EXHIBIT 99.3




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



            NEOTHERAPEUTICS ISSUES CLARIFICATION OF MAY 20, 1998 NEWS ITEM


IRVINE, Calif., May 21, 1998 - This news release is being issued by
NeoTherapeutics, Inc. (Nasdaq:  NEOT; NEOTW) in order to clarify information
contained in a May 20, 1998 Dow Jones News Service story.  The article was based
on an interview with the Company's CEO, Dr. Alvin J. Glasky, conducted on May
20, 1998.  Comments made by Dr. Glasky during the interview consisted primarily
of information that has been disclosed previously by the Company.  This news
release provides clarification of information contained in the Dow Jones News
Service story which the Company believes is necessary to accurately reflect the
comments made by Dr. Glasky.  Following are the Company's clarifications to the
article:

- -    The first Phase I clinical trial of the Company's lead compound, 
     AIT-082, demonstrated improved memory and behavior in some, but not all, 
     of the 10 Alzheimer's disease patients included in that study.  The 
     trial was designed primarily to determine the safety of the drug. Two 
     additional Phase I clinical trials of AIT-082 were conducted in healthy 
     elderly volunteers and were also designed to determine the safety 
     profile of AIT-082.  The Phase I trials included a total of 42 
     individuals.  In these, studies doses from 10 to 4,000 milligrams of 
     AIT-082 were used and no significant adverse effects were observed.  
     Because of the small number of people involved in these studies, any 
     conclusions regarding the safety or efficacy following long-term 
     administration of AIT-082 must await the results of future clinical 
     trials involving substantially larger numbers of patients with 
     Alzheimer's disease.

- -    NeoTherapeutics has an agreement with a European company that is limited 
     to manufacturing the AIT-082 drug compound for the Company's development 
     efforts.  This agreement does not involve any licensing rights and the 
     Company presently does not have a license agreement with any 
     pharmaceutical company.

- -    NeoTherapeutics recently announced that it received a commitment from a 
     private investor for a $15 million equity investment in the Company.  
     The Company believes that this amount will be sufficient to complete the 
     Phase II clinical trial which was initiated earlier this month as well 
     as other planned projects.  However, in order to complete the additional 
     trials needed to obtain FDA approval for AIT-082 in Alzheimer's disease, 
     substantial additional financing will be necessary.


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NEOTHERAPEUTICS ISSUES CLARIFICATION OF MAY 20, 1998 NEWS ITEM
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' compounds 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 web site 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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