AMENDMENT, EXTENSION AND NOVATION OF CORE DISTRIBUTION AGREEMENT BY AND BETWEEN MCKESSON CORPORATION AND BRADLEY PHARMACEUTICALS, INC.

Exhibit 10.3

Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidentiality request. Omissions are designated as [*]. A complete version of this exhibit has been filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

CONFIDENTIAL TREATMENT REQUESTED BY BRADLEY PHARMACEUTICALS, INC.

A MENDMENT, E XTENSION AND N OVATION
OF
C ORE D ISTRIBUTION A GREEMENT
BY AND BETWEEN
M C K ESSON C ORPORATION AND B RADLEY P HARMACEUTICALS, I NC.

                  This Agreement is entered into on the last date signed below (the “Effective Date”), by and between B RADLEY P HARMACEUTICALS , I NC . (“Bradley”) and M C K ESSON C ORPORATION (“McKesson”).

                  On September 7, 2005, Bradley and McKesson entered into a “Core Distribution Agreement” effective on October 1, 2004, governing McKesson’s distribution of certain pharmaceutical products marketed by Bradley (the “Agreement”).

                  Now Bradley and McKesson desire to amend the Agreement to extend the term thereof, to provide for renewal terms, to modify inventory levels, and to change the fee structure payable by Bradley to McKesson.

                  Bradley and McKesson now agree as follows:

1.        The language of the following sections of the Agreement are hereby deleted in their entirety and replaced with the following:

Section I.a. McKesson agrees to provide the following core distribution services to the extent customarily performed by a full-range pharmaceutical distributor consistent with the then current industry practices (“Core Services”): inventory distribution of Manufacturer’s products to McKesson’s customers upon their orders therefore; 852 data for prescription products including inventory levels on hand and on order in addition to aggregate sales out; perform back-end administrative services to support the distribution of Manufacturer’s products and the maintenance of efficient inventory levels for servicing customers at the ***% service level.

Attachment A

McKesson Core Distribution Agreement Fee
Service Fee Schedule

A Servic