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                                                                    EXHIBIT 99.1

                          [NEOTHERAPEUTICS LETTERHEAD]


Contacts:
MEDIA RELATIONS                                     INVESTOR RELATIONS
Jon Siegal                                          John McManus
Ronald Trahan Associates (RTA) Inc.                 NeoTherapeutics, Inc.
(508) 647-9782, ext. 15                             (949) 788-6700, ext. 247

             NEOTHERAPEUTICS RAISES APPROXIMATELY $6 MILLION THROUGH
                         INSTITUTIONAL EQUITY PLACEMENT

        PROCEEDS TO SUPPORT EXPANDED NEOTROFIN(TM) CLINICAL TRIAL PROGRAM

     IRVINE, Calif., May 18, 2001 - NeoTherapeutics, Inc. (NASDAQ: NEOT, NEOTW)
announced today that it completed an equity placement to two institutional
investors of 1.4 million shares at $4.25 per share. In addition, the investor
received 5-year warrants to purchase 280,000 shares at $6.00 per share.

     In addition to receiving cash, the Company was successful in renegotiating
the terms of its previous financing agreement with these investors. As a result,
the investors agreed to reduce the breakup fee for not exercising the second
tranche of the April 17, 2001 financing agreement from $1 million to $405,000,
and have deferred the payment requirement for 30 days.

     "We have raised $20.5 million so far this year in a very difficult capital
market", stated Sam Gulko, Senior Vice President, Finance and Chief Financial
Officer of NeoTherapeutics. "This marks our fourth straight fixed-price
financing - consistent with our previously announced financing strategy. The
Company has now raised approximately $12 million since the end of the first
quarter. We reported cash and equivalents of $14.1 million at the end of the
first quarter and expect to spend between $25 and $30 million over the last nine
months of 2001."

     NEOTHERAPEUTICS seeks to create value for shareholders through the
development of central nervous system drugs by its neurology division,
in-licensing and development of anti-cancer drugs through its NEOONCORX
subsidiary, and licensing out new drug targets through its NEOGENE TECHNOLOGIES
subsidiary. The Company's most advanced drug, Neotrofin, is currently being
developed for Alzheimer's disease and other neurodegenerative diseases, such as
Parkinson's disease and spinal cord injury. For additional information the
Company's web site at www.neotherapeutics.com.

     This press release may contain 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
are described in further detail in the Company's reports filed with the
Securities and Exchange Commission.