The medication, which is made by Novartis, comes in crumb-size granules and is approved to treat tinea capitis, a scalp fungus that typically affects children. It can cause severe itching, dandruff and bald patches.

"A parent's ability to sprinkle it on the food of a child, who may not like to take medicine, should go a long way to helping ensure the infection is properly treated and to limiting its spread," said Steven Galson, director of FDA's drug center.

FDA requested Novartis develop a version of Lamisil palatable to children. Under federal law, FDA can award exclusive marketing rights to companies that develop drugs specially for use in children.

American depositary shares of Novartis AG rose 6 cents Friday to $55.02 in after-hours trading after ending the regular trading session at $54.96, up 29 cents.