EXHIBIT 99.1


                          [NEOTHERAPEUTICS LETTERHEAD]



                    NEOTHERAPEUTICS SHIFTS STRATEGIC FOCUS TO
                         OUT-LICENSING OF NEUROLOGY DRUG
                             CANDIDATES AND INTERNAL
                          DEVELOPMENT OF ONCOLOGY DRUGS

                  STRATEGIC AND RESTRUCTURING CHANGES TO REDUCE
                          MONTHLY EXPENSES BY NEARLY 50
                          PERCENT WHILE PRESERVING KEY
                              DEVELOPMENT PROGRAMS

        IRVINE, Calif., May 7, 2002 -- NeoTherapeutics, Inc. (NASDAQ: NEOT)
today announced a change in strategic focus emphasizing the out-licensing of
neurology drug candidates discovered by Company researchers and the internal
development of in-licensed late stage anti-cancer drugs. As a result of these
changes and the completion of a large Alzheimer's disease clinical trial, the
Company expects its burn rate to fall from approximately $7 million per quarter
to approximately $3.5 million per quarter over the next few months. Cost savings
will be principally due to reductions in clinical and research personnel working
on Neotrofin(TM), reductions in administrative staff, and the elimination of
expenses for the manufacturing of Neotrofin supplies.

        The Company will maintain its capabilities to manage the clinical
development of satraplatin, which is expected to begin a phase 3 trial in
prostate cancer later this year, as well as Neotrofin in chemotherapy-induced
neuropathy, spinal cord injury and Parkinson's disease. Neurological drug
discovery and research support for products such as AIT-034, NEO-339 and the
Company's anti-psychotic platform will also be maintained. NeoTherapeutics is in
active discussions with pharmaceutical companies regarding licensing agreements
for the development of AIT-034, NEO-339, the anti-psychotic drug platform and
Neotrofin.

        "Last year we reduced our cash burn rate while broadening our product
portfolio and moving forward the pre-clinical and clinical development of many
of these products. The changes we are now instituting should reduce our annual
burn rate to approximately $14 million going forward", stated Alvin J. Glasky,
Chairman and Chief Executive Officer of NeoTherapeutics. "Our new strategic
focus will allow us to channel our cash and human resources into the development
of our late stage products, such as satraplatin, while we can leverage our
neurology research efforts through development partnerships with larger
pharmaceutical companies. Our strategic plan is to license out our neurology
products in the pre-clinical stage rather than initiate costly clinical
development of these products. I also want to reiterate that we will not devote
additional resources to the clinical development of Neotrofin for Alzheimer's
disease."

NeoTherapeutics plans to report financial results for the first quarter of 2002
on Thursday, May 16, 2002 and will update its financial position and financing
strategy at that time. The Company will hold a conference call to discuss
financial results and to provide an update on corporate strategy and milestones
at 11:00 am eastern time, 8:00 am pacific time on May 16, 2002.



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        NeoTherapeutics seeks to create value for stockholders through the
discovery and licensing out of central nervous system (CNS) drugs, the
in-licensing and commercialization of anti-cancer drugs, and the licensing out
of new drug targets discovered through genomics research. The Company's lead
oncology drug, satraplatin, is being prepared for a phase 3 study in prostate
cancer. Phase 2 studies of Neotrofin(TM) in Parkinson's disease, spinal cord
injury and chemotherapy-induced neuropathy are ongoing. Additional anti-cancer
drugs are in phase 1 and 2 human clinical trials, and the Company has a rich
pipeline of pre-clinical neurological drug candidates. For additional
information visit the Company's web site at www.neot.com.

This press release may contain forward-looking statements regarding future
events and the future performance of NeoTherapeutics that involve risks and
uncertainties that could cause actual results to differ materially. These risks
are described in further detail in the Company's reports filed with the
Securities and Exchange Commission.

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