EXHIBIT 10.5

This Agreement is made the 16th day of August, 1994

BY AND BETWEEN

ELAN PHARMA, LTD.

          An Irish company, of Monksland, Athlone, Co. Westmeath, Ireland.

AND

SCHEIN PHARMACEUTICAL, INC.

          A US company, of 100 Campus Drive, Florham Park, NJ 07932, USA

                   (hereinafter referred to as "THE CLIENT")

 
                                       2.


WHEREAS
- -------

- -    ELAN is beneficially entitled to the use of French Patent No. 7836084
     (filing date 22nd December 1978) and various other patents have been
     granted or are pending under the International Convention in relation to
     the development and production of Drug Specific Dosage Forms for
     pharmaceutical products.

- -    ELAN is knowledgeable in the development of Drug Specific Dosage Forms and
     has developed a unique range of delivery systems designed to provide
     newer and better formulations of medicaments.

- -    THE CLIENT is desirous of entering into a licensing agreement with ELAN by
     virtue of which it will be free to market the PRODUCT under its own label
     and trademark in the TERRITORY without infringing any of the patent or 
     KNOW-HOW rights held by ELAN.

- -    ELAN is prepared to develop, license and supply the DSDF in the TERRITORY.

NOW IT IS HEREBY AGREED AS FOLLOWS:

ARTICLE I
- ---------

     In the present Agreement the following definitions shall prevail:

     1.   NORMAL DOSAGE FORM shall mean Cruvail(R) 200mg capsules as sold in the
          United States or any other agreed comparison product which contains
          Ketoprofen as its sole pharmaceutical active ingredient.

     2.   DSDF shall mean the capsule Drug Specific Dosage Form which ELAN will
          develop in the course of the PROJECT containing Ketoprofen as its
          sole pharmaceutical active ingredient with an AB substitution rating
          to the NORMAL DOSAGE FORM and to meet the specifications set out in
          Appendix A, the specifications contained in the ANDA and any
          applicable specifications as may from time to time be published under
          the US Pharmacopoeia or established by applicable regulatory
          authorities (the "Specifications").

     3.   $ shall mean United States Dollars.

     4.   NET SALES of the Product shall mean the total invoiced sales by THE
          CLIENT of the PRODUCT in the TERRITORY to an arms length third party,
          less usual and customary chargebacks, rebates, discounts, returns,
          allowances, credit, sales and other consumption taxes. However, the
          deduction against total invoiced sales for returns, other than Recall
          Costs as defined in Article VII, Section 2 hereof, and bad debts shall
          not be more than 5% in total.

 
                                       3.


     5.   KNOW-HOW shall mean all proprietary knowledge, information and
          expertise possessed by ELAN or to which Elan has rights relating to
          the DSDF, whether or not covered by any patent, patent application
          or future patent application, copyright design, trademark or other 
          industrial or intellectual property rights.

     6.   PROJECT shall mean all activity in order to develop the DSDF in
          accordance with the plan shown in Appendix B.

     7.   PRODUCT shall mean the DSDF packaged and labelled for sale in the
          TERRITORY.

     8.   PROFITS shall mean Net Sales of the PRODUCT less Full Cost.

     9.   TERRITORY means the United States of America, its territories and
          possessions.

     10.  ELAN shall mean Elan Pharma Ltd. and any of its parent, subsidiary,
          affiliate or associate companies.

     11.  FDA shall mean the United States Food and Drug Administration.

     12.  ANDA shall mean the Abbreviated New Drug Application for the DSDF
          which ELAN shall file with and seek to have approved by the FDA and
          which shall be held by ELAN.

     13.  FULL COST shall mean ELAN's cost of manufacture which shall be
          determined on the basis of the following elements applicable to that
          particular function: (a) direct material and labour costs of that
          function; and (b) such indirect labour, factory, laboratory and other
          overhead costs properly allocable to that function under Irish
          generally accepted accounting principles. Overhead allocations shall
          include expenses of plant maintenance and engineering, plant
          management, receiving and warehousing, building occupancy and quality
          control, but do not include corporate overhead or profit margins.

ARTICLE II:   THE DSDF
- ----------    --------

     1.   ELAN shall develop the DSDF as laid out in the PROJECT set forth in
          Appendix B hereto for the consideration set out hereinafter in Article
          IV and shall use its best efforts to complete the Project in
          accordance with the timetable set out in Appendix B.

     2.   ELAN shall remain proprietor of all its relevant trademarks and patent
          rights relating to the DSDF and all KNOW-HOW relative thereto, but
          hereby grants to THE CLIENT an exclusive licence to prepare, use,
          promote, market, sell and distribute the PRODUCT in the TERRITORY
          under the terms and conditions set out herein.

 
                                       4.


          This license shall also cover other AB rated versions including, but
          not limited to other strengths, and delivery systems of the NORMAL
          DOSAGE FORM which ELAN may develop by agreement with THE CLIENT for
          development fees to be agreed. THE CLIENT hereby accepts such license
          and confirms that, during the term of this Agreement and so long as
          ELAN is providing the PRODUCT to THE CLIENT in accordance with Article
          III hereof it will not market directly or indirectly any 200mg product
          containing Ketoprofen as its sole Pharmaceutical active ingredient.

     3.   THE CLIENT shall ensure that all packaging, labelling, promotional
          material and publications, scientific or otherwise, prepared by or on
          behalf of THE CLIENT for the PRODUCT or concerning the PRODUCT, shall
          contain in writing an acknowledgement that the PRODUCT is
          manufactured by ELAN, and copies and/or samples thereof shall be
          provided to ELAN on written request. Additionally, THE CLIENT
          undertakes that all press releases announcements, oral or written
          concerning the PRODUCT must refer to it as developed and manufactured
          by ELAN for THE CLIENT.

     4.   THE CLIENT may market, sell and/or distribute the PRODUCT under any
          trademark or trademarks, as it may from time to time choose, and THE
          CLIENT shall consider the use of the trademark Ketelan. If THE CLIENT
          so chooses to use the trademark Ketelan, it may do so without payment
          or additional consideration to ELAN. Elan represents and warrants that
          it is the owner of the Ketelan trademark and that the use of the
          trademark Ketelan as contemplated hereby will not involve any
          infringement of any existing trademark or rights of third parties.
          Such trademarks, except Ketelan, shall remain the sole property of THE
          CLIENT. ELAN shall not use or authorize any third party to use any
          such trademark(s) whether during the term or thereafter.

     5.   ELAN shall, if requested, advise THE CLIENT in any technical matters
          as may become necessary for the proper utilisation of its license.

ARTICLE III:  PROCUREMENT OF THE DSDF
- -------------------------------------

          1.  ELAN shall produce and supply to THE CLIENT exclusively its entire
              requirements of the DSDF for the TERRITORY at the price, delivery
              and other terms contained herein.

 
                                       5.

