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UNITED STATES 
    SECURITIES AND EXCHANGE COMMISSION
 Washington, DC 20549
  FORM 10-K
  þ

Annual Report pursuant to
    Section 13 or 15(d) of the Securities Exchange Act of
    1934For the Fiscal Year Ended
    March 31, 2007o

Transition Report pursuant to
    Section 13 or 15(d) of the Securities Exchange Act of
    1934For the transition period
    from          to   Commission File
    No. 1-9114
  MYLAN LABORATORIES
    INC.
 (Exact name of registrant as
    specified in its charter)
  Pennsylvania(State of Incorporation)

25-1211621(IRS Employer
    Identification No.)   1500 Corporate Drive, Canonsburg, Pennsylvania 15317
 (724) 514-1800
 (Address, including zip code, and
    telephone number, including area code, of principal executive
    offices)
  Securities registered pursuant to Section 12(b) of the
    Act:
  Title of Each Class:Common Stock, par value
    $0.50 per share

Name of Each Exchange on Which
    Registered:New York Stock Exchange   Securities registered pursuant to Section 12(g) of the
    Act: None
  þ o
  o þ
  þ o
  Regulation S-K Form 10-K Form 10-K. o
  Rule 12b-2
  þ o o
  Rule 12b-2 o þ
      DOCUMENTS
    INCORPORATED BY REFERENCE
  Parts of
    Form 10-K
    into whichDocument isDocument

IncorporatedProxy Statement for the 2007
    Annual Meeting of Shareholders, which will be filed with the
    Securities and Exchange Commission within 120 days after
    the end of the registrants fiscal year ended
    March 31, 2007.

III




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##### 



MYLAN
    LABORATORIES INC.
  INDEX TO
    FORM 10-K
    For the Fiscal Year Ended March 31, 2007
  PagePART IITEM 1.
    Business


3Overview of Our
    Business


3Product
    Development


5Patents, Trademarks
    and Licenses


8Customers and
    Marketing


8Competition


8Product
    Liability


9Raw
    Materials


9Government
    Regulation


10Seasonality


11Environment


11Employees


12Backlog


12Securities Exchange
    Act Reports


12ITEM 1A.
    Risk Factors


12ITEM 1B.
    Unresolved Staff Comments


25ITEM 2.
    Properties


26ITEM 3.
    Legal Proceedings


27ITEM 4.
    Submission of Matters to a Vote of Security
    Holders


28PART IIITEM 5.
    Market for Registrants Common Equity,
    Related Stockholder Matters and Issuer Purchases of Equity
    Securities


29ITEM 6.
    Selected Financial Data


31ITEM 7.
    Managements Discussion and Analysis of
    Results of Operations and Financial Condition


32ITEM 7A.
    Quantitative and Qualitative Disclosures about
    Market Risk


44ITEM 8.
    Financial Statements and Supplementary
    Data


46ITEM 9.
    Changes in and Disagreements with Accountants on
    Accounting and Financial Disclosure


89ITEM 9A.
    Controls and Procedures


89ITEM 9B.
    Other Information


90PART IIIITEM 10.
    Directors, Executive Officers and Corporate
    Governance


90ITEM 11.
    Executive Compensation


90ITEM 12.
    Security Ownership of Certain Beneficial Owners
    and Management and Related Stockholder Matters


90ITEM 13.
    Certain Relationships and Related Transactions,
    and Director Independence


90ITEM 14.
    Principal Accounting Fees and Services


90PART IVITEM 15.
    Exhibits and Financial Statement
    Schedules


90Signatures


96EX-10.8(C)EX-10.26EX-10.27(B)EX-10.28EX-10.29(B)EX-10.31EX-10.32EX-10.33EX-21EX-23EX-31.1EX-31.2EX-32   2




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PART I  ITEM 1.
    Business   Overview
    of Our Business    Approved Drug Products with Therapeutic Equivalence
    Evaluations and/or
    180-day 180-day
 3




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Accounting for Derivative Instruments and Hedging
    Activities.
      Disclosures about Segments of an Enterprise and Related
    Information
  The Mylan
    Segment
     4




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first-to-file
  The
    Matrix Segment
         Product
    Development    
    development of controlled-release technologies and the
    application of these technologies to reference products;
    development of NDA and ANDA transdermal and polymer film
    products;
    development of drugs technically difficult to formulate or
    manufacture because of either unusual factors that affect their
    stability or bioequivalence or unusually stringent regulatory
    requirements;
    development of drugs that target smaller, specialized or
    underserved markets;
    development of generic drugs that represent
    first-to-file
    opportunities;
    expansion of our existing solid oral dosage product portfolio,
    including with respect to additional dosage strengths; 5




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
    completion of additional preclinical and clinical studies for
    approved NDA products required by the FDA, known as
    post-approval (Phase IV) commitments; and
    conducting life cycle management studies intended to further
    define the profile of products subject to pending or approved
    NDAs.    New Drug Application (NDA).
  Abbreviated New Drug Application (ANDA).
    Generic
    Product Development
        first-to-file
 6




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##### Table of Contents



difficult-to-formulate
  Brand
    Product Development
    
    laboratory and preclinical tests;
    submission of an Investigational New Drug (IND)
    application, which must become effective before clinical studies
    may begin;
    adequate and well-controlled human clinical studies to establish
    the safety and efficacy of the proposed product for its intended
    use;
    submission of an NDA containing the results of the preclinical
    tests and clinical studies establishing the safety and efficacy
    of the proposed product for its intended use, as well as
    extensive data addressing matters such as manufacturing and
    quality assurance;
    scale-up to
    commercial manufacturing; and
    FDA approval of an NDA.  30-day
    
    Phase I: The drug is initially introduced into a relatively
    small number of healthy human subjects or patients and is tested
    for safety, dosage tolerance, mechanism of action, absorption,
    metabolism, distribution and excretion. 7




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
    Phase II: Studies are performed with a limited patient
    population to identify possible adverse effects and safety
    risks, to assess the efficacy of the product for specific
    targeted diseases or conditions, and to determine dosage
    tolerance and optimal dosage.
    Phase III: When Phase II evaluations demonstrate that
    a dosage range of the product is effective and has an acceptable
    safety profile, Phase III trials are undertaken to evaluate
    further dosage and clinical efficacy and to test further for
    safety in an expanded patient population at geographically
    dispersed clinical study sites.   Patents,
    Trademarks and Licenses   Customers
    and Marketing         Competition  Mylan
    Segment
     8




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Matrix
    Segment
         Product
    Liability       Raw
    Materials   9




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Government
    Regulation  United
    States
            and/or
   10




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Other
    Markets
    
    Global proliferation of legislation and regulation permitting or
    requiring pharmacists to substitute generic equivalents for
    innovator pharmaceuticals;
    Pressure from governments, managed care and other third-party
    payers on health care providers and consumers to minimize
    costs;and
    Increased acceptance of generic pharmaceuticals by physicians,
    pharmacists and consumers.      and/or and/or
 Seasonality   Environment   11




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Employees     Backlog  12-month
 Securities
    Exchange Act Reports  Form 10-K, Form 10-Q Form 8-K. Form 10-K
 ITEM 1A. Risk
    Factors    OUR FUTURE REVENUE GROWTH AND PROFITABILITY ARE DEPENDENT
    UPON OUR ABILITY TO DEVELOP AND/OR LICENSE, OR OTHERWISE
    ACQUIRE, AND INTRODUCE NEW PRODUCTS ON A TIMELY BASIS IN
    RELATION TO OUR COMPETITORS PRODUCT INTRODUCTIONS. OUR
    FAILURE TO DO SO SUCCESSFULLY COULD HAVE A MATERIAL ADVERSE
    EFFECT ON OUR FINANCIAL POSITION AND RESULTS OF OPERATIONS AND
    COULD CAUSE THE MARKET VALUE OF OUR COMMON STOCK TO DECLINE.
  and/or
   12




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OUR APPROVED PRODUCTS MAY NOT ACHIEVE EXPECTED LEVELS OF
    MARKET ACCEPTANCE, WHICH COULD HAVE A MATERIAL ADVERSE EFFECT ON
    OUR PROFITABILITY, FINANCIAL POSITION AND RESULTS OF OPERATIONS
    AND COULD CAUSE THE MARKET VALUE OF OUR COMMON STOCK TO
    DECLINE.
    
    the availability of alternative products from our competitors;
    the price of our products relative to that of our competitors;
    the timing of our market entry;
    the ability to market our products effectively to the retail
    level; and
    the acceptance of our products by government and private
    formularies.   13




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A RELATIVELY SMALL GROUP OF PRODUCTS MAY REPRESENT A
    SIGNIFICANT PORTION OF OUR NET REVENUES, GROSS PROFIT OR NET
    EARNINGS FROM TIME TO TIME. IF THE VOLUME OR PRICING OF ANY OF
    THESE PRODUCTS DECLINES, IT COULD HAVE A MATERIAL ADVERSE EFFECT
    ON OUR BUSINESS, FINANCIAL POSITION AND RESULTS OF OPERATIONS
    AND COULD CAUSE THE MARKET VALUE OF OUR COMMON STOCK TO
    DECLINE.
    WE FACE VIGOROUS COMPETITION FROM OTHER PHARMACEUTICAL
    MANUFACTURERS THAT THREATENS THE COMMERCIAL ACCEPTANCE AND
    PRICING OF OUR PRODUCTS, WHICH COULD HAVE A MATERIAL ADVERSE
    EFFECT ON OUR BUSINESS, FINANCIAL POSITION AND RESULTS OF
    OPERATIONS AND COULD CAUSE THE MARKET VALUE OF OUR COMMON STOCK
    TO DECLINE.
    
    proprietary processes or delivery systems;
    larger research and development and marketing staffs;
    larger production capabilities in a particular therapeutic area;
    more experience in preclinical testing and human clinical trials;
    more products; or
    more experience in developing new drugs and financial resources,
    particularly with regard to brand manufacturers.    BECAUSE THE PHARMACEUTICAL INDUSTRY IS HEAVILY REGULATED, WE
    FACE SIGNIFICANT COSTS AND UNCERTAINTIES ASSOCIATED WITH OUR
    EFFORTS TO COMPLY WITH APPLICABLE REGULATIONS. SHOULD WE FAIL TO
    COMPLY WE COULD EXPERIENCE MATERIAL ADVERSE EFFECTS ON OUR
    BUSINESS, FINANCIAL POSITION AND RESULTS OF OPERATIONS, AND THE
    MARKET VALUE OF OUR COMMON STOCK COULD DECLINE.
  and/or
   14




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OUR REPORTING AND PAYMENT OBLIGATIONS UNDER THE MEDICAID
    REBATE PROGRAM AND OTHER GOVERNMENTAL PURCHASING AND REBATE
    PROGRAMS ARE COMPLEX AND MAY INVOLVE SUBJECTIVE DECISIONS. ANY
    DETERMINATION OF FAILURE TO COMPLY WITH THOSE OBLIGATIONS COULD
    SUBJECT US TO PENALTIES AND SANCTIONS WHICH COULD HAVE A
    MATERIAL ADVERSE EFFECT ON OUR BUSINESS, FINANCIAL POSITION AND
    RESULTS OF OPERATIONS, AND THE MARKET VALUE OF OUR COMMON STOCK
    COULD DECLINE.
  Form 10-K,
  Form 10-K, and/or
  and/or and/or
 15




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WE EXPEND A SIGNIFICANT AMOUNT OF RESOURCES ON RESEARCH AND
    DEVELOPMENT EFFORTS THAT MAY NOT LEAD TO SUCCESSFUL PRODUCT
    INTRODUCTIONS. FAILURE TO SUCCESSFULLY INTRODUCE PRODUCTS INTO
    THE MARKET COULD HAVE A MATERIAL ADVERSE EFFECT ON OUR BUSINESS,
    FINANCIAL POSITION AND RESULTS OF OPERATIONS, AND THE MARKET
    VALUE OF OUR COMMON STOCK COULD DECLINE.
  difficult-to-formulate and/or
  A SIGNIFICANT PORTION OF OUR NET REVENUES ARE DERIVED FROM
    SALES TO A LIMITED NUMBER OF CUSTOMERS. ANY SIGNIFICANT
    REDUCTION OF BUSINESS WITH ANY OF THESE CUSTOMERS COULD HAVE A
    MATERIAL ADVERSE EFFECT ON OUR BUSINESS, FINANCIAL POSITION AND
    RESULTS OF OPERATIONS, AND THE MARKET VALUE OF OUR COMMON STOCK
    COULD DECLINE.
    THE USE OF LEGAL, REGULATORY AND LEGISLATIVE STRATEGIES BY
    COMPETITORS, BOTH BRAND AND GENERIC, INCLUDING AUTHORIZED
    GENERICS AND CITIZENS PETITIONS, AS WELL AS THE
    POTENTIAL IMPACT OF PROPOSED LEGISLATION, MAY INCREASE OUR COSTS
    ASSOCIATED WITH THE INTRODUCTION OR MARKETING OF OUR GENERIC
    PRODUCTS, COULD DELAY OR PREVENT SUCH INTRODUCTION AND/OR
    SIGNIFICANTLY REDUCE OUR PROFIT POTENTIAL. THESE FACTORS COULD
    HAVE A MATERIAL ADVERSE EFFECT ON OUR BUSINESS, FINANCIAL
    POSITION AND RESULTS OF OPERATIONS AND COULD CAUSE THE MARKET
    VALUE OF OUR COMMON STOCK TO DECLINE.
    
    entering into agreements whereby other generic companies will
    begin to market an authorized generic, a generic
    equivalent of a branded product, at the same time generic
    competition initially enters the market;
    filing citizens petitions with the FDA, including timing
    the filings so as to thwart generic competition by causing
    delays of our product approvals;
    seeking to establish regulatory and legal obstacles that would
    make it more difficult to demonstrate bioequivalence;
    initiating legislative efforts in various states to limit the
    substitution of generic versions of brand pharmaceuticals;
    filing suits for patent infringement that automatically delay
    FDA approval of many generic products; 16




