Neotherapeutics, Inc.

Ticker: NEOT		1500 Quail Street, Suite 550
Exchange: NASDAQ-National Market		Newport Beach, California 92660
Industry: Manufacturing		(714) 832-4902

Type of Shares:	Common Shares	Filing Date:	7/30/96
U.S. Shares:	2,500,000	Offer Date:	9/26/96
Non-U.S. Shares:	0	Filing Range:	$6.00 - $8.00
Primary Shares:	2,500,000	Offer Price:	$7.60
Secondary Shares:	0	Gross Spread:	$0.52
Offering Amount:	$17,500,000	Selling:	$0.30
Expenses:	$879,000	Reallowance:	$0.10
Shares Out After:	5,161,807

Manager	Tier	Phone
Paulson Investment Company, Inc.	Lead Manager	(503) 243-6000
First Colonial Securities Group, Inc.	Co-manager	(609) 596-2424

Auditor: Arthur Andersen
	Audited Income	Latest Unaudited Income	Prior Unaudited Income		Balance Sheet
	12/31/95	6/30/96	6/30/95		6/30/96
Revenue:	$0.13	$0.00	$0.09	Assets:	$0.49
Net Income:	-$0.90	-$0.27	-$0.22	Liabilities:	$1.31
EPS:	-$0.36	-$0.11	-$0.09	Equity:	-$0.82
Note: Dollar amounts are in U.S. millions; Audited figures expressed as full year, unaudited figures are partial year

Business Description

The company develops drugs to treat nervous system diseases related to Alzheimer's, aging, stroke and AIDS, as well as spinal cord injury. The company's initial product candidate, AIT-082, and its other compounds under development are based on the company's initial product candidate, AIT-082, and its other compounds under development are based on the company's patented technology. This technology employs to use of small synthetic molecules to create non-toxic compounds, intended to be administered orally or by injection, that are capable of passing through the blood-brain barrier to rapidly act upon specific target cells in specific locations in the central nervous system, including the brain.

Use of Proceeds

The proceeds from the proposed offering will be used to fund research and development, to acquire fixed assets, to hire additional administrative personnel and for working capital and other general corporate purposes.

Last updated: 11/27/96