         1.1. 0n September 1st, 1995, THE CLIENT will provide ELAN with a
              forecast of THE CLIENT's requirements for the Product for the 12
              month period following FDA approval of the ANDA. This forecast
              will be updated quarterly until ANDA approval of the PRODUCT.
              Except as otherwise provided herein, all forecasts made hereunder
              shall be made to assist ELAN in planning its production, and THE
              CLIENT in planning sales, and are not represented to be binding
              purchase orders, and shall be without prejudice to THE CLIENT's
              subsequent firm orders for the PRODUCT in accordance with the
              terms of this Agreement.

              The parties acknowledge that it is in their mutual interest that
              launch of the PRODUCT be effected as soon as possible following
              ANDA approval, for which purpose the parties shall, in advance of
              the ANDA approval, discuss and agree on the manufacture and
              purchase of specific quantities of launch stocks, (the "Launch
              Stocks"). In any event and notwithstanding any firm purchase
              orders for such Launch Stocks which THE CLIENT has already placed
              with ELAN, ELAN will notify THE CLIENT of its receipt of a pre-
              approval letter for the ANDA for the PRODUCT from the FDA and THE
              CLIENT will within seven (7) days of such notification place a
              firm purchase order with ELAN for its Launch Stocks which
              notification shall include a copy of the FDA pre-approval letter,
              unless such purchase order has been submitted to ELAN prior to
              that date. With respect to Launch Stocks ELAN agrees to supply
              quantities of capsules of DSDF for delivery within one hundred and
              twenty (120) days of placement of purchase orders. THE CLIENT will
              use its best efforts to provide forecasts for deliveries for the
              balance of the year in which the ANDA is approved which it
              requires in addition to the Launch Stocks, on a monthly basis at
              the beginning of each month.

              Notwithstanding anything to the contrary contained herein, ELAN
              agrees to use its best efforts to fill any orders for delivery
              (including Launch Stock orders) within ninety (90) days after they
              are placed by THE CLIENT provided they are within 25% plus or
              minus THE CLIENT's forecast which is current as of the date of the
              order. Elan also will use its best efforts to fill THE CLIENT's
              requirements in excess of one hundred and twenty five (125%) of
              forecasted amounts.

         1.2. On September 30th of the year during which the ANDA is approved,
              or if after October 1, within 15 days of such approval date, THE
              CLIENT shall provide a forecast for purchases for the following
              calendar year. The first calendar quarter of such forecast shall
              be a binding purchase commitment of THE CLIENT. At the beginning
              of each calendar quarter thereafter THE CLIENT will provide a
              rolling annual forecast for the period beginning on the first day
              of the calendar quarter following the calendar quarter in which
              the forecast is made and the first calendar quarter of such
              forecast shall be a binding purchase commitment of THE CLIENT.

 
                                       6.

               ELAN will use its best efforts to fill THE CLIENT's requirements
               in excess of one hundred and twenty five (125%) percent of
               forecasted amounts. Notwithstanding the foregoing, it shall be
               the responsibility of ELAN to maintain reasonably adequate
               inventories of the DSDF using its best efforts to satisfy the
               requirements of THE CLIENT.

          1.3. For all purchase orders for the PRODUCT other than the Launch
               Stocks, THE CLIENT shall communicate to ELAN THE CLIENT's firm
               purchase order for the PRODUCT for the quarter within forty-five
               (45) days before the beginning of each calendar quarter during
               the Term after approval of the ANDA by the FDA, specifying
               shipment/delivery schedules within the time frames set forth in
               Paragraph 1.6 hereof.

          1.4. Within seven (7) days of the receipt of each such order, Elan
               shall either confirm to THE CLIENT that it will meet THE CLIENT's
               requirements for the quarter in accordance with the
               shipment/delivery schedule, whereupon the purchase order shall be
               confirmed, final and binding on the parties; or in the event of
               ELAN's inability to meet such requirements or schedule, ELAN
               shall notify THE CLIENT in detail as to the extent to which it
               will not meet such requirements or schedule. ELAN may at such
               time suggest modifications to THE CLIENT's requirements or
               schedule. In the event of ELAN's suggesting any modifications,
               THE CLIENT shall communicate to ELAN its acceptance or rejection,
               in whole or in part, thereof within seven (7) days after THE
               CLIENT's receipt of such communication, whereupon the purchase
               order shall be confirmed, final and binding on the parties. To
               the extent that THE CLIENT does not accept such suggested
               modifications or that ELAN cannot meet THE CLIENT's requirements
               or schedule, THE CLIENT may satisfy its requirements and/or
               schedule for such quarter by purchasing the PRODUCT from
               alternate sources as provided in Section 1.6 hereof. All
               communications for the purpose of this Section 1.4 shall, to the
               extent practicable, be by fax with confirmed answer back to the
               other party, and only in the event of this being not possible for
               any reason, will communications be in writing through overnight
               courier services.

          1.5. Shipments of the PRODUCT shall be made by ELAN promptly against
               confirmed purchase orders placed by THE CLIENT with delivery
               dates no later than one hundred twenty (120) days from the date
               of THE CLIENT's placing the applicable purchase order. Products
               shall be shipped F.O.B to THE CLIENT's manufacturing facility in
               either the State of New York, the State of Connecticut, Puerto
               Rico, or as otherwise instructed by THE CLIENT from time to time.

 
                                       7.

          1.6. If at any time during the Term, ELAN is or expects that it will
               be unable to satisfy THE CLIENT's requirements of the PRODUCT, in
               full or in part, ELAN promptly shall so notify THE CLIENT,
               detailing the extent to which it will not meet such requirements.
               THE CLIENT, without limiting any other remedy available to it,
               may in its discretion meet the shortfalls therein from any
               alternate source or sources. THE CLIENT, without limiting any
               other remedy available to it, may also purchase PRODUCT from
               alternate source or sources if a lawsuit has been commenced
               alleging that the import, manufacture and/or distribution of the
               PRODUCT as contemplated hereby infringes any patent or
               proprietary right of any other person, firm or corporation.

          1.7. ELAN shall deliver the DSDF to THE CLIENT and/or any party
               designated by THE CLIENT in proper bulk packaging so as to permit
               safe storage and transport.

          1.8. Unless otherwise agreed to in writing between the parties, ELAN
               shall supply the DSDF in the form of bulk capsules and THE CLIENT
               shall be responsible for the packaging of said bulk capsules into
               final market packaging.

          1.9. All quantities of the DSDF delivered by ELAN hereunder shall
               conform to the Specifications. All claims for failure of any
               shipment of the DSDF to conform to Specifications must be made to
               ELAN in writing within forty-five (45) days following delivery.
               Failure to make a timely claim in the manner prescribed shall
               constitute acceptance of the shipment. DSDF which has been
               delivered and which does not conform to specifications shall be
               replaced at ELAN'S cost. In the event of an unresolved dispute as
               to conformity with Specifications of the DSDF, the parties shall
               nominate an independent first class laboratory to undertake the
               relevant testing. Its findings shall be conclusive and binding
               upon the parties. All costs relating to this process shall be
               borne exclusively by the unsuccessful party. Nothing contained in
               this Paragraph 1.9 shall limit ELAN's indemnification obligations
               under Article VIII, paragraph 8 hereof.

