one common share of NYMOX and one    
common share purchase warrant entitling the holder to subscribe to one common   
share of NYMOX at a per share price of $10.00 until August 31, 1999, and 86,000 
units comprised one common share of NYMOX and one half common share purchase    
warrant entitling the holder to subscribe to one half common share of NYMOX at a
per share price of $8.50 until August 31, 1999.                                 

RESULTS OF OPERATIONS                                                           

The Company is a development stage company, which has, during the periods       
presented in the Summary Financial Information above, realized limited revenues 
from operations. Most of the revenues during the year ended December 31, 1997   
have been derived from interest earned on the cash and short-term investments   
received from the private placements referred to above. The Company's overall   
loss for the year ended December 31, 1997 amounted to CAN$4,999,455, or         
$0.27/share, compared to CAN$3,699,064, or $0.21/share for the year ended       
December 31, 1996.                                                              

FOR THE YEAR ENDED DECEMBER 31, 1997:                                           

Research and development expenditures represented the Company's most significant
expenditure and amounted to CAN$2,562,349 for the year ended December 31, 1997, 
compared with CAN$2,356,000 for the year ended December 31, 1996. The increased 
expenses were largely attributable to increased expenditures related to         
laboratory expenses (CAN$178,000) at the Rockville, Maryland laboratory during  
the year. The Rockville facility was in operation for only 10 months in 1996.   
The Company also paid its third installment under its research and license      
agreement with Massachusetts General Hospital ("MGH"), in the amount of         
CAN$311,310, which was CAN$36,000 higher than the 1996 payment. Under the       
agreement, the Company is obligated to make certain regularly scheduled payments
to MGH as research grants in exchange for royalties from any sales of resulting 
products. (See "Patents and Proprietary Information"). For 1998 through the year
2002, subject to some early termination rights of the Company, NYMOX is         
obligated to pay MGH US$172,000 per year, which amount is payable in quarterly  
installments of US$43,000. Gross research and development expenditures were     
partially offset by research tax credits available to the Company in Quebec. In 
1997, research tax credits amounted to CAN$150,000 compared to CAN$240,000 in   
1996. The reduction is attributable to the transfer of certain research and     
development activities to the United States.                                    

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Marketing expenses in 1997 amounted to CAN$1,925,654 for the year ended December
31, 1997 compared to CAN$1,253,894 for the year ended December 31, 1996.        
Expenditures in 1997 consisted largely of the costs of establishing and         
maintaining a sales and marketing force (CAN$1,135,000) and costs related to    
marketing activities such as presentations at conferences, publicity, travel,   
general expenses, printing and postage (Can$790,000). Expenditures in 1996,     
consisted of publicity related costs in connection with pre-marketing of        
AD7C(TM) (CAN$746,000), salaries (CAN$178,000) and other costs related to       
marketing activities (CAN$330,000).                                             

General and administrative expenses amounted to CAN$589,524 for the year ended  
December 31, 1997 compared with CAN$497,179 in the year ended December 31, 1996.
The increase is attributable to legal costs and expenses related to United      
States public company registration and the NASDAQ listing (CAN$119,600).        

Total current operating expenses are approximately CAN$335,000 per month. Of    
that amount, the Company is currently spending approximately CAN$145,000 per    
month on research and development. This number is expected to remain steady in  
1998, although if the Company raises additional capital it will devote a portion
of that capital to further expansion of research and development efforts. In    
such event, research and development expenditures will increase.                

LIQUIDITY AND CAPITAL RESOURCES                                                 

At December 31, 1997, the Company's cash and cash equivalents were              
CAN$2,287,345. In April 1998, NYMOX completed private placements totaling       
217,000 common shares and 255,384 warrants were exercised for total proceeds of 
CAN$4,037,864.                                                                  

NYMOX has no financial obligations of significance as at March 31, 1998 other   
than long-term lease commitments for its premises in the United States and      
Canada of CAN$19,000 per month and ongoing research funding payments due to MGH,
as previously explained.                                                        

The Company invested CAN$260,000 in additional capital assets in the year ended 
December 31, 1997 compared to over Can$1,000,000 in 1996, consisting of patent  
costs (CAN$210,000), laboratory equipment (CAN$30,000) and computers            
(CAN$12,000).                                                                   

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The Company does not believe that inflation has had a significant impact on its 
results of operations.                                                          

FOR YEAR ENDED DECEMBER 31, 1996:                                               

Research and development expenditures amounted to CAN$2,356,000 for the year    
ended December 31, 1996, compared with CAN$571,215 for the five-month period    
ended December 31, 1995 and CAN$371,939 for the year ended July 31, 1995. The   
increased expenses were largely attributable to the hiring of additional        
personnel in Canada (CAN$709,000) and the opening of the Rockville, Maryland    
laboratory during the year (CAN$448,000), as well as increased expenditures     
related to laboratory expenses (CAN$588,000). The Company also paid its second  
installment under its research agreement with MGH, in the amount of CAN$274,675,
which was CAN$40,000 higher than the 1995 payment. Gross research and           
development expenditures were partially offset by research tax credits available
to the Company in Quebec.                                                       

General and administrative expenses, including marketing related expenses       
amounted to CAN$1,751,073 for the year ended December 31, 1996 compared with    
CAN$130,688 in the five-month period ended December 31, 1995. The increase was  
attributable to the hiring of additional non-research personnel, which amounted 
to approximately CAN$125,000 and to costs incurred in the Company's Rockville,  
Maryland laboratory which amounted to approximately CAN$70,000. This facility   
operates as a wholly-owned subsidiary of the Company. The increase in expenses  
was also attributable in part to costs related to shareholder relations and     
other expenses associated with being a public corporation that were not incurred
in fiscal 1995 (CAN$257,000) and publicity-related costs (CAN$746,000) in       
connection with the pre-marketing of AD7C(TM). The remaining increase was       
related to sundry office expenses.                                              

LIQUIDITY AND CAPITAL RESOURCES                                                 

The Company made some significant capital asset investments in fiscal 1996.     
The Company invested over CAN$1,000,000 in additional capital assets in the     
year ended December 31, 1996, consisting of investments in laboratory equipment 
(CAN$704,000), computer software and hardware (CAN$44,000), and furniture and   
fixtures (CAN$19,000). The balance of capital expenditures consisted of patent  
costs. Of the total capital expenditures, approximately CAN$142,000 related to  
investments at the U.S. laboratory in Maryland. As a result, the corresponding  
depreciation of such assets rose approximately CAN$79,000 compared to the five  
month period ended December 31, 1995.                                           

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FOR PERIODS PRIOR TO DECEMBER 31, 1995:                                         

Research and development expenditures averaged less than CAN$50,000/year from   
the inception of the Company's operations to the end of the 1994 fiscal year.   
For the year ended July 31, 1995 research and development expenditures amounted 
to CAN$371,939, a 572% increase from fiscal 1993. The increase was largely      
attributable to investments in personnel and supplies made by the Company in a  
laboratory located in Tennessee and operated by the Company from March 1995 to  
July 1995. This laboratory was closed in August 1995 and the personnel and      
supplies transferred to the Company's Montreal facility. The Company continued  
to expand its research and development program in the five-month period ended   
December 31, 1995 (the Company's new fiscal year-end). Research and development 
expenditures amounted to CAN$571,215 in this period compared to CAN$371,939 for 
the year ended July 31, 1995. The increased expenses are entirely attributable  
to the payment of the first of three installments due to MGH for research       
funding. The first payment amounted to CAN$234,675.                             

General and administrative expenses were minimal from inception of the Company  
to July 31, 1995, averaging less than CAN$5,000/year. In the short fiscal period
ended December 31, 1995, general and administrative expenses amounted to        
CAN$134,631. The increase from prior levels was due principally to the Company's
move to new premises during this period, which included costs related to rent   
(CAN$55,000), moving expenses (CAN$20,000) and sundry office expenses           
(CAN$41,000). The Company also hired its Chief Financial Officer during this    
period which accounted for approximately CAN$14,000 of the increase in the      
period ended December 1, 1995.                                                  

Before the Company became a public corporation, investments in capital resources
were mostly limited to costs to secure patents. Since NYMOX became public in    
December 1995, the Company has made a significant investment in staffing and    
equipment. Additional costs are being financed through proceeds of private      
placements completed in December 1995 (net proceeds of CAN$2,947,474) and April 
1996 (net proceeds of CAN$5,029,840).                                           

ITEM 9A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK             

None; Not applicable. See "Note 8 - Fair Values" in financial report.           

