Novel 2-amino-5-hydroxy-4-methylpyrimidines and substituted amino derivatives thereof useful as inhibitors of leukotriene synthesis for the treatment of pulmonary, inflammatory and cardiovascular diseases, cancer and psoriasis. In addition these compounds are cytoprotective and therefore useful in the treatment of peptic ulcers. A process for the preparation of such active compounds by ring rearrangement of 2-amino-5-acetyloxazole, pharmaceutical compositions containing the novel active compounds and compositions containing these compounds in combination with other anti-inflammatory agents or gastric anti-secretory agents.