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
    introducing next-generation products prior to the
    expiration of market exclusivity for the reference product,
    which often materially reduces the demand for the first generic
    product for which we seek FDA approval;
    obtaining extensions of market exclusivity by conducting
    clinical trials of brand drugs in pediatric populations or by
    other potential methods as discussed below;
    persuading the FDA to withdraw the approval of brand name drugs
    for which the patents are about to expire, thus allowing the
    brand name company to obtain new patented products serving as
    substitutes for the products withdrawn; and
    seeking to obtain new patents on drugs for which patent
    protection is about to expire.        THE INDENTURE FOR OUR SENIOR NOTES, OUR CREDIT FACILITIES AND
    ANY ADDITIONAL INDEBTEDNESS WE INCUR IN THE FUTURE IMPOSE, OR
    MAY IMPOSE, SIGNIFICANT OPERATING AND FINANCIAL RESTRICTIONS,
    WHICH MAY PREVENT US FROM CAPITALIZING ON BUSINESS OPPORTUNITIES
    AND TAKING SOME ACTIONS. THESE FACTORS COULD HAVE A MATERIAL
    ADVERSE EFFECT ON OUR BUSINESS, FINANCIAL POSITION AND RESULTS
    OF OPERATIONS AND COULD CAUSE THE MARKET VALUE OF OUR COMMON
    STOCK TO DECLINE.
    OUR ABILITY TO SERVICE OUR DEBT AND MEET OUR CASH
    REQUIREMENTS DEPENDS ON MANY FACTORS, SOME OF WHICH ARE BEYOND
    OUR CONTROL. THESE FACTORS COULD HAVE A MATERIAL ADVERSE EFFECT
    ON OUR BUSINESS, FINANCIAL POSITION AND RESULTS OF OPERATIONS
    AND COULD CAUSE THE MARKET VALUE OF OUR COMMON STOCK TO
    DECLINE.
   17




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WE DEPEND ON THIRD-PARTY SUPPLIERS AND DISTRIBUTORS FOR THE
    RAW MATERIALS, PARTICULARLY THE CHEMICAL COMPOUND(S) COMPRISING
    THE ACTIVE PHARMACEUTICAL INGREDIENT, THAT WE USE TO MANUFACTURE
    OUR PRODUCTS, AS WELL AS CERTAIN FINISHED GOODS. A PROLONGED
    INTERRUPTION IN THE SUPPLY OF SUCH PRODUCTS COULD HAVE A
    MATERIAL ADVERSE EFFECT ON OUR BUSINESS, FINANCIAL POSITION AND
    RESULTS OF OPERATIONS, AND THE MARKET VALUE OF OUR COMMON STOCK
    COULD DECLINE.
       18




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WE USE SEVERAL MANUFACTURING FACILITIES TO MANUFACTURE OUR
    PRODUCTS. HOWEVER, A SIGNIFICANT NUMBER OF OUR PRODUCTS ARE
    PRODUCED AT ONE LOCATION. PRODUCTION AT THIS FACILITY COULD BE
    INTERRUPTED, WHICH COULD HAVE A MATERIAL ADVERSE EFFECT ON OUR
    BUSINESS, FINANCIAL POSITION AND RESULTS OF OPERATIONS AND COULD
    CAUSE THE MARKET VALUE OF OUR COMMON STOCK TO DECLINE.
    WE MAY EXPERIENCE DECLINES IN THE SALES VOLUME AND PRICES OF
    OUR PRODUCTS AS THE RESULT OF THE CONTINUING TREND TOWARD
    CONSOLIDATION OF CERTAIN CUSTOMER GROUPS, SUCH AS THE WHOLESALE
    DRUG DISTRIBUTION AND RETAIL PHARMACY INDUSTRIES, AS WELL AS THE
    EMERGENCE OF LARGE BUYING GROUPS. THE RESULT OF SUCH
    DEVELOPMENTS COULD HAVE A MATERIAL ADVERSE EFFECT ON OUR
    BUSINESS, FINANCIAL POSITION AND RESULTS OF OPERATIONS AND COULD
    CAUSE THE MARKET VALUE OF OUR COMMON STOCK TO DECLINE.
    WE MAY BE UNABLE TO PROTECT OUR INTELLECTUAL AND OTHER
    PROPRIETARY PROPERTY IN AN EFFECTIVE MANNER, WHICH COULD HAVE A
    MATERIAL ADVERSE EFFECT ON OUR BUSINESS, FINANCIAL POSITION AND
    RESULTS OF OPERATIONS AND COULD CAUSE THE MARKET VALUE OF OUR
    COMMON STOCK TO DECLINE.
    OUR COMPETITORS INCLUDING BRAND COMPANIES OR OTHER THIRD
    PARTIES MAY ALLEGE THAT WE ARE INFRINGING THEIR INTELLECTUAL
    PROPERTY, FORCING US TO EXPEND SUBSTANTIAL RESOURCES IN
    RESULTING LITIGATION, THE OUTCOME OF WHICH IS UNCERTAIN. ANY
    UNFAVORABLE OUTCOME OF SUCH LITIGATION COULD HAVE A MATERIAL
    ADVERSE EFFECT ON OUR BUSINESS, FINANCIAL POSITION AND RESULTS
    OF OPERATIONS AND COULD CAUSE THE MARKET VALUE OF OUR COMMON
    STOCK TO DECLINE.
   19




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WE MAY EXPERIENCE REDUCTIONS IN THE LEVELS OF
    REIMBURSEMENT FOR PHARMACEUTICAL PRODUCTS BY GOVERNMENTAL
    AUTHORITIES, HMOs OR OTHER THIRD-PARTY PAYERS. ANY SUCH
    REDUCTIONS COULD HAVE A MATERIAL ADVERSE EFFECT ON OUR BUSINESS,
    FINANCIAL POSITION AND RESULTS OF OPERATIONS AND COULD CAUSE THE
    MARKET VALUE OF OUR COMMON STOCK TO DECLINE.
    LEGISLATIVE OR REGULATORY PROGRAMS THAT MAY INFLUENCE PRICES
    OF PRESCRIPTION DRUGS COULD HAVE A MATERIAL ADVERSE EFFECT ON
    OUR BUSINESS, FINANCIAL POSITION AND RESULTS OF OPERATIONS AND
    COULD CAUSE THE MARKET VALUE OF OUR COMMON STOCK TO DECLINE.
    WE ARE INVOLVED IN VARIOUS LEGAL PROCEEDINGS AND CERTAIN
    GOVERNMENT INQUIRIES AND MAY EXPERIENCE UNFAVORABLE OUTCOMES OF
    SUCH PROCEEDINGS OR INQUIRIES, WHICH COULD HAVE A MATERIAL
    ADVERSE EFFECT ON OUR BUSINESS, FINANCIAL POSITION AND RESULTS
    OF OPERATIONS AND COULD CAUSE THE MARKET VALUE OF OUR COMMON
    STOCK TO DECLINE.
     20




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WE ENTER INTO VARIOUS AGREEMENTS IN THE NORMAL COURSE OF
    BUSINESS WHICH PERIODICALLY INCORPORATE PROVISIONS WHEREBY WE
    INDEMNIFY THE OTHER PARTY TO THE AGREEMENT. IN THE EVENT THAT WE
    WOULD HAVE TO PERFORM UNDER THESE INDEMNIFICATION PROVISIONS, IT
    COULD HAVE A MATERIAL ADVERSE EFFECT ON OUR BUSINESS, FINANCIAL
    POSITION AND RESULTS OF OPERATIONS AND COULD CAUSE THE MARKET
    VALUE OF OUR COMMON STOCK TO DECLINE.
    OUR ACQUISITION OF A CONTROLLING INTEREST IN MATRIX
    LABORATORIES AND OUR PLANS FOR FURTHER GLOBAL EXPANSION WITH THE
    ACQUISITION OF MERCK GENERICS EXPOSE THE COMPANY TO ADDITIONAL
    RISKS WHICH COULD HAVE A MATERIAL ADVERSE EFFECT ON OUR
    BUSINESS, FINANCIAL POSITION AND RESULTS OF OPERATIONS AND COULD
    CAUSE THE MARKET VALUE OF OUR COMMON STOCK TO DECLINE.
    
    compliance with a variety of national and local laws of
    countries in which we do business, including restrictions on the
    import and export of certain intermediates, drugs and
    technologies, and the risk that our competitors may have more
    experience with operations in such countries or with
    international operations generally;
    difficulties integrating new facilities in different countries
    into our existing operations, as well as integrating employees
    that we hire in different countries into our existing corporate
    culture;
    fluctuations in exchange rates for transactions conducted in
    currencies other than the U.S. dollar;
    adverse changes in the economies in which we operate as a result
    of a slowdown in overall growth, a change in government or
    economic liberalization policies, or financial instability in
    other countries who influence the economies in which we operate,
    particularly emerging markets;
    wage increases or rising inflation in other countries in which
    we operate or will operate;
    natural disasters, including drought, floods and earthquakes in
    other countries in which we operate or will operate; and
    communal disturbances, terrorist attacks, riots or regional
    hostilities in other countries in which we operate or will
    operate.   21




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OUR PLANNED ACQUISITION OF MERCK GENERICS SPECIFICALLY AND
    OUR ACQUISITION STRATEGY GENERALLY, INVOLVE A NUMBER OF INHERENT
    RISKS. THESE RISKS COULD CAUSE A MATERIAL ADVERSE EFFECT ON OUR
    BUSINESS, FINANCIAL POSITION AND RESULTS OF OPERATIONS AND COULD
    CAUSE THE MARKET VALUE OF OUR COMMON STOCK TO DECLINE.
    
    diversion of managements attention from our ongoing
    business;
    the failure to assess accurately the values, strengths,
    weaknesses, contingent and other liabilities, regulatory
    compliance and potential profitability of acquisition or other
    transaction candidates;
    the potential loss of key personnel or customers of an acquired
    business;
    failing to successfully manage acquired businesses or increase
    our cash flow from their operations;
    failing to successfully integrate the operations and personnel
    of the acquired businesses with our ongoing business, and our
    resulting inability to achieve identified financial and
    operating synergies anticipated to result from an acquisition or
    other transaction;
    unanticipated changes in business and economic conditions
    affecting an acquisition or other transaction;
    incurring substantial additional indebtedness, assuming
    liabilities and incurring significant additional capital
    expenditures, transaction and operating expenses and
    non-recurring acquisition-related charges;
    potentially experiencing an adverse impact on our earnings from
    acquired in-process research and development and the write-off
    or amortization of acquired goodwill and other intangible assets;
    acquiring businesses or entering new markets with which we are
    not familiar; and
    international acquisitions, and other transactions, could also
    be affected by export controls, exchange rate fluctuations,
    domestic and foreign political conditions and the deterioration
    in domestic and foreign economic conditions.       22




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OUR FUTURE SUCCESS IS HIGHLY DEPENDENT ON OUR CONTINUED
    ABILITY TO ATTRACT AND RETAIN KEY PERSONNEL. ANY FAILURE TO
    ATTRACT AND RETAIN KEY PERSONNEL COULD HAVE A MATERIAL ADVERSE
    EFFECT ON OUR BUSINESS, FINANCIAL POSITION AND RESULTS OF
    OPERATIONS AND COULD CAUSE THE MARKET VALUE OF OUR COMMON STOCK
    TO DECLINE.
    RECENT DECISIONS BY THE FDA, CURRENT BRAND TACTICS AND OTHER
    FACTORS BEYOND OUR CONTROL HAVE PLACED OUR BUSINESS UNDER
    INCREASING PRESSURE, WHICH COULD HAVE A MATERIAL ADVERSE EFFECT
    ON OUR BUSINESS, FINANCIAL POSITION AND RESULTS OF OPERATIONS
    AND COULD CAUSE THE MARKET VALUE OF OUR COMMON STOCK TO
    DECLINE.
    WE HAVE BEGUN THE IMPLEMENTATION OF AN ENTERPRISE RESOURCE
    PLANNING SYSTEM. AS WITH ANY IMPLEMENTATION OF A SIGNIFICANT NEW
    SYSTEM, DIFFICULTIES ENCOUNTERED COULD RESULT IN BUSINESS
    INTERRUPTIONS, AND COULD HAVE A MATERIAL ADVERSE EFFECT ON OUR
    BUSINESS, FINANCIAL POSITION AND RESULTS OF OPERATIONS AND COULD
    CAUSE THE MARKET VALUE OF OUR COMMON STOCK TO DECLINE.
    WE MUST MAINTAIN ADEQUATE INTERNAL CONTROLS AND BE ABLE, ON
    AN ANNUAL BASIS, TO PROVIDE AN ASSERTION AS TO THE EFFECTIVENESS
    OF SUCH CONTROLS. FAILURE TO MAINTAIN ADEQUATE INTERNAL CONTROLS
    OR TO IMPLEMENT NEW OR IMPROVED CONTROLS COULD HAVE A MATERIAL
    ADVERSE EFFECT ON OUR BUSINESS, FINANCIAL POSITION AND RESULTS
    OF OPERATIONS AND COULD CAUSE THE MARKET VALUE OF OUR COMMON
    STOCK TO DECLINE.
   23




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THERE ARE INHERENT UNCERTAINTIES INVOLVED IN ESTIMATES,
    JUDGMENTS AND ASSUMPTIONS USED IN THE PREPARATION OF FINANCIAL
    STATEMENTS IN ACCORDANCE WITH GAAP. ANY FUTURE CHANGES IN
    ESTIMATES, JUDGMENTS AND ASSUMPTIONS USED OR NECESSARY REVISIONS
    TO PRIOR ESTIMATES, JUDGMENTS OR ASSUMPTIONS COULD LEAD TO A
    RESTATEMENT WHICH COULD HAVE A MATERIAL ADVERSE EFFECT ON OUR
    BUSINESS, FINANCIAL POSITION AND RESULTS OF OPERATIONS AND COULD
    CAUSE THE MARKET VALUE OF OUR COMMON STOCK TO DECLINE. IN
    ADDITION, BEGINNING IN FISCAL 2008, WE ARE NOT PROVIDING
    ESTIMATED EPS GUIDANCE AND CAUTION THAT INVESTORS SHOULD NOT
    RELY ON ESTIMATES MADE BY OTHERS.
      WE ARE SUBJECT TO THE U.S. FOREIGN CORRUPT PRACTICES ACT
    AND SIMILAR WORLDWIDE ANTI-BRIBERY LAWS, WHICH IMPOSE
    RESTRICTIONS AND MAY CARRY SUBSTANTIAL PENALTIES. ANY VIOLATIONS
    OF THESE LAWS, OR ALLEGATIONS OF SUCH VIOLATIONS, COULD HAVE A
    MATERIAL ADVERSE EFFECT ON OUR BUSINESS, FINANCIAL POSITION AND
    RESULTS OF OPERATIONS AND COULD CAUSE THE MARKET VALUE OF OUR
    COMMON STOCK TO DECLINE.
 24