    
ARTICLE IV:    REPRESENTATION AND WARRANTIES
- ----------     -----------------------------

          1.   Each of ELAN and THE CLIENT represents and warrants to the other
               that it has such permits, licenses and authorizations of
               governmental or regulatory authorities as are necessary to own
               its respective properties, conduct its business and consummate
               the transactions contemplated hereby.

          2.   Each of ELAN and THE CLIENT represents and warrants to the other
               that it is not currently debarred, suspended, or otherwise
               excluded by any United States governmental agency from receiving
               Federal contracts.

 
                                       8.

          3.   ELAN further represents and warrants that:
    
          3.1. The PRODUCT sold by ELAN to THE CLIENT pursuant hereto shall be,
               and remain throughout its stated shelf-life, in accordance with
               the Specifications when packaged and stored according to the ANDA
               specification.

          3.2. The PRODUCT sold by ELAN to THE CLIENT pursuant hereto be of
               good, merchantable and usable quality, free of defects, suitable
               for the purposes for which the Product is to be used by, and
               shall not be adulterated or misbranded within the meaning of the
               US Food, Drug and Cosmetics Act.

          3.3. The PRODUCT sold by ELAN to THE CLIENT pursuant hereto conform in
               all respects to all applicable laws, regulations and approvals
               governing the manufacture, packaging, importation and
               distribution of the PRODUCT in the Territory, including, without
               limitation, the FDA's current Good Manufacturing Practices.

          3.4. Its manufacturing facilities conform in all respects to
               applicable laws, regulations and approvals governing such
               facility and are adequate to produce the quantities of the
               PRODUCT contemplated hereby.

          3.5. To the best of ELAN's knowledge, all bulk active ingredient used
               in the manufacture of the PRODUCT shall be manufactured at an 
               FDA-approved manufacturing facility in accordance with current
               Good Manufacturing Practices and current Bulk Drug Substances
               Guidelines, and shall be in compliance with the applicable
               specifications under the bulk product monograph, and shall not be
               manufactured, imported or distributed in violation of any rights
               of any third party.

          3.6. Neither the purchase by THE CLIENT of the PRODUCT as contemplated
               hereby nor the manufacture, marketing, sale or use of the PRODUCT
               or any information or technology relating thereto, all as
               contemplated hereby, will involve any infringement of any
               existing patents or rights of third parties, including but not
               limited to the NORMAL DOSAGE FORM, nor has ELAN received any
               notice of any claimed infringement (including, without
               limitation, patent infringement) in connection with the PRODUCT.

          3.7. ELAN shall obtain adequate supplies of the bulk active compounds
               contained in the PRODUCT to fulfill ELAN's obligations with
               respect to the manufacture, sale and delivery of the PRODUCT
               under this Agreement subject to purchase orders being received
               from THE CLIENT.

 
                                       9.

ARTICLE V:   FINANCIAL PROVISIONS
- ---------    --------------------
    
     1.   Development Fees
          ----------------
    
          In consideration of the development of the DSDF by ELAN under this
          Agreement, THE CLIENT shall pay to ELAN a non-refundable development
          fee of $375,000 (three hundred and seventy five thousand dollars) upon
          commencement of Stage II B of the PROJECT.

     2.   License Fees
          ------------
    
          In consideration of the rights and license granted to THE CLIENT by
          virtue of this Agreement, THE CLIENT shall pay to ELAN License Fees as
          follows, which shall be non-recoverable save as provided for in
          Article V, Section 2.3 or Article VI, Section 9 below:

          2.1. ********** **** ******* ******** on signature of this Agreement.
    
          2.2. ********** **** ******* ******** on filing of the ANDA with the
               FDA.
    
          2.3. Subject to Section 2.4. below, on approval of the ANDA by the
               FDA, THE CLIENT shall pay to ELAN a one-time license fee of ****
               of IMS reported sales for the NORMAL DOSAGE FORM for the 12 month
               period preceding FDA approval of the ANDA based on the most
               current IMS sales data available at the time of ANDA approval
               less **********. At the conclusion of the 60th day following the
               entry of the PRODUCT into the generic market place in the
               TERRITORY this license fee shall, if necessary, be reduced as set
               forth in the table below. If such reduction is required, then THE
               CLIENT shall recover the difference in the license fee previously
               paid and the reduced license fee amount from ELAN's first PROFITS
               due in accordance with Section 6 herein. THE CLIENT shall also
               furnish ELAN with the details and launch dates of any other AB
               rated versions of the NORMAL DOSAGE FORM which have been launched
               in the United States prior to the ANDA approval of which it has
               knowledge. The total license fee payable to ELAN shall be
               calculated as:

 
                                                          
- -------------------------------------------------------------------------------------------------------------------
Total license fee as percent of IMS reported sales for      The PRODUCT's entry in the generic market place
the normal dosage form for the 12 month period
preceding FDA approval of the ANDA

- -------------------------------------------------------------------------------------------------------------------
****                                                        1st in the market for at least 60 days
- -------------------------------------------------------------------------------------------------------------------
*****                                                       2nd in the market place with at least a 60 day head 
                                                            start prior to a third entry or 1st in the market 
                                                            for less than 60 days
- -------------------------------------------------------------------------------------------------------------------
*****                                                       All other cases
- -------------------------------------------------------------------------------------------------------------------
 


* redacted pursuant to confidential treatment request.

 
                                      10.

          2.4. In the event that the amount calculated under Section 2.3 shall
               be less than ********** **** ******* ********, then no additional
               license fee shall be paid to ELAN, and the difference between the
               amount calculated and the $2,000,000 (two million dollars),
               (i.e., the total payments under Sections 2.1 and 2.2), up to a
               maximum of ******** ***** ******* ******** ******** 
               shall be allocable to a new project, to be agreed by the parties
               in a manner to be discussed and agreed in good faith, and failing
               such an agreement THE CLIENT shall be allowed to recover these
               funds against future royalties and manufacturing income to ELAN
               received from a licensee for the PRODUCT in the territory.
               
          2.5. For the purpose of Section 2.3 any generic version of the NORMAL
               DOSAGE FORM which is launched, distributed, licensed or otherwise
               supplied for sale in the United States by or through rights
               granted under the New Drug Application approved by the FDA for
               the NORMAL DOSAGE FORM shall not be regarded as a competing AB
               rated product.

     3.   Performance
          -----------

          THE CLIENT agrees to use reasonable commercial efforts in launching
          and selling the PRODUCT in the TERRITORY as would be deemed
          commensurate with the achievement of its own business aims for a
          similar product of its own. THE CLIENT shall during and for a period
          of four (4) years after the launch of the PRODUCT communicate with
          ELAN regarding its objectives for and performance of the PRODUCT in
          the marketplace subject to the confidentiality obligations contained
          herein.
          
     4.   Additional Expenses
          -------------------
    
          THE CLIENT shall reimburse the following expenses within 30 days of
          the date of invoicing of the expense.

