CollaGenex Pharmaceuticals Signs Co-Promotion Deal with Novartis Consumer Health to Market Denavir -pencyclovir- to Dentists for the Treatment of Cold Sores.

Business Editors & Health/Medical Writers

NEWTOWN, Pa.--(BUSINESS WIRE)--Oct. 28, 2002

Denavir(R), the Leading Topical Anti-Viral Prescription Treatment

for Cold Sores, Addresses a Market Worth over $230 Million

CollaGenex Pharmaceuticals, Inc. (Nasdaq: CGPI) today announced that it has signed a co-promotion agreement with Novartis Consumer Health to market Denavir(R) (pencyclovir cream) to its target dentists in the United States. Under the terms of the agreement, CollaGenex will receive detailing fees and performance payments from Novartis.

Denavir(R) is a topically applied prescription medication for the treatment of recurrent cold sores in healthy adults. The product is an anti-viral cream that works by stopping viral replication within herpes simplex I infected cells, the virus responsible for the formation of oral lesions. Denavir(R) is the only prescription cream proven to shorten the duration of a cold sore episode. It has been available to doctors and dentists since 1998.

There are over 55 million persons who suffer from recurrent cold sores each year, and the average sufferer experiences two episodes per year. The market for cold sore treatments, both Rx and OTC, is estimated at over $230 million. CollaGenex will market Denavir(R) to dental professionals through its industry-leading 115-person professional pharmaceutical sales force.

"In signing this co-promotion deal with Novartis to market Denavir(R), we add another high-quality prescription pharmaceutical to the line of products detailed by CollaGenex," noted Brian M. Gallagher, PhD, chairman, president and chief executive officer of CollaGenex. "We know from past experience that the brand responds well to targeted promotional efforts of a specialized pharmaceutical sales force. Dentists appreciate that Denavir(R) is a safe, effective product with a proven track record and recognize that it is clearly differentiated from the OTC products which provide only modest symptomatic relief."

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 pharmaceutical sales force markets Periostat(R), 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, Atridox(R), Atrisorb(R) and Atrisorb-D(R), Atrix Laboratories Inc.'s products for the treatment of adult periodontitis, and Pandel(R), a mid-potency corticosteroid licensed from Savage Laboratories.

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 metastasis, among others. CollaGenex is further developing Periostat, as well as a series of novel, proprietary compounds known as IMPACS(TM) (Inhibitors of Multiple Proteases and Cytokines), to address these applications. In addition CollaGenex is developing 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 is not a part of this press release.

Novartis Consumer Health (NCH) manufactures, develops and markets a wide range of branded products, designed to restore, maintain or improve consumer and animal health and well-being. The NCH businesses include Generics, OTC (over-the-counter medicines), Animal Health, Medical Nutrition (including Health and Functional Food until divestment), Infant and Baby (including Gerber) and CIBA Vision. Novartis Consumer Health is a division of Novartis AG (NYSE: NVS) a world leader in pharmaceuticals and consumer health. In 2001, the Group's businesses achieved sales of CHF 32.0 billion and a net income of CHF 7.0 billion. The Group invested approximately CHF 4.2 billion in R&D. Headquartered in Basel, Switzerland, Novartis Group companies employ about 74,000 people and operate in over 140 countries around the world. For further information please consult http://www.novartis.com.

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 that may affect the company's business and prospects. CollaGenex' business of selling, marketing and developing pharmaceutical products is subject to a number of significant risks, including the successful execution of marketing plans; 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), IMPACS(TM) and Restoraderm(TM) are United States trademarks of CollaGenex Pharmaceuticals, Inc. Periostat(R) is a European Community trademark of CollaGenex Pharmaceuticals, Inc.

Periostat(R), IMPACS(TM) and Restoraderm(TM) are United Kingdom trademarks of the Company's wholly owned subsidiary, CollaGenex International Limited. CollaGenex(R) is a European Community and United Kingdom trademark of CollaGenex International Limited.

Pandel(R) is a trademark of Taisho Pharmaceuticals.

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

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

Denavir(R) is a trademark of the Novartis Group.