<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE 
BALANCE SHEETS, STATEMENTS OF OPERATIONS, CASH FLOW STATEMENTS AND THE STATEMENT
OF STOCKHOLDERS' EQUITY FILED AS PART OF ALTEON INC.'S ANNUAL REPORT ON FORM
10-K FOR THE YEAR ENDED DECEMBER 31, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH ANNUAL REPORT ON FORM 10-K.
</LEGEND>
<CIK> 0000878903
<NAME> ALTEON INC.
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
       
                             
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          DEC-31-1997
<PERIOD-START>                             JAN-01-1997
<PERIOD-END>                               DEC-31-1997
<EXCHANGE-RATE>                                      1
<CASH>                                      20,423,675
<SECURITIES>                                 8,550,063
<RECEIVABLES>                                        0
<ALLOWANCES>                                         0
<INVENTORY>                                          0
<CURRENT-ASSETS>                            29,442,418
<PP&E>                                       3,183,362
<DEPRECIATION>                                       0
<TOTAL-ASSETS>                              33,507,538
<CURRENT-LIABILITIES>                        7,052,602
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          9
<COMMON>                                       179,223
<OTHER-SE>                                  26,275,704
<TOTAL-LIABILITY-AND-EQUITY>                33,507,538
<SALES>                                              0
<TOTAL-REVENUES>                             1,510,673
<CGS>                                                0
<TOTAL-COSTS>                                        0
<OTHER-EXPENSES>                            26,897,302
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                              25,061
<INCOME-PRETAX>                           (25,411,690)
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                       (25,411,690)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                              1,091,401
<CHANGES>                                            0
<NET-INCOME>                              (26,503,091)
<EPS-PRIMARY>                                   (1.60)
<EPS-DILUTED>                                   (1.60)