ITEM 10. DIRECTORS AND OFFICERS                                                 

a)   The directors and executive officers of NYMOX are:                         

Dr. Paul Averback, M.D., D.A.B.P., President and Director (since September 1995)
of the Company, is the founder of the Company and the inventor of much of its   
initial technology. Prior to founding the Company, Dr. Averback served as       
President of the Company's predecessor, DMS. He received his M.D. in 1975 and   
taught pathology at universities, including Cambridge University, England       
(1977-1980), during which time he initiated his research on Alzheimer's disease.
He has practiced medicine in numerous Canadian institutions and from 1991 to    
1995 was also Medical Director of the Urgence Lachine medical center. Dr.       
Averback has published extensively in the scientific and medical literature.    

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Dr. Hossein A. Ghanbari, Ph. D., Vice President and Director (since September   
1995) of the Company, holds a Ph. D. in biochemistry from Pennsylvania State    
University. From 1982 to 1992, he was employed with Abbott Laboratories, where  
he was responsible for the first marketed diagnostic test for Alzheimer's       
disease (on brain tissue). From 1992 to 1994, he was Senior Vice-President,     
Research and Planning, of Molecular Geriatrics Corporation, a biopharmaceutical 
company specialized in diseases associated with aging. Dr. Ghanbari is the      
author of numerous specialized publications and is a member of many             
international professional associations.                                        

Mr. Roy M. Wolvin, Secretary-Treasurer (since September 1995) of the Company.   
Prior to September 1995, Mr. Wolvin was Account Manager, private business, for a
Canadian chartered bank. Mr. Wolvin holds a degree in Economics from the        
University of Western Ontario.                                                  

Mr. John L. Melikoff, Director (since September 1995) of the Company, is        
portfolio manager for Interinvest Consulting Corporation, an international      
private company specialized in fund management. He was, from 1990 to 1991,      
a registered representative with McNeil Mantha and from 1984 to 1989,           
with Prudential Bache Securities.                                               

Dr. Colin B. Bier, Ph.D., Director (since December 1995) of the Company, is a   
leading authority on toxicology and pharmaceutical and biotechnological         
regulatory affairs and has extensive management experience in the biomedical    
sector. Dr. Bier was formerly Vice-President and Director of Toxicology at      
Bio-Research Laboratories, President and Chief Executive Officer of ITR         
Laboratories and has consulted, managed and been affiliated with numerous       
biochemical enterprises.                                                        

Dr. J. Kenneth Harrington, Ph.D., Director (since January 1996) of the Company, 
has over 30 years of experience with 3M's Life Sciences businesses, including   
the positions of Vice-President of Riker Pharmaceuticals and Group Director of  
3M's European pharmaceutical divisions. Dr. Harrington is a named inventor on 42
US patents, and has been involved in over 100 successful FDA filings.           

Martin Barnes , Director (since June 1997) of the Company is Managing Editor of 
THE BANK CREDIT ANALYST. Prior to joining THE BANK CREDIT ANALYST RESEARCH GROUP
in 1987, Mr. Barnes was the Chief economist at Wood Mackenzie, a leading        
Edinburgh brokerage firm (1977-1987) and an economist at British Petroleum in   
London (1973-1977).                                                             

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Dr. Iraj Beheshti, Ph.D., M.B.A., Vice President and Director of Clinical       
Reference Laboratories. Dr. Beheshti was Co-Founder and Director of Research and
Development (1985-1988) and President and CEO of London Diagnostics (1988-1993).
Prior to that he was Senior Scientist with Abbott Laboratories. Before joining  
NYMOX, Dr. Beheshti was Director of Operations of Acute Care and Outpatient     
Laboratories at the University of Minnesota Medical School. Dr. Beheshti is an  
authority in the medical diagnostics field and in affairs dealing with the U.S. 
Food and Drug Administration. He has been involved in the successful development
and commercialization of numerous products, including 14 FDA approved diagnostic
kits.                                                                           

Directors are elected at each annual meeting for a term of office until the next
annual meeting. Executive officers are appointed by the Board of Directors and  
serve at the pleasure of the Board. Other than Dr. Averback, no other officer or
director previously was affiliated with DMS.                                    

b)   There are no family relationships between any director or executive officer
and any other director or executive officer.                                    

ITEM 11. COMPENSATION OF OFFICERS AND DIRECTORS                                 

a)   The table below provides compensation information for the fiscal year ended
December 31, 1997 for each executive officer of the Company and for the         
directors and executive officers as a group.                                    

SUMMARY COMPENSATION TABLE                                                      
(IN CANADIAN DOLLARS)                                                           

                                                                [Download Table]


                                FISCAL YEAR ENDED      FISCAL YEAR ENDED      
                                    12/31/96               12/31/97           

NAME AND                                    OTHER CASH             OTHER CASH 
PRINCIPAL POSITION              SALARY     COMPENSATION  SALARY   COMPENSATION
------------------             ------     ------------  ------   ------------ 
                                                                              
Dr. Paul Averback,             $100,000         -       $150,000       -      
President and Director                                                        
Dr. Hossein A. Ghanbari,       $110,000         -       $142,000       -      
Vice President and Director                                                   
Mr. Roy Wolvin,                $ 70,200          -      $ 70,200       -      
Secretary-Treasury                                                            
Dr. Iraj Beheshti,             $122,000         -       $125,000       -      
Vice President, Director of                                                   
Clinical Reference Laboratories                                               
All directors and executive                                                   
officers as a group            $402,200         -       $487,200       -      

See "Options to Purchase Securities" in Item 12 for stock options granted.      

The Company does not currently have written employment contracts with the       
above-named executive officers.                                                 

Directors of the Company are not paid any fee for board meeting attendance but  
are reimbursed for expenses incurred in connection with their office.           

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b)   The Company does not have any pension plans or other type of plans         
providing retirement or similar benefits for directors or executive   
officers.                                                             

ITEM 12. OPTIONS TO PURCHASE SECURITIES FROM REGISTRANT OR SUBSIDIARIES         

                                                                [Download Table]



Total amount of common                                                        
stock subject to currently         Purchase Price                             
exercisable options              (Canadian Dollars)          Expiration Date  
--------------------------       ------------------          ---------------- 
                                                                              
        30,000                         $10.00                October 31, 1999 
     1,000,000                         $ 3.25                January 17, 2006 
        40,000                         $13.75                January 17, 2006 
        40,000                         $ 9.80                January 17, 2006 
       110,000                         $11.50                April 30, 2006   
        10,000                         $16.75                August 13, 2006  
        40,000                         $ 9.00                October 31, 2007 
         5,000                         $ 9.25                December 19, 2007

Warrants                                                                      
       441,107                         $ 8.50                May 15, 1998     
        60,000                         $10.00                August 31, 1999  
        43,000                         $ 8.50                August 31, 1999  

The total number of shares subject to options at March 31, 1998 is 1,826,000, of
which options representing 1,275,000 are currently exercisable. Of those, the   
total number of shares subject to options held by directors and officers of     
NYMOX is 1,335,000 of which options representing 915,000 shares are currently   
exercisable.                                                                    

There are no rights, warrants or options presently outstanding pursuant to which
additional common shares could be issued, with the exception of options enabling
certain directors, employees and consultants of NYMOX to acquire common shares  
under the Company's stock option plan and with the further exception of warrants
entitling the holders to acquire up to 544,107 common shares of the Company as  
outlined in the above table.                                                    

The Company has created a stock option plan (the "Plan") for its key employees, 
its officers and directors and certain consultants. The Plan is administered by 
the Board of Directors of the Company (the "Board"). The Board may from time to 
time designate individuals to whom options to purchase common shares of the     
Company be granted and the number of shares to be optioned to each. The total   
number of common shares to be optioned to any one individual cannot exceed 5% of
the total issued and outstanding shares and the maximum number of common shares 
which may be optioned under the Plan cannot exceed 2,000,000 shares without     
shareholder approval.                                                           

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The option price per share for common shares which are the subject of any option
shall be fixed by the Board when such option is granted and cannot involve a    
discount to the market price at the time the option is granted. The period      
during which an option is exercisable shall not exceed 10 years from the date   
the option is granted. The options may not be assigned, transferred or pledged  
and expire within three months of the termination of employment and six months  
of the death of an individual.                                                  