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non-U.S. officials
  WE HAVE GROWN, AND CONTINUE TO GROW, AT A VERY RAPID PACE.
    OUR INABILITY TO PROPERLY MANAGE OR SUPPORT THE GROWTH MAY HAVE
    A MATERIAL ADVERSE EFFECT ON OUR BUSINESS, FINANCIAL POSITION
    AND RESULTS OF OPERATIONS AND COULD CAUSE THE MARKET VALUE OF
    OUR COMMON STOCK TO DECLINE.
    ITEM 1B.
    Unresolved
    Staff Comments   25




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ITEM 2.
    Properties      Primary Segment

Location

Status

Primary UseMylan

North Carolina

Owned

Distribution
    WarehousingWest Virginia

Owned

Manufacturing
    Warehousing
    Research and Development
    AdministrativeLeased

Warehousing
    AdministrativeIllinois

Owned

Manufacturing
    Warehousing
    AdministrativePuerto Rico

Owned

Manufacturing
    Warehousing
    AdministrativeTexas

Owned

Manufacturing
    WarehousingVermont

Owned

Manufacturing
    Research and Development
    Administrative
    WarehousingMatrix

China

Owned

Manufacturing
    Warehousing
    AdministrativeIndia

Owned

Manufacturing
    Warehousing
    Research and Development
    AdministrativeLeased

Administrative
    Research and DevelopmentBelgium

Leased

Distribution
    Administrative
    Research and DevelopmentNetherlands

Leased

Administrative
    DistributionLuxembourg

Leased

AdministrativeFrance

Leased

AdministrativeSwitzerland

Leased

AdministrativeCorporate/Other

Pennsylvania

Owned

Administrative     26




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ITEM 3.
    Legal
    Proceedings    Omeprazole
    Lorazepam
    and Clorazepate
    Pricing
    and Medicaid Litigation
   27




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and/or and/or and/or and/or and/or
    Modafinil
    Antitrust Litigation and FTC Inquiry
    Other
    Litigation
    ITEM 4.
    Submission
    of Matters to a Vote of Security Holders   28




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PART II  ITEM 5.
    Market
    for Registrants Common Equity, Related Stockholder Matters
    and Issuer Purchases of Equity Securities    Fiscal 2007

High


LowFirst quarter

$
23.73


$
19.72Second quarter


23.49



18.65Third quarter


22.10



19.72Fourth quarter


22.75



19.18   Fiscal 2006

High


LowFirst quarter

$
20.03


$
15.21Second quarter


20.00



17.19Third quarter


21.69



18.29Fourth quarter


25.00



19.05         Number of Securities to be

Weighted-Average ExerciseIssued upon Exercise of

Price of Outstanding

Number of SecuritiesOutstanding Options,

Options, Warrants and

Remaining Available forPlan Category

Warrants and Rights

Rights

Future IssuanceEquity compensation plans approved
    by security holders


17,711,689


$
16.17



15,186,223Equity compensation plans not
    approved by security holders






N/A



Total


17,771,689


$
16.17



15,186,223        29




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##### Table of Contents



Form S-3 (No. 333-140778)
               30




---



##### Table of Contents



ITEM 6.
    Selected
    Financial Data  Form 10-K.
  Fiscal Year Ended
    March 31,

2007(1)


2006


2005


2004


2003(in thousands, except per share data)Statements of Earnings:Total revenues

$
1,611,819


$
1,257,164


$
1,253,374


$
1,374,617


$
1,269,192Cost of sales


768,151



629,548



629,834



612,149



597,756Gross profit


843,668



627,616



623,540



762,468



671,436Operating expenses:Research and development


103,692



102,431



88,254



100,813



86,748Acquired in process research and
    development


147,000















Selling, general and administrative


215,538



225,380



259,105



201,612



173,070Litigation settlements, net


(50,116
)


12,417



(25,990
)


(34,758
)


(2,370
)Earnings from operations


427,554



287,388



302,171



494,801



413,988Interest expense


52,276



31,285











Other income, net


50,234



18,502



10,076



17,807



12,525Earnings before income taxes and
    minority interest


425,512



274,605



312,247



512,608



426,513Provision for income taxes


208,017



90,063



108,655



177,999



154,160Minority interest


211















Net earnings

$
217,284


$
184,542


$
203,592


$
334,609


$
272,353   March 31,

2007


2006


2005


2004


2003Selected balance sheet data:Total assets

$
4,253,867


$
1,870,526


$
2,135,673


$
1,885,061


$
1,745,223Working capital


1,711,509



926,650



1,282,945



1,144,073



962,440Deferred revenue


90,673



89,417











Long-term obligations


29,760



22,435



19,325



19,130



19,943Long-term debt


1,654,932



685,188











Total shareholders equity


1,648,860



787,651



1,845,936



1,659,788



1,446,332Per common share data:Net earningsBasic

$
1.01


$
0.80


$
0.76


$
1.24


$
0.98Diluted

$
0.99


$
0.79


$
0.74


$
1.21


$
0.96Shareholders
    equity  diluted

$
7.52


$
3.36


$
6.75


$
6.01


$
5.12Cash dividends declared and paid

$
0.24


$
0.24


$
0.12


$
0.10


$
0.08Weighted average common shares
    outstanding:Basic


215,096



229,389



268,985



268,931



278,789Diluted


219,120



234,209



273,621



276,318



282,330     (1)
    
    Fiscal 2007 includes the results of the Matrix acquisition from
    January 8, 2007. In addition to the write-off of acquired
    in-process research and development ($147.0 million), cost
    of sales includes approximately $17.6 million related to
    the amortization of intangibles and the inventory
    step-up
    associated with the 31




---



##### Table of Contents



acquisition. Fiscal 2007 also includes $22.2 million of
    stock-based compensation expense from the adoption of
    SFAS 123(R) on April 1, 2006.  ITEM 7.
    Managements
    Discussion and Analysis of Results of Operations and Financial
    Condition  12-month
  Form 10-K.
  Overview
      Accounting for Derivative Instruments and Hedging Activities
     32




---



##### Table of Contents



high-barrier-to-entry
  Disclosures about Segments of an Enterprise and Related
    Information ,
        Fiscal
    2007:
  
    The write-off of acquired in-process research and development
    related to the Matrix acquisition in the amount of
    $147.0 million (pre-tax and after-tax);
    Stock-based compensation expense totaling $22.2 million,
    pre-tax, as a result of the Companys adoption of
    SFAS No. 123 (revised 2004), Share-Based Payment(SFAS No. 123R);
    A gain on a foreign exchange forward contract of
    $16.2 million, pre-tax; and
    A net gain of $50.1 million, pre-tax, related to the
    favorable settlement of certain litigation.  Fiscal
    2006:
  
    A charge of $12.0 million, pre-tax, with respect to a
    contingent legal liability related to previously, pre-tax,
    disclosed litigation in connection with the Companys
    lorazepam and clorazepate products and $20.9 million of
    restructuring costs.      
    Amlodipine Besylate  On March 23, 2007,
    Mylan launched Amlodipine Besylate Tablets, 2.5 mg (base),
    5 mg (base) and 10 mg (base). Amlodipine Besylate
    Tablets (amlodipine) are the generic version of
    Pfizers
    Norvasc®
    Tablets, which had U.S. sales of approximately
    $2.7 billion for the
    12-month
    period ended December 31, 2006, according to IMS Health.
    Mylan was the first generic company to file on all strengths of
    amlodipine.The FDA has stated that in the event an appellate court mandate
    from the March 21, 2007 appellate court decision related to
    the validity of the amlodipine patent is issued prior to
    September 25, 2007, the only ANDA eligible for approval
    during that period will be from Apotex because of the favorable
    court decision in its case against Pfizer. However, there are
    several other ANDA applicants seeking immediate approval.On May 21, 2007, an appellate court mandate was issued and
    Apotex has launched its amlodipine product. Consistent with past
    practice and as a result of uncertainties concerning pricing and
    market conditions for this product, revenue is being deferred
    until the product is sold by Mylans customers or until
    such time that the uncertainties are resolved. For the year
    ended March 31, 2007, therefore, substantially all revenues
    on shipments of amlodipine are deferred. 33




---



##### Table of Contents




    Issuance of Senior Convertible Notes and Common
    Stock  On March 2, 2007, Mylan completed an
    offering of $600.0 million aggregate principal amount of
    senior convertible notes due 2012. The notes bear interest at
    1.25% and are convertible by holders at an initial conversion
    rate of 44.5931 shares of common stock per $1,000 principal
    amount of notes (subject to adjustment in certain
    circumstances), which represents an intial conversion price of
    approximately $22.43 per share.Also on March 2, 2007, Mylan completed the sale of
    26.2 million shares of its common stock at a price of
    $19.50 per share.
    Oxybutynin  On November 10, 2006, Mylan
    announced that the FDA granted final approval for Mylan
    Pharmaceuticals Inc.s ANDAs for oxybutynin chloride
    extended-release tablets (oxybutynin), 5 mg and
    10 mg, the generic version of Alza Corporations
    Ditropan
    ®
    XL. Mylan was the first generic drug company to file ANDAs with
    the FDA for 5 mg and 10 mg oxybutynin and, as such,
    had 180 days of market exclusivity for those strengths. In
    the third fiscal quarter of 2007, Mylan launched its 5 mg
    and 10 mg oxybutynin products upon receiving approval and
    also launched a 15 mg strength under our agreement with
    Ortho-McNeil
    Pharmaceuticals. Mylans exclusivity on this product
    expired on May 9, 2007.  Results
    of Operations
  Fiscal
    2007 Compared to Fiscal 2006
  Total
    Revenues and Gross Profit
        ®
  ®
   34




---



##### Table of Contents



step-up
    Operating
    Expenses
        Litigation,
    net
    Interest
    Expense
   35




---



##### Table of Contents



Other
    Income, net
    Income
    Tax Expense
    Fiscal
    2006 Compared to Fiscal 2005
  Total
    Revenues and Gross Profit
         36




---



##### Table of Contents



Operating
    Expenses
      Litigation
    Settlements, net
    Interest
    Expense
    Other
    Income, net
   37




---



##### Table of Contents



Income
    Taxes
    Liquidity
    and Capital Resources
             38




---



##### Table of Contents



39




---



##### Table of Contents



Contractual
    Obligations
    Less than


One-Three


Three-FiveAs of March 31,
    2007

Total


One Year


Years


Years


Thereafter(in thousands)Operating leases

$
20,164


$
5,848


$
9,621


$
2,662


$
2,033Other long-term obligations


33,112



3,440



13,225



3,612



12,835Total debt


1,776,362



121,430



254,932



1,050,000



350,000Scheduled interest payments


362,752



71,394



202,801



66,244



22,313Revolving credit facility


















$
2,192,390


$
202,112


$
480,579


$
1,122,518


$
387,181       3 4 3 8
     40




---



##### Table of Contents



and/or
      Application
    of Critical Accounting Policies
    Net
    Revenue Provisions
   41




---



##### Table of Contents



CurrentProvision RelatedChecks/Credits


to Sales Made inBalance at


Issued to Third


the Current


Balance at3/31/2006


Parties


Period


3/31/2007Chargebacks

$
191,237


$
(1,168,824
)

$
1,186,549


$
208,962Customer performance and promotions

$
62,762


$
(170,217
)

$
180,677


$
73,222Returns

$
51,768


$
(29,532
)

$
27,340


$
49,576       Price Adjustments
  Returns over-the-counter case-by-case
  Chargebacks
 42




---



##### Table of Contents



Intangible
    Assets and Goodwill
           43




---



##### Table of Contents



Legal
    Matters
    Recent
    Accounting Pronouncements
  Accounting for Uncertainty in Income Taxes  an
    Interpretation of FASB Statement 109
  Fair Value Measurements ,
  The
    Fair Value Option for Financial Assets and Financial Liabilities
  ITEM 7A.
    Quantitative
    and Qualitative Disclosures about Market Risk    Marketable
    Debt Securities
      2007


2006(in thousands)Marketable debt securities

$
171,548


$
362,458Marketable equity securities


2,659



5,545$
174,207


$
368,003    44




---



##### Table of Contents



Long-Term
    Debt
  3 4 3 8
        Foreign
    Exchange Option Contract
   45




---



##### Table of Contents



ITEM 8.
    Financial
    Statements and Supplementary Data  Index to
    Consolidated Financial Statements and
    Supplementary Financial Information
  PageConsolidated
    Balance Sheets as of March 31, 2007 and 2006


47Consolidated
    Statements of Earnings for the fiscal years ended March 31,
    2007, 2006 and 2005


48Consolidated
    Statements of Shareholders Equity for the fiscal years
    ended March 31, 2007, 2006
    and 2005


49Consolidated
    Statements of Cash Flows for the fiscal years ended
    March 31, 2007, 2006 and 2005


50Notes to
    Consolidated Financial Statements


51Managements
    Report on Internal Control over Financial Reporting


85Reports of
    Independent Registered Public Accounting Firm


86Supplementary
    Financial Information


89  46




---



##### Table of Contents



Mylan
    Laboratories Inc.Consolidated Balance Sheets
   March 31,

2007


2006AssetsCurrent assets:Cash and cash equivalents

$
1,252,365


$
150,124Marketable securities


174,207



368,003Accounts receivable, net


350,294



242,193Inventories


429,111



279,008Deferred income tax benefit


145,343



137,672Prepaid expenses and other current
    assets


60,724



14,900Total current assets


2,412,044



1,191,900Property, plant and equipment, net


686,739



406,875Intangible assets, net


352,780



105,595Goodwill


612,742



102,579Deferred income tax benefit


45,779



Other assets


143,783



63,577Total assets

$
4,253,867


$
1,870,526Liabilities and shareholders
    equity 
    LiabilitiesCurrent liabilities:Trade accounts payable

$
160,286


$
76,859Short-term borrowings


108,259



Income taxes payable


78,387



12,963Current portion of long-term
    obligations


124,782



4,336Cash dividends payable


14,902



12,605Other current liabilities


213,919



158,487Total current liabilities


700,535



265,250Deferred revenue


90,673



89,417Long-term debt


1,654,932



685,188Other long-term obligations


29,760



22,435Deferred income tax liability


85,900



20,585Total liabilities


2,561,800



1,082,875Minority Interest


43,207



Shareholders equityPreferred stock  par
    value $0.50 per shareShares authorized:
    5,000,000 Shares issued: none