          4.1. Cost of DSDF or PRODUCT produced, at THE CLIENT's request, for
               THE CLIENT for purposes other than commercial sale. 

          4.2. Cost of any additional development or registration work on the
               DSDF or PRODUCT carried out by ELAN at the request of THE CLIENT
               other than work outlined in Appendix B, including but not limited
               to, pharmacokinetic studies and related assays, stability data
               generation, clinical studies and compilation and submission of
               dossiers required for registration purposes. ELAN's charges for
               this work shall be cost plus fifteen (15%) percent.


* redacted pursuant to confidential treatment request.

 
                                      11.

     5.   Price of DSDF
          -------------
    
          5.1. THE CLIENT agrees to apply the same policy in establishing a
               sales price for the PRODUCT in the TERRITORY as THE CLIENT would
               do in the case of its own products.

          5.2. ELAN shall supply DSDF to THE CLIENT at its FULL COST, and ELAN
               shall, during the course of the PROJECT, keep THE CLIENT apprised
               as to its estimates of the FULL COST. On September 30 of each
               year following FDA approval of the ANDA during the term, ELAN
               shall notify THE CLIENT of its annual FULL COST increases which
               shall be limited to (i) actual cost increases for the bulk
               substance contained in the DSDF and (ii) the lesser of either
               actual increases or the percentage increase in the consumer price
               index in Ireland for all other costs related to the manufacture
               of the DSDF. However, at no point shall ELAN be so forced to
               supply the DSDF at a price less than the FULL COST as outlined
               hereunder and in the event of such an occurrence, the parties
               shall amicably discuss the situation with a view to agreeing a
               mutually acceptable revised price structure. Payment for DSDF so
               supplied shall be made by THE CLIENT within thirty (30) days
               receipt of an invoice therefore.
               
     6.1.    Profit Allocation
             -----------------

             Within forty-five (45) days after the end of each calendar quarter
             following the launch of the PRODUCT. THE CLIENT will calculate and
             deliver to ELAN its share of the PROFITS as set forth below for
             such quarter accompanied by an accounting of such PROFITS including
             a detailed written statement of its NET SALES of the PRODUCT sold
             and shipped to third party customers.
          
     6.2.(i) During the Term and for a four (4) year period commencing with THE
             CLIENT's first firm purchase order for PRODUCT, the PROFITS with
             respect to all PRODUCT purchased from ELAN under this Agreement and
             sold by THE CLIENT to third party customers shall be allocated
             between THE CLIENT and ELAN as follows: ***** ******* ***** of
             PROFITS shall be allocated to THE CLIENT and ***** ******* of
             PROFITS shall be allocated to ELAN. Thereafter, the PROFITS with
             respect to all PRODUCT purchased from ELAN under this Agreement and
             sold by THE CLIENT to third party customers shall be allocated
             between THE CLIENT and ELAN as follows: ***** ******* ***** of
             PROFITS shall be allocated to CLIENT and ***** ******* ***** 
             of PROFITS shall be allocated to ELAN.


* redacted pursuant to confidential treatment request.

 
                                      12.

     6.2.(ii) Notwithstanding the provisions of 6.2(i) if the PRODUCT's
              wholesale acquisition cost ("WAC") falls below ****** per capsule
              of 200 mg, then THE CLIENT shall receive an additional cumulative
              five percent (5%) allocation of PROFITS over and above the
              percentage of PROFIT allocated per 6.2.(i) above for every five
              percent (5%) of ****** per capsule of 200 mg that the PRODUCT's
              WAC falls below ****** per capsule of 200 mg. However, such
              provision shall apply only to the point where twenty percent (20%)
              of the PROFITS are allocated to ELAN and eighty percent (80%) of
              the PROFITS are allocated to THE CLIENT following which there
              shall be no further allocation of PROFITS.

     7.       Audits
              ------ 
    
              For the one hundred eighty (180) day period following the close of
              each calendar year during the Term, ELAN and THE CLIENT shall
              provide each other's independent certified accountants (reasonably
              acceptable to the other party) with access, during regular
              business hours and upon reasonable prior request, and subject to
              the confidentiality undertakings contained in this Agreement, to
              such party's books and records relating to the PRODUCT solely for
              the purposes of verifying the accuracy of calculations hereunder
              for the calendar year then ended.
              
     8.       Transfer of Manufacturing
              -------------------------

              ELAN reserves the right to cease manufacturing the DSDF in the
              event that the PROFITS fail to give it a margin of ******* *******
              ***** on its FULL COST subject to giving CLIENT 6 months prior
              written notice. In such an event and if so requested by THE
              CLIENT, ELAN shall grant to THE CLIENT the exclusive rights to
              manufacture, or have manufactured by a third party designated by
              CLIENT and acceptable to ELAN, the DSDF for the TERRITORY. In
              return for such a right to manufacture the DSDF, THE CLIENT shall
              pay to ELAN ***** ******* ***** of its PROFITS, which shall then
              be calculated based on the equivalent FULL COSTS of THE CLIENT or
              its appointed third party manufacturer. In the event of such a
              transfer of manufacture, the parties shall agree on a reasonable
              period of time under which said transfer is to be made and ELAN
              shall continue to supply CLIENT with the PRODUCT until such
              transfer is fully effected so that CLIENT's supply of the PRODUCT
              shall be continuous and uninterrupted.

* redacted pursuant to confidential treatment request.



 
                                      13.

     9.   New Project/Refund
          ------------------
    
          9.1. In the event that the FDA does not approve the ANDA within five
               (5) years from the date of this Agreement, and should THE CLIENT
               within a six-month period thereafter then elect not to continue
               with this Agreement, then the License Fees paid to ELAN under
               paragraph 2.2 of this Article above (**** **********) shall be
               allocated to a new project, to be agreed by the parties, in a
               manner to be discussed and agreed in good faith. Failing such
               agreement, THE CLIENT is allowed to recover these funds through
               future royalty and manufacturing income received by ELAN from a
               licensee in the territory.
               
          9.2. If any technology covered by any of Elan's patents is utilized in
               the development of the PRODUCT and such patent(s) are found by a
               court of applicable jurisdiction to be invalid or unenforceable
               in the TERRITORY and as result thereof a third party would be
               entitled to manufacture or distribute the PRODUCT in the
               TERRITORY utilizing any of the technology covered by such
               patents, then the percentage of PROFITS to be allocated to ELAN
               pursuant to Section 6.2 hereof shall be reduced by an amount
               equal to the percentage point reduction of the market share of
               the PRODUCT directly attributable to the third-party product.