Options to purchase up to 1,415,000 common shares were granted under the Plan by
the Board of Directors on January 17, 1996 (the "Granting Date"). Of these,     
options to purchase 1,130,000 common shares were granted to directors and       
officers of the Company and options to purchase 285,000 shares were granted to  
non-executive employees and consultants of the Company. Specifically:           

i) Options to purchase 645,000 common shares of the Company at a price of       
CAN$3.25 per share were granted for a period of 10 years to a total of 11       
beneficiaries, of which options to purchase a total of 45,000 common shares have
been exercised to date.                                                         

ii) One senior executive of the Company holds additional options to acquire     
200,000 common shares of the Company at a price of CAN$3.25 per share effective 
as of each of January 17, 1997, 1998 and 1999 (for a total of 600,000 additional
shares of which 400,000 are now vested), provided he still be associated with   
the Company as of the vesting dates.                                            

iii) Two directors of the Company were granted additional options to acquire    
5,000 common shares of the Company, effective as of each of the first five      
anniversary dates of the Granting Date (for a total of 25,000 additional shares 
each), at the closing price of the common shares of the Company on the Montreal 
Exchange on the trading day immediately preceding such anniversary date, or at  
such other minimum price allowed by the regulatory authorities having           
jurisdiction, provided they still be associated with the Company. The first     
tranche of such options vested January 17, 1997, entitling the option holders to
purchase a total of 10,000 shares at a price of CAN$13.75 per share. The second 
tranche of such options vested January 17, 1998, entitling the option holders   
to purchase a total of 10,000 shares at a price of CAN$9.80 per share.          

iv) One director of the Company was granted additional options to acquire 20,000
common shares of the Company, effective as of each of the first four anniversary
dates of the Granting Date (for a total of 80,000 additional shares), at the    
closing price of the common shares of the Company on the Montreal Exchange on   
the trading day immediately preceding such anniversary date, or at such other   
minimum price allowed by the regulatory authorities having jurisdiction. The    
first tranche of this option vested on January 17, 1997, entitling the holder   
to purchase 20,000 shares at a price of CAN$13.75 per share. The second tranche 
of such options vested January 17, 1998, entitling the holder to purchase       
a total of 20,000 shares at a price of CAN$9.80 per share.                      

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v) One senior executive of the Company was granted additional options to acquire
10,000 common shares of the Company, effective as of each of the first four     
anniversary dates of the Granting Date (for a total of 40,000 additional        
shares), at the closing price of the common shares of the Company on the        
Montreal Exchange on the trading day immediately preceding such anniversary     
date, or at such other minimum price allowed by the regulatory authorities      
having jurisdiction. The first tranche of such options vested on January 17,    
1997, entitling the holder to purchase 10,000 shares at a price of CAN$13.75 per
share. The second tranche of such options vested January 17, 1998, entitling the
holder to purchase a total of 10,000 shares at a price of CAN$9.80 per share.   

All of the above options are effective for a period of 10 years from the        
Granting Date. The options described in paragraphs ii) to v) are subject to the 
approval of the Montreal Exchange.                                              

Under the same plan, on April 30, 1996, options to purchase 115,000 common      
shares of the Company at a price of CAN$11.50 per share were granted for a      
period of 10 years to a total of five beneficiaries of which options            
representing 5,000 shares were subsequently canceled. Options to purchase 25,000
common shares of the Company at a price of CAN$15.50 per share were granted on  
June 7, 1996 for a period of 10 years to one beneficiary and were subsequently  
cancelled. On August 13, 1996, one consultant of the Company was granted options
to acquire 10,000 common shares of the Company at a price of CAN$16.75 for a    
period of ten years. This consultant was granted additional options to acquire  
10,000 common shares of the Company, effective as of each of the first four     
anniversary dates of the Granting Date (for a total of 40,000 additional        
shares), provided the consultant remains active with the Company on each such   
vesting date. The exercise price is determined as to each block at the vesting  
date and equals the closing price of the common shares of the Company on the    
Montreal Exchange on the trading day immediately preceding such vesting date, or
at such other minimum price allowed by the regulatory authorities having        
jurisdiction. The first tranche of such options vested on August 13, 1997,      
entitling the holder to purchase 10,000 shares at a price of CAN$9.00 per share.

Under the same plan, on October 31, 1997, options to purchase up to 230,000     
common shares were granted to a total of six beneficiaries under the Plan by the
Board of Directors. Specifically:                                               

(i) Options to purchase 30,000 common shares of the Company at a price of       
CAN$9.00 per share were granted for a period of 10 years to a total of five     
beneficiaries.                                                                  

(ii) Two directors of the Company were granted additional options to acquire    
5,000 common shares of the Company, effective as of each of the first five      
anniversary dates of the Granting Date (for a total of 25,000 additional shares 
each), at the closing price of the common shares of the Company on the Montreal 
Exchange on the trading day immediately preceding such anniversary date, or at  
such other minimum price allowed by the regulatory authorities having           
jurisdiction, provided the option holder still be associated with the Company as
of the vesting dates.                                                           

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(iii) A director, an executive and a key employee of the Company were granted   
additional options to acquire 10,000 common shares of the Company, effective as 
of each of the first four anniversary dates of the Granting Date (for a total of
40,000 additional shares), at the closing price of the common shares of the     
Company on the Montreal Exchange on the trading day immediately preceding such  
anniversary date, or at such other minimum price allowed by the regulatory      
authorities having jurisdiction, provided the option holder still be associated 
with the Company as of the vesting dates.                                       

(iv) One consultant of the Company was granted options to acquire 30,000 common 
shares of the Company at a price of $10.00 per share, such options to be        
exercisable for a period of 24 months from the Granting Date.                   

On December 19, 1997, options to purchase up to 41,000 common shares at a price 
of Can$9.25 per share were granted for a period of ten years to a total of 15   
beneficiaries under the Plan by the Board of Directors. All of the above options
vest over a period of three years from the Granting Date, with the exception of 
5,000 options granted to one key employee which vested immediately.             

ITEM 13. INTEREST OF MANAGEMENT IN CERTAIN TRANSACTIONS.                        

Dr. Hossein Ghanbari, a director and senior officer of the Company has received 
a loan of CAN$56,000 from NYMOX to assist him in the purchase of a home         
following his move from the United States to assume his duties with the Company.
This loan is interest free and has no fixed terms of repayment.                 

PART II 

ITEM 14. DESCRIPTION OF SECURITIES TO BE REGISTERED                             

a)   Not applicable                                                             

b)   Not applicable                                                             

c)   Not applicable                                                             

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Part III

Item 15.  DEFAULTS UPON SENIOR SECURITIES                                       

Not applicable                                                        

Item 16.  CHANGES IN SECURITIES AND CHANGES IN SECURITY FOR                     
REGISTERED SECURITIES                                       

Not applicable                                                        

Part IV 
Item 17.  FINANCIAL STATEMENTS                                                  

Not applicable                                                        

Item 18.  FINANCIAL STATEMENTS                                                  

     The financial statements listed in item 19 are incorporated by reference in
this item                                                                       

Item 19.  FINANCIAL STATEMENTS AND EXHIBITS                                     

   a)   Financial statements (which appear after the signature page hereto):

At and for the year ended December 31, 1997:                                    

Consolidated Balance Sheet -- December 31, 1997                       
Consolidated Statement of Earnings and Deficit                        
Consolidated Statements of Changes in Financial Position              
Notes                                                                 

At and for the year ended December 31, 1996:                                    

Consolidated Balance Sheet -- December 31, 1996                       
Consolidated Statement of Earnings and Deficit                        
Consolidated Statements of Changes in Financial Position              
Notes                                                                 

At and for the periods ended July 31, 1995 and December 31, 1995:               

Auditors' Reports                                                     
Consolidated Balance Sheets -- July 31, 1995 and December 31, 1995    
Consolidated Statement of Loss and Deficit for five months            
 ended December 31, 1995 and twelve months ended July 31, 1995
  Consolidated Statements of Changes in Financial Position for five months
 ended December 31, 1995 and twelve months ended July 31, 1995
Notes to Consolidated Financial Statements                            

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SIGNATURES              

Pursuant to the requirements of Section 12 of the Securities Exchange Act of    
1934, the registrant certifies that it meets all of the requirements for filing 
on Form 20-F and has duly caused this registration statement to be signed on    
its behalf by the undersigned, thereunto duly authorised.                       

            NYMOX PHARMACEUTICAL CORPORATION
            (Registrant)

/s/ Paul Averback   
            --------------------------------
Paul Averback       
Title: President    

Date: April 30, 1998                                                            

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Consolidated Financial Statements of                                            

NYMOX PHARMACEUTICAL                                                            
CORPORATION                                                                     

Years ended December 31, 1997 and 1996 and                                      
the five-month period ended December 31, 1995                                   

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AUDITORS' REPORT TO THE SHAREHOLDERS                                            

We have audited the consolidated balance sheets of NYMOX Pharmaceutical         
Corporation as at December 31, 1997 and 1996 and the consolidated statements of 
earnings, deficit and changes in financial position for each of the years in the
two-year period ended December 31, 1997. These financial statements are the     
responsibility of the Corporation's management. Our responsibility is to express
an opinion on these financial statements based on our audits.                   

