Mylan Laboratories Inc. announced it has signed an agreement for the sale of the US and Canadian rights for Sertaconazole Nitrate 2 per cent Cream (Sertaconazole) to the Ortho Neutrogena Division of Ortho-McNeil Pharmaceutical Inc. for $2 million and a future milestone payment of $12 million. With this new agreement, Mylan is terminating the licensing rights it held to Sertaconazole from Ferrer Internacional S.A.

Mylan received $2 million upon signing the new agreement and will work in tandem with Ortho Neutrogena towards gaining final US Food and Drug Administration approval for the product, which was granted approvable status by the FDA in July 2002. Upon final FDA approval, Mylan will receive an additional $12 million, at which time the product would be marketed by Ortho Neutrogena.

"The sale of Sertaconazole to Ortho Neutrogena is another step taken by Mylan to rationalize and position our branded portfolio for the future," stated Robert J Coury vice chairman and CEO. "Going forward, Mylan plans to focus its antifungal marketing efforts on Mentax, which is already well positioned in the company's product portfolio."

Sertaconazole is an imidazole derivative antifungal that will be indicated for the treatment of Tinea Pedis.

Mylan Laboratories Inc. is a leading pharmaceutical company with four subsidiaries, Mylan Pharmaceuticals Inc., Mylan Technologies Inc., UDL Laboratories Inc. and Bertek Pharmaceuticals Inc. that develop, manufacture and market an extensive line of generic and proprietary products.