NeoTherapeutics Shares Tumble 64%

NeoTherapeutics Inc. shares fell 64% as the company said its most advanced experimental product, the Neotrofin medication for Alzheimer’s disease, didn’t work as expected in human testing.

The Irvine firm’s stock fell $1.40 to 80 cents on Nasdaq. The shares had fallen 40% this year.

Patients on Neotrofin didn’t show a statistically significant benefit compared with those given a placebo treatment in a 12-week study. NeoTherapeutics said it is suspending Neotrofin research in Alzheimer’s disease, which will reduce its monthly loss to less than $1.5 million from $2.3 million.

“We’re in no cash crisis right now,” said Alvin Glasky, the company’s chief executive. “We’re not concerned about the cash position of the company.”

NeoTherapeutics ended 2001 with $7.2 million in cash and short-term investments. It raised $6.2 million in the first quarter through a sale of common shares.