We conducted our audits in accordance with generally accepted auditing          
standards. Those standards require that we plan and perform an audit to obtain  
reasonable assurance whether the financial statements are free of material      
misstatement. An audit includes examining, on a test basis, evidence supporting 
the amounts and disclosures in the financial statements. An audit also includes 
assessing the accounting principles used and significant estimates made by      
management, as well as evaluating the overall financial statement presentation. 

In our opinion, these consolidated financial statements present fairly, in all  
material respects, the financial position of the Corporation as at December 31, 
1997 and 1996 and the results of its operations and the changes in its financial
position for each of the years in the two-year period ended December 31, 1997 in
accordance with generally accepted accounting principles.                       

The consolidated financial statements as at December 31, 1995 and for the       
five-month period then ended were audited by other auditors who expressed an    
opinion without reservation on these statements in their report dated January   
22, 1996.                                                                       

Chartered Accountants                                                           

Montreal, Canada                                                                
February 20, 1998                                                               

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NYMOX PHARMACEUTICAL CORPORATION                                                
Consolidated Financial Statements                                               

Years ended December 31, 1997 and 1996 and                                      
the five-month period ended December 31, 1995                                   

FINANCIAL STATEMENTS                                                            

                                                                [Download Table]
                                                                 
 Consolidated Balance Sheets.................................   1

 Consolidated Statements of Earnings.........................   2

 Consolidated Statements of Deficit..........................   3

 Consolidated Statements of Changes in Financial Position....   4

 Notes to Consolidated Financial Statements..................   5

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NYMOX PHARMACEUTICAL CORPORATION                                                
Consolidated Balance Sheets                                                     

December 31, 1997 and 1996                                                      
(in Canadian dollars)                                                           

                                                                [Download Table]

                                                1997            1996    
                                           -------------   ------------ 
                                                                        
Assets                                                                  

Current assets:                                                         
  Cash                                       $   507,259    $    75,303 
  Short-term investments                       1,780,086      2,431,624 
  Accrued interest                                 4,200         76,293 
  Research tax credits receivable                150,000        240,000 
  Other receivables                               28,790         17,014 
                                             -----------    ----------- 
                                               2,470,335      2,840,234 

Advance to director (note 3)                      56,000         56,000 

Capital assets (note 4)                        1,419,462      1,317,973 
                                             -----------    ----------- 
                                             $ 3,945,797    $ 4,214,207 
                                             ===========    =========== 

Liabilities and Shareholders' Equity                                    

Current liabilities:                                                    
  Accounts payable and accrued liabilities   $   292,330       $384,226 

Shareholders' equity:                                                   
  Capital stock (note 5)                      13,852,632      9,302,691 
  Capital stock subscription (note 10)           504,000             -- 
  Deficit                                    (10,703,165)    (5,472,710)
                                             -----------    ----------- 
                                               3,653,467      3,829,981 

Commitments (note 6)                                                    
Subsequent events (note 10)                                             

                                             -----------    ----------- 
                                             $ 3,945,797    $ 4,214,207 
                                             ===========    =========== 

See accompanying notes to consolidated financial statements.                    

On behalf of the Board:                                                         

_______________________  Director                                               

_______________________  Director                                               

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NYMOX PHARMACEUTICAL CORPORATION                                                
Consolidated Statements of Earnings                                             

Years ended December 31, 1997 and 1996, and the five-month period               
ended December 31, 1995                                                         
(in Canadian dollars)                                                           

                                                                [Download Table]

                                          1997          1996          1995    
                                      (12 months)    (12 months)   (5 months) 
                                   --------------  -------------  ------------
                                                                              
Revenue:                                                                      
  Interest                          $    76,526    $   226,940     $      --  
  Service fees                           24,584             --            --  
                                   --------------  -------------  ------------
                                        101,110        226,940            --  

Expenses:                                                                     
  Research and development            2,562,349      2,356,000       571,215  
  Less research tax credits            (150,000)      (240,000)           --  
                                   --------------  -------------  ------------
                                      2,412,349      2,116,000       571,215  
  Marketing                           1,925,654      1,253,894            --  
  General and administrative            589,524        497,179       130,688  
  Depreciation and amortization         158,694         78,906         1,400  
  Interest and bank charges              14,344          8,025         2,543  
                                   --------------  -------------  ------------
                                      5,100,565      3,954,004       705,846  
                                   --------------  -------------  ------------
Loss before income taxes             (4,999,455)    (3,727,064)     (705,846) 

Income taxes (note 7)                        --         28,000        12,000  
                                   --------------  -------------  ------------
Net loss                            $(4,999,455)   $(3,699,064)    $(693,846) 
                                   ==============  =============  ============
Loss per share                          $ (0.27)        $(0.21)       $(0.04) 
                                   ==============  =============  ============
Weighted average number of common                                             
 shares outstanding                   18,370,273    17,654,862    16,432,958  
                                   ==============  =============  ============

See accompanying notes to consolidated financial statements.                    

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NYMOX PHARMACEUTICAL CORPORATION                                                
Consolidated Statements of Deficit                                              

Years ended December 31, 1997 and 1996, and the five-month period ended December
31, 1995 (in Canadian dollars)                                                  

                                                                [Download Table]


                                   1997          1996          1995    
                                   ----          ----          ----    
                               (12 months)    (12 months)   (5 months) 
                                                                       
Deficit, beginning of period   $(5,472,710)  $(1,539,686)    $(636,043)

Net loss                        (4,999,455)   (3,699,064)     (693,846)

Share issue costs                 (231,000)     (233,960)     (209,797)
                              ------------   -----------   ----------- 
Deficit, end of period        $(10,703,165)  $(5,472,710)  $(1,539,686)
                              ============   ===========   =========== 

See accompanying notes to consolidated financial statements.                    

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NYMOX PHARMACEUTICAL CORPORATION                                                
Consolidated Statements of Changes in Financial Position                        

Years ended December 31, 1997 and 1996, and the five-month period ended         
December 31, 1995                                                               
(in Canadian dollars)                                                           

                                                                [Download Table]

                                            1997          1996          1995 
                                            ----          ----          ---- 
                                      (12 months)   (12 months)    (5 months)

                                                                             
Cash provided by (used in):                                                  

Operations:                                                                  
  Net loss                           $(4,999,455)  $(3,699,064)  $  (693,846)
  Item not involving cash:                                                   
     Depreciation and amortization       158,694        78,906         1,400 
  Net change in non-cash operating                                           
     working capital items                58,421       (55,855)      (70,815)
                                     -----------   -----------   ----------- 
                                      (4,782,340)   (3,676,013)     (763,261)

Financing:                                                                   
  Issuance of capital stock            4,549,941     5,280,050     3,157,271 
  Subscription to capital stock          504,000            --            -- 
  Share issue costs                     (231,000)     (233,960)     (209,797)
                                     -----------   -----------   ----------- 
                                       4,822,941     5,046,090     2,947,474 

Investment:                                                                  
  Additions to capital assets           (260,183)   (1,030,724)      (28,602)
                                     -----------   -----------   ----------- 

(Decrease) increase in cash and                                              
 short-term investments                 (219,582)      339,353     2,155,611 

Cash and short-term investments,                                             
 beginning of period                   2,506,927     2,167,574        11,963 
                                     -----------   -----------   ----------- 

Cash and short-term investments,                                             
 end of period                       $ 2,287,345   $ 2,506,927   $ 2,167,574 
                                     ===========   ===========   =========== 

See accompanying notes to consolidated financial statements.                    

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NYMOX PHARMACEUTICAL CORPORATION                                                
Notes to Consolidated Financial Statements                                      

Years ended December 31, 1997 and 1996, and the five-month period               
ended December 31, 1995                                                         
(in Canadian dollars)                                                           

1.   ORGANIZATION AND BUSINESS ACTIVITIES:                                      

     NYMOX Pharmaceutical Corporation (the "Corporation") is a development stage
biopharmaceutical corporation which specializes in the research and   
development of neurological therapeutics and diagnostics for the aging
population, with an emphasis on Alzheimer's disease.                  

The Corporation is listed on the Montreal Exchange and on NASDAQ.     