          9.3. If the importation, distribution, marketing, sale and/or use of
               the PRODUCT in the TERRITORY as contemplated hereby is found by a
               court of applicable jurisdiction to infringe the rights of a
               third party and as a result thereof THE CLIENT would be precluded
               from the distribution, marketing, sale and/or use of the PRODUCT
               in the TERRITORY, then without limiting ELAN's indemnification
               undertakings under Article VIII, Section 8, ELAN shall use
                                                                      ---
               reasonable endeavors at ELAN's expense to obtain and maintain
               -------------------------------------------------------------
               such license as required for THE CLIENT to continue to market the
               -----------------------------------------------------------------
               PRODUCT in the TERRITORY.
               ------------------------         
    
ARTICLE VI:  REGISTRATION OF THE PRODUCT
- ----------   ---------------------------

     1.   ELAN shall prepare and shall submit to the FDA, promptly upon
          completion of the Project, the completed ANDA for the PRODUCT and
          shall use its best efforts to obtain as soon as possible FDA approval
          of the ANDA. ELAN shall remit to THE CLIENT a completed copy of said
          ANDA within thirty (30) days of its filing with the FDA. ELAN shall at
          its sole discretion decide on the content of the ANDA, however, in the
          event that ELAN so requests, THE CLIENT shall assist and advise ELAN,
          such advice shall be provided free of charge unless THE CLIENT has
          provided prior notification of the cost to ELAN on the compilation of
          the ANDA. 

     2.   ELAN shall notify THE CLIENT of the filing date and the approval date 
          of the ANDA within two (2) working days following said dates.

* redacted pursuant to confidential treatment request.

 
                                      14.

     3.   If any additional information or clinical data are requested by the
          FDA in order to obtain approval of the ANDA in the TERRITORY, ELAN and
          THE CLIENT shall discuss and agree on an appropriate plan of action to
          generate such data.

     4.   ELAN shall in a businesslike fashion keep THE CLIENT updated on the
          status of the ANDA filing throughout its review by the FDA and shall
          copy THE CLIENT on materially relevant correspondence with FDA
          relating to the ANDA and/or the PRODUCT manufacturing facility.
          
     5.   THE CLIENT shall be responsible for obtaining all FDA approvals
          necessary for THE CLIENT to package the DSDF into final marketing
          packaging and for obtaining all applicable state and local regulatory
          approvals for the distribution of the PRODUCT in the TERRITORY. ELAN
          shall cooperate with THE CLIENT in obtaining such approvals. THE
          CLIENT shall develop and provide ELAN with the commercial stability
          data to support the ANDA and it shall provide this data in a time 
          frame consistent with the ANDA target filing date.

ARTICLE VII:  CUSTOMER COMPLAINTS: RECALL
              ---------------------------

     1.   ELAN agrees to notify THE CLIENT promptly of any serious and
          unexpected adverse reactions reported to ELAN outside of the TERRITORY
          resulting from use of the PRODUCT, and on a regular basis with respect
          to all other reports of adverse reactions. THE CLIENT shall notify
          ELAN promptly of any complaints from third parties reported to THE
          CLIENT involving any serious and unexpected adverse reactions
          resulting from the use of the PRODUCT. All complaints relating to the
          PRODUCT will be handled as described in Appendix C hereto, entitled
                                                  ----------
          "Complaint Handling Procedures".

     2.   In the event of any recall of the PRODUCT, as suggested or requested
          by any governmental authority THE CLIENT shall perform the recall of
          the PRODUCT in the TERRITORY. If the recall arises from THE CLIENT's
          acts or omissions in the packaging, marketing, distribution, storage
          or handling of the PRODUCT, the cost of goods sold, distribution
          expenses and third-party recall expenses (collectively, "Recall
          Costs") shall be borne by THE CLIENT. If the recall rises from ELAN's
          acts or omissions in the manufacturing or delivery of the PRODUCT, the
          Recall Costs shall be borne by ELAN. In all other events the Recall
          Costs shall be shared equally. ELAN shall be responsible for all
          recalls of the PRODUCT outside the TERRITORY.

 
                                      15.

ARTICLE VIII:  SUNDRY CLAUSES
- ------------   --------------

     1.   Secrecy
          -------

          1.1. Any information, whether of a written, oral or visual nature
               pertaining to the PRODUCT that has been or will be communicated
               or delivered by ELAN to THE CLIENT, and any information (whether
               of a written, oral, or visual nature) from time to time
               communicated or delivered by THE CLIENT to ELAN, including,
               without limitation, trade secrets, business methods, and cost,
               supplier, manufacturing and customer information, shall be
               treated by THE CLIENT and ELAN, respectively, as confidential
               information, and shall not be disclosed or revealed to any third
               party whatsoever or used in any manner except as expressly
               provided for herein; provided, however, that such confidential
               information shall not be subject to the restrictions and
               prohibitions set forth in this section to the extent that such
               confidential information:

               (i)   is available to the public in public literature or
                     otherwise, or after disclosure by one party to the other
                     becomes public knowledge through no default of the party
                     receiving such confidential information;
    
               (ii)  was known to the party receiving such confidential
                     information prior to the receipt of such confidential
                     information by such party, whether received before or after
                     the date of this Agreement;

               (iii) is obtained by the party receiving such confidential
                     information from a third party not subject to a requirement
                     of confidentiality with respect to such confidential
                     information; or

               (iv)  is required to be disclosed pursuant to: (A) any order of a
                     court having jurisdiction and power to order such
                     information to be released or made public; or (B) any
                     lawful action of a governmental or regulatory agency.

          1.2. Each party shall take all such precautions as it normally takes
               with its own confidential information to prevent any improper
               disclosure of such confidential information to any third party;
               provided, however, that such confidential information may be
               disclosed within the limits required to obtain any authorization
               from the FDA or any other United States or foreign governmental
               or regulatory agency or, with the prior written consent of the
               other party, which shall not be unreasonably withheld, or as may
               otherwise be required in connection with the purposes of this
               Agreement.

 
                                      16.

          1.3. Neither ELAN nor THE CLIENT will publicise the terms of this
               Agreement in any way without the prior written consent of the
               other party except as required by applicable law, regulation, or
               judicial order.
               
          1.4. This Article VIII, Section 1 and the obligations contained herein
               shall survive for five (5) years after termination of this
               Agreement, whether pursuant to Article VIII, Section 6, hereof,
               by expiration of the Term of otherwise.

     2.   Patents
          -------
    
          With respect to any discoveries, inventions, improvements and
          innovations relating to the DSDF and the Project, ELAN shall have the
          right to apply for patent protection in its own name and at its own
          expense. Should it however be doubtful whether a patent may be
          obtained, then ELAN may at its sole discretion decide not to apply for
          a patent in the TERRITORY. If such a patent is obtained THE CLIENT
          shall have for the duration of this Agreement a right thereunder to
          prepare, use and sell the PRODUCT as specified in Article II, Section
          2 hereof.

     3.   Assignments
          -----------
    
          This Agreement may be assigned without THE CLIENT's consent by ELAN in
          whole or in part subject to ELAN's maintaining full responsibility to
          THE CLIENT for ELAN's undertakings, all liabilities, representations
          and warranties expressed in this Agreement. ELAN or THE CLIENT may,
          without the prior written consent of the other, assign this Agreement,
          in whole or in part, to an Affiliate or to any entity which acquires
          all or substantially all of the party's assets. For purposes of this
          Agreement, an "Affiliate" shall mean any person, firm, corporation or
          other business entity which directly or indirectly controls, is
          controlled by, or is under common control with, ELAN or THE CLIENT, as
          the case may be.

