EXHIBIT 99.1





FOR IMMEDIATE RELEASE

Contact:  NeoTherapeutics, Inc.                        Ruder Finn, Inc.
          Carol M. Hess, Investor Relations            Robert D. Ferris
          Tel: (949) 788-6700                          Tel: (212) 715-1573
          Fax: (949) 788-6706                          Fax: (212) 715-1660


                NEOTROFIN-TM- REPORTED TO STIMULATE NERVE REGENERATION


IRVINE, Calif., May 21, 1998 -- NeoTherapeutics, Inc. (Nasdaq:  NEOT; NEOTW) 
announced today that researchers from North Carolina and Canada reported that 
the Company's lead product candidate, AIT-082 (NEOTROFIN-TM-), has been shown 
to stimulate nerve regeneration in tissue culture and in animals.

At the 6th International Symposium on Adenosine and Adenine Nucleotides, held 
in Ferrara, Italy, Dr. Bernhard H.J. Juurlink of the Department of Anatomy 
and Cell Biology at the University of Saskatchewan, Saskatoon, Saskatchewan, 
Canada, reported that treatment of hippocampal neurons with AIT-082 caused 
nerve outgrowth and enhanced branching of the nerve processes.  Hippocampal 
neurons have been reported to be involved in memory function.

"AIT-082 is potentially therapeutic in a number of neurodegenerative 
disorders. We have demonstrated in hippocampal neurons grown in culture that 
AIT-082 not only promotes neurite formation in developing hippocampal 
neurons, but it prevents much of the neurite degeneration following exposure 
to excessive amounts of the neurotransmitter glutamate.  Glutamate 
excitotoxicity is implicated in a number of neurodegenerative diseases," Dr. 
Juurlink stated.

Dr. Julio J. Ramirez, the R. Stuart Dickson Professor of Psychology, Davidson 
College, Davidson, North Carolina, demonstrated in animals that after 
destruction of a discreet area of the brain involved in memory, treatment 
with AIT-082 caused re-growth of neurons into the damaged area.  These 
effects were seen after only four days of treatment with AIT-082.
     
"Since the reorganization of brain circuitry has been shown to contribute to 
recovery of memory function after injury or degeneration in areas crucial to 
learning and memory," Dr. Ramirez stated, "the possibility that AIT-082 might 
enhance this reorganization opens up marvelous opportunities to promote 
recovery of function in injured and diseased brains." 

                                      -- more --


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NEOTROFIN-TM- Reported to Stimulate Nerve Regeneration
May 21, 1998
Page 2


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 such as Alzheimer's disease, spinal cord injury, Parkinson's disease
and stroke, as well as other neurological conditions such as migraine. 
NeoTherapeutics' products are orally administered and based upon patented
technologies.  AIT-082 (NEOTROFIN-TM-) is currently in human clinical trials for
the treatment of Alzheimer's disease.  For additional company information, visit
the NeoTherapeutics website at www.neotherapeutics.com.

This press release contains 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
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.

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