     The Corporation was incorporated under the Canada Business Corporations Act
     on May 30, 1995 and became a public company in Canada in December 1995. The
     Corporation had no operations from its date of incorporation through to the
  acquisition as described below. In 1995, the year-end of the Corporation
was changed to December 31 from July 31.                              

   The Corporation was formed for the purpose of acquiring all of the common
  shares of DMS Pharmaceutical Inc. ("DMS"), a private company carrying on
research and development in the field of neurological diagnostics and 
  pharmaceuticals for the aging population. This acquisition was completed
  during September 1995 for a consideration of 15,000,000 common shares of
    the Corporation, resulting in the shareholders of DMS owning substantially
     all the shares of the Corporation. This transaction was accounted for under
the purchase method with DMS as the accounting acquirer.              

  Immediately following the acquisition, the Corporation acquired from two
     shareholders, who were unrelated to the Corporation, a controlling interest
in Monterey Capital Inc. ("Monterey"), a public company, for cash of  
  $383,000. The purchase price was determined through negotiations between
   the parties. Monterey was then amalgamated with a wholly-owned subsidiary
     of the Corporation with the result that the non-controlling shareholders of
     Monterey received 468,447 common shares of the Corporation. The transaction
was accounted for as a share issuance of the Corporation for nominal  
  consideration of $1. It was not considered to be part of the acquisition
and sale of Monterey, as that transaction was an intermediary step in 
meeting the objective of rendering the Corporation a public company.  
Concurrently, the shares of the amalgamated company carrying on the   
  business of Monterey were sold to one of the shareholders from which the
 Corporation acquired the controlling interest for cash of $383,000. The
    sale of the amalgamated company did not give rise to a gain or loss, since
the sale price was equal to its carrying value.                       

The consolidated financial statements do not include any results of   
operations of the Monterey business.                                  

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NYMOX PHARMACEUTICAL CORPORATION                                                
Notes to Consolidated Financial Statements, Continued                           

Years ended December 31, 1997 and 1996, and the five-month period               
ended December 31, 1995                                                         
(in Canadian dollars)                                                           

2.   SIGNIFICANT ACCOUNTING POLICIES:                                           

(a)  Consolidation:                                                   

      The consolidated financial statements of the Corporation have been
    prepared under Canadian generally accepted accounting principles
        ("GAAP") and include the accounts of its wholly-owned US subsidiary,
       NYMOX Corporation. Intercompany balances and transactions have been
eliminated on consolidation.                                

         Consolidated financial statements prepared under US GAAP would differ
       in some respects from those prepared in Canada. A reconciliation of
          earnings and shareholders' equity reported in accordance with Canadian
GAAP with US GAAP is presented in note 9.                   

(b)  Short-term investments:                                          

          The Corporation's portfolio of short-term investments does not include
       equity securities and consists principally of government securities
    and commercial paper with original maturities of less than three
  months, and are recorded at the lower of cost or market value.

(c)  Capital assets:                                                  

          Capital assets are recorded at cost. Depreciation and amortization are
provided using the following methods and annual rates:      

                                                                [Download Table]


Asset                                     Method                           Rate
-----                                     ------                           ----
                                                                               
Computer equipment                     Straight-line                        20%
Laboratory equipment                   Straight-line                        20%
Office equipment and fixtures          Straight-line                        20%


          The capitalized amount with respect to patents relates to direct costs
     incurred in connection with securing the patents. The cost of the
          patents does not necessarily reflect their present or future value and
      the amount ultimately recoverable is dependent upon the successful
        commercialization of the related products. Accordingly, patents will
         be amortized using the straight-line method commencing in the year of
    commercial production of the developed products. The capitalized
         amount will be amortized over the remaining years of the initial life
of the patent.                                              

(d)  Research and development expenditures:                           

       Research expenditures, net of research tax credits, are expensed as
       incurred. Development expenditures, net of tax credits, if any, are
          expensed as incurred, except if they meet the criteria for deferral in
accordance with generally accepted accounting principles.   

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NYMOX PHARMACEUTICAL CORPORATION                                                
Notes to Consolidated Financial Statements, Continued                           

Years ended December 31, 1997 and 1996, and the five-month period               
ended December 31, 1995                                                         
(in Canadian dollars)                                                           

2.   SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):                               

(e)  Foreign exchange:                                                

          The Corporation's foreign subsidiary is considered to be an integrated
          foreign operation. Foreign denominated monetary assets and liabilities
         of the Canadian and foreign operations are translated at the rates of
    exchange prevailing at the balance sheet dates. Other assets and
       liabilities denominated in foreign currencies are translated at the
  exchange rates prevailing when the assets were acquired or the
          liabilities incurred. Sales and expenses are translated at the average
         exchange rate prevailing during the year, except for depreciation and
        amortization which are translated at the same rates as those used in
       the translation of the corresponding assets. Foreign exchange gains
 and losses are included in the determination of net earnings.

(f)  Use of estimates:                                                

        The preparation of financial statements in conformity with generally
        accepted accounting principles requires management to make estimates
  and assumptions that affect the reported amounts of assets and
        liabilities at the date of the financial statements and the reported
        amounts of revenues and expenses during the reporting period. Actual
results could differ from those estimates.                  

(g)  Loss per share:                                                  

      The loss per share amounts have been calculated using the weighted
average number of common shares outstanding during the year.

3.   ADVANCE TO DIRECTOR:                                                       

    The advance to director is non-interest bearing and has no specified terms
of repayment.                                                         

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NYMOX PHARMACEUTICAL CORPORATION                                                
Notes to Consolidated Financial Statements, Continued                           

Years ended December 31, 1997 and 1996, and the five-month period ended         
December 31, 1995 (in Canadian dollars)                                         

4.   CAPITAL ASSETS:                                                            

                                                                [Download Table]


                                                                         1997
                                                                         ----
                                                      Accumulated    Net book
                                              Cost   depreciation       value
                                              ----   ------------    --------
                                                                             
     Computer equipment                $   55,803     $    15,174  $   40,629
     Laboratory equipment                 734,041         217,299     576,742
     Office equipment and fixtures         26,475           6,449      20,026
     Patents                              842,064              --     842,064
     Intellectual property rights               1              --           1
                                       ----------        --------  ----------
                                       $1,658,384     $   238,922  $1,419,462
                                       ==========        ========  ==========

                                                                         1996
                                                                         ----
                                                      Accumulated    Net book
                                             Cost    depreciation       value
                                             ----    ------------    --------

     Computer equipment                $   43,502     $     5,202  $   38,300
     Laboratory equipment                 704,129          73,221     630,908
     Office equipment and                                                    
       fixtures                            18,810           1,882      16,928
     Patents                              631,836              --     631,836
     Intellectual property rights               1              --           1
                                       ----------         -------  ----------
                                       $1,398,278     $    80,305  $1,317,973
                                       ==========         =======  ==========

5.   CAPITAL STOCK:                                                          

                                                             1997        1996
                                                             ----        ----
     Authorized:                                                             
       An unlimited number of common shares                                  

     Issued and outstanding:                                                 
       18,632,873 common shares (1996 - 17,929,382)   $13,852,632  $9,302,691


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NYMOX PHARMACEUTICAL CORPORATION                                                
Notes to Consolidated Financial Statements, Continued                           

Years ended December 31, 1997 and 1996, and the five-month period ended December
31, 1995 (in Canadian dollars)                                                  

5.   CAPITAL STOCK (CONTINUED):                                                 

(a)  Changes in the Corporation's capital stock are presented below:  

                                                                [Download Table]

                                                      Shares        Dollars
                                                 -----------    -----------
                                                                           
Issued and outstanding, December 31, 1995         17,047,082     $4,022,641

Issue of common shares for cash (b)                  877,300      5,263,800

Issue of common shares pursuant to exercise                                
 of stock options                                      5,000         16,250
                                                 -----------    -----------
Balance, December 31, 1996                        17,929,382      9,302,691

Issue of common shares for cash (b)                  696,491      4,527,191

Issue of common shares pursuant to exercise                                
 of stock options                                      7,000         22,750
                                                 -----------    -----------
Balance, December 31, 1997                        18,632,873    $13,852,632
                                                 ===========    ===========

(b) Private placements:                                               

     In 1997, the Corporation completed a private placement of 696,491
  common shares at a price of $6.50/share and received aggregate
    gross proceeds of $4,527,191. In 1996, the Corporation completed
      private placements of 877,300 shares at a price of $6.00/share for
 aggregate gross proceeds of $5,263,800. The share issue costs
     related to these private placements have been charged against the
deficit.                                                    

(c)  Warrants:                                                        

  In connection with the 1997 private placement, the Corporation
        issued 696,491 Class A warrants to purchase 696,491 common shares at
      an exercise price of $8.50 per share. The warrants are exercisable
   to May 15, 1998. As at December 31, 1997, no warrants have been
exercised.                                                  

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NYMOX PHARMACEUTICAL CORPORATION                                                
Notes to Consolidated Financial Statements, Continued                           

Years ended December 31, 1997 and 1996, and the five-month period ended December
31, 1995 (in Canadian dollars)                                                  

5.   CAPITAL STOCK (CONTINUED):                                                 

(d)  Stock options:                                                   

        The Corporation has established a stock option plan (the "Plan") for
its key employees, its officers and directors, and certain  
          consultants. The Plan is administered by the Board of Directors of the
         Corporation. The Board may from time to time designate individuals to
    whom options to purchase common shares of the Corporation may be
        granted, the number of shares to be optioned to each, and the option
         price per share. The option price per share cannot involve a discount
    to the market price at the time the option is granted. The total
          number of shares to be optioned to any one individual cannot exceed 5%
        of the total issued and outstanding shares and the maximum number of
       shares which may be optioned under the Plan cannot exceed 2,000,000
common shares without shareholder approval.                 

