EXHIBIT 99.2

OSI PHARMACEUTICALS RECEIVES SECOND FDA FAST-TRACK DESIGNATION FOR TARCEVA;
ANNOUNCES AMENDMENTS TO TARCEVA DEVELOPMENT PLAN

MELVILLE, N.Y.--Sept. 23, 2002--OSI Pharmaceuticals, Inc. (Nasdaq: OSIP) today
announced that the U.S. Food and Drug Administration (FDA) has designated
Tarceva(TM) (erlotinib HCl) a Fast Track Product for second- or third-line
treatment of patients with incurable stage IIIB/IV non-small cell lung cancer
(NSCLC) who have failed standard therapy for advanced or metastatic disease. OSI
is developing Tarceva(TM), a small molecule HER1/EGFR inhibitor, in a global
alliance with Genentech, Inc., and Roche. In May, the alliance received Fast
Track designation for the treatment of chemotherapy-naive Stage III/IV NSCLC
patients. Two large randomized Phase III trials, conducted by Genentech and
Roche comparing Tarceva(TM) plus front-line chemotherapy to chemotherapy alone,
have recently completed patient enrollment.

Under the FDA Modernization Act of 1997, the Fast Track Program is designed to
facilitate the review process by allowing the sponsor to submit sections of an
NDA as they become available. This designation is limited to a new drug that is
intended for the treatment of a serious or a life-threatening condition and
demonstrates the potential to address unmet medical needs for such a condition.

OSI is collaborating with the National Cancer Institute of Canada Clinical
Trials Group in conducting an international, randomized, placebo-controlled
Phase III trial in second/third-line NSCLC patients that compares 150 mg/day of
Tarceva(TM) as a monotherapy to best supportive care. This is the only ongoing
single-agent controlled Phase III study of an HER1/EGFR targeted agent designed
to detect a survival advantage in refractory NSCLC and represents an integral
part of the alliance's registration strategy of Tarceva(TM). The dose employed
in the Tarceva(TM) Phase III NSCLC program of 150 mg/day is the apparent maximum
tolerated dose for this agent as determined in earlier Phase I studies and used
in a number of single-agent Phase II studies. The Company believes that this
aggressive dosing strategy may be clinically important in the optimal use of
this class of agents.

The Company also announced adjustments to OSI-sponsored studies in the
alliance's overall clinical development program for Tarceva(TM). Enrollment in
the second/third-line Phase III NSCLC study will be increased from the initial
plan of 330 patients to approximately 700 patients. This expanded sample size
will provide a more robust dataset with which to examine improvement in patient
survival and other potential clinical benefits of Tarceva(TM) in this patient
population. The initial enrollment target of 330 patients has been achieved
ahead of schedule and it is still anticipated that enrollment in this study will
be complete by year-end, in line with the Company's previous guidelines.

"We were encouraged by the results from the earlier Phase II NSCLC Tarceva(TM)
study which provided the basis for the design of our refractory NSCLC Phase III
program," stated Nicole Onetto, M.D., Executive Vice President, Oncology at OSI.
"We believe that Tarceva(TM) as a monotherapy could be of value in treating
these patients and are pleased with the Fast Track designation which recognizes
the potential for Tarceva(TM) to address this unmet need in treating lung cancer
patients."

OSI also announced it will be changing the size of its Phase III pancreatic
cancer trial. The goal of this international, randomized, placebo-controlled
study, also being conducted in collaboration with the National Cancer Institute
of Canada Clinical Trials Group, is to compare Tarceva(TM) plus gemcitabine to
gemcitabine alone in the front-line treatment of pancreatic cancer patients with
survival as the primary endpoint. The original 800-patient sample size of the
study was designed to minimize the follow-up time required to reach the
statistical endpoint. In choosing to prioritize and increase investments in the



second/third-line NSCLC program the Company is planning a reduction in the total
sample size of this study. These changes in study design will maintain the
statistical power of the trial, but will increase the required duration of
follow-up for all patients treated in the trial in order to meet the statistical
endpoint. The Company anticipates finalizing details of the re-sized trial
following input from the appropriate collaborative and regulatory bodies.
However, because of the extended follow-up period, a possible approval of a New
Drug Application for Tarceva(TM) in pancreatic cancer is now not likely to occur
before submission of an NDA in the primary NSCLC indication.

"We have made these changes to our program in order to allow us to focus our
resources on the refractory NSCLC study where we consider ourselves to be very
competitively positioned," stated Colin Goddard, Ph.D., Chairman and Chief
Executive Officer at OSI. "The pancreatic cancer program remains an important
secondary indication for us, but we believe prioritizing our efforts in NSCLC
provides the best disease setting to demonstrate the potential benefit of
Tarceva(TM) in the treatment of human cancer. We expect to initiate additional
NSCLC trials to reinforce our program in this disease over the next year."

Tarceva(TM) is a small molecule designed to target the human epidermal growth
factor receptor (HER1) pathway, also known as EGFR, which is critical to cell
growth in many cancers. HER1 is a key component of the HER signaling pathway,
which is often involved in the formation and growth of numerous cancers.
Tarceva(TM) is designed to inhibit specifically the tyrosine kinase activity of
HER1, thereby blocking the signaling pathway with the intent of potentially
inhibiting tumor cell growth.

OSI Pharmaceuticals is a leading biotechnology company primarily focused on the
discovery, development, and commercialization of innovative products for the
treatment of cancer. OSI has built a pipeline of discovery programs and drug
candidates addressing major, unmet medical needs in cancer and selected
opportunities, including diabetes, arising from the Company's extensive drug
discovery research programs that represent significant commercial opportunities.

This news release contains forward-looking statements. These statements are
subject to known and unknown risks and uncertainties that may cause actual
future experience and results to differ materially from the statements made.
Factors that might cause such a difference include, among others, the enrollment
of clinical trials, the successful pre-clinical development thereof, the
completion of clinical trials, the FDA review process and other governmental
regulation, pharmaceutical collaborators' ability to successfully develop and
commercialize drug candidates such as Tarceva(TM), competition from other
pharmaceutical companies, product pricing and third-party reimbursement, and
other factors described in OSI Pharmaceuticals' filings with the Securities and
Exchange Commission. Furthermore, Tarceva(TM) is an investigational compound and
has not yet been determined safe or efficacious in humans for its ultimate
intended use.



 CONTACT:             OSI Pharmaceuticals, Inc.
                      Investor & Public Relations,
                      Kathy Galante, 631/962-2000
                      or
                      Burns McClellan (representing OSI)
                      Jonathan M. Nugent (Investors)
                      Kathy Jones, Ph.D. (Media), 212/213-0006