     4.   Parties Bound
          -------------
    
          This Agreement shall be binding upon and enure for the benefit of
          parties hereto, their successors and permitted assigns.

     5.   Effect of Partial Invalidity
          ----------------------------
    
          If any provision of this Agreement is held by any court or other
          competent authority to be void or unenforceable in whole or in part,
          this Agreement shall continue to be valid as to the other provisions
          thereof and the remainder of the effected provision.

 
                                      17.

     6.   Duration and Termination
          ------------------------

          6.1. Subject to prior termination in accordance with Article V,
               Section 9, the term ("Term") of this Agreement shall commence on
               the date hereof and shall extend for a period of eighteen (18)
               years, or for the life of any relevant patent, whichever is
               longer. Thereafter, it shall continue automatically for
               additional periods of 1 year unless terminated by THE CLIENT or
               ELAN upon serving 12 months prior written notice to the other by
               means of registered letter with acknowledgment of receipt.

          6.2. Notwithstanding anything in this Agreement construable to the
               contrary ELAN shall have the right to terminate this Agreement
               if, following approval of the ANDA, THE CLIENT fails to market
               the PRODUCT in the United States within three (3) months from the
               receipt of the Launch Stocks.

          6.3. This Agreement may be terminated in its entirety upon receipt of
               a written notice of termination given by:

               (I)  The non-defaulting party in the event the other party shall:
    
                    (a)  commit a material breach or default under this
                         Agreement, which breach or default shall not be
                         remedied within sixty (60) days after the receipt of
                         written notice thereof by the party in breach or
                         default; or
                         
                    (b)  become insolvent or seek protection under any
                         bankruptcy, receivership, trust deed, creditors
                         arrangement, composition or comparable proceeding, or
                         if any such proceeding is instituted against the other
                         party (which is not dismissed within 60 days); or  

                    (c)  fail to promptly secure or renew any license,
                         registration, permit, authorization or approval for the
                         conduct of its business in any manner contemplated by
                         this Agreement or if any such license, registration,
                         permit, authorization or approval is revoked or
                         suspended and not reinstated within sixty (60) days

 
                                      18.

               (II)  THE CLIENT, if
    
                     (a)  a lawsuit has been commenced alleging that the
                          manufacture and/or distribution of the PRODUCT as
                          contemplated hereby infringes any patent or other
                          proprietary right of any other person, firm or
                          corporation; or
                         
                     (b)  The PROFIT margin on the PRODUCT is less than fifteen
                          percent (15%); or
                         
                     (c)  the FDA does not approve the ANDA within five (5)
                          years from the date of this Agreement.

               (III) ELAN, if any entity identified in Appendix D, attached
                     hereto, acquires more than 20% of THE CLIENT's voting
                     stock.

          6.4. Upon exercise of those rights of termination as specified in
               paragraphs 6.2 and 6.3, this Agreement shall automatically
               terminate and be of no further legal force or effect.

          6.5. Upon termination of this Agreement

               (i)   ELAN and THE CLIENT shall have no further obligations or
                     liabilities of any kind whatsoever under this Agreement
                     except as expressly provided in Article VIII, Section 1 and
                     Article VIII, Section 8.
    
               (ii)  Any sums that were due from THE CLIENT to ELAN or from ELAN
                     to THE CLIENT prior to the exercise of the right to
                     terminate this agreement as set forth herein, shall be paid
                     in full within 60 days of termination of this Agreement;

          6.6. Termination of this Agreement (whether under this section, on
               expiration of the Term or otherwise) shall be without prejudice
               to any rights of either party against the other that may have
               accrued to the date of such termination.

          7.   Sales Reports
               -------------
    
               The parties hereto agree to meet on a quarterly basis for the
               first year following the initial launch of the PRODUCT, on a 
               semi-annual basis for the second and third year and on an annual
               basis thereafter. At such meetings, THE CLIENT will report on the
               ongoing sales performance of the PRODUCT in the TERRITORY,
               including marketing approaches, promotion and advertising
               material and campaigns, sales plans and results, performance
               against competitors etc. At the request of ELAN, THE CLIENT shall
               provide such information in written form at other times.

 
                                      19.

          8.   Indemnifications
               ----------------
    
               ELAN shall assume the sole and entire responsibility and shall
               indemnify and save harmless THE CLIENT from any and all claims,
               liabilities, expenses, responsibilities and damages, including
               reasonable attorney's fees, by reason of any claim, proceedings,
               action, liability or injury related to or arising out of
               (i)   THE CLIENT's purchase, importation, distribution,
                     marketing, sale and/or use of the PRODUCT as provided for
                     in this Agreement to the extent it was caused by the
                     negligence or wrongful acts or omissions of ELAN;

               (ii)  The PRODUCT's failure to meet Specifications;
          or
               (iii) any alleged infringement of the proprietary rights of third
                     parties by reason of the performance of this Agreement and
                     the purchase, distribution, marketing, sale and/or use of
                     the PRODUCT by THE CLIENT.
    
               THE CLIENT shall assume the sole and entire responsibility and
               shall indemnify and save harmless ELAN from any and all claims,
               liabilities, expenses, including reasonable attorney's fees,
               responsibilities and damages by reason of any claim, proceedings,
               action, liability or injury arising out of any faults of the
               PRODUCT resulting from the transport, packaging, storage or
               handling of the PRODUCT by THE CLIENT to the extent that it was
               caused by the negligence or wrongful acts or omissions on the
               part of THE CLIENT.
               
          This Section 8 and the obligations contained herein shall survive
          termination of this Agreement, whether pursuant to Article VIII,
          Section 6 hereof, by expiration of the Term or otherwise
          
          9.   Applicable Law
               --------------
    
               This Agreement shall be governed by and construed and interpreted
               in accordance with the State of Georgia without regard to
               principles of conflicts of law.
               
               Each of ELAN and THE CLIENT hereby expressly submits to the
               jurisdiction of the Federal and State Courts of the State of
               Georgia, and agrees that service delivered in accordance with the
               provisions of Article VIII, Section 11, hereof, shall be deemed
               to be proper service upon it, and hereby waives all objections
               and defenses as to personal defenses as to personal jurisdiction
               in such jurisdiction or jurisdictions.

 
                                      20.

          10.  New Markets
               -----------
    
               In the event that THE CLIENT is presented with the opportunity to
               supply or to tender for supply of commercially significant
               quantities of the PRODUCT to third parties for sale outside the
               TERRITORY, and where THE CLIENT expresses to ELAN its interest in
               pursuing such an opportunity, and where ELAN is contractually
               free to do so, ELAN and THE CLIENT shall negotiate in good faith
               appropriate terms governing such a supply transaction.
               
