NeoTherapeutics Arranges for Credit Line

IRVINE — Pharmaceuticals developer NeoTherapeutics Inc. said Wednesday it has arranged a $15-million credit line to fund testing of its products and technologies. The company is testing a lead-based compound for possible use in treatment of Alzheimer’s disease.

The credit line was arranged as a private stock placement, in which the company would exchange its shares of common stock for funding up to the $15 million limit. The company’s AIT-082 lead compound has been in Phase I clinical trials since March 1997 and plans are being made to conduct the initial Phase II human study this summer.