THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Barr Pharmaceuticals, Inc. (BRL)

9/27/2005 Proxy Information

During the fiscal year ended June 30, 2005, we sold certain of our pharmaceutical products and bulk pharmaceutical materials in the amount of $10,149,000 to companies owned or controlled by Dr. Bernard C. Sherman, our second largest stockholder and a director until October 24, 2002. We also purchased bulk pharmaceutical materials from a company owned or controlled by Dr. Sherman in the amount of $5,575,000. As of June 30, 2005, our accounts receivable included $1,451,000 due from such companies and our accounts payable included $1,163,000 due to such companies.

In August 1995, we entered into an agreement with a company owned by Dr. Sherman to, among other things, share litigation and related costs in connection with our multi-year Fluoxetine patent challenge. For the year ended June 30, 2005, we recorded $77,000 in connection with such agreement as a reduction to our operating expenses. In accordance with the agreement, in return for sharing our costs since 1995, Dr. ShermanŐs company was entitled to share the profits, as defined, which we earned on the sale of Fluoxetine. Included in our cost of sales for the year ended June 30, 2005 is approximately $1,027,000 for the related partyŐs share of the profit from the sale of Fluoxetine. We also recorded $216,000 in revenue from royalties on a product marketed and sold by such companies. We believe that these transactions were negotiated at arms-length and on terms that approximate amounts that we would have obtained with unaffiliated third parties.

9/27/2004 Proxy Information

During the fiscal year ended June 30, 2004, we sold certain of our pharmaceutical products and bulk pharmaceutical materials in the amount of $9,486,000 to companies owned or controlled by Dr. Bernard C. Sherman, our second largest stockholder and a director until October 24, 2002. We also purchased bulk pharmaceutical materials from a company owned or controlled by Dr. Sherman in the amount of $2,808,000. As of June 30, 2004, our accounts receivable included $1,203,000 due from such companies and our accounts payable included $2,028,000 due to such companies.

In August 1995, we entered into an agreement with a company owned by Dr. Sherman to, among other things, share litigation and related costs in connection with our multi-year Fluoxetine patent challenge. For the year ended June 30, 2004, we recorded $1,004,000 in connection with such agreement as a reduction to our operating expenses. In accordance with the agreement, in return for sharing our costs since 1995, Dr. ShermanŐs company was entitled to share the profits, as defined, which we earned on the sale of Fluoxetine. Included in our cost of sales for the year ended June 30, 2004 is approximately $3,680,000 for the related partyŐs share of the profit from the sale of Fluoxetine. In addition, during the year ended June 30, 2004, the Company entered into an agreement with a company owned by Dr. Sherman whereby the Company will receive royalty payments on a product marketed and sold by that company. These royalty payments totaled $295,000 for the year ended June 30, 2004. We believe that these transactions were negotiated at arms-length and on terms that approximate amounts that we would have obtained with unaffiliated third parties

9/26/2003 Proxy Information

Mr. Chefitz, a member of our Audit Committee and Chairman of our Compensation Committee, serves as the Chairman of GliaMed, Inc., a privately held company. GliaMed has created a platform of compounds designed for the treatment of neurodegeneration diseases and primary brain cancers. We have made a $500,000 investment in GliaMed, which represents approximately six percent of the outstanding voting shares. In connection with this investment, we have obtained options to elect to market, distribute and manufacture products developed by GliaMed. We do not have the ability to exercise significant influence on GliaMed's operations. The board of directors has determined that our investment in GliaMed has not impaired Mr. Chefitz's independence.

Mr. Cohen founded Barr Laboratories, Inc. in 1970 and is a former director. He served as President, Chairman and Chief Executive Officer until 1994. In February of 1994, he was elected to the position of Vice Chairman and became a consultant to Barr Laboratories, Inc.

Mr. Sherman was Chairman of Barr Laboratories, Inc. from July 1981 to January 1993. During the fiscal year ended June 30, 2003, we sold certain of our pharmaceutical products and bulk pharmaceutical materials in the amount of $12,727,000 to companies owned or controlled by Dr. Bernard C. Sherman, our largest shareholder and a director until October 24, 2002. We also purchased bulk pharmaceutical materials from a company owned by Dr. Sherman in the amount of $3,583,000. As of June 30, 2003, our accounts receivable included $2,398,000 due from such companies and our accounts payable included $648,000 due to such companies. In August 1995, we entered into an agreement with a company owned by Dr. Sherman to, among other things, share litigation and related costs in connection with our multi-year Fluoxetine patent challenge. For the year ended June 30, 2003, we recorded $585,000 in connection with such agreement as a reduction to our operating expenses. In accordance with the agreement, in return for sharing our costs since 1995, Dr. Sherman's company was entitled to share the profits, as defined, which we earned on the sale of Fluoxetine. Included in our cost of sales for the year ended June 30, 2003 is approximately $1,440,000 for the related party's share of the profit from the sale of Fluoxetine. We believe that these transactions were negotiated at arms-length and on terms that approximate amounts that we would have obtained with unaffiliated third parties.