          11.  Notice
               ------

               11.1. Any notice to be given under this Agreement shall be sent
                     in writing in English by registered airmail or telecopied
                     or telexed to:

                     - ELAN at
    
                           Elan Pharma Ltd.
                           Monksland, Athlone, Ireland
    
                           Attention: S. Mulligan
                           Telephone: 353 902 94666
                           Telefax : 353 902 92427
    
                     - THE CLIENT at
    
                           Schein Pharmaceutical, Inc.
                           100 Campus Drive, Florham Park
                           NJ 07932, USA
    
                           Attention: General Counsel
                           Telephone: 001 201 593 5500
                           Telefax: 001 201 593 5820
    
               or to such other address(es) as may from time to time be notified
               by either party to the other hereunder.

 
                                      21.

               11.2. Any notice sent by mail shall be deemed to have been
                     delivered within seven (7) working days after despatch and
                     any notice sent by telex or telecopy shall be deemed to
                     have been delivered within twenty-four (24) hours of the
                     time of the despatch. Notices of change of address shall be
                     effective upon receipt.
    
               12.   Counterparts
                     ------------
    
                     This Agreement may be executed in any number of separate
                     counterparts, each of which shall be deemed to be an
                     original, but which together shall constitute one and the
                     same instrument.
                     
               13.   Relationship
                     ------------
    
                     The parties have no ownership interest in the other. The
                     relationship created by this Agreement is solely that of
                     buyer and seller. This Agreement does not create any
                     partnership, joint venture, principal-agent, or similar
                     business relationship between the parties. Neither party is
                     a legal representative of the other party and neither party
                     shall hold itself out as having the authority to represent
                     or act on behalf of the other in any capacity whatsoever.
                     Neither party shall assume or create any obligation,
                     representation, warranty or guarantee, express or implied,
                     on behalf of the other party for any purpose whatsoever nor
                     will it incur any liability whatsoever for which the other
                     party may become directly, indirectly or continentally
                     liable. Each party shall be fully responsible for all
                     actions of, and all costs incurred by, its employees,
                     agents, or representatives in carrying out its obligations
                     under this Agreement.

               14.   Insurance
                     ---------
    
                     THE CLIENT and ELAN each agree to maintain in force, during
                     the Term, products liability insurance coverage in
                     minimum limits of $5,000,000 (five million dollars) and,
                     upon request, each party shall furnish to the other a
                     Certificate of Insurance; provided, however to so request
                     such Certificate shall not be deemed a waiver to the
                     party's obligations hereunder.
                     
               15.   Entire Agreement
                     ----------------
    
                     This Agreement, together with the Appendices hereto,
                     contains the entire agreement between the parties hereto
                     and supersedes any agreement between them with respect to
                     the subject matter hereof.

 
                                      22.

IN WITNESS THEREOF the parties hereto have executed this Agreement in duplicate.
    

Signed by SCHEIN PHARMACEUTICAL, INC.

    
By: /s/ S Getraer
   ---------------------------------

Name: STEVEN GETRAER
      ------------------------------

Title: Executive Vice President
       -----------------------------

    
Executed by ELAN PHARMA, LTD.
    

By: /s/ Seamus Mulligan
   ---------------------------------
    
Name: Seamus Mulligan
      ------------------------------
    
Title: Director
       -----------------------------
    

 
                                  APPENDIX A
                                  ----------

                          PRODUCT/DSDF SPECIFICATIONS
                          ---------------------------

The DSDF shall be an AB-rated (as the term is defined and accepted by the FDA)
                 equivalent to the 200mg Oruvail (R) capsule.
    
  
    
  

 
                                  APPENDIX B
                                  ----------
    
                              DEVELOPMENT PROJECT
                              -------------------
    
For the consideration outlined in Article IV of this Agreement, ELAN shall
undertake the following programme of work.
    
Stage I:     Laboratory-scale formulation development to provide a 200mg capsule
- -------
             with an in-vitro profile matching that of the NORMAL DOSAGE FORM.
             This formulation will then be evaluated in a single-dose cross-over
             pharmacokinetic study in up to 12 human male volunteers comparing
             up to three formulations of DSDF to NORMAL DOSAGE FORM. Development
             of analytical methods will be undertaken. Pilot bulk stability work
             will also be undertaken in this Stage I.
    
             COMPLETE MID-OCTOBER, 1994 - REPORT DUE
    
             MEETING WITH SCHEIN TO START STAGE IIA IN NOVEMBER -
               COMPLETE EARLY MAY, 1995 - REPORT DUE
    
Stage II A:  Optimisation of the laboratory-scale formulation developed and
- ----------
             tested in Stage I. Scale-up of this optimised formulation to pilot-
             scale. Product from the pilot-scale batches will be evaluated in a
             single-dose cross-over pharmacokinetic specification setting study
             in up to 24 human male volunteers using NORMAL DOSAGE FORM as the
             reference product. Pilot bulk stability work will also be
             undertaken at this stage.
Stage II B:  The optimised formulation and process developed in Stage II A of
- ----------
             the Project shall undergo Process Transfer to ELAN's manufacturing
             unit with consequent further scale-up of the process to full
             production - batch size. ELAN will also conduct Process Validation
             and establish and validate all analytical methodology, including
             analytical chemistry, and establish required quality assurance and
             quality control methodologies and procedures. ELAN shall also
             conduct a series of pivotal pharmacokinetic studies on commercial -
             batch size DSDF as follows:
    
             (i)   A pivotal single-dose 2-way cross-over pharmacokinetic study
                   in 24 human male volunteers comparing the DSDF to the NORMAL
                   DOSAGE FORM.

             (ii)  A pivotal single-dose cross-over pharmacokinetic study in 24
                   human male volunteers comparing the DSDF to the NORMAL DOSAGE
                   FORM under both fasted and fed conditions.
    
             (iii) A pivotal steady-state (to day 5) 2-way cross-over
                   pharmacokinetic study in 24 human male volunteers comparing
                   the DSDF to the NORMAL DOSAGE FORM
    
             ELAN shall also conduct bulk pivotal stability on the capsules of
             DSDF manufactured under this Stage II B.
    
             START STAGE IIB EARLY MAY - COMPLETED MID-OCTOBER -

 
             ANDA FILING MID-OCTOBER, 1995
    

                                  APPENDIX B
                                  ----------

                        DEVELOPMENT PROJECT (Continued)
                        -------------------------------

             Note 1:   It is acknowledged by the parties hereto that in order to
             ------
                       secure a timely approval of the ANDA, pivotal stability
                       in final commercial packaging will need to be made
                       available during the ANDA prosecution process, and
                       preferably prior to the filing of the ANDA. ELAN and THE
                       CLIENT shall discuss and agree separately on a programme
                       of work and schedule for the carrying out of this work in
                       a manner which shall jeopardise neither the projected
                       filing dates or approval dates for the ANDA. In the event
                       that it is agreed that ELAN shall conduct such stability
                       work, the parties shall pre-agree the costs therefor,
                       which THE CLIENT shall be obliged to pay to ELAN as non-
                       recoverable development fees on commencement of such
                       work. However, as of the date of this Agreement, it is
                       the intention of the parties that THE CLIENT shall
                       undertake all such work at its own expense and to a
                       schedule designed so that all such finished pack
                       stability data as would normally be required in a quality
                       abbreviated new drug application will be available to
                       ELAN no later than ninety (90) days from completion of
                       the PROJECT.

