Court Temporarily Prevents Sales of Generic Versions of Periostat Pend

    Business Editors/Health/Medical Writers

    NEWTOWN, Pa.--(BUSINESS WIRE)--Jan. 24, 2005--CollaGenex Pharmaceuticals, Inc. (NASDAQ:CGPI) today announced that, following a conference with the Honorable Judge Townes in the United States District Court for the Eastern District of New York, IVAX Pharmaceuticals Inc. and CorePharma LLC (the "Defendants") agreed that they would refrain from selling generic versions of Periostat(R) pending review of CollaGenex's motions for a temporary restraining order and a preliminary injunction to prevent Defendants from introducing generic versions of Periostat(R) into the market in the United States. The Court set January 31st as the date for a hearing on the motions, and all parties agreed to a briefing schedule.
    In October 2004 CollaGenex filed a complaint in the United States District Court for the Eastern District of New York alleging that the Defendants' submissions of Abbreviated New Drug Applications ("ANDA's") covering their 20mg tablets of doxycycline hyclate infringe United States Patent RE 34,656, of which CollaGenex is the exclusive licensee. CollaGenex is seeking to prevent Defendants from introducing 20mg tablets of doxycycline hyclate until its patent claims have been resolved.
    Periostat is the brand name of CollaGenex's proprietary 20mg tablets of doxycycline hyclate, and is the only systemic adjunct to scaling and root planing for the treatment of adult periodontitis.
    "We are pleased with these developments," said Colin Stewart, president and chief executive officer of CollaGenex. "We have a valid patent covering Periostat and we will continue to pursue every avenue to enforce our intellectual property rights."
    CollaGenex Pharmaceuticals, Inc. is a specialty pharmaceutical company focused on providing innovative medical therapies to the dental and dermatology markets. Currently, the Company's professional dental pharmaceutical sales force markets Periostat, which is indicated as an adjunct to scaling and root planing for the treatment of adult periodontitis. Periostat is the first and only pharmaceutical to treat periodontal disease by inhibiting the enzymes that destroy periodontal support tissues and by enhancing bone protein synthesis. The dental sales force also promotes Atridox(R), Atrisorb FreeFlow(R) and Atrisorb-D FreeFlow(R), Atrix Laboratories, Inc.'s products for the treatment of adult periodontitis, to the dental market. The Company's professional dermatology sales force markets Pandel(R), a prescription topical corticosteroid licensed from Altana, Inc.
    To receive additional information on the Company, please visit our Web site at www.collagenex.com, which does not form part of this press release.

    Forward-Looking Statements

    Statements in this press release, including statements relating to the litigation with IVAX and CorePharma, may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. CollaGenex' actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including those factors contained in CollaGenex' most recent Annual Report on Form 10-K for the year ended December 31, 2003 and the most recent Form 10-Q for the Quarter ended September 30, 2004 under the sections "Additional Factors That May Affect Future Results" and "Additional Risks That May Affect Results" as well as other documents that may be filed by CollaGenex from time to time with the Securities and Exchange Commission. Forward-looking statements include statements regarding CollaGenex' expectations, beliefs, intentions or strategies regarding the future and can be identified by forward-looking words such as "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "should", "will", and "would" or similar words. CollaGenex assumes no obligations to update the information included in this press release.

    Periostat is a registered trademarks of CollaGenex Pharmaceuticals, Inc.

    All other trade names, trademarks or service marks are the property of their respective owners and are not the property of CollaGenex Pharmaceuticals, Inc. or any of our subsidiaries.

    Pandel is a trademark of Taisho Pharmaceuticals.

    Atridox, Atrisorb and Atrisorb-D are registered trademarks of Atrix Laboratories, Inc.

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CONTACT: CollaGenex Pharmaceuticals, Inc. Nancy C. Broadbent, 215-579-7388 or Financial Dynamics Evan Smith, CFA, 212-850-5606 or Erica Pettit, 212-850-5614

KEYWORD: PENNSYLVANIA NEW YORK INDUSTRY KEYWORD: LEGAL/LAW PHARMACEUTICAL MEDICAL PRODUCT SOURCE: CollaGenex Pharmaceuticals, Inc.

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