1 EXHIBIT 5 STRADLING YOCCA CARLSON & RAUTH A PROFESSIONAL CORPORATION ATTORNEYS AT LAW 660 NEWPORT CENTER DRIVE, SUITE 1600 NEWPORT BEACH, CALIFORNIA 92660 TELEPHONE (949) 725-4000 FAX (949) 725-4100 May 11, 1998 NeoTherapeutics, Inc. 157 Technology Drive Irvine, California 92618 Re: Registration Statement on Form S-3 Ladies and Gentlemen: At your request, we have examined the form of Registration Statement on Form S-3 (the "Registration Statement"), being filed by NeoTherapeutics, Inc., a Delaware corporation (the "Company"), with the Securities and Exchange Commission in connection with the registration under the Securities Act of 1933 for resale of an aggregate of up to 730,000 shares (the "Shares") of Common Stock, par value $.001 per share, of the Company (the "Common Stock"), as follows: (i) 700,000 shares of Common Stock (the "Equity Line Shares"), which may be issued pursuant to a Private Equity Line of Credit Agreement dated March 27, 1998 (the "Equity Line Agreement") between the Company and one of the selling stockholders named in the Registration Statement (the "Equity Line Stockholder"), (ii) 5,000 shares of Common Stock, which have been issued to one of the selling stockholders named in the Registration Statement (the "Placement Stockholder," and together with the Equity Line Stockholder, the "Selling Stockholders") for advisory services rendered in connection with the negotiation of the Equity Line Agreement and (iii) 25,000 shares of Common Stock, which are issuable upon exercise of a currently outstanding warrant (the "Warrant") issued to the Equity Line Stockholder. The Shares may be sold from time to time for the account of the Selling Stockholders. We have examined the proceedings heretofore taken and are familiar with the additional proceedings proposed to be taken by the Company in connection with the authorization, issuance and sale of the securities referred to above. Based on the foregoing, and assuming that the full consideration for each Equity Line Share and for each share issuable upon exercise of the Warrant is received by the Company in accordance with the terms of the Equity Line Agreement and the Warrant, respectively, it is our opinion that the Shares covered by the Registration Statement will be validly issued and outstanding, fully paid and nonassessable. We consent to the use of this opinion as an exhibit to the Registration Statement and to the use of our name under the caption "Legal Matters" in the Prospectus which is part of the Registration Statement. Very truly yours, STRADLING YOCCA CARLSON & RAUTH