Common stock  par value
    $0.50 per shareShares authorized: 600,000,000 in
    fiscal 2007 and fiscal 2006Shares issued: 339,361,201 in
    fiscal 2007 and 309,150,251 in fiscal 2006


169,681



154,575Additional paid-in capital


962,746



418,954Retained earnings


2,103,282



1,939,045Accumulated other comprehensive
    earnings


1,544



2,4503,237,253



2,515,024Less treasury stock  at
    costShares: 90,948,957 in fiscal 2007
    and 98,971,431 in fiscal 2006


1,588,393



1,727,373Total shareholders equity


1,648,860



787,651Total liabilities and
    shareholders equity

$
4,253,867


$
1,870,526   See Notes to Consolidated Financial Statements.
 47




---



##### Table of Contents



Mylan
    Laboratories Inc.Consolidated Statements of Earnings
   Fiscal Year Ended
    March 31,

2007


2006


2005Revenues:Net revenues

$
1,586,947


$
1,240,011


$
1,247,785Other revenues


24,872



17,153



5,589Total revenues


1,611,819



1,257,164



1,253,374Cost of sales


768,151



629,548



629,834Gross profit


843,668



627,616



623,540Operating expenses:Research and development


103,692



102,431



88,254Acquired in-process research and
    development


147,000







Selling, general and administrative


215,538



225,380



259,105Litigation settlements, net


(50,116
)


12,417



(25,990
)Total operating expenses


416,114



340,228



321,369Earnings from operations


427,554



287,388



302,171Interest expense


52,276



31,285



Other income, net


50,234



18,502



10,076Earnings before income taxes and
    minority interest


425,512



274,605



312,247Provision for income taxes


208,017



90,063



108,655Earnings before minority interest


217,495



184,542



203,592Minority interest


211







Net earnings

$
217,284


$
184,542


$
203,592Earnings per common share:Basic

$
1.01


$
0.80


$
0.76Diluted

$
0.99


$
0.79


$
0.74Weighted average common shares
    outstanding:Basic


215,096



229,389



268,985Diluted


219,120



234,209



273,621   See Notes to Consolidated Financial Statements.
 48




---



##### Table of Contents



Mylan
    Laboratories Inc.Consolidated Statements of Shareholders
    Equity
   Fiscal Year Ended March 31,

2007


2006


2005Common stock  shares
    issued:Shares at beginning of year


309,150,251



304,434,724



303,553,121Issuance of common stock , net


26,162,500







Stock options exercised, net of
    shares tendered for payment


4,048,450



4,715,527



881,603Shares at end of year


339,361,201



309,150,251



304,434,724Treasury stock:Shares at beginning of year


(98,971,431
)


(35,129,643
)


(35,129,643
)Issuance of restricted stock, net
    of shares withheld


(35,665
)


35,463



Shares issued for the acquisition
    of Matrix


8,058,139







Stock purchases






(63,877,251
)


Shares at end of year


(90,948,957
)


(98,971,431
)


(35,129,643
)Common shares outstanding


248,412,244



210,178,820



269,305,081Common stock, $0.50 par:Balance at beginning of year

$
154,575


$
152,217


$
151,777Issuance of common stock , net


13,081







Stock options exercised


2,025



2,358



440Balance at end of year


169,681



154,575



152,217Additional paid-in capital:Balance at beginning of year


418,954



354,172



338,143Issuance of common stock, net


476,015







Sale of warrants


45,360







Shares issued for the acquisition
    of Matrix


23,045







Purchase of bond hedge, net of tax
    of $44,100


(81,900
)






Stock options exercised


47,242



54,531



9,628Issuance of restricted stock


(2,526
)


181



Unearned compensation






3,142



3,901Stock based compensation expense


22,156Tax benefit of stock option plans


14,419



7,221



2,500Other


(19
)


(293
)


Balance at end of year


962,746



418,954



354,172Retained earnings:Balance at beginning of year


1,939,045



1,808,802



1,637,497Net earnings


217,284



184,542



203,592Dividends declared ($0.24 per
    share for fiscals 2007 and 2006, $0.12 per share for fiscal
    2005)


(53,047
)


(54,299
)


(32,287
)Balance at end of year


2,103,282



1,939,045



1,808,802Accumulated other comprehensive
    earnings:Balance at beginning of year


2,450



870



2,496Adoption of SFAS No. 158,
    net of tax


(1,272
)






Translation adjustment


1,266Net unrealized gain (loss) on
    marketable securities, net of tax


(900
)


1,580



(1,626
)Balance at end of year


1,544



2,450



870Treasury stock, at cost:Balance at beginning of year


(1,727,373
)


(470,125
)


(470,125
)Issuance of restricted stock, net
    of shares withheld


(1,716
)


619



Shares issued for the acquisition
    of Matrix


140,696Stock purchases






(1,257,867
)


Balance at end of year


(1,588,393
)


(1,727,373
)


(470,125
)Total shareholders equity

$
1,648,860


$
787,651


$
1,845,936Comprehensive earnings:Net earnings

$
217,284


$
184,542


$
203,592Other comprehensive earnings
    (loss), net of tax:Net unrealized holding gains
    (losses) gains on securities


(1,569
)


1,397



(1,711
)Reclassification for losses
    included in net earnings


669



183



85Translation adjustment


1,266







Other comprehensive earnings
    (loss), net of tax


366



1,580



(1,626
)Comprehensive earnings

$
217,650


$
186,122


$
201,966   See Notes to Consolidated Financial Statements.
 49




---



##### Table of Contents



Mylan
    Laboratories Inc.Consolidated Statements of Cash Flows
   Fiscal Year Ended
    March 31,

2007


2006


2005Cash flows from operating
    activities:Net earnings

$
217,284


$
184,542


$
203,592Adjustments to reconcile net
    earnings to net cash provided from operating activities:Depreciation and amortization


61,512



46,827



45,100Stock-based compensation expense


22,156







In-process research and development


147,000







Minority interest


211







Net (income) loss from equity
    method investees


(6,659
)


2,538



2,372Change in estimated sales allowances


14,386



41,047



108,778Restructuring provision






20,921



Deferred income tax benefit


(50,479
)


(23,635
)


(36,899
)Other non-cash items


7,703



15,768



7,951Litigation settlements, net


(50,116
)


12,417



(25,990
)Receipts from litigation
    settlements, net


56,580



1,691



42,990Cash received from Somerset


5,870







Changes in operating assets and
    liabilities:Accounts receivable


(60,773
)


19,081



(192,799
)Inventories


(28,987
)


6,012



34,530Trade accounts payable


(29,312
)


20,534



8,082Income taxes


73,567



(23,821
)


22,010Deferred revenue


(5,504
)


106,642



Other operating assets and
    liabilities, net


15,753



(14,003
)


(16,006
)Net cash provided by operating
    activities


390,192



416,561



203,711Cash flows from investing
    activities:Capital expenditures


(161,851
)


(103,689
)


(90,746
)Acquisition of Matrix, net of cash
    acquired of $10,943


(761,049
)






Purchase of marketable securities


(655,948
)


(686,569
)


(780,806
)Proceeds from sale of marketable
    securities


848,520



991,060



693,289Other items, net


(407
)


(5,710
)


3,372Net cash (used in) provided by
    investing activities


(730,735
)


195,092



(174,891
)Cash flows from financing
    activities:Cash dividends paid


(50,751
)


(49,772
)


(32,261
)Payment of financing fees


(15,329
)


(14,662
)


Excess tax benefit from stock-based
    compensation


4,158







Proceeds from issuance of common
    stock, net


657,678







Purchase of bond hedge


(126,000
)






Proceeds from issuance of warrants


45,360







Proceeds from long-term debt


1,556,251



775,000



Payment of long-term debt


(689,938
)


(87,062
)


Purchase of common stock






(1,257,867
)


Proceeds from exercise of stock
    options


49,824



56,889



10,068Increase (decrease) in outstanding
    checks in excess of cash in disbursement accounts


10,403



(21,788
)


19,622Other items, net


1,160







Net cash provided by (used in)
    financing activities


1,442,816



(599,262
)


(2,571
)Effect on cash of changes in
    exchange rates


(32
)






Net increase in cash and cash
    equivalents


1,102,241



12,391



26,249Cash and cash
    equivalents  beginning of year


150,124



137,733



111,484Cash and cash
    equivalents  end of year

$
1,252,365


$
150,124


$
137,733Supplemental disclosures of cash
    flow information:Cash paid during the year for:Income taxes

$
176,353


$
137,519


$
123,725Interest

$
59,996


$
29,110


$
   See Notes to Consolidated Financial Statements.
 50




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##### Table of Contents



Mylan
    Laboratories Inc.
 Notes to
    Consolidated Financial Statements  Note 1.
    Nature of
    Operations    Note 2.
    Summary
    of Significant Accounting Policies  Principles of Consolidation.
  Disclosures about Segments of an
    Enterprise and Related Information
  Cash Equivalents.
  Marketable Securities.
  Concentrations of Credit Risk.
     51




---



##### Table of Contents



Inventories. first-in,
  Property, Plant and Equipment.
  Intangible Assets and Goodwill.
      Impairment of Long-Lived Assets.
      Other Assets. other-than-temporary
  Short-Term Borrowings.
  Revenue Recognition.
 52




---



##### Table of Contents



Revenue Recognition,
    corrected copy No. 00-21, Revenue Arrangements with Multiple Deliverables.
 53




---



##### Table of Contents



Research and Development.
  Advertising Costs.
  Income Taxes.
  Earnings per Common Share.
    Fiscal Year Ended
    March 31,

2007


2006


2005(in thousands, except per share data)Net earnings

$
217,284


$
184,542


$
203,592Weighted average common shares
    outstanding


215,096



229,389



268,985Assumed exercise of dilutive stock
    options, restricted stock and restricted units


4,024



4,820



4,636Diluted weighted average common
    shares outstanding


219,120



234,209



273,621Earnings per common share:Basic

$
1.01


$
0.80


$
0.76Diluted

$
0.99


$
0.79


$
0.74   Stock Options. Share-Based Payment Accounting for Stock
    Issued to Employees Accounting for Share Based Compensation
   54




---



##### Table of Contents



Fiscal Year Ended
    March 31,

2006


2005(in thousands, except per share data)Net earnings, as reported

$
184,542


$
203,592Add:     Stock-based
    compensation expense included in reported net earnings, net of
    related tax effects


2,649



2,543Deduct:  Total
    compensation expense determined under fair-value based method
    for all stock awards, net of related tax effects


(11,845
)


(14,852
)Pro forma net earnings

$
175,346


$
191,283Earnings per share:Basic  as reported

$
0.80


$
0.76Basic  pro forma

$
0.76


$
0.71Diluted  as reported

$
0.79


$
0.74Diluted  pro forma

$
0.75


$
0.70   Foreign Currencies.
  Use of Estimates in the Preparation of Financial
    Statements.
  Reclassification.
  Fiscal Year.
  Recent Accounting Pronouncements. Accounting for
    Uncertainty in Income Taxes  an Interpretation of
    FASB Statement 109
  Fair Value Measurements
  The
    Fair Value Option for Financial Assets and Financial
    Liabilities
 55




---



##### Table of Contents



Note 3.
    Acquisition
    of Matrix Laboratories Limited              Business Combinations
 56




---



##### Table of Contents



(in thousands)Current assets (excluding cash and
    inventories)

$
129,621Inventories


123,000Property, plant and equipment, net


152,580Identifiable intangible assets


270,440Other non-current assets


65,878In-process research and
    development(1)


147,000Goodwill


505,801Total assets acquired


1,394,320Current liabilities


(374,458
)Deferred tax liabilities


(106,470
)Other non-current liabilities


(104,045
)Total liabilities assumed


(584,973
)Total minority interest


(44,117
)Net assets acquired

$
765,230     (1)
    
    The amount allocated to acquired in-process research and
    development represents an estimate of the fair value of
    purchased in-process technology for research projects that, as
    of the closing date of the acquisition, had not reached
    technological feasibility and had no alternative future use.      Fiscal Year Ended
    March 31,

2007


2006(in thousands, except per share data)Total revenues

$
1,825,754


$
1,487,434Net income

$
143,423


$
(28,474
)Earnings per common share:Basic

$
0.65


$
(0.16
)Diluted

$
0.64


$
(0.16
)Weighted average sharesBasic


221,171



237,489Diluted


225,195



237,489  57




---



##### Table of Contents



step-up
  Accounting for Derivative Instruments
    and Hedging Activities
  Note 4.
    Restructuring    Note 5.
    Balance
    Sheet Components    2007


2006(in thousands)Inventories:Raw materials

$
148,109


$
98,259Work in process


95,655



36,073Finished goods


185,347



144,676$
429,111


$
279,008Property, plant and equipment:Land and improvements

$
29,850


$
10,639Buildings and improvements


297,505



175,343Machinery and equipment


471,990



287,202Construction in progress


141,301



144,429940,646



617,613Less accumulated depreciation


253,907



210,738$
686,739


$
406,875Other current liabilities:Payroll and employee benefit plan
    accruals

$
43,655


$
24,323Accrued rebates


51,873



60,374Royalties and product license fees


15,215



9,320Deferred revenue


10,465



17,225Legal and professional


40,095



30,074Other


52,616



17,171$
213,919


$
158,487  58




---



##### Table of Contents



Note 6.
    Marketable
    Securities    Gross


GrossAmortized


Unrealized


Unrealized


FairCost


Gains


Losses


Value(in thousands)March 31, 2007Debt securities

$
171,862


$
151


$
465


$
171,548Equity securities






2,659







2,659$
171,862


$
2,810


$
465


$
174,207March 31, 2006Debt securities

$
364,266


$
79


$
1,887


$
362,458Equity securities






5,545







5,545$
364,266


$
5,624


$
1,887


$
368,003       (in thousands)Mature within one year

$
31,395Mature in one to five years


10,352Mature in five years and later


129,801$
171,548     Note 7.
    Goodwill
    and Other Intangible Assets  Total(in thousands)Goodwill balance at March 31,
    2006

$
102,579Acquisition of Matrix


505,801Other


4,362Goodwill balance at March 31,
    2007

$
612,742  59




---



##### Table of Contents



WeightedAverage Life


Original


Accumulated


Net Book(years)


Cost


Amortization


Value(in thousands)March 31,
    2007Amortized intangible assets:Patents and technologies