Changes in outstanding options are as follows:              

                                                                [Download Table]


                                       Stock options
                                       -------------
                                                    
Balance, December 31, 1995                   --     

Granted                                 1,605,000   

Exercised                                  (5,000)  

Cancelled                                 (25,000)  
                                        ---------   
Balance, December 31, 1996              1,575,000   

Granted                                   271,000   

Exercised                                  (7,000)  

Cancelled                                  (5,000)  
                                        ---------   
Balance, December 31, 1997              1,834,000   
                                        =========   

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NYMOX PHARMACEUTICAL CORPORATION                                                
Notes to Consolidated Financial Statements, Continued                           

Years ended December 31, 1997 and 1996, and the five-month  period ended        
December 31, 1995 (in Canadian dollars)                                         

5.   CAPITAL STOCK (CONTINUED):                                                 

(d)  Stock Options (continued):                                       

  Subsequent to year end, an additional 8,000 stock options were
exercised at a price of $3.25.                              

      The weighted-average exercise prices of options granted, exercised
    and cancelled during 1997 were $9.42/share (1996 - $4.04/share),
$3.25/share (1996 - $3.25/share) and $11.50/share (1996 -   
$15.50/share), respectively. The calculation of the above   
       weighted-average exercise price of options granted excludes 330,000
       (1996 - 210,000) options whose exercise price will be determined as
     the options vest over the next five years as explained below. The
          weighted-average exercise price of options exercisable at December 31,
1997 is $5.10/share (1996 - $4.67/share).                   

At December 31, 1997, options outstanding were as follows:  

                                                                          [Download Table]
                                                                            

                                                                            

Options outstanding       Exercise price per share               Expiry date
-------------------       ------------------------               -----------
                                                                            
        30,000                               $10.00                     1999
       110,000                               $11.50                     2006
        10,000                               $16.75                     2006
        40,000                               $ 9.00                     2007
         5,000                               $ 9.25                     2007
        40,000                               $13.75                     2007
     1,233,000                               $ 3.25   (i)        2007 - 2009
        36,000                               $ 9.25  (ii)        2008 - 2010
       330,000       Fair value at anniversary date (iii)        2008 - 2012
     ---------                                                              
     1,834,000                                                              
     =========                                                              

(i)  These options are effective and exercisable as follows:

                                                                          [Download Table]
                                                                            

                                                                            
     Currently                                                       833,000
     1998                                                            200,000
     1999                                                            200,000
                                                                   ---------
                                                                   1,233,000
                                                                   =========
                                                                      
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NYMOX PHARMACEUTICAL CORPORATION                                                
Notes to Consolidated Financial Statements, Continued                           

Years ended December 31, 1997 and 1996, and the five-month period ended December
31, 1995 (in Canadian dollars)                                                  

5.   CAPITAL STOCK (CONTINUED):                                                 

(d)   Stock options (continued):                                      

   (ii)  These options are effective and exercisable as follows:

                                                                [Download Table]
                                                                             
                1998                                                   12,000
                1999                                                   12,000
                2000                                                   12,000
                                                                       ------
                                                                       36,000
                                                                       ======
                                                                               
      (iii) These options become vested at various dates over the next
        five years at prices equal to the closing price on the
          trading date immediately preceding the vesting date. The
options vest as follows:                      

                                                                 [Download Table]
                                                             
                                                             
1998                                                   90,000
1999                                                   90,000
2000                                                   90,000
2001                                                   50,000
2002                                                   10,000
                                                      -------
                                                      330,000
                                                      =======

         On January 17, 1998, 40,000 options became vested at an
exercise price of $9.80 per share.            

6.   COMMITMENTS:                                                               

(a)   Operating leases:                                               

Minimum lease payments under operating leases for the     
     Corporation's premises for the next three years are as follows:

                                                                [Download Table]
                                                                   
1998                                                       $228,000
1999                                                        215,000
2000                                                        162,000
                                                           --------
                                                           $605,000
                                                           ========

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NYMOX PHARMACEUTICAL CORPORATION                                                
Notes to Consolidated Financial Statements, Continued                           

Years ended December 31, 1997 and 1996, and the five-month period               
ended December 31, 1995                                                         
(in Canadian dollars)                                                           

6.   COMMITMENTS (CONTINUED):                                                   

(b)  Research funding:                                                

The Corporation is committed to make research grants  to an 
  unrelated medical facility in the U.S. in the aggregate amount
    of approximately $980,000 (US$688,000) in the next four years as
follows:                                                    

                                                                [Download Table]
                                      
1998                          $245,000
1999                           245,000
2000                           245,000
2001                           245,000
                              --------
                              $980,000
                              ========

  The  Corporation has an exclusive license to patents from this
  facility covering rights to AD7C diagnostics and therapeutics.
    Under this license, the medical  facility benefits from research
     funding and collaboration from the Corporation and is entitled to
royalties of 4% on worldwide sales of the AD7C Test.        

During the period ended December 31, 1997, an amount of     
         approximately US$172,000 (1996 - US$200,000) was paid and expensed in
connection with the research grant described above.         

(c)  License agreement:                                               
       The Corporation has signed a non-exclusive license agreement with a
     European company to sell and perform the AD7C Test in Europe. The
      agreement entitles the Corporation to a royalty on European sales.
   The initial term of the agreement extends to December 31, 1998,
   and is subject to renewal thereafter based on certain terms and
conditions.                                                 

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NYMOX PHARMACEUTICAL CORPORATION                                                
Notes to Consolidated Financial Statements, Continued                           

Years ended December 31, 1997 and 1996, and the five-month period               
ended December 31, 1995                                                         
(in Canadian dollars)                                                           

7.   INCOME TAXES:                                                              

Details of the components of income taxes are as follows:             

                                                                [Download Table]

                                       1997         1996          1995     
                                      -----------   -----------   ---------
                                                                           
Loss before income taxes:                                                  
  Canadian operations                $(2,489,752)  $(3,106,405)  $(705,846)
  U.S. operations                     (2,509,703)     (620,659)         -- 
                                     -----------   -----------   --------- 
                                      (4,999,455)   (3,727,064)   (705,846)
Basic income tax rate                       38.0%         38.0%       38.0%
                                     -----------   -----------   --------- 
Income tax recovery at                                                     
 statutory rates                       1,900,000      1,416,000    268,000 
Adjustments in income taxes                                                
 resulting from:                                                           
  Non-recognition of losses and                                            
   other unclaimed deductions         (1,900,000)    (1,416,000)  (268,000)
  Credit for losses                           --         28,000     12,000 
                                     -----------    -----------  --------- 
Income taxes                         $        --    $    28,000  $  12,000 
                                     ===========    ===========  ========= 

The Corporation has non-capital losses carried forward and accumulated
 scientific research and development expenditures which are available to
reduce future years' taxable income. The related income tax benefit of
these items will be recorded in earnings when realized. These         
expire as follows:                                                    

                                                                [Download Table]

                                                      Federal        Provincial
                                                     ---------      -----------
                                                                               
Non-capital losses:                                                            
     1998                                              $40,000         $40,000 
     1999                                               36,000          36,000 
     2000                                               59,000          59,000 
     2001                                              377,000              -- 
     2002                                              525,000              -- 
     2003                                            1,275,000       1,275,000 
     2004                                            2,150,000       1,900,000 

