CollaGenex Pharmaceuticals Initiates Clinical Study of Periostat in Patients with Meibomianitis, a "Dry Eye" Syndrome.

Business Editors/Health & Medical Writers

NEWTOWN, Pa.--(BUSINESS WIRE)--June 17, 2002

Disease affects 15 million adults in the U.S.,

with no FDA-approved systemic therapy for this disease.

CollaGenex Pharmaceuticals, Inc. (Nasdaq:CGPI) today announced that it has initiated a multi-center, double-blinded, placebo-controlled clinical study to evaluate the efficacy of its product, Periostat(R), for the treatment of meibomianitis, also known as ocular rosacea and characterized by symptoms of "dry eye".

There is currently no FDA-approved systemic treatment for meibomianitis.

The study, which will enroll 70 patients, is being conducted by Edward Holland, M.D., Professor of Clinical Ophthalmology at the University of Cincinnati and Director of Cornea Service at the Cincinnati Eye Institute, Stephen Lane, M.D., Clinical Professor of Cornea and External Diseases at the University of Minnesota and Refractive Surgeon at Associated Eye Care located in Stillwater, MN, and Janine Tabas, M.D., Associate Clinical Professor at the Wills Eye Hospital, Philadelphia, PA and Cataract and Refractive Surgeon at Kay & Tabas Ophthalmology Associates in Bala Cynwyd, PA.

"Meibomianitis is a chronic inflammatory disease, with no cure," said Dr. Edward Holland. "The primary mode of treatment is to administer doxycycline at doses of 100 to 200 mg per day, along with daily eyelid hygiene, for long periods of time. This treatment regimen often leads to significant side effects, primarily nausea and diarrhea, and also increases the risk of developing microbial resistance. Anecdotal evidence suggests that Periostat, a 20-mg formulation of doxycycline, may be equally effective in treating meibomianitis without the side effects of high dosage antibiotics."

"The potential to treat meibomianitis with Periostat is based on our knowledge and in-depth understanding of certain mechanisms of action occurring in inflammatory diseases, as well as numerous anecdotal reports from current patients that their dry eye symptoms improved while taking Periostat for periodontitis," said Brian M. Gallagher, PhD, chairman, president and chief executive officer of CollaGenex. "Periostat, the first FDA-approved and commercialized product from our IMPACs technology, has demonstrated the ability to inhibit a number of destructive proteases and cytokines involved in inflammatory processes. We look forward to obtaining the results of this trial, and the potential to offer a novel treatment for patients suffering from this disease."

Meibomianitis is the most frequent diagnosis made by ophthalmologists, affecting more than 15 million people in the United States. The disease is characterized by a chronic inflammation and dysfunction of the meibomian glands, which are located on the eyelids and produce the lipids that comprise the surface layer of tears. Meibomian gland dysfunction often leads to alterations in the composition of tears, causing patients to experience pain, ocular redness, light sensitivity, dry eye and decreased visual acuity.

Symptoms can be ameliorated through the application of artificial tears and other topical applications, although there currently is no FDA-approved systemic medication for meibomianitis.

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 120-person professional dental pharmaceutical sales force markets Periostat, the first and only pharmaceutical to treat periodontal disease by inhibiting the enzymes that destroy periodontal support tissues, Vioxx(R), a Merck & Co. drug that CollaGenex co-promotes for the treatment of acute dental pain, and Atridox(R), Atrisorb(R) and Atrisorb-D(R), Atrix Laboratories Inc.'s products for the treatment of adult periodontitis.

Research has shown that the enzyme suppression technology underlying Periostat may also be applicable to other diseases involving inflammation and/or destruction of the body's connective tissues, including acne, rosacea, meibomianitis and cancer metastases, among others.

CollaGenex is further developing Periostat as well as a series of novel, proprietary compounds known as IMPACS (Inhibitors of Multiple Proteases and Cytokines) to address these applications.

To receive additional information on the Company, please visit our Web site at www.collagenex.com, which is not a part of this press release.

Periostat(R), and IMPACS(R) are trademarks of CollaGenex Pharmaceuticals, Inc.

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

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