20


$
118,927


$
61,000


$
57,927Product rights and licenses


8



367,805



86,349



281,456Other


14



20,821



8,207



12,614$
507,553


$
155,556



351,997Intangible assets no longer
    subject to amortization:Trademarks














783$
352,780March 31,
    2006Amortized intangible assets:Patents and technologies


20


$
118,935


$
54,836


$
64,099Product rights and licenses


12



111,135



77,444



33,691Other


20



14,267



7,245



7,022$
244,337


$
139,525



104,812Intangible assets no longer
    subject to amortization:Trademarks














783$
105,595       Note 8.
    Other
    Assets    2007


2006(in thousands)Cash surrender value

$
43,529


$
40,945Financing fees


26,801



12,813Investments in affiliates


52,907



462Other


20,546



9,357$
143,783


$
63,577  60




---



##### Table of Contents



Note 9.
    Long-Term
    Debt    2007


2006(in thousands)Senior Notes(A)

$
500,000


$
500,000Credit facilities(B)


450,000



187,938Senior convertible notes(C)


600,000



Matrix facility loans(D)


226,362



$
1,776,362


$
687,938Less: Current portion


121,430



2,750Total long-term debt

$
1,654,932


$
685,188     (A)
    
    On July 21, 2005, the Company issued $500,000,000 in Senior
    Notes, which consisted of $150,000,000 of Senior Notes due
    August 15, 2010, and bearing interest at
    53/4% per
    annum (the 2010 Restricted Notes) and $350,000,000
    of Senior Notes due August 15, 2015, and bearing interest
    at
    63/8%
    per annum (the 2015 Restricted Notes, and
    collectively the Restricted Notes). The Restricted
    Notes were exchanged on January 14, 2006, in accordance
    with a registration rights agreement in a transaction
    consummated on January 19, 2006. The form and terms of the
    registered notes (the Notes) are identical in all
    material respects to the original notes. Interest is payable
    semiannually on February 15 and August 15 and commenced on
    February 15, 2006.       61




---



##### Table of Contents



(B)
    
    On July 21, 2005, the Company entered into a $500,000,000
    senior secured credit facility (the Credit
    Facility). The Credit Facility consisted of a $225,000,000
    five-year revolving credit facility and a $275,000,000 five-year
    term loan (the Term Loan).             62




---



##### Table of Contents



(C)
    
    On March 1, 2007, Mylan entered into a purchase agreement
    relating to the sale by the Company of $600,000,000 aggregate
    principal amount of the Companys 1.25% Senior
    Convertible Notes due 2012 (the Convertible Notes).
    The Convertible Notes bear interest at a rate of 1.25% per
    year, accruing from March 7, 2007. Interest is payable
    semiannually in arrears on March 15 and September 15 of each
    year, beginning September 15, 2007. The Notes will mature
    on March 15, 2012, subject to earlier repurchase or
    conversion. Holders may convert their notes subject to certain
    conversion provisions determined by, among others, the market
    price of the Companys common stock and the trading price
    of the Convertible Notes. The Notes have an initial conversion
    rate of 44.5931 shares of common stock per $1,000 principal
    amount (equivalent to an initial conversion price of
    approximately $22.43 per share), subject to adjustment,
    with the principal amount payable in cash and the remainder in
    cash or stock at the option of the Company.      Accounting for Derivative Instruments and Hedging Activities
    (as amended by FAS 138 &
    FAS 149).
 63




---



##### Table of Contents



No. 01-6, The Meaning of Indexed to a Companys Own Stock No. 00-19, Accounting for Derivative Financial Instruments Indexed to,
    and Potentially Settled in, a Companys Own Stock
  (D)
    
    Matrixs borrowings consist primarily of two Facilities
    (Facility A and Facility B) both of
    which are denominated in euros. Matrixs effective interest
    rate for these loans is Euro Interbank Offered Rate (Euribor)
    plus 110 basis points for Facility A of Euro
    82.50 million, or 4.96% at March 31, 2007, and Euribor
    plus 129 basis points for Facility B of Euro
    82.50 million, or 5.15% at March 31, 2007. Facility A
    is due in July 2007 and Facility B is payable over three years
    in semi-annual installments beginning in October 2007. These
    loans are collateralized by the pledge of certain of Matrix
    subsidiaries shares and by a Matrix corporate guarantee to
    ABN Amro Bank NV. These loans also require Matrix and certain of
    its subsidiaries to comply with certain covenants, under which
    the approval of the lenders is required for certain transactions
    which include incurring additional indebtedness or guarantees;
    declaration of payment of dividends; entering into acquisitions
    or mergers, joint ventures, consolidations or sales of Matrix
    assets; and entering into new lines of business. The covenants
    also prescribe certain maximum ratios of debt to earnings or
    equity ratios and minimum levels of interest and debt service
    coverage ratios.          Fiscal(in thousands)2008

$
121,4302009


41,7702010


41,0002011


172,1622012


1,050,000Thereafter


350,000$
1,776,362  64




---



##### Table of Contents



Note 10.
    Other
    Long-Term Obligations    2007


2006(in thousands)Deferred compensation

$
18,171


$
17,789Retirement benefits


6,362



3,905Other


8,579



2,327Total long-term obligations


33,112



24,021Less: Current portion of long-term
    obligations


3,352



1,586Long-term obligations, net of
    current portion

$
29,760


$
22,435     Note 11.
    Income
    Taxes    Fiscal Year Ended
    March 31,

2007


2006


2005(in thousands)Federal:Current

$
242,434


$
104,204


$
134,994Deferred


(46,593
)


(22,359
)


(34,513
)195,841



81,845



100,481State and Puerto Rico:Current


16,746



9,494



10,560Deferred


(3,740
)


(1,276
)


(2,386
)13,006



8,218



8,174Foreign:Current


174







Deferred


(1,004
)






(830
)






Income taxes

$
208,017


$
90,063


$
108,655Pre-tax earnings (loss)Domestic

$
586,298


$
274,605


$
312,247Foreign


(160,786
)






$
425,512


$
274,605


$
312,247Effective tax rate


48.9
%


32.8
%


34.8
%  65




---



##### Table of Contents



2007


2006


2005(in thousands)Deferred tax assets:Employee benefits

$
16,501


$
10,948


$
10,301Legal matters


5,048



4,551



Deferred revenue


43,250



14,488



10,615Accounts receivable allowances


126,191



121,235



113,267Inventories


8,859



4,851



3,587Investments


7,256



6,028



6,003Tax credits


3,112







Net operating losses


17,111



1,644



Convertible debt


44,100







Other


3,801



2,783



1,117275,229



166,528



144,890Less: Valuation Allowance


(18,355
)


(1,644
)


Total deferred tax assets


256,874



164,884



144,890Deferred tax liabilities:Plant and equipment


40,698



21,168



22,848Intangible assets


98,285



23,977



25,946Investments


10,779



2,547



1,569Other


1,890



105



105Total deferred tax liabilities


151,652



47,797



50,468Deferred tax asset, net

$
105,222


$
117,087


$
94,422Classification in the Consolidated
    Balance Sheets:Deferred income tax
    benefit  current

$
145,343


$
137,672


$
119,327Deferred income tax
    benefit  noncurrent


45,779


$



$
Deferred income tax
    liability  noncurrent


85,900



20,585



24,905Deferred tax asset, net

$
105,222


$
117,087


$
94,422     2007


2006


2005Statutory tax rate


35.0
%


35.0
%


35.0
%State and Puerto Rico income taxes


4.1
%


4.0
%


2.8
%State and Puerto Rico tax credits


(1.3
%)


(1.5
%)


(1.3
%)Federal tax credits


(0.3
%)


(1.0
%)


(2.1
%)Resolution of prior year tax
    positions



%


(2.7
%)



%Acquired in-process R&D


12.1
%






Other items


(0.7
%)


(1.0
%)


0.4
%Effective tax rate


48.9
%


32.8
%


34.8
%  66




---



##### Table of Contents



Valuation Allowance
    Net Operating Losses
    Acquired In Process Research and Development
  No. 96-7, Accounting for Deferred Taxes on In-Process Research
    and Development Activities Acquired in a Purchase Business
    Combination.
  Undistributed Earnings
      Federal
    Tax credits, Certain Deductions and Ongoing IRS
    Examinations
       67




---



##### Table of Contents



Note 12.
    Preferred
    and Common Stock             68




---



##### Table of Contents



Accounting for Derivative Instruments and Hedging Activities
    (as amended by FAS 138 & FAS 149). No. 01-6, The Meaning of Indexed to a Companys Own Stock) No. 00-19, Accounting for Derivative Financial Instruments Indexed to,
    and Potentially Settled in, a Companys Own Stock)
    Note 13.
    Stock
    Option Plan  Mylan Laboratories Inc. 2003 Long-Term Incentive Plan,
  The Mylan Laboratories Inc.
    1997 Incentive Stock Option Plan
 69




---



##### Table of Contents



Weighted AverageNumber of Shares


Exercise PriceUnder Option


per ShareOutstanding at March 31, 2004


22,829,908


$
13.99Options granted


649,900



19.05Options exercised


(891,092
)


11.30Options forfeited


(286,928
)


19.13Outstanding at March 31, 2005


22,301,788



14.17Options granted


5,780,123



17.61Options exercised


(4,729,113
)


12.03Options forfeited


(1,994,128
)


18.65Outstanding at March 31, 2006


21,358,670



15.16Options granted


1,139,400



21.65Options exercised


(4,053,061
)


12.18Options forfeited


(797,281
)


17.28Outstanding at March 31, 2007


17,647,728


$
16.17Vested and expected to vest at
    March 31, 2007


17,348,879


$
16.13Options exercisable at
    March 31, 2007


11,651,414


$
14.91       Weighted AverageRestricted

Number of Restricted


Grant-DateStock Awards

Stock Awards


Fair ValueNonvested at March 31, 2006


507,962


$
24.69Granted


209,161



23.19Released


(505,807
)


24.79Forfeited






Nonvested at March 31, 2007


211,316


$
23.10          70




---



##### Table of Contents



Period Ended
    March 31,

2007


2006


2005Volatility


34.0
%


38.70
%


41.80
%Risk-free interest rate


4.8
%


4.00
%


3.20
%Dividend yield


1.1
%


1.30
%


0.60
%Expected term of options (in years)


4.5



4.5



4.2Forfeiture rate


3.0
%


0
%


0
%Weighted average grant date fair
    value per option

$
6.90


$
5.92


$
6.73       Note 14.
    Employee
    Benefits  ,
    Employers Accounting for Postretirement Benefits Other
    Than Pensions.
           71




---



##### Table of Contents



Note 15.
    Segment
    Information          Fiscal Year Ended
    March 31, 2007

Mylan Segment


Matrix Segment


Corporate/Other(1)


Consolidated(in thousands)Intersegment revenues

$



$
16,389


$
(16,389
)

$
Third-party net revenues


1,507,535



79,412







1,586,947Segment profitability (loss)


699,342



(168,319
)


(103,469
)


427,554   Fiscal Year Ended
    March 31, 2006

Mylan Segment


Matrix Segment


Corporate/Other(1)


ConsolidatedIntersegment revenues

$



$



$



$
Third-party net revenues


1,240,011











1,240,011Segment profitability (loss)


450,765







(163,377
)


287,388   72




---



##### Table of Contents



Fiscal Year Ended
    March 31, 2005

Mylan Segment


Matrix Segment


Corporate/Other(1)


ConsolidatedIntersegment revenues

$



$



$



$
Third-party net revenues


1,247,785











1,247,785Segment profitability (loss)


421,951







(119,780
)


302,171     (1)
    
    Includes corporate overhead, intercompany eliminations and
    charges not directly attributable to segments.    Fiscal Year Ended
    March 31,

2007


2006


2005(in thousands)Cardiovascular

$
463,610


$
422,727


$
484,588Central nervous system


579,814



475,898



366,654Dermatology


58,066



72,843



74,048Gastrointestinal


59,655



46,701



93,713Endocrine and Metabolic


133,967



84,048



68,360Renal and Genitourinary


148,494



63,967



121Other(1)


143,341



73,827



160,301$
1,586,947


$
1,240,011


$
1,247,785     (1)
    
    Other consists of numerous therapeutic classes, none of which
    individually exceeds 5% of consolidated net revenues.  Geographic
    Information
    Fiscal Year Ended
    March 31,

2007


2006(in thousands)Net external revenuesUnited States

$
1,506,419


$
1,233,990India


14,836



Europe


50,958



2,694Rest of world


14,734



3,327Consolidated

$
1,586,947


$
1,240,011     Note 16.
    Commitments   73




---



##### Table of Contents



OperatingFiscal

Leases(in thousands)2008

$
5,8482009


4,0332010


3,3232011


2,2652012


1,371Thereafter


3,324$
20,164         Note 17.
    Product
    Agreements  ®
    Note 18.
    Contingencies  Legal
    Proceedings
   74




---



##### Table of Contents



Omeprazole
    Lorazepam
    and Clorazepate
    Pricing
    and Medicaid Litigation
    and/or and/or
 75




---



##### Table of Contents



and/or and/or and/or
    Modafinil
    Antitrust Litigation and FTC Inquiry
    Other
    Litigation
    Previously Reported Matters That Have Been Resolved or
    Dismissed
  Shareholder Litigation
   76




---



##### Table of Contents



Paclitaxel
    Note 19.
    Related
    Party Transactions      2007


2006(in thousands)Net revenues

$
5,295


$
419Royalties received


1,283



       (in thousands)Net revenues

$
6,695Other


655   Note 20.
    Guarantor
    Financial Statements   77




---



##### Table of Contents



GUARANTOR
    SUBSIDIARIES
  CONDENSED
    CONSOLIDATING BALANCE SHEETS
  Non-


Consolidating andMylan


Guarantor


Guarantor


EliminatingMarch 31, 2007

Labs


Subs


Subs


Entries


ConsolidatedAssetsCurrent assets:Cash and cash equivalents

$
1,146,380


$
21,689


$
84,312


$
(16
)

$
1,252,365Marketable securities


143,220







30,987







174,207Accounts receivable, net


10,708



262,024



79,712



(2,150
)


350,294Inventories






324,767



108,096



(3,752
)


429,111Other current assets


5,400



158,488



47,129



(4,950
)


206,067Total current assets


1,305,708



766,968



350,236



(10,868
)


2,412,044Intercompany receivables, net


(390,417
)


1,009,683



(776,231
)


156,965



Property, plant and equipment, net


16,741



510,853



159,145







686,739Intangible assets, net






89,321



263,459







352,780Goodwill






102,579



510,163







612,742Other assets


162,480



12,191



64,891



(50,000
)


