Exhibit 10.14

Contact:
Kenneth I. Sawyer
Chairman and Chief Executive Officer
Pharmaceutical Resources, Inc.
(914) 425-7100

FOR IMMEDIATE RELEASE


                         PHARMACEUTICAL RESOURCES, INC.
             ANNOUNCES SHAREHOLDERS APPROVE STRATEGIC ALLIANCE WITH
                                   MERCK KGaA

     Spring Valley,  New York, June 26, 1998 -- Pharmaceutical  Resources,  Inc.
(NYSE/PSE:PRX)   announced  today  that  its  shareholders   have  approved  the
previously-announced  strategic  alliance with Merck KGaA,  Darmstadt,  Germany.
Merck KGaA is a German pharmaceutical,  laboratory and chemical company. Subject
to the  satisfaction  of certain  conditions,  the closing of the transaction is
expected to occur next week.

     At the Company's  Annual Meeting of  Shareholders  held today,  62 % of the
outstanding  shares were voted in favor of the sale of  10,400,000  newly-issued
shares to Lipha Americas,  Inc.  ("Lipha"),  a subsidiary of Merck KGaA, and the
issuance to Merck KGaA and another of its  subsidiaries of five-year  options to
purchase an aggregate of 1,171,040  shares of the  Company's  common stock at an
exercise  price of $2 per  share  in  exchange  for  consulting  services  to be
provided to the Company.  A total of 1% of outstanding  shares voted against the
stock sale and option issuance.

     Also at the  Annual  Meeting,  shareholders  elected  all  seven  directors
proposed by the  Company's  Board of  Directors,  including  the four  directors
designated  by Lipha.  Under the stock  purchase  agreement  signed on March 25,
1998,  Lipha has the right to  designate  a majority of the  Company's  Board of
Directors.  Shareholders  also voted to increase the number of authorized common
shares from 60,000,000 to 90,000,000.

     Kenneth I.  Sawyer,  Chairman and Chief  Executive  Officer of the Company,
commented "Today,  the shareholders of the Company  overwhelmingly  approved our
strategic alliance with Merck KGaA and endorsed our plan for the future. We look
forward to closing the  transaction  shortly and are excited  about working with
Merck KGaA to build a profitable generic pharmaceutical company."

     Merck KGaA is a German  specialty  pharmaceutical,  laboratory and chemical
company  with  sales of $4.4  billion,  and  29,000  employees  in 47  countries
worldwide. Its pharmaceutical sales of $2.5 billion consists mainly of ethicals,
generics, contrastmedia and OTC products.

     Pharmaceutical  Resources, Inc. is a holding company with subsidiaries that
develop,  manufacture and distribute  generic  pharmaceuticals  products.  PRI's
principal  subsidiary,  Par Pharmaceutical,  located in Spring Valley, New York,
manufactures  and  distributes  various dosage  strengths of  approximately  100
products.

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