Scientific research and development expenditures:                              
   (Indefinitely)                                    2,700,000       3,600,000 

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NYMOX PHARMACEUTICAL CORPORATION                                                
Notes to Consolidated Financial Statements, Continued                           

Years ended December 31, 1997 and 1996, and the five-month period ended         
December 31, 1995 (in Canadian dollars)                                         

7.   INCOME TAXES (CONTINUED):                                                  

    The Corporation also has investment tax credits available in the amount of
approximately $590,000 available to reduce future years' federal taxes
payable. The benefit of these credits will be recorded when realized. 
These credits expire as follows:                                      

    2005                                                              $ 25,000
    2006                                                               425,000
    2007                                                               140,000

In addition, the Corporation's US subsidiary has losses carried       
forward of approximately US$2,100,000 which expire as follows:        

    2011                                                            $  450,000
    2012                                                             1,165,000

8.   FAIR VALUES:                                                               

  The Corporation has determined that the carrying value of its short-term
financial assets and liabilities, including cash and short-term       
investments, accrued interest and accounts payable and accrued        
 liabilities, approximates fair value due to the immediate or short-term
maturity of these financial instruments. The fair value of the advance
to director cannot be determined as there are no specified repayment  
terms.                                                                

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NYMOX PHARMACEUTICAL CORPORATION                                                
Notes to Consolidated Financial Statements, Continued                           

Years ended December 31, 1997 and 1996, and the five-month period ended         
December 31, 1995 (in Canadian dollars)                                         

9.   CANADIAN/U.S. REPORTING DIFFERENCES:                                       

(a)  Consolidated statements of earnings:                             

The reconciliation of earnings reported in accordance with  
Canadian GAAP with U.S. GAAP is as follows:                 

                                                                [Download Table]

                                             1997          1996          1995    
                                         ------------  ------------  ------------
                                                                                 
Net loss, Canadian GAAP                  $(4,999,455)  $(3,699,064)  $  (693,846)

Adjustments:                                                                     
  Realized loss on sale of Monterey (i)           --            --      (936,894)
  Amortization of patents (ii)               (49,533)      (39,166)       (8,454)
  Stock-based compensation - options                                             
   granted to non-employees (iii)           (150,000)     (592,000)           -- 
                                         ------------  ------------  ------------

Net loss, U.S. GAAP                      $(5,198,988)  $(4,330,230)  $(1,639,194)
                                         ============  ============  ============

Loss per share, U.S. GAAP                $     (0.28)  $     (0.25)  $     (0.11)
                                         ============  ============  ============

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NYMOX PHARMACEUTICAL CORPORATION                                                
Notes to Consolidated Financial Statements, Continued                           

Years ended December 31, 1997 and 1996, and the five-month period ended         
December 31, 1995 (in Canadian dollars)                                         

9.   CANADIAN/U.S. REPORTING DIFFERENCES (CONTINUED):                           

(b)  Consolidated shareholders' equity:                               

          The reconciliation of shareholders' equity reported in accordance with
Canadian GAAP with U.S. GAAP is as follows:                 

                                                                          [Download Table]
                                                                             

                                                                              

                                            1997         1996         1995    
                                         ----------   ----------   ---------- 
                                                                              
Shareholders' equity, Canadian GAAP      $3,653,467   $3,829,981   $2,482,955 
Adjustments:                                                                  
  Realized loss on sale of Monterey (i)          --           --     (936,894)
  Amortization of patents (ii):                                               
    Cumulative effect to beginning                                            
      of the period                        (130,606)     (91,440)     (82,986)
    Current period                          (49,533)     (39,166)      (8,454)
  Stock-based compensation - options                                          
    granted to non-employees (iii):                                           
    Accumulative effect to beginning                                          
      of period                            (592,000)          --           -- 
    Current period                         (150,000)    (592,000)          -- 
                                         ----------   ----------   ---------- 
  Increase in deficit                      (922,139)    (722,606)  (1,028,334)
Fair value of shares issued to minority                                       
  shareholders - increase in capital                                          
  stock (i)                                      --           --      936,894 
                                         ----------   ----------   ---------- 
Shareholders' equity, U.S. GAAP          $2,731,328   $3,107,375   $2,391,515 
                                         ==========   ==========   ========== 
                                                                       
[FN]                                                          

        (i)    Under US GAAP, the Monterey transaction referred to in note 1
           would be accounted for as an acquisition of Monterey  for
                consideration comprising cash of $383,000 and common shares of
               the Corporation having a fair value of $936,894. Accordingly,
                 the subsequent sale of Monterey for cash of $383,000 results in
a realized loss of $936,894 under US GAAP.    

     (ii)   In  accordance with APB Opinion 17, Intangible Assets, the
              patents are amortized using the straight-line method over 17
                years, the legal life of the patents, from the date the patent
was secured.                                  

 (iii)  In accordance with FAS 123, Accounting for Stock-Based
                 Compensation, compensation related to the stock options granted
              to non-employees has been recorded in the accounts based  on
            the fair value of the stock options at the grant date. The
               fair value of the stock options was estimated as described in
note 9 (c) (3).                               

</FN>                                                           
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NYMOX PHARMACEUTICAL CORPORATION                                                
Notes to Consolidated Financial Statements, Continued                           

Years ended December 31, 1997 and 1996, and the five-month period ended         
December 31, 1995 (in Canadian dollars)                                         

9.   CANADIAN/U.S. REPORTING DIFFERENCES (CONTINUED):                           

(c)  Other disclosures required by United States GAAP:                

(1)  Development stage company:                             

             The Corporation is in the process of developing unique patented
               products which are subject to approval of regulatory authorities.
               The Corporation has completed the research and discovery phase of
               its Alzheimer's diagnostic AD7C Test and anticipates that it will
             be seeking regulatory approval in 1998 to permit the Company to
       sell an AD7C test kit to laboratories. It has had limited
             revenues to date on the sale of its products under development.
            Accordingly, the Corporation is a development stage company as
             defined in Statement of Financial Accounting Standards No.7 and
the following disclosures are required:           

                                                                [Download Table]

                                                 Cumulative         Cumulative   
                                             since the date of  since the date of
                                                inception of       inception of  
                                              the Corporation    the Corporation 
                                              to December 31,    to December 31, 
                                                    1997               1996      
                                             -----------------  -----------------
                                                                                 
Interest revenue                                $   303,466       $   226,940    

Sales                                                24,584                --    

Gross research and development expenditures       6,107,976         3,545,627    

Other expenses                                    5,527,963         2,963,291    

Cash inflow (outflow):                                                           
  Operating activities                          (10,672,962)       (5,890,622)   
  Investing activities                           (1,658,462)       (1,398,279)   
  Financing activities                           14,618,769         9,795,828    
                                             =================  =================

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NYMOX PHARMACEUTICAL CORPORATION                                                
Notes to Consolidated Financial Statements, Continued                           

Years ended December 31, 1997 and 1996, and the five-month period ended         
December 31, 1995 (in Canadian dollars)                                         

9.   CANADIAN/U.S. REPORTING DIFFERENCES (CONTINUED):                           

  (c)  Other  disclosures  required  by  United  States  GAAP (continued):

(1)  Development stage company (continued):                 

              The statement of shareholders' equity since date of inception is
presented below.                                  

[CAPTION]                                                                       

                                                        [Enlarge/Download Table]

                                                              Consideration                                 
                                                         ---------------------    Accumulated               
                                               Shares          Cash       Other       Deficit         Total 
                                                                                                            
 Year ended July 31, 1990:                                                                                  
      Common shares issued                  2,500,000    $  200,000     $    --      $     --      $200,000 
      Net loss                                                                       (126,719)     (126,719)
      ------------------------------------------------------------------------------------------------------
      Balance, July 31, 1990                2,500,000       200,000          --      (126,719)       73,281 

 Year ended July 31, 1991:                                                                                  
      Net loss                                     --            --          --       (24,827)      (24,827)
      ------------------------------------------------------------------------------------------------------
      Balance, July 31, 1991                2,500,000       200,000          --      (151,546)       48,454 

 Year ended July 31, 1992:                                                                                  
      Common shares issued                      9,375        37,500          --            --        37,500 
      Net loss                                     --            --          --       (53,112)      (53,112)
      ------------------------------------------------------------------------------------------------------
      Balance, July 31, 1992                2,509,375       237,500          --      (204,658)       32,842 

