Galderma Reaches Agreement to Acquire CollaGenex Pharm...( Products and Pipeline to Enhance ...),Health

Products and Pipeline to Enhance Galderma's Position in Dermatology

LAUSANNE, Switzerland and NEWTOWN, Pa., Feb. 26 /PRNewswire/ -- Galderma Pharma S.A., a global specialty pharmaceutical company focused on dermatology, and CollaGenex Pharmaceuticals, Inc. (Nasdaq: CGPI) today announced a definitive agreement pursuant to which Galderma's U.S. holding company, Galderma Laboratories, Inc., will acquire all of the outstanding shares of CollaGenex at a price of $16.60 per share in cash, representing approximately $420 million for the equity of CollaGenex. The transaction was unanimously approved by the boards of directors of Galderma and CollaGenex.

"Galderma is committed to provide innovative medical solutions to dermatology patients and physicians across the globe," said Humberto C. Antunes, Chief Executive Officer of Galderma. "CollaGenex' innovative products complement and enhance Galderma's portfolio. We admire the accomplishments of CollaGenex' employees and believe our combined organizations will be even better positioned to serve patient's needs. This transaction should be neutral to Galderma's net income in 2008 and accretive as of 2009."

CollaGenex launched Oracea(R), the first FDA-approved systemic product indicated for the treatment of rosacea, in July 2006. CollaGenex is also developing Col-118, an innovative product for the treatment of the erythema associated with rosacea. If approved, Col-118 would be the first effective treatment for erythema. In addition, CollaGenex is developing a product with the potential to provide added benefits for the treatment of psoriasis.

"The immediate implication for the U.S. market is very positive," said Albert Draaijer, President of Galderma's U.S. operations. "Coll
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