189,562Investments in subsidiaries


2,007,547











(2,007,547
)


Total assets

$
3,102,059


$
2,491,595


$
571,663


$
(1,911,450
)

$
4,253,867Liabilities and shareholders
    equityLiabilitiesCurrent liabilitiesTrade accounts payable

$
302


$
56,617


$
105,532


$
(2,165
)

$
160,286Income taxes payable


(177,857
)


252,404



5,464



(1,624
)


78,387Current portion of long-term
    obligations


3,352







121,430







124,782Cash dividends payable


14,902















14,902Other current liabilities


61,312



114,255



148,295



(1,684
)


322,178Total current liabilities


(97,989
)


423,276



380,721



(5,473
)


700,535Deferred revenue






90,673











90,673Long-term debt


1,550,000







104,932







1,654,932Other long-term obligations


2,700



1,309



161,651



(50,000
)


115,660Minority interest










44,469



(1,262
)


43,207Shareholders equityPreferred stock


















Common stock


169,681



7,494



210



(7,704
)


169,681Additional paid-in capital


962,415



593,831



10,048



(603,548
)


962,746Retained earnings


2,103,282



1,375,003



(131,540
)


(1,243,463
)


2,103,282Accumulated other comprehensive
    earnings


363



9



1,172







1,544Less:Treasury stock at cost


(1,588,393
)














(1,588,393
)Total shareholders equity


1,647,348



1,976,337



(120,110
)


(1,854,715
)


1,648,860Total liabilities and
    shareholders equity

$
3,102,059


$
2,491,595


$
571,663


$
(1,911,450
)

$
4,253,867  78




---



##### Table of Contents



Non-


Consolidating andMylan


Guarantor


Guarantor


EliminatingMarch 31, 2006

Labs


Subs


Subs


Entries


ConsolidatedAssetsCurrent assets:Cash and cash equivalents

$
4,911


$
128,191


$
9,417


$
7,605


$
150,124Marketable securities






340,390



27,613







368,003Accounts receivable, net


1,064



241,135



(6
)






242,193Inventories






280,617







(1,609
)


279,008Other current assets


2,986



150,882



451



(1,747
)


152,572Total current assets


8,961



1,141,215



37,475



4,249



1,191,900Intercompany receivables, net


(913,694
)


913,701







(7
)


Property, plant and equipment, net


13,478



393,397











406,875Intangible assets, net and Goodwill






208,174











208,174Other assets


54,911



9,236







(570
)


63,577Investment in subsidiaries


2,340,569











(2,340,569
)


Total assets

$
1,504,225


$
2,665,723


$
37,475


$
(2,336,897
)

$
1,870,526Liabilities and shareholders
    equityLiabilitiesCurrent liabilitiesTrade accounts payable

$
990


$
68,272


$



$
7,597


$
76,859Income taxes payable


(6,412
)


18,128



1,247







12,963Current portion of long-term
    obligations


4,336















4,336Cash dividends payable


12,605















12,605Other current liabilities


12,482



143,411



4,344



(1,750
)


158,487Total current liabilities


24,001



229,811



5,591



5,847



265,250Deferred revenue






89,417











89,417Long-term debt


685,188















685,188Other long-term obligations


9,823



33,767







(570
)


43,020Shareholders equityPreferred stock


















Common stock


154,575



7,407



210



(7,617
)


154,575Additional
    paid-in-capital


418,954



1,091,196



9,718



(1,100,914
)


418,954Retained earnings


1,939,045



1,211,370



22,273



(1,233,643
)


1,939,045Accumulated other comprehensive
    earnings


12



2,755



(317
)






2,450Less:Treasury stock at cost


(1,727,373
)














(1,727,373
)Total shareholders equity


785,213



2,312,728



31,884



(2,342,174
)


787,651Total liabilities and
    shareholders equity

$
1,504,225


$
2,665,723


$
37,475


$
(2,336,897
)

$
1,870,526  79




---



##### Table of Contents



GUARANTOR
    SUBSIDIARIES
  CONDENSED
    CONSOLIDATING STATEMENTS OF EARNINGS
  Non-


Consolidating andMylan


Guarantor


Guarantor


EliminatingFor the Year Ended
    March 31, 2007

Labs


Subs


Subs


Entries


ConsolidatedNet revenues

$



$
1,507,535


$
95,801


$
(16,389
)

$
1,586,947Other revenue






24,872











24,872Total revenues






1,532,407



95,801



(16,389
)


1,611,819Cost of sales






691,022



84,498



(7,369
)


768,151Gross profit






841,385



11,303



(9,020
)


843,668Operating expensesResearch and development


9,233



88,497



159,662



(6,700
)


250,692Selling, general &
    administrative


126,300



83,252



5,986







215,538Litigation settlements, net


(50,106
)


(10
)










(50,116
)Total operating expenses


85,427



171,739



165,648



(6,700
)


416,114Earnings from operations


(85,427
)


669,646



(154,345
)


(2,320
)


427,554Interest expense


46,726







5,550







52,276Other income, net


17,696



21,779



7,165



(3,433
)


43,207Earnings before income taxes,
    minority interest and equity in earnings (loss) of subsidiaries


(114,457
)


691,425



(152,730
)


(5,753
)


418,485Provision for income taxes


(8,450
)


215,597



2,494



(1,624
)


208,017Minority interest










211







211Earnings before equity in earnings
    (loss) of subsidiaries


(106,007
)


475,828



(155,435
)


(4,129
)


210,257Equity in earnings (loss) of
    subsidiaries


323,291



(151,562
)


1,621



(166,323
)


7,027Net earnings

$
217,284


$
324,266


$
(153,814
)

$
(170,452
)

$
217,284  80




---



##### Table of Contents



GUARANTOR
    SUBSIDIARIES
  CONDENSED
    CONSOLIDATING STATEMENTS OF EARNINGS
  Non-


Consolidating andMylan


Guarantor


Guarantor


EliminatingFor the year ended
    March 31, 2006

Labs


Subs


Subs


Entries


ConsolidatedNet revenues

$



$
1,240,011


$



$



$
1,240,011Other revenue






17,153











17,153Total revenues






1,257,164











1,257,164Cost of sales


38



633,101







(3,591
)


629,548Gross profit


(38
)


624,063







3,591



627,616Operating expensesResearch and development


990



101,441











102,431Selling, general &
    administrative


17,382



206,745



1,253







225,380Litigation settlements, net






12,417











12,417Total operating expenses


18,372



320,603



1,253







340,228Earnings (loss) from operations


(18,410
)


303,460



(1,253
)


3,591



287,388Interest expense


31,285















31,285Other income, net


1,753



15,685



4,655



(3,591
)


18,502Earnings before income taxes and
    equity in earnings (loss) of subsidiaries


(47,942
)


319,145



3,402







274,605Provision for income taxes


(12,482
)


101,330



1,215







90,063Earnings before equity in earnings
    (loss) of subsidiaries


(35,460
)


217,815



2,187







184,542Equity in earnings (loss) of
    subsidiaries


220,002











(220,002
)


Net earnings

$
184,542


$
217,815


$
2,187


$
(220,002
)

$
184,542   Non-


Consolidating andMylan


Guarantor


Guarantor


EliminatingFor the year ended
    March 31, 2005

Labs


Subs


Subs


Entries


ConsolidatedNet revenues

$



$
1,247,785


$



$



$
1,247,785Other revenue






5,589











5,589Total revenues






1,253,374











1,253,374Cost of sales






632,219







(2,385
)


629,834Gross profit






621,155







2,385



623,540Operating expensesResearch and development






88,254











88,254Selling, general &
    administrative


1,059



257,356



810



(120
)


259,105Litigation settlements, net






(25,990
)










(25,990
)Total operating expenses


1,059



319,620



810



(120
)


321,369Earnings (loss) from operations


(1,059
)


301,535



(810
)


2,505



302,171Other income, net


1,066



7,598



3,917



(2,505
)


10,076Earnings before income taxes and
    equity in earnings (loss) of subsidiaries


7



309,133



3,107







312,247Provision for income taxes


(183
)


107,753



1,085







108,655Earnings before equity in earnings
    (loss) of subsidiaries


190



201,380



2,022







203,592Equity in earnings (loss) of
    subsidiaries


203,402











(203,402
)


Net earnings

$
203,592


$
201,380


$
2,022


$
(203,402
)

$
203,592  81




---



##### Table of Contents



GUARANTOR
    SUBSIDIARIES
  CONDENSED
    CONSOLIDATING STATEMENTS OF CASH FLOWS
  Non-Mylan


Guarantor


GuarantorFor the Period Ended
    March 31, 2007

Labs


Subs


Subs


Eliminating


ConsolidatedCash flows provided by (used in)
    operations

$
(77,738
)

$
449,812


$
25,739


$
(7,621
)

$
390,192Cash flows from investing
    activitiesProceeds from (purchase of)
    capital assets


(5,574
)


(151,970
)


(4,307
)






(161,851
)Acquisition of Matrix, net of cash
    acquired










(761,049
)






(761,049
)Sale of assets


















Purchase of marketable securities


(539,189
)






(116,759
)






(655,948
)Sale of marketable securities


697,483







151,037







848,520Other items, net


(2,811
)






2,404







(407
)Net cash (used in ) provided from
    investing activities


149,909



(151,970
)


(728,674
)






(730,735
)Cash flows from financing
    activities:Cash dividends paid


(50,751
)














(50,751
)Payment of financing fees


(15,329
)














(15,329
)Excess tax benefit from stock
    based compensation


4,158















4,158Proceeds from issuance of common
    stock, net


657,678















657,678Purchase of bond hedge


(126,000
)














(126,000
)Proceeds from issuance of warrants


45,360















45,360Proceeds from long-term debt


1,552,000







4,251







1,556,251Payments on long-term debt


(689,938
)














(689,938
)Purchase of common stock


















Proceeds from exercise of stock
    options


49,365







459







49,824Increase in outstanding checks in
    excess of cash in disbursement accounts






10,403











10,403Transfer from (to) affiliates


(357,245
)


(414,747
)


771,992







Other items, net










1,160







1,160Net cash used in (provided by)
    financing activities


1,069,298



(404,344
)


777,862







1,442,816Effect on cash of changes in
    exchange rates










(32
)






(32
)Net increase in cash and cash
    equivalents


1,141,469



(106,502
)


74,895



(7,621
)


1,102,241Cash and cash
    equivalents  beginning of year


4,911



128,191



9,417



7,605



150,124Cash and cash
    equivalents  end of year

$
1,146,380


$
21,689


$
84,312


$
(16
)

$
1,252,365   82




---



##### Table of Contents



Non-Mylan


Guarantor


GuarantorFor the Period Ended
    March 31, 2006

Labs


Subs


Subs


Eliminating


ConsolidatedCash flows provided by (used in)
    operations

$
(14,539
)

$
446,317


$
(22,822
)

$
7,605


$
416,561Cash flows from investing
    activitiesProceeds from (purchase of)
    capital assets


(4,380
)


(99,309
)










(103,689
)Purchase of marketable securities






(635,076
)


(51,493
)






(686,569
)Sale of marketable securities






916,730



74,330







991,060Other items, net






(5,710
)










(5,710
)Net cash (used in ) provided from
    investing activities


(4,380
)


176,635



22,837







195,092Cash flows from financing
    activities:Cash dividends paid


(49,772
)














(49,772
)Payment of financing fees


(14,662
)














(14,662
)Proceeds from long-term debt


775,000















775,000Payments on long-term debt


(87,062
)














(87,062
)Purchase of common stock


(1,257,867
)














(1,257,867
)Proceeds from exercise of stock
    options


56,889















56,889Transfer from (to) affiliates


599,624



(599,624
)










Increase in outstanding checks in
    excess of cash in disbursement accounts






(21,788
)










(21,788
)Net cash used in (provided by)
    financing activities


22,150



(621,412
)










(599,262
)Net increase in cash and cash
    equivalents


3,231



1,540



15



7,605



12,391Cash and cash
    equivalents  beginning of year


1,680



126,651



9,402







137,733Cash and cash
    equivalents  end of year

$
4,911


$
128,191


$
9,417


$
7,605


$
150,124   83




---



##### Table of Contents



Non-Mylan


Guarantor


GuarantorFor the Period Ended
    March 31, 2005

Labs


Subs


Subs


Eliminating


ConsolidatedCash flows provided by (used in)
    operations

$
17,190


$
206,283


$
(19,762
)

$



$
203,711Cash flows from investing
    activitiesProceeds from (purchase of)
    capital assets


(1,289
)


(89,457
)










(90,746
)Purchase of marketable securities






(752,697
)


(28,109
)






(780,806
)Sale of marketable securities






641,292



51,997







693,289Other items, net






3,372











3,372Net cash (used in ) provided from
    investing activities


(1,289
)


(197,490
)


23,888







(174,891
)Cash flows from financing
    activities:Cash dividends paid


(32,261
)














(32,261
)Proceeds from exercise of stock
    options


10,068















10,068Transfer from (to) affiliates


3,911



(3,911
)










Increase in outstanding checks in
    excess of cash in disbursement accounts






19,622











19,622Net cash used in financing
    activities


(18,282
)


15,711











(2,571
)Net increase in cash and cash
    equivalents


(2,381
)


24,504



4,126







26,249Cash and cash
    equivalents  beginning of year


4,061



102,147



5,276







111,484Cash and cash
    equivalents  end of year

$
1,680


$
126,651


$
9,402


$



$
137,733   21.
    Subsequent
    event    Accounting for Derivative Instruments and Hedging
    Activities.
 84




---



##### Table of Contents



Managements
    Report on Internal Control over Financial Reporting      Internal Control 
    Integrated Framework
  Form 10-K.
 85




---



##### Table of Contents



Report of
    Independent Registered Public Accounting Firm           Share-Based Payment.
  Internal Control 
    Integrated Framework
     86




---



##### Table of Contents



Report of
    Independent Registered Public Accounting Firm
     Internal
    Control  Integrated Framework
        Internal
    Control  Integrated Framework Internal Control  Integrated
    Framework
 87




---



##### Table of Contents



Share-Based Payment.
     88




---



##### Table of Contents



Mylan
    Laboratories Inc.
 Supplementary Financial Information
  Quarterly Financial Data
   1st


