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EXHIBIT 99.2
Contact:
NeoTherapeutics, Inc. Ruder-Finn, Inc.
Carol Hess, Investor Relations Bob Ferris
Tel: 714-788-6700 Tel: 212-715-1574
Fax: 714-788-6706 Fax: 212-715-1660
FOR IMMEDIATE RELEASE
NEOTHERAPEUTICS, INC. REPORTS FOURTH QUARTER AND
FISCAL 1997 FINANCIAL RESULTS
IRVINE, CA, APRIL 1, 1997 - NeoTherapeutics, Inc. (Nasdaq: NEOT & NEOTW) today
reported financial results for the fourth quarter and year ended December 31,
1997.
For the fourth quarter ended December 31, 1997, the Company reported a net loss
of $2,317,852 or $(0.42) per share, compared with a net loss of $508,129 or
$(0.10) per share, in the fourth quarter of 1996.
For the year ended December 31, 1997, the Company reported a net loss of
$6,161,541 or $(1.14) per share, compared with a net loss of $1,038,875 or
$(0.31) per share, for the year ended December 31, 1996. The increase in net
loss was principally due to increased costs and expenses associated with the
commencement of clinical trials regarding the Company's lead product, as well as
personnel additions, salary increases, facilities rent, consulting fees and
insurance costs as the Company continues to expand its operations.
The Company's lead product, AIT-082, has been in Phase I clinical trials as a
potential treatment for Alzheimer's disease. The three human trials completed to
date have demonstrated no adverse reactions and have shown that AIT-082 is
orally absorbed and remains in the blood for sufficiently long periods to allow
the potential for once daily dosing. The first Phase II efficacy study with
AIT-082 is planned to begin this summer.
The Company also announced that it has secured an equity-based $15 million line
of credit primarily for funding additional testing of AIT-082 and the
development of other technology.
In order to provide shareholders with additional information on Company
operations, the Company has expanded its web site at www.neotherapeutics.com. A
new page has been added which will be updated periodically to discuss "What's
Going On."
NeoTherapeutics is engaged in the discovery and development of drugs that act on
the central nervous system to repair nerve cells and treat neurodegenerative
diseases and conditions such as Alzheimer's disease, memory deficits associated
with aging, spinal cord injury, Parkinson's disease, stroke and migraine.
NeoTherapeutics' products are orally administered and based on patented
technologies.
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This press release contains forward-looking statements regarding future events,
such as the timing of future clinical trials, that involve risks and
uncertainties that could cause actual results to differ materially. These risks
include, but are not limited to, the biological activity, side effect profile
and efficacy of AIT-082, the early stage of product development, the potential
need for additional funding, the initiation and completion of clinical trials
and dependence on third parties for clinical testing, manufacturing and
marketing. These risks are described in further detail in the Company's annual
and quarterly reports filed with the Securities and Exchange Commission.
- FINANCIAL CHARTS FOLLOW -
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NEOTHERAPEUTICS, INC. AND SUBSIDIARIES
(A DEVELOPMENT STAGE ENTERPRISE)
SUMMARY STATEMENT OF OPERATIONS
Three Months Ended
December 31, Year Ended
(Unaudited) December 31,
1997 1996 1997 1996
----------- ----------- ----------- -----------
REVENUES: $ -- $ -- $ -- $ --
EXPENSES:
Research and development 1,751,194 410,587 4,508,255 615,485
General and administration expense 668,173 351,329 2,341,276 659,895
----------- ----------- ----------- -----------
LOSS FROM OPERATIONS (2,419,367) (761,916) (6,849,531) (1,275,380)
Other income (expense), net,
principally interest 101,515 253,787 687,990 236,505
----------- ----------- ----------- -----------
Net loss $(2,317,852) $ (508,129) $(6,161,541) $(1,038,875)
=========== =========== =========== ===========
Net loss per share $ (0.42) $ (0.10) $ (1.14) $ (0.31)
=========== =========== =========== ===========
Weighted average shares outstanding 5,465,807 5,287,997 5,405,831 3,374,549
=========== =========== =========== ===========
SUMMARY BALANCE SHEET
December 31, 1997 December 31, 1996
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Cash and cash equivalents $ 6,063,347 $ 9,995,062
Marketable securities and other investments 3,068,375 7,448,546
All other assets, net 4,066,751 535,668
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Total assets $13,198,473 $17,979,276
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Current liabilities 2,478,529 1,357,196
Long term liabilities 176,549 --
Stockholders equity (deficit) 10,543,395 16,622,080
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Total liabilities and stockholders equity $13,198,473 $17,979,276
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