             Note 2:   Following the completion of each of the Stages I and II A
             ------
                       ELAN shall furnish a report to THE CLIENT outlining the
                       results of the work undertaken in these Stages of the
                       PROJECT.
    

 
                                  APPENDIX C
                                  ----------   

                         COMPLAINT HANDLING PROCEDURES
                         -----------------------------  
                        
The purpose of this Appendix is to establish written procedures for the
communication and processing of Product complaints.

Acting in accord with this Agreement will facilitate compliance with Federal
Requirements as set forth in 21 CFR 211.198 (complaint files) and 21 CFR
310.305/21 CFR 314.80 (postmarketing reporting of adverse drug reactions).
    
A.   Complaint Reporting
    
     1.   Complaint reports received by The Client will be summarized and
          forwarded to the Complaint Division of Elan.

     2.   Complaints reported directly to Elan will be summarized and forwarded
          to the Complaints Coordinator of The Client.

     3.   All adverse drug experience complaints reported to The Client will be
          communicated to Elan within three working days of report receipt. Elan
          will be responsible for completion and submission to the Food and Drug
          Administration of Form m FDA-1639 where appropriate. A copy of the
          completed Form FDA-1639 will be forwarded to The Client by Elan.

B.   Complaint Investigation
    
     1.   The Client will investigate all Product complaints associated with
          distribution or handling.

     2.   Elan will investigate all complaints associated with Product's active
          or inactive ingredients, container/closure system, or general Product
          quality.

     3.   Upon completion of the necessary evaluation, Elan will provide a
          written summary to The Client.

C.   Communications with Complainant
    
     1.   Elan will be responsible for review of complaint evaluation
          information and preparation of a written response. Elan's response
          will be directed to The Client and The Client will respond to the
          complainant with a copy to Elan.

D.   Product Recall

     1.   In carrying out a recall, both parties will fully cooperate in
          notifying customers to follow instructions agreed upon by the parties.
   

 
                                  APPENDIX D
    
                             TECHNOLOGY COMPETITOR
                             ---------------------

                            AMERICAN HOME PRODUCTS
                            ----------------------
    





 
                           Dated September 22, 1994
    

                              ELAN PHARMA LIMITED
    

                                      AND
    

                          SCHEIN PHARMACEUTICAL, INC.
    

                            SUPPLEMENTAL AGREEMENT

 
THIS AGREEMENT is made on the 22nd day of September 1994 between ELAN PHARMA,
LIMITED, an Irish Company of Monksland, Athlone, County Westmeath, Ireland,
("ELAN") and SCHEIN PHARMACEUTICAL, INC. a U.S. Company of 100 Campus Drive,
Florham Park, NJ 07932, U.S.A. (hereinafter referred to as "the CLIENT").
    
WHEREAS
    
     1.   ELAN and the CLIENT entered into an Agreement dated as of the 16th day
          of August 1994, ("the Principal Agreement") whereby, inter alia, the
          CLIENT was licensed to market the PRODUCT under its own label and
          trademark in the TERRITORY without infringing any of the Patent or
          Know-How rights held by Elan.
    
     2.   ELAN and the CLIENT have agreed that PRODUCT shall be supplied by the
          CLIENT to NALE under NALE's private label.

     NOW IT IS HEREBY AGREED AS FOLLOWS:
    
     ARTICLE I.     DEFINITIONS

     1.   In this Agreement the definitions contained in the Principal Agreement
          shall prevail in addition to the definitions as set forth in this
          Agreement.

     2.   "NALE" shall mean Nale Laboratories Limited and any of its parent or
          subsidiary companies.

     ARTICLE 11.    SUPPLY OF PRODUCT
    
     1.   The CLIENT shall supply PRODUCT to NALE under NALE's private label to
          use, promote, market, sell and distribute in the TERRITORY under the
          terms and conditions set out herein.
    
     2.   The CLIENT may in its discretion supply Product to NALE under NALE's
          private label to use, promote market, sell and distribute in the
          TERRITORY within the first 12 calendar months after the commencement
          of marketing by the CLIENT of the PRODUCT in the TERRITORY (as
          evidenced by written invoice to an independent third party).

     3.   If CLIENT has not supplied PRODUCT to ELAN pursuant to Article II
          paragraph 2, the CLIENT shall supply PRODUCT to NALE under NALE's
          private label to use, promote, market, sell and distribute the
          PRODUCTS in the TERRITORY commencing not later than the expiry of the
          twelfth calendar month after the commencement of marketing by the
          CLIENT of the PRODUCT in the TERRITORY (as evidenced by written
          invoice to an independent third party).

 
    ARTICLE III.    DURATION AND TERMINATION
    
     1.   The supply of PRODUCT under either Article II paragraphs 2 or 3 shall
          continue in full force and effect for the duration of the Principal
          Agreement and shall terminate upon the termination of the Principal
          Agreement for any reason whatsoever.
    
    ARTICLE IV.     TERMS OF SUPPLY AGREEMENT
    
     1.   At any time following the commencement of marketing by the CLIENT of
          the PRODUCT in the TERRITORY (as evidenced by written invoice to an
          independent third party), but, in no event later than the expiry of
          the twelfth calendar month after the commencement of marketing by the
          CLIENT of the PRODUCT in the TERRITORY, the CLIENT shall supply NALE
          with PRODUCT under NALE's private label pursuant to the terms and
          conditions of a Supply Agreement to be negotiated in good faith
          between the parties. The supply price for the PRODUCT shall be
          calculated by reference to the CLIENT's published wholesale
          acquisition cost ("WAC") for the PRODUCT less ***. Until the expiry of
          the first calendar quarter, in which the Supply Agreement is executed,
          the relevant WAC shall be the WAC published as of the commencement of
          the Supply Agreement. Thereafter the relevant WAC shall be the WAC
          published on the last business day of the preceding calendar quarter.

     2.   The CLIENT shall deliver the PRODUCT to NALE and/or any party
          designated by NALE in final market packaging, such packaging being
          approved by NALE.

     ARTICLE V.     NET SALES
    
     1.   Sales of PRODUCT by CLIENT to NALE shall constitute NET SALES for the
          purposes of the Principal Agreement.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement in
     duplicate.
    
     SIGNED BY                          SIGNED BY
     SCHEIN PHARMACEUTICAL, INC.        ELAN PHARMA LIMITED
    
     Name: [SIGNATURE ILLEGIBLE]        Name: [SIGNATURE ILLEGIBLE]
           ---------------------              ---------------------

     Title: EXEC VP                     Title: DIRECTOR
           ---------------------              ---------------------

* redacted pursuant to confidential treatment request.