 Year ended July 31, 1993:                                                                                  
      Common shares issued                    201,250       205,000          --            --       205,000 
      Common shares cancelled                (500,000)           --          --            --            -- 
      Net loss                                     --            --          --       (48,862)      (48,862)
      ------------------------------------------------------------------------------------------------------
      Balance, July 31, 1993                2,210,625       442,500          --      (253,520)      188,980 

 Year ended July 31, 1994:                                                                                  
      Common shares issued                      2,500        10,000          --            --        10,000 
      Net loss                                     --           --           --       (71,668)      (71,668)
      ------------------------------------------------------------------------------------------------------
      Balance, July 31, 1994                2,213,125       452,500          --      (325,188)     (127,312)

 Year ended July 31, 1995:                                                                                  
      Common shares issued                     78,078       412,870          --            --       412,870 
      Net loss                                     --            --          --      (393,841)     (393,841)
     -------------------------------------------------------------------------------------------------------
      Balance, July 31, 1995                2,291,203       865,370          --      (719,029)      146,341 

 Period ended December 31, 1995:                                                                            
      Adjustment necessary to                                                                               
        increase the number of                                                                              
        common shares                      12,708,797            --          --            --            -- 
     -------------------------------------------------------------------------------------------------------
      Adjusted number of                                                                                    
         common shares                      5,000,000       865,370          --      (719,029)      146,341 
      Common shares issued                  2,047,082     3,157,271     936,894            --     4,094,165 
      Net loss                                     --            --          --    (1,639,194)   (1,639,194)
      Share issue costs                            --      (209,797)         --            --      (209,797)
     -------------------------------------------------------------------------------------------------------
      Balance,                                                                                              
        December 31, 1995                  17,047,082     3,812,844     936,894     (2,358,23)    2,391,515 

Year ended December 31, 1996:                                                                               
      Common shares issued                    882,300     5,280,050          --            --     5,280,050 
      Net loss                                     --            --          --    (4,330,230)   (4,330,230)
      Share issue costs                            --      (233,960)         --            --      (233,960)
     -------------------------------------------------------------------------------------------------------
Balance, December 31, 1996                 17,929,382   $ 8,858,934    $936,894  $ (6,688,453)  $ 3,107,375 
============================================================================================================

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NYMOX PHARMACEUTICAL CORPORATION                                                
Notes to Consolidated Financial Statements, Continued                           

Years ended December 31, 1997 and 1996, and the five-month period ended         
December 31, 1995 (in Canadian dollars)                                         

9.   CANADIAN/U.S. REPORTING DIFFERENCES (CONTINUED):                           

  (c)  Other  disclosures  required  by  United  States  GAAP (continued):

(1)  Development stage company (continued):                 

                                                        [Enlarge/Download Table]

                                                     Consideration        Accumulated               
                                             ------------------------                               
                                    Shares         Cash         Other         Deficit         Total 

                                                                                                    
   Balance carried forward      17,929,382  $ 8,858,934     $ 936,894     $(6,688,453)  $ 3,107,375 

   Year ended December 31, 1997:                                                                    
   Common shares issued            703,491    4,549,941            --              --     4,549,941 
   Net loss                                                        --      (5,198,988)   (5,198,988)
   Share issue costs                   --      (231,000)           --              --      (231,000)
   Capital stock                                                                                    
     subscription                      --       504,000            --              --       504,000 
                                ----------  -----------      --------  --------------  ------------ 
Balance, December 31, 1997      18,632,873  $13,681,875      $936,894  $  (11,887,441) $  2,731,328 
                                ==========  ===========      ========  ==============  ============ 

(2)  Income taxes:                                          

     In  accordance  with Statement of Financial  Accounting Standards
        No. 109, the income tax effect of  temporary differences  that  give
rise to the  net  deferred  tax asset are presented below:  

                                                                [Download Table]

                                   1997          1996        1995 
                                                                  
Scientific research and                                           
  experimental development   $1,100,000   $   853,000   $     --  
Non-capital losses            1,594,000       704,000     508,000 

Share issue costs               196,000        89,000         --  

Less valuation allowance     (2,890,000)   (1,646,000)   (508,000)

Net deferred tax asset       $      --    $       --    $     --  


There are no material deferred tax liabilities.             

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NYMOX PHARMACEUTICAL CORPORATION                                                
Notes to Consolidated Financial Statements, Continued                           

Years ended December 31, 1997 and 1996, and the five-month period ended December
31, 1995 (in Canadian dollars)                                                  

9.   CANADIAN/U.S. REPORTING DIFFERENCES (CONTINUED):                           

(c)   Other disclosures required by United States GAAP (continued):   

(3)   Stock-based compensation:                             

            The Corporation applies APB Opinion 25, Accounting for Stock
             Issued to Employees, in accounting for its stock option plan,
             and accordingly, no compensation cost has been recognized for
               its stock options in the financial statements. Had compensation
            cost for the Corporation's stock option plan been determined
               based on the fair value at the grant dates for awards under the
      plan consistent with the method of FASB Statement 123,
              Accounting for Stock-Based Compensation, the Corporation's net
               earnings and loss per share would have been adjusted to the pro
forma amounts indicated below for US GAAP:      

                                                                [Download Table]

                                                                     
                                                 1997           1996 
                                                 ----           ---- 
Net loss        As reported   (US GAAP)   $(5,198,988)   $(4,330,230)
                Pro Forma                  (5,990,365)    (5,833,896)

Loss per share  As reported   (US GAAP)         (0.28)         (0.25)
                Pro Forma                       (0.33)         (0.32)


                The fair value of each option grant was estimated on the date of
           grant using the Black-Scholes option-pricing model with the
               following weighted-average assumptions: risk-free interest rate
            of 5%, dividend yield of 0%, expected volatility of 50%, and
expected life of 5 years.                       

(4)   Short-term investments:                               

                Short-term investments are classified as held-to-maturity as the
             Corporation has the positive intent and ability to hold these
       securities to maturity. As the Corporation's short-term
              investments include government securities and commercial paper
       with original maturities of less than three months, the
              aggregate fair value approximates carrying value and there are
        no significant unrealized gross holding gains or losses.

10.  SUBSEQUENT EVENTS:                                                         

    Subsequent to year-end, the Corporation completed private placements for a
     total of 71,000 common shares at 9.00/share and received aggregate proceeds
    of $639,000. As at December 31, 1997, the Corporation received proceeds of
 $504,000 prior to the closing of the transactions. This amount has been
recorded as capital stock subscription.                               

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NYMOX PHARMACEUTICAL CORPORATION                                                
Notes to Consolidated Financial Statements, Continued                           

Years ended December 31, 1997 and 1996, and the five-month period               
ended December 31, 1995                                                         
(in Canadian dollars)                                                           

10.  SUBSEQUENT EVENTS (CONTINUED):                                             

     During the first quarter, the Corporation also completed private placements
  for an additional 60,000 common shares at $8.50/share  and 86,000 common
    shares at $8.35/share for total proceeds of $1,228,100. In connection with
these private placements, the Corporation issued 60,000 warrants      
exercisable at a price of $10/share and 42,000 warrants exercisable at
    $8.50/share. All of these warrants expire on August 31, 1999. In addition,
     255,384 previously outstanding warrants were exercised in the first quarter
for total proceeds to the Company of $2,170,764.                      

 Total gross proceeds to the Company from the private placements and the
exercise of warrants in the first quarter were $4,037,864.            

11.  COMPARATIVE FIGURES:                                                       

   Certain of the 1996 comparative figures have been reclassified to conform
to the presentation adopted in the current year.                      

22

Dates Referenced Herein   and   Documents Incorporated by Reference

				Referenced-On Page
This ‘20-F’ Filing		Date		First		Last			Other Filings
		12/19/07		26
		10/31/07		26
		8/13/06		26
		4/30/06		26
		1/17/06		26
		3/31/00		14					6-K,  6-K/A
		10/31/99		26
		8/31/99		20		56
		1/17/99		27
		12/31/98		47					20-F
		5/15/98		20		43			6-K
Filed on:		5/8/98
		4/30/98		31
		3/31/98		14		26			6-K
		2/20/98		33
		1/17/98		27		46
For Period End:		12/31/97		1		56
		12/19/97		29
		11/25/97		15
		10/31/97		28
		8/13/97		28
		1/17/97		27		28
		12/31/96		17		56
		8/13/96		28
		6/7/96		28
		4/30/96		28
		1/22/96		33
		1/17/96		27
		12/31/95		17		56
		12/18/95		15		20
		12/1/95		23
		8/1/95		18
		7/31/95		17		53
		5/30/95		39
		8/31/94		16
		7/31/94		17		53
		7/31/93		17		53
		7/31/92		17		53
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