CollaGenex Pharmaceuticals signs Merger Agreement with Galderma Pharma S.A. Galderma to Initiate Tender Offer for All CollaGenex Shares at $16.60 Per Share

CollaGenex Pharmaceuticals, Inc has entered into a definitive merger agreement with an affiliate of Galderma Pharma S.A., 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 CollaGenex and Galderma.

CollaGenex launched Oracea, 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 becocalcidiol, a product with the potential to provide added benefits for the treatment of psoriasis.

The merger agreement provides for Galderma to acquire CollaGenex in a two-step transaction. The first step will consist of a cash tender offer for all outstanding shares of CollaGenex common stock at a price of $16.60 per share in cash. In the second step, the tender offer will be followed by a merger in which the holders of the outstanding shares of CollaGenex common stock not tendered in the offer will receive the same cash price per share paid in the tender offer.

Upon completion of the merger, CollaGenex will become a wholly-owned subsidiary of Galderma. The tender offer will be conditioned upon the tender of a majority of the outstanding shares of CollaGenex common stock and will also be subject to regulatory clearances and other customary closing conditions.