<;p>;The present invention relates to process for preparation of a pharmaceutical composition of mycophenolic acid or salts thereof. In particular, the present invention relates to a process of preparing the pharmaceutical composition comprising use of lactose and microcrystalline cellulose (MCC) in the ratio of amount of lactose to MCC is in the range of about 1.0:6.0 to about 6.0: 1.0. The invention also includes use of composition prepared by such processes in the prophylaxis of organ rejection in patients receiving allogeneic renal transplants.<;/p>;