CollaGenex Pharmaceuticals Announces Granting of Marketing Authorization for Periostat in Canada.

Business Editors/Health/Medical Writers

NEWTOWN, Pa.--(BUSINESS WIRE)--April 3, 2003

CollaGenex Pharmaceuticals, Inc. (Nasdaq:CGPI) today announced that its Canadian licensing partner, Pharmascience Inc., has received a Marketing Authorization from the Canadian Therapeutic Products Program of Health Canada (TPP) for Periostat(R) (doxycycline capsules 20mg).

Pharmascience, Inc. will be responsible for all sales and marketing activity for Periostat in the Canadian market. CollaGenex will receive royalties on sales of Periostat in Canada, along with milestones associated with the achievement of certain specific commercial objectives.

Pharmascience Inc. is a leading Canadian manufacturer and marketer of pharmaceuticals to the medical and dental professions. In particular, the Company has a range of prescription fluoride products that are marketed throughout Canada to dentists using a 5-person professional dental sales force, which will be significantly expanded to support the launch of Periostat.

There are approximately 12,000 dentists in Canada who routinely prescribe drugs.

"Pharmascience's success in obtaining a Marketing Authorization in Canada is particularly gratifying, as the Canadian market represents a significant commercial opportunity for Periostat," said Brian M. Gallagher, PhD, chairman, president and chief executive officer of CollaGenex. "Typically the Canadian market for a pharmaceutical product represents around 10 - 15% of the U.S. market, and contacts made at dental conferences in the United States and elsewhere have suggested that there is a considerable demand for Periostat among Canadian dentists. We believe that this approval represents a real opportunity to expand the Periostat franchise."

"We view the dental pharmaceutical market in Canada as having significant untapped potential," noted Morris Goodman, Chairman of Pharmascience, Inc. "We believe that we can parallel the success of Periostat in the United States, and further strengthen our leadership in providing innovative pharmaceutical therapies to the Canadian dental market. We are currently preparing the product for launch in the second half of 2003."

CollaGenex Pharmaceuticals, Inc. is a specialty pharmaceutical company currently focused on providing innovative medical therapies to the dental and dermatology markets. Currently, the Company's 115-person professional dental pharmaceutical sales force markets Periostat(R), which is indicated as an adjunct to scaling and root planing for the treatment of adult periodontitis.

Periostat(R) 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 sales force also promotes Vioxx(R), a Merck & Co. drug that CollaGenex co-promotes for the treatment of acute dental pain, Denavir(R), a Novartis Group prescription anti-viral medication for the treatment of cold sores, Sirius Laboratories' AVAR(TM) product line for the topical control of acne vulgaris, rosacea and seborrheic dermatitis, and Atridox(R), Atrisorb(R) FreeFlow(TM) and Atrisorb-D(R) FreeFlow(TM), Atrix Laboratories Inc.'s products for the treatment of adult periodontitis.

Research has shown that certain unique properties of the tetracyclines discovered during the development of Periostat may be applicable to other diseases involving inflammation and/or destruction of the body's connective tissues, including acne, rosacea, meibomianitis and cancer metastasis, among others.

CollaGenex is further evaluating Periostat, as well as the new IMPACS(R), to assess whether they are safe and effective in these applications. In addition, CollaGenex has licensed the Restoraderm(TM) technology, a unique, proprietary dermal drug delivery system, in order to develop a range of topical dermatological products with enhanced pharmacologic and cosmetic properties.

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.

This press release contains forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended. Investors are cautioned that forward-looking statements involve risks and uncertainties, which may affect the Company's business and prospects. The Company's business of selling, marketing and developing pharmaceutical products is subject to a number of significant risks, including risks relating to the implementation of the Company's sales and marketing plans for Periostat(R) and other products that the Company markets, the outcome and consequences of the patent litigation against West-ward, risks inherent in research and development activities, risks associated with conducting business in a highly regulated environment and uncertainty relating to clinical trials of products under development, all as discussed in the Company's periodic filings with the U.S. Securities and Exchange Commission.

Periostat(R), Metastat(R), Dermostat(R), Nephrostat(R), Osteostat(R), Arthrostat(R), Rheumastat(R), Corneostat(R), Gingistat(R), IMPACS(R), PS20(TM), The Whole Mouth Treatment(R), Restoraderm(TM) and Dentaplex(R) are United States trademarks of CollaGenex Pharmaceuticals, Inc.

Periostat(R), Nephrostat(R), Optistat(R), Xerostat(R) and IMPACS(TM) are European Community trademarks of CollaGenex Pharmaceuticals, Inc. Periostat(R), Nephrostat(R), Optistat(R), Xerostat(R), IMPACS(R), Dentaplex(R), Restoraderm(R), Dermastat(R), Periocycline(R), Periostatus(R) and Periostan(R) are United Kingdom trademarks of our wholly owned subsidiary, CollaGenex International Limited.

CollaGenex(R), PS20(R), "C" Logo(R) and The Whole Mouth Treatment(R) are European Community and United Kingdom trademarks of CollaGenex International Limited. Periocycline(TM) and Periostan(TM) are European Community Trademarks of CollaGenex International Limited. 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(R) is a trademark of Taisho Pharmaceuticals.

VIOXX(R) is a trademark of Merck & Co., Inc.

AVAR(TM) is a trademark of Sirius Laboratories, Inc.

Atridox(R), Atrisorb(R) and Atrisorb-D(R) are trademarks of Atrix Laboratories, Inc.