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EXHIBIT 99.2
[NEOTHERAPEUTICS LOGO]
FOR IMMEDIATE RELEASE
NeoTherapeutics Raises $8 Million to Support the Clinical Development
of Neotrofin(TM) for Alzheimer's Disease
Irvine, California -- October 5, 2000 -- NeoTherapeutics, Inc. (Nasdaq: NEOT;
NEOTW) announced today the sale of 968,524 shares of common stock at $8.26 per
share for a total price of $8,000,000 to two private institutional investors.
"NeoTherapeutics, together with NeoGene, has now raised $13 million over the
past several weeks which the Company believes demonstrates continued investor
optimism regarding our development of Neotrofin(TM) for Alzheimer's disease and
our functional genomics subsidiary, NeoGene Technologies," stated Sam Gulko,
NeoTherapeutics' Senior Vice President Finance and Chief Financial Officer.
"This financing is consistent with our strategy of accessing the capital markets
on an 'as needed' basis, in our efforts to maximize the price per share at which
we issue equity as we continue to achieve our targeted milestones toward the
commercialization of Neotrofin(TM). These new funds, together with our cash and
marketable securities and existing equity facilities will provide us with
sufficient cash to fund our ongoing U.S. and International clinical studies into
next year."
In addition to common stock, the investors received 5-year "primary warrants" to
purchase 193,706 shares of common stock at the exercise price of $10.13 per
share and "adjustment warrants" that may allow them to acquire additional common
stock thirty and sixty trading days subsequent to the effective date of the
registration statement to be filed for this transaction.
NeoTherapeutics, Inc., is a leader in the field of nerve regeneration. The
company's most advanced drug candidate, Neotrofin(TM), is currently being
developed for Alzheimer's disease as its first indication, and is being tested
in late-stage, controlled clinical studies involving some 2000 patients
worldwide. In animal models of cognitive decline, aging and spinal cord injury,
Neotrofin(TM) has been shown to restore function. Recent data has also
demonstrated the ability of Neotrofin(TM) to reduce beta-amyloid accumulation in
cell culture.
NeoTherapeutics' research and development program is focused on designing and
developing small molecules capable of treating neurological diseases and
conditions such as, peripheral neuropathy, spinal cord injury, stroke and
Parkinson's disease. NeoTherapeutics' product pipeline addresses other health
issues such as migraine, depression and obesity. NeoGene Technologies, Inc. is a
functional genomics company engaged in the development of a broad platform of
enabling technology and receptor-targeted drug design. NeoGene Technologies is
using this technology to search for natural and synthetic compounds that can
potentially be developed as drugs for treating various diseases. For additional
Company information, visit the NeoTherapeutics web site at
www.neotherapeutics.com.
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NeoTherapeutics Raises $8 Million to Support the Clinical Development
of Neotrofin(TM)
October 5, 2000
Page 2
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.
CONTACT:
Carol Gruetter
Investor Relations
NeoTherapeutics, Inc.
Phone (949) 788-6700 or
E-mail: [email protected]
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