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                                                                   EXHIBIT 10.26

REVISED                                                           April 1, 2003

Mr. Ian J. Watkins
19 Church Close
Ashington
West Sussex
RH20 3DL
England

Dear Mr. Watkins:

         I am very pleased to offer you a position at Andrx ("Andrx"), upon the
following terms:

(1)      Position:                  Senior Vice President, Human Resources

(2)      Reporting to:              Richard J. Lane, Chief Executive Officer

(3)      Salary:                    $310,000 annually

(4)      Stock Options:             Non-qualified stock options to purchase
                                    30,000 shares of Andrx's common stock.
                                    Although the actual stock option grant,
                                    vesting schedule, and exercise price of
                                    these options will be determined by the
                                    Andrx Board at their next meeting, we
                                    anticipate that these options will vest
                                    annually over a four year period of time.
                                    Additional options will likely be granted.
                                    Your target grant will be 30,000 shares
                                    annually.

(5)      Restricted Stock:          In accordance with our Restricted Stock
                                    Program, we will recommend to the Andrx
                                    Board that you be granted 10,000 shares of
                                    Andrx's common stock. Although the actual
                                    grant of restricted shares must be approved
                                    by the Board, it is anticipated that the
                                    shares will vest annually over a five year
                                    period.

(6)      Target Bonus:              You will be eligible for a target bonus of
                                    45% with a potential maximum of 67 1/2% of
                                    salary. As this bonus program has only just
                                    been implemented at Andrx, achievement of
                                    this bonus in 2003 will be dependent on 2003
                                    Andrx revenues and pretax earnings. In 2004,
                                    we plan to base bonuses on a mixture of
                                    Company and individual performance metrics.

(7)      Car Allowance:             Andrx will pay you a car allowance of $600
                                    per month.

(8)      Termination:               In the event that your employment is
                                    terminated by Andrx at any time prior to
                                    December 31, 2004, without "cause," you
                                    shall be entitled to (i) at least one year's
                                    compensation at your then current annual
                                    salary together with the prior year's bonus
                                    (or the Target Bonus if termination occurred
                                    during your first year of employment) and
                                    (ii) the immediate vesting of that portion
                                    of the foregoing Andrx stock options and
                                    restricted stock awards that would have
                                    vested in the next 12 months.


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Mr. Ian J. Watkins
March 12, 2003
Page 2


                                    During the one year period after a "change
                                    of control," in the event that your
                                    employment is terminated by Andrx or any
                                    successor entity without "cause" or you
                                    voluntarily terminate your employment for
                                    "good reason," you shall be entitled to (i)
                                    at least three year's compensation at your
                                    then current annual salary together with
                                    three times the prior year's bonus (or the
                                    Target Bonus if termination occurred during
                                    your first year of employment) (ii) and the
                                    immediate vesting of that portion of the
                                    foregoing Andrx stock options and restricted
                                    stock awards that would have vested in the
                                    next 36 months.

                                    For the foregoing purposes, (i) a change of
                                    control shall be deemed to have occurred if
                                    there occurs a "change of control" as
                                    defined in Rule 12 b-2 promulgated under the
                                    Securities Exchange Act of 1934; (ii)
                                    "cause" shall mean (a) the commission of a
                                    criminal act by you, gross negligence, gross
                                    malfeasance, gross misfeasance, or gross
                                    misconduct by you in the performance of your
                                    job, (b) actions by you which cause Andrx`s
                                    reputation or image to materially suffer,
                                    (c) a breach by you of your Confidentiality
                                    and Non-Competition agreement, and (d) other
                                    events or matters relating to your job
                                    performance or conduct that would ordinarily
                                    cause an employer to seriously consider the
                                    termination of an employee's employment;
                                    (iii) "good reason" shall mean any decrease
                                    in your salary without "cause" or any
                                    material change in your job responsibilities
                                    without "cause."

(9)      Relocation:                Upon presentation of appropriate
                                    substantiating documentation, Andrx shall
                                    reimburse you for relocation expenses and
                                    temporary living expenses, (including any
                                    tax gross ups), which you reasonably incur
                                    while (i) maintaining a temporary residence
                                    after you report for work for up to four
                                    months, (ii) closing costs related to the
                                    sale of your home in New York or the UK and
                                    the purchase of a home in Florida, (iii)
                                    moving expenses from New York or UK and (iv)
                                    "gross up" of any amounts paid to you for
                                    relocation which are taxable to you. In the
                                    event you resign without good reason before
                                    completing one full year of employment by
                                    Andrx, you shall be required to repay 100%
                                    of the reimbursed relocation expenses to
                                    Andrx. Such amount shall be reduced to
                                    66.66% if you thereafter resign before
                                    completing two full years of employment and
                                    shall be further reduced to 33.33% if you
                                    thereafter resign before completing three
                                    full years of employment. Although you are
                                    free to choose any moving company you like,
                                    we suggest you ask Allied Van Lines, with
                                    whom we have a corporate discount program,
                                    for a quote.


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Mr. Ian J. Watkins
March 12, 2003
Page 3



(10)     Benefits:                  Andrx maintains a 401(k) plan and makes a
                                    matching contribution of 50% of the amount
                                    you contribute to the plan, up to 5% of your
                                    annual compensation and applicable laws.
                                    Andrx also maintains group medical (HMO or
                                    POS), dental and life insurance plans for
                                    all of its full-time employees and their
                                    families. As a member of our professional
                                    team, you and your family will be entitled
                                    to immediately participate (beginning the
                                    first day of the month after you begin work)
                                    in our medical insurance plan. These and
                                    other benefits you will receive as an Andrx
                                    employee are described in the enclosed
                                    materials.

(11)     Other Benefits:            The Company will provide you with annual
                                    membership in the local country club.
                                    However, you will be responsible for
                                    non-business related expenses which you
                                    occur.

(12)     Vacation:                  You will be entitled to four weeks of
                                    vacation per year

(13)     Report Date:               As soon as possible

         The Company does not have a tax/ financial planning program for senior
executives at this time. However, we are most interested in establishing such a
benefit. Should you agree to join us, we would ask you to develop such a program
and other executive benefit programs for the Company. While we cannot guarantee
the Board will approve your suggestions, we know they are amenable to discussing
these types of programs.

         This offer of employment assumes that your employment by Andrx and the
performance of your duties will not violate the terms of any non-compete or
other agreements to which you are a party and such assumption is a condition of
your employment. Moreover, as your position will give you access to information
which Andrx keeps confidential, your execution of our standard Confidentiality
and Non-Competition Agreement will also be a condition of your employment.

         I am sure that you will find the environment here at Andrx both
stimulating and rewarding and we look forward to your joining us. Should you
have any questions, please feel free to call Ron Norris or me.



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Mr. Ian J. Watkins
March 12, 2003
Page 4


         Please signify your acceptance of this offer by signing a copy of this
letter where indicated below and returning that copy to me by either fax (at
954-585-1888) or by mail.

                                                      Sincerely,



                                                      Richard J. Lane
                                                      Chief Executive Officer

AGREED TO AND ACCEPTED ON
THIS _ DAY OF ________, 2003



------------------------------
Ian J. Watkins



CC: Ron Norris