2nd


3rd


4thQuarter


Quarter


Quarter


Quarter


YearFiscal 2007Total revenues

$
356,140


$
366,657


$
401,761


$
487,261


$
1,611,819Gross profit


188,200



196,090



224,531



234,847



843,668Net earnings


75,587



77,541



135,445



(71,289
)(3)


217,284Earnings per
    share(1):Basic

$
0.36


$
0.37


$
0.64


$
(0.31
)(3)

$
1.01Diluted

$
0.35


$
0.36


$
0.63


$
(0.31
)(3)

$
0.99Share
    prices(2):High

$
23.55


$
23.05


$
22.07


$
22.61


$
23.55Low

$
20.00


$
19.06


$
19.91


$
19.42


$
19.06Fiscal 2006Total revenues

$
323,378


$
297,994


$
311,246


$
324,546


$
1,257,164Gross profit


167,834



143,231



155,797



160,754



627,616Net earnings


42,915



35,770



48,207



57,650



184,542Earnings per
    share(1):Basic

$
0.16


$
0.16


$
0.23


$
0.27


$
0.80Diluted

$
0.16


$
0.16


$
0.22


$
0.27


$
0.79Share
    prices(2):High

$
19.85


$
19.84


$
21.61


$
24.92


$
24.92Low

$
15.50


$
17.36


$
19.00


$
19.30


$
15.50     (1)
    
    The sum of earnings per share for the four quarters may not
    equal earnings per share for the total year due to changes in
    the average number of common shares outstanding.(2)
    
    Closing prices as reported on the New York Stock Exchange (NYSE).(3)
    
    Fourth quarter results include the results of Matrix since its
    acquisition on January 8, 2007, and certain purchase
    accounting adjustments, including $147,000 related to acquired
    in- process research and development.  ITEM 9.
    Changes
    in and Disagreements with Accountants on Accounting and
    Financial Disclosure    ITEM 9A.
    Controls
    and Procedures     89




---



##### Table of Contents



ITEM 9B.
    Other
    Information   PART III  ITEM 10.
    Directors,
    Executive Officers and Corporate Governance    Code of
    Ethics
    ITEM 11.
    Executive
    Compensation    ITEM 12.
    Security
    Ownership of Certain Beneficial Owners and Management and
    Related Stockholder Matters    ITEM 13.
    Certain
    Relationships and Related Transactions, and Director
    Independence    ITEM 14.
    Principal
    Accounting Fees and Services   PART IV  ITEM 15.
    Exhibits,
    Financial Statement Schedules  Consolidated Financial Statements
   90




---



##### Table of Contents



Financial Statement Schedules
  MYLAN
    LABORATORIES INC.
    SCHEDULE II  VALUATION AND QUALIFYING
    ACCOUNTS
    (in thousands)
  Additions/Deductions


AdditionsCharged to


Charged toBeginning


Costs and


Other





EndingDescription

Balance


Expenses


Accounts


Deductions


BalanceAllowance for doubtful accounts:Fiscal year endedMarch 31, 2007

$
10,954


$
(500
)

$
4,778
*

$
83


$
15,149March 31, 2006

$
7,340


$
3,614


$



$



$
10,954March 31, 2005

$
5,965


$
2,007


$



$
632


$
7,340      *
    
    Allowance recorded as part of the Matrix acquisition.  Exhibits
  3
.1

Amended and Restated Articles of
    Incorporation of the registrant, as amended, filed as
    Exhibit 3.1 to
    Form 10-Q
    for the quarter ended June 30, 2003, and incorporated
    herein by reference.3
.2

Amended and Restated By-laws of
    the registrant, as amended to date, filed as Exhibit 3.1 to
    the Report on
    Form 8-K
    filed with the SEC on February 22, 2005, and incorporated
    herein by reference.4
.1(a)

Rights Agreement dated as of
    August 22, 1996, between the registrant and American Stock
    Transfer & Trust Company, filed as Exhibit 4.1 to
    Form 8-K
    filed with the SEC on September 3, 1996, and incorporated
    herein by reference.4
.1(b)

Amendment to Rights Agreement
    dated as of November 8, 1999, between the registrant and
    American Stock Transfer & Trust Company, filed as
    Exhibit 1 to
    Form 8-A/A,
    filed with the SEC on March 31, 2000, and incorporated
    herein by reference.4
.1(c)

Amendment No. 2 to Rights
    Agreement dated as of August 13, 2004, between the
    registrant and American Stock Transfer & Trust
    Company, filed as Exhibit 4.1 to the Report on
    Form 8-K
    filed with the SEC on August 16, 2004, and incorporated
    herein by reference.4
.1(d)

Amendment No. 3 to Rights
    Agreement dated as of September 8, 2004, between the
    registrant and American Stock Transfer & Trust
    Company, filed as Exhibit 4.1 to the Report on
    Form 8-K
    filed with the SEC on September 9, 2004, and incorporated
    herein by reference.4
.1(e)

Amendment No. 4 to Rights
    Agreement dated as of December 2, 2004, between the
    registrant and American Stock Transfer & Trust
    Company, filed as Exhibit 4.1 to the Report on
    Form 8-K
    filed with the SEC on December 3, 2004, and incorporated
    herein by reference.4
.1(f)

Amendment No. 5 to Rights
    Agreement dated as of December 19, 2005, between the
    registrant and American Stock Transfer & Trust
    Company, filed as Exhibit 4.1 to the Report on
    Form 8-K
    filed with the SEC on December 19, 2005, and incorporated
    herein by reference.4
.2

Indenture, dated as of
    July 21, 2005, between the registrant and The Bank of New
    York, as trustee, as filed as Exhibit 4.1 to the Report on
    Form 8-K
    filed with the SEC on July 27, 2005, and incorporated
    herein by reference.4
.3

Registration Rights Agreement,
    dated as of July 21, 2005, among the registrant, the
    Guarantors party thereto and Merrill Lynch, Pierce, Fenner and
    Smith Incorporated, BNY Capital Markets, Inc., KeyBanc Capital
    Markets (a Division of McDonald Investments Inc.), PNC Capital
    Markets, Inc. and SunTrust Capital Markets, Inc., filed as
    Exhibit 4.2 to the Report on
    Form 8-K
    filed with the SEC on July 27, 2005, and incorporated
    herein by reference.4
.4

Indenture, dated March 7,
    2007 among the registrant, the Guarantors named therein and The
    Bank of New York, as Trustee, filed as Exhibit 4.1 to the
    Report on
    Form 8-K,
    filed with the SEC on March 7, 2007, and incorporated
    herein by reference. 91




---



##### Table of Contents



4
.5

Confirmation of OTC Convertible
    Note Hedge Transaction, dated March 2, 2007, between
    the registrant and Merrill Lynch International, filed as
    Exhibit 4.2 to the Report on
    Form 8-K,
    filed with the SEC on March 7, 2007, and incorporated
    herein by reference.4
.6

Confirmation of OTC Convertible
    Note Hedge Transaction, dated March 2, 2007, between
    the registrant and JPMorgan Chase Bank, National Association,
    London Branch. filed as Exhibit 4.3 to the Report on
    Form 8-K,
    filed with the SEC on March 7, 2007, and incorporated
    herein by reference.4
.7

Confirmation of OTC Warrant
    Transaction, dated March 1, 2007, between the Company and
    Merrill Lynch International filed as Exhibit 4.4 to
    the Report on
    Form 8-K,
    filed with the SEC on March 7, 2007, and incorporated
    herein by reference.4
.8

Confirmation of OTC Warrant
    Transaction, dated March 1, 2007, between the Company and
    JPMorgan Chase Bank, National Association, London Branch.
    International filed as Exhibit 4.5 to the Report on
    Form 8-K,
    filed with the SEC on March 7, 2007, and incorporated
    herein by reference.4
.9

Confirmation of Additional OTC
    Warrant Transaction, dated March 2, 2007, between the
    Company and Merrill Lynch International. filed as
    Exhibit 4.6 to the Report on
    Form 8-K,
    filed with the SEC on March 7, 2007, and incorporated
    herein by reference.4
.10

Confirmation of Additional OTC
    Warrant Transaction, dated March 2, 2007, between the
    Company and JPMorgan Chase Bank, National Association, London
    Branch filed as Exhibit 4.7 to the Report on
    Form 8-K,
    filed with the SEC on March 7, 2007, and incorporated
    herein by reference.10
.1

Mylan Laboratories Inc. 1986
    Incentive Stock Option Plan, as amended to date, filed as
    Exhibit 10(b) to
    Form 10-K
    for the fiscal year ended March 31, 1993, and incorporated
    herein by reference.*10
.2

Mylan Laboratories Inc. 1997
    Incentive Stock Option Plan, as amended to date, filed as
    Exhibit 10.3 to
    Form 10-Q
    for the quarter ended September 30, 2002, and incorporated
    herein by reference.*10
.3

Mylan Laboratories Inc. 1992
    Nonemployee Director Stock Option Plan, as amended to date,
    filed as Exhibit 10(l) to
    Form 10-K
    for the fiscal year ended March 31, 1998, and incorporated
    herein by reference.*10
.4(a)

Mylan Laboratories Inc. 2003
    Long-Term Incentive Plan, filed as Appendix A to Definitive
    Proxy Statement on Schedule 14A, filed with the SEC on
    June 23, 2003, and incorporated herein by reference.*10
.4(b)

Form of Stock Option Agreement
    under the Mylan Laboratories Inc. 2003 Long-Term Incentive Plan,
    filed as Exhibit 10.4(b) to
    Form 10-K
    for the fiscal year ended March 31, 2005, and incorporated
    herein by reference.*10
.4(c)

Form of Restricted Share Award
    under the Mylan Laboratories Inc. 2003 Long-Term Incentive Plan,
    filed as Exhibit 10.4(c) to
    Form 10-K
    for the fiscal year ended March 31, 2005, and incorporated
    herein by reference.*10
.4(d)

Amendment No. 1 to Mylan
    Laboratories Inc. 2003 Long-Term Incentive Plan, filed as
    Exhibit 10.4(d) to
    Form 10-K
    for the fiscal year ended March 31, 2006, and incorporated
    herein by reference.*10
.4(e)

Amendment No. 2 to Mylan
    Laboratories Inc. 2003 Long-Term Incentive Plan, filed as
    Exhibit 10.4(e) to
    Form 10-K
    for the fiscal year ended March 31, 2006, and incorporated
    herein by reference.*10
.5

Amended and Restated Executive
    Employment Agreement dated as of April 3, 2006, between the
    registrant and Robert J. Coury filed as Exhibit 10.5 to
    Form 10-K
    for the fiscal year ended March 31, 2006, and incorporated
    herein by reference.*10
.6(a)

Executive Employment Agreement
    dated as of July 1, 2004, between the registrant and Edward
    J. Borkowski, filed as Exhibit 10.27 to
    Form 10-Q/A
    for the quarter ended September 30, 2004, and incorporated
    herein by reference.*10
.6(b)

Amendment No. 1 to Executive
    Employment Agreement dated as of April 3, 2006, between the
    registrant and Edward J. Borkowski filed as Exhibit 10.6(b)
    to
    Form 10-K
    for the fiscal year ended March 31, 2006, and incorporated
    herein by reference.*10
.7(a)

Executive Employment Agreement
    dated as of July 1, 2004, between the registrant and John
    P. ODonnell, filed as Exhibit 10.29 to
    Form 8-K,
    filed with the SEC on December 3, 2004, and incorporated
    herein by reference.*10
.7(b)

Amendment No. 1 to Executive
    Employment Agreement dated as of April 3, 2006, between the
    registrant and John P. ODonnell filed as
    Exhibit 10.8(b) to
    Form 10-K
    for the fiscal year ended March 31, 2006, and incorporated
    herein by reference.* 92




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##### Table of Contents



10
.8(a)

Executive Employment Agreement
    dated as of July 1, 2004, between the registrant and Stuart
    A. Williams, filed as Exhibit 10.30 to
    Form 10-Q/A
    for the quarter ended September 30, 2004, and incorporated
    herein by reference.*10
.8(b)

Amendment No. 1 to Executive
    Employment Agreement dated as of April 3, 2006, between the
    registrant and Stuart A. Williams filed as Exhibit 10.9(b)
    to
    Form 10-K
    for the fiscal year ended March 31, 2006, and incorporated
    herein by reference.*10
.8(c)

Amendment No. 2 to Executive
    Employment Agreement dated as of March 31, 2007, between
    the registrant and Stuart A. Williams.*10
.9(a)

Form of Employment Agreement dated
    as of December 15, 2003, between the registrant and certain
    executive officers (other than named executive officers), filed
    as Exhibit 10.18 to
    Form 10-Q
    for the quarter ended December 31, 2003, and incorporated
    herein by reference.*10
.9(b)

Form of Amendment No. 1 to
    Executive Employment Agreement dated as of April 3, 2006,
    between the registrant and certain executive officers (other
    than named executive officers) filed as Exhibit 10.10(b) to
    Form 10-K
    for the fiscal year ended March 31, 2006, and incorporated
    herein by reference.*10
.10(a)

Retirement Benefit Agreement dated
    as of December 31, 2004, between the registrant and Robert
    J. Coury filed as Exhibit 10.7 to
    Form 10-Q
    for the quarter ended December 31, 2004, and incorporated
    herein by reference.*10
.10(b)

Amendment No. 1 to Retirement
    Benefit Agreement dated as of April 3, 2006, between the
    registrant and Robert J. Coury filed as Exhibit 10.11(b) to
    Form 10-K
    for the fiscal year ended March 31, 2006, and incorporated
    herein by reference.*10
.11(a)

Retirement Benefit Agreement dated
    as of December 31, 2004, between the registrant and Edward
    J. Borkowski, filed as Exhibit 10.8 to
    Form 10-Q
    for the quarter ended December 31, 2004, and incorporated
    herein by reference.*10
.11(b)

Amendment No. 1 to Retirement
    Benefit Agreement dated as of April 3, 2006, between the
    registrant and Edward J. Borkowski filed as
    Exhibit 10.12(b) to
    Form 10-K
    for the fiscal year ended March 31, 2006, and incorporated
    herein by reference.*10
.12(a)

Retirement Benefit Agreement dated
    as of December 31, 2004, between the registrant and Stuart
    A. Williams, filed as Exhibit 10.9 to
    Form 10-Q
    for the quarter ended December 31, 2004, and incorporated
    herein by reference.*10
.12(b)

Amendment No. 1 to Retirement
    Benefit Agreement dated as of April 3, 2006, between the
    registrant and Stuart A. Williams filed as Exhibit 10.13(b)
    to
    Form 10-K
    for the fiscal year ended March 31, 2006, and incorporated
    herein by reference.*10
.13(a)

