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         UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 14902 / May 7, 1996

SECURITIES AND EXCHANGE COMMISSION v. ROYCE LABORATORIES, INC.
and PATRICK J. MCENANY, 96 Civ. 3335 (LLS) (S.D.N.Y.)

     The Securities and Exchange Commission announced today that
it filed a Complaint in the United States District Court for the
Southern District of New York against Patrick J. McEnany
("McEnany") and Royce Laboratories, Inc. ("Royce").  The
Complaint alleges that McEnany, the 48 year old president of
Royce, a Florida pharmaceutical manufacturer, drafted a
materially false and misleading press release ("Release"), which
Royce then issued via P.R. Newswire.  The Release concerned the
approval status of Piroxicam, a generic drug manufactured by
Royce, with the U.S. Food and Drug Administration ("FDA").  In
its Complaint, the Commission seeks to permanently enjoin Royce
and McEnany against future violations of Section 10(b) of the
Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5
thereunder, and seeks civil penalties of $25,000 against McEnany.



     The Release stated that "the FDA is completing its review of
the Company's [Piroxicam] application, and upon the anticipated
receipt of final approval the Company intends to commence
shipments of Piroxicam."  Royce and McEnany allegedly omitted to
disclose in the Release that Royce had been advised by the FDA at
a meeting on April 3, 1992, that the agency was prepared to
withdraw the tentative approval of Piroxicam, which had been
granted on September 9, 1991, and that the FDA was not prepared
to grant final approval to Piroxicam because of problems and
discrepancies in other Royce products.  Royce and McEnany also
allegedly omitted to state in the Release that the FDA had
advised Royce that the it would not grant final approval to
Piroxicam until: (a) the FDA had determined the significance of
the discrepancies in Royce's other products to the reliability of
data and information in the Piroxicam application; and (b) the
FDA had completed a detailed inspection of Royce's Piroxicam
production facilities and a complete review of its Piroxicam
application.  

     Simultaneously with the filing of the Complaint, the
Commission submitted Royce's and McEnany's consents to the entry
of final judgments permanently enjoining each of them from future
violations of Section 10(b) of the Exchange Act and Rule 10b-5
thereunder.  McEnany's final judgment also orders him to pay a
civil penalty of $25,000.  Royce and McEnany neither admit nor
deny the allegations in the Complaint.