CollaGenex’ oral therapy for rosacea will complement Galderma’s topical treatments.

Galderma Pharma plans to purchase CollaGenex Pharmaceuticals for approximately $420 million in cash. CollaGenex’ recently approved oral rosacea therapy will complement Galderma’s topical products. Additionally, Galderma will gain a pipeline of other dermatology compounds.

Under the definitive agreement, Galderma’s U.S. holding company, Galderma Laboratories, will acquire all of the outstanding shares of CollaGenex at $16.60 per share. The offer represents a 29.68% premium over CollaGenex’ closing value yesterday of $12.80. CollaGenex opened trading today at $16.35.

FDA approved Oracea® for the treatment of rosacea in July 2006 reportedly making it the first systemic therapy for this indication. CollaGenex is also developing Col-118 for the treatment of the erythema associated with rosacea. The company is also working on a drug with the potential to provide added benefits for the treatment of psoriasis.

“Oracea, combined with the successful development of Col-118, will enable Galderma to offer physicians and patients a full suite of complementary pharmaceutical products to treat rosacea,” notes Colin W. Stewart, president and CEO of CollaGenex.

Oracea brought in $13.1 million in sales during the third quarter of 2007, the same as the previous quarter. Galderma expects the acquisition to be neutral to net income in 2008 and accretive as of 2009.

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