Amended and Restated Retirement
    Benefit Agreement dated as of December 31, 2004, between
    the registrant and Louis J. DeBone, filed as Exhibit 10.10
    to
    Form 10-Q
    for the quarter ended December 31, 2004, and incorporated
    herein by reference.*10
.13(b)

Amendment No. 1 to Amended
    and Restated Retirement Benefit Agreement dated as of
    April 3, 2006, between the registrant and Louis J. DeBone
    filed as Exhibit 10.14(b) to
    Form 10-K
    for the fiscal year ended March 31, 2006, and incorporated
    herein by reference.*10
.14(a)

Amended and Restated Retirement
    Benefit Agreement dated as of December 31, 2004, between
    the registrant and John P. ODonnell, filed as
    Exhibit 10.11 to
    Form 10-Q
    for the quarter ended December 31, 2004, and incorporated
    herein by reference.*10
.14(b)

Amendment No. 1 to Amended
    and Restated Retirement Benefit Agreement dated as of
    April 3, 2006, between the registrant and John P.
    ODonnell filed as Exhibit 10.15(b) to
    Form 10-K
    for the fiscal year ended March 31, 2006, and incorporated
    herein by reference.*10
.15

Retirement Benefit Agreement dated
    January 27, 1995, between the registrant and C.B. Todd,
    filed as Exhibit 10(b) to
    Form 10-K
    for the fiscal year ended March 31, 1995, and incorporated
    herein by reference.*10
.16(a)

Retirement Benefit Agreement dated
    January 27, 1995, between the registrant and Milan Puskar,
    filed as Exhibit 10(b) to
    Form 10-K
    for the fiscal year ended March 31, 1995, and incorporated
    herein by reference.*10
.16(b)

First Amendment to Retirement
    Benefit Agreement dated September 27, 2001, between the
    registrant and Milan Puskar, filed as Exhibit 10.1 to
    Form 10-Q
    for the quarter ended September 30, 2001, and incorporated
    herein by reference.* 93




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##### Table of Contents



10
.17

Split Dollar Life Insurance
    Arrangement between the registrant and the Milan Puskar
    Irrevocable Trust filed as Exhibit 10(h) to
    Form 10-K
    for the fiscal year ended March 31, 1996, and incorporated
    herein by reference.*10
.18(a)

Transition and Succession
    Agreement dated as of December 15, 2003, between the
    registrant and Robert J. Coury, filed as Exhibit 10.19 to
    Form 10-Q
    for the quarter ended December 31, 2003, and incorporated
    herein by reference.*10
.18(b)

Amendment No. 1 to Transition
    and Succession Agreement dated as of December 2, 2004,
    between the registrant and Robert J. Coury, filed as
    Exhibit 10.1 to
    Form 10-Q
    for the quarter ended December 31, 2004, and incorporated
    herein by reference.*10
.18(c)

Amendment No. 2 to Transition
    and Succession Agreement dated as of April 3, 2006, between
    the registrant and Robert J. Coury filed as
    Exhibit 10.19(c) to
    Form 10-K
    for the fiscal year ended March 31, 2006, and incorporated
    herein by reference.*10
.19(a)

Transition and Succession
    Agreement dated as of December 15, 2003, between the
    registrant and Edward J. Borkowski, filed as Exhibit 10.20
    to
    Form 10-Q
    for the quarter ended December 31, 2003, and incorporated
    herein by reference.*10
.19(b)

Amendment No. 1 to Transition
    and Succession Agreement dated as of December 2, 2004,
    between the registrant and Edward J. Borkowski, filed as
    Exhibit 10.2 to
    Form 10-Q
    for the quarter ended December 31, 2004, and incorporated
    herein by reference.*10
.19(c)

Amendment No. 2 to Transition
    and Succession Agreement dated as of April 3, 2006, between
    the registrant and Edward J. Borkowski filed as
    Exhibit 10.20(c) to
    Form 10-K
    for the fiscal year ended March 31, 2006, and incorporated
    herein by reference.*10
.20

Amended and Restated Transition
    and Succession Agreement dated as of April 3, 2006, between
    the registrant and Stuart A. Williams filed as
    Exhibit 10.23 to
    Form 10-K
    for the fiscal year ended March 31, 2006, and incorporated
    herein by reference.*10
.21(a)

Form of Transition and Succession
    Agreement dated as of December 15, 2003, with certain
    executive officers (other than named executive officers), filed
    as Exhibit 10.24 to
    Form 10-Q
    for the quarter ended December 31, 2003, and incorporated
    herein by reference.*10
.21(b)

Amendment No. 1 to Form of
    Transition and Succession Agreement dated as of April 3,
    2006, with certain executive officers (other than named
    executive officers) filed as Exhibit 10.24(b) to
    Form 10-K
    for the fiscal year ended March 31, 2006, and incorporated
    herein by reference.*10
.22

Executives Retirement
    Savings Plan, filed as Exhibit 10.14 to
    Form 10-K
    for the fiscal year ended March 31, 2001, and incorporated
    herein by reference.*10
.23

Supplemental Health Insurance
    Program For Certain Officers of Mylan Laboratories Inc.,
    effective December 15, 2001, filed as Exhibit 10.1 to
    Form 10-Q
    for the quarter ended December 31, 2001, and incorporated
    herein by reference.*10
.24

Mylan Laboratories Inc. Severance
    Plan, filed as Exhibit 10.12 to
    Form 10-Q
    for the quarter ended December 31, 2004, and incorporated
    herein by reference.*10
.25

Form of Indemnification Agreement
    between the registrant and each Director, filed as
    Exhibit 10.31 to
    Form 10-Q/A
    for the quarter ended September 30, 2004, and incorporated
    herein by reference.*10
.26

Description of the
    registrants Director Compensation Arrangements in effect
    as of May 21, 2007.10
.27(a)

Credit Agreement, dated as of
    July 24, 2006, among the registrant, the lenders party
    thereto, including Bank of Tokyo-Mitsubishi UFJ Trust Company,
    Citibank, N.A. and PNC Bank, National Association, as
    Co-Documentation Agents, Merrill Lynch Capital Corporation, as
    Syndication Agent, JPMorgan Chase, National Association, as
    Administrative Agent and J.P. Morgan Securities Inc., as
    Sole Bookrunner and Sole Lead Arranger, filed as
    Exhibit 99.1 to the Report on
    Form 8-K
    filed with the SEC on July 26, 2006, and incorporated
    herein by reference.10
.27(b)

Amendment No. 1 to Credit
    Agreement dated as of March 26, 2007, among the registrant,
    the lenders party thereto, including Bank of Tokyo-Mitsubishi
    UFJ Trust Company, Citibank, N.A. and PNC Bank, National
    Association, as Co-Documentation Agents, Merrill Lynch Capital
    Corporation, as Syndication Agent, JPMorgan Chase, National
    Association, as Administrative Agent and J.P. Morgan
    Securities Inc., as Sole Bookrunner and Sole Lead Arranger. 94




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##### Table of Contents



10
.28

Credit Agreement dated as of
    March 26, 2007 by and among the registrant, Euro Mylan B.V.
    and a syndicate of bank lenders, including J.P. Morgan
    Securities Inc., as sole lead arranger and sole bookrunner,
    Merrill Lynch Pierce, Fenner & Smith Incorporated, as
    syndication agent, The Bank of Tokyo  Mitsubishi UFJ,
    Ltd., New York Branch, Citibank, N.A., PNC Bank, National
    Association and ABN AMRO N.V., as co-documentation agents, and
    JPMorgan Chase Bank, National Association, as administrative
    agent.10
.29(a)

Executive Employment Agreement
    dated as of January 8, 2007, by and between the registrant
    and Prasad Nimmagadda, filed as Exhibit 10.1 to the Report
    on
    Form 8-K,
    filed with the SEC on January 9, 2007, and incorporated
    herein by reference.*10
.29(b)

Secondment Agreement dated as of
    January 8, 2007, by and among the registrant, Mylan
    Singapore Pte. Ltd. and Prasad Nimmagadda.*10
.30

Transition and Succession
    Agreement dated as of January 8, 2007, by and between the
    registrant and Prasad Nimmagadda, filed as Exhibit 10.2 to
    the Report on
    Form 8-K,
    filed with the SEC on January 9, 2007, and incorporated
    herein by reference.*10
.31

Executive Employment Agreement
    dated as of January 31, 2007, by and between the registrant
    and Rajiv Malik.*10
.32

Transition and Succession
    Agreement dated as of January 31, 2007, by and between the
    registrant and Rajiv Malik.*10
.33

Executive Employment Agreement
    dated as of January 31, 2007, by and between the registrant
    and Heather Bresch.*10
.34

Purchase Agreement, dated as of
    March 1, 2007, among the registrant, Merrill
    Lynch & Co. and J.P. Morgan Securities Inc., as
    representatives of the underwriters named therein, filed as
    Exhibit 1.1 to the Report on
    Form 8-K,
    filed with the SEC on March 7, 2007, and incorporated
    herein by reference.10
.35

Purchase Agreement, dated as of
    March 1, 2007, among the registrant, Merrill
    Lynch & Co. and J.P. Morgan Securities Inc., as
    representatives of the underwriters named therein, filed as
    Exhibit 1.2 to the Report on
    Form 8-K,
    filed with the SEC on March 7, 2007, and incorporated
    herein by reference.10
.36

Share Purchase Agreement, dated as
    of August 28, 2006, by and among the registrant, MP
    Laboratories (Mauritius) Ltd, Prasad Nimmagadda, Prasad
    Nimmagadda-HUF, G2 Corporate Services Limited, India Newbridge
    Investments Limited, India Newbridge Partners FDI Limited, India
    Newbridge Coinvestment Limited, Maxwell (Mauritius) Pte. Limited
    and Spandana Foundation filed as Exhibit 10.2 to
    Form 10-Q
    for the quarter ended September 30, 2006, and incorporated
    herein by reference.10
.37

Shareholders Agreement, dated as
    of August 28, 2006, by and among the registrant, India
    Newbridge Investments Limited, India Newbridge Partners FDI
    Limited, India Newbridge Coinvestment Limited, Maxwell
    (Mauritius) Pte. Limited and Prasad Nimmagadda filed as
    Exhibit 10.3 to
    Form 10-Q
    for the quarter ended September 30, 2006, and incorporated
    herein by reference.12
.1

Statement of computation of ratios
    of earnings to fixed charges, filed as Exhibit 12.1 to
    Registration Statement on Form S-3 filed with the SEC on
    February 20, 2007, and incorporated herein by reference.21


Subsidiaries of the registrant.23


Consent of Independent Registered
    Public Accounting Firm.31
.1

Certification of CEO pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002.31
.2

Certification of CFO pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002.32


Certifications of CEO and CFO
    pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.     *
    
    Denotes management contract or compensatory plan or arrangement. 95




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##### Table of Contents



SIGNATURES      by
    /s/  ROBERT
    J. COURY        Signature

Title/s/  ROBERT
    J. COURYRobert
    J. Coury

Vice Chairman, Chief Executive
    Officer and Director (Principal Executive Officer)/s/  EDWARD
    J. BORKOWSKIEdward
    J. Borkowski

Chief Financial Officer(Principal Financial Officer)/s/  DANIEL
    C. RIZZO, Jr.Daniel
    C. Rizzo, Jr.

Vice President and Corporate
    Controller(Principal Accounting Officer)/s/  MILAN
    PUSKARMilan
    Puskar

Chairman and Director/s/  WENDY
    CAMERONWendy
    Cameron

Director/s/  NEIL
    DIMICKNeil
    Dimick

Director/s/  DOUGLAS
    J. LEECHDouglas
    J. Leech

Director/s/  JOSEPH
    C. MAROON, M.D.Joseph
    C. Maroon, M.D.

Director/s/  PRASAD
    NIMMAGADDAPrasad
    Nimmagadda

Director/s/  ROD
    PIATTRod
    Piatt

Director/s/  C.B.
    TODDC.B.
    Todd

Director/s/  R.L.
    VANDERVEEN, PH.D.,
    R.PH.R.L.
    Vanderveen, Ph.D., R.Ph.

Director  96




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##### Table of Contents



EXHIBIT INDEX
  10
.8(c)

Amendment No. 2 to Executive
    Employment Agreement dated as of March 31, 2007, between
    the registrant and Stuart A. Williams.*10
.26

Description of the
    registrants Director Compensation Arrangements in effect
    as of May 21, 2007.10
.27(b)

Amendment No. 1 to Credit
    Agreement dated as of March 26, 2007, among the registrant,
    the lenders party thereto, including Bank of Tokyo-Mitsubishi
    UFJ Trust Company, Citibank, N.A. and PNC Bank, National
    Association, as Co-Documentation Agents, Merrill Lynch Capital
    Corporation, as Syndication Agent, JPMorgan Chase, National
    Association, as Administrative Agent and J.P. Morgan
    Securities Inc., as Sole Bookrunner and Sole Lead Arranger.10
.28

Credit Agreement dated as of
    March 26, 2007 by and among the registrant, Euro Mylan B.V.
    and a syndicate of bank lenders, including J.P. Morgan
    Securities Inc., as sole lead arranger and sole bookrunner,
    Merrill Lynch Pierce, Fenner & Smith Incorporated, as
    syndication agent, The Bank of Tokyo  Mitsubishi UFJ,
    Ltd., New York Branch, Citibank, N.A., PNC Bank, National
    Association and ABN AMRO N.V., as co-documentation agents, and
    JPMorgan Chase Bank, National Association, as administrative
    agent.10
.29(b)

Secondment Agreement dated as of
    January 8, 2007, by and among the registrant, Mylan
    Singapore Pte. Ltd. and Prasad Nimmagadda.*10
.31

Executive Employment Agreement
    dated as of January 31, 2007, by and between the registrant
    and Rajiv Malik.*10
.32

Transition and Succession
    Agreement dated as of January 31, 2007, by and between the
    registrant and Rajiv Malik.*10
.33

Executive Employment Agreement
    dated as of January 31, 2007, by and between the registrant
    and Heather Bresch.*21


Subsidiaries of the registrant.23


Consent of Independent Registered
    Public Accounting Firm.31
.1

Certification of CEO pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002.31
.2

Certification of CFO pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002.32


Certifications of CEO and CFO
    pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.     *
    
    Denotes management contract or compensatory plan or arrangement. 97