| UNITED      STATES                                                                |
|-----------------------------------------------------------------------------------|
| SECURITIES      AND EXCHANGE COMMISSION                                           |
| Washington,      D.C.                                                             |
|                                                                              |
| FORM      10-K                                                                    |
|                                                                              |
| x                                                                  | ANNUAL      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES      EXCHANGE |
|                                                                              | ACT      OF 1934 |
|                                                                              |
| For      the fiscal year ended December 31, 2008                                  |
|                                                                              |
| OR                                                                                |
|                                                                              |
| o                                                                  | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THESECURITIES |
|                                                                              | EXCHANGE      ACT OF 1934 |
|                                                                              |
| For      the transition period from ____________ to    ____________          |
|                                                                              |
| Commission      File number 1-10352                                               |
|                                                                              |
| COLUMBIA LABORATORIES,  INC.                                                      |
| (Exact      name of registrant as specified in its charter)                       |
|                                                                              |
| Delaware                                                                          | 59-2758596 |
| (State      or other jurisdiction of                                              | (I.R.S.      Employer |
| incorporation      or organization)                                               | Identification      No.) |
|                                                                              |
| 354      Eisenhower Parkway                                                       |   |
| Livingston,      New Jersey                                                       | 07039 |
| (Address      of principal executive offices)                                     | (Zip      Code) |
| Registrant’s      telephone number, including area code:(973)      994-3999 |   |
|                                                                              |
|                                                                         | Securities      registered pursuant to Section 12(b) of the Act: None |
|                                                                              |
|                                                                              | Securities      registered pursuant to Section 12(g) of the Act: |
|                                                                              |
| Common      Stock, $.01 par value                                                 | NASDAQ      Global Market |
| (Title      of each class)                                                        | (Name      of exchange on which |
|                                                                              | registered) |

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| Large      accelerated filer | o      |   | Accelerated      filer         | x      |   |   |   |
|------------------------------|--------|--------|--------------------------------|--------|--------|--------|--------|
|                         |   |   |                           |   |   |   |   |
| Non-accelerated      filer   | o      |   | Smaller      reporting company | o      |   |   |   |

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|          |                                                                                                                             | Page   |
|---------------|----------------------------------------------------------------------------------------------------------------------------------|--------|
| Part      I   |                                                                                                                             |   |   |
| Item      1   | Business                                                                                                                         |   | 1 |
| Item      1A  | Risk      Factors                                                                                                                |   | 18 |
| Item      1B  | Unresolved      Staff Comments                                                                                                   |   | 26 |
| Item      2   | Properties                                                                                                                       |   | 26 |
| Item      3   | Legal      Proceedings                                                                                                           |   | 26 |
| Item      4   | Submission      of Matters to a Vote of Security Holders                                                                         |   | 27 |
|          |
| Part      II  |
| Item      5   | Market      for the Registrant’s Common Equity, Related Stockholder Matters and Issuer      Purchases of Equity Securities |   | 29 |
| Item      6   | Selected      Financial Data                                                                                                     |   | 33 |
| Item      7   | Management’s      Discussion and Analysis of Financial Condition and Results of      Operations                            |   | 34 |
| Item      7A  | Quantitative      and Qualitative Disclosures about Market Risks                                                                 |   | 47 |
| Item      8   | Financial      Statements and Supplementary Data                                                                                 |   | 47 |
| Item      9   | Changes      in and Disagreements with Accountants on Accounting and Financial      Disclosures                                  |   | 47 |
| Item      9A  | Controls      and Procedures                                                                                                     |   | 47 |
| Item      9B  | Other      Information                                                                                                           |   | 50 |
|          |
| Part      III |
| Item      10  | Directors      and Executive Officers of the Registrant                                                                          |   | 51 |
| Item      11  | Executive      Compensation*                                                                                                     |   | 51 |
| Item      12  | Security      Ownership of Certain Beneficial Owners and Management and  Related      Stockholder Matters*                  |   | 51 |
| Item      13  | Certain      Relationships and Related Transactions*                                                                             |   | 51 |
| Item      14  | Principal      Accountant Fees and Services *                                                                                    |   | 41 |
|          |
| Part      IV  |
| Item      15  | Exhibits      and Financial Statement Schedules                                                                                  |   | 52 |

| * | Items      11, 12, 13, 14 and portions of Item 10 are incorporated by reference to      the Company’s 2009 Proxy Statement. |
|---|-----------------------------------------------------------------------------------------------------------------------------------|

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PART I

We have focused on infertility but our development pipeline alsofocuses on the broader women's reproductive healthcare market because we believethat vaginal delivery is a particularly effective way to deliver activeingredients to the female reproductive organs.

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|   |   |
|--------|--------|

----

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|   | ·        | CRINONE             8% progesterone gel marketed and sold by us in the U.S. |
|--------|--------------------|----------------------------------------------------------------------------------|
|   |               |                                                                             |
|   | ·        | CRINONE      8% sold by us to Merck Serono for resale outside the  U.S.          |
|   |               |                                                                             |
|   | ·        | PROCHIEVE      8% progesterone gel sold by us in the U.S.                        |
|   |               |                                                                             |
|   | ·        | PROCHIEVE      4% progesterone gel sold to Ascend for sale in the  U.S.          |

|   | ·        | STRIANT      testosterone buccal system marketed by us in the U.S.               |
|--------|--------------------|-------------------------------------------------------------------------------------------------|
|   |               |                                                                                            |
|   | ·        | STRIANT      sold to MiPharm for resale in Italy.                                               |
|   |               |                                                                                            |
|   | ·        | Replens® Vaginal      Moisturizer sold to Lil' Drug Store for resale outside the      U.S. |
|   |               |                                                                                            |
|   | ·        | RepHresh® Vaginal Gel      sold to Lil' Drug Store for resale on a worldwidebasis.         |
|   |               |                                                                                            |
|   | ·        | Royalty      and licensing revenues.                                                            |

----

In September 2007, we licensed PROCHIEVE 4% (which is marketedonly in the U.S.) to Ascend Therapeutics, Inc. (“Ascend”) to market this producteffective January 1, 2008 under a five year license and supply agreement. MerckSerono suspended any promotional support for the 4% progesterone vaginal geloutside the U.S. but maintains the marketing rights.

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----

----

----

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Under the marketing sublicense, the Company paid Merck Serono aroyalty equal to 30% of net sales on all PROCHIEVE sales and an additional 40%royalty on all PROCHIEVE sales dispensed to patients of physicians on Serono’starget list of fertility specialists. Conversely, Merck Serono paid the Companyan additional royalty of 40% of CRINONE net sales on all CRINONE sales dispensedto patients of physicians outside its target list of fertility specialists inthe U.S. In December 2006, the Company and Merck Serono agreed to terminateMerck Serono’s U.S. marketing rights for CRINONE and terminate the Company’smarketing sublicense to PROCHIEVE. As a result, the Company holds the U.S.marketing rights to both CRINONE and PROCHIEVE brand progesterone vaginal gel,and Merck Serono retains the marketing rights to CRINONE for the rest of theworld.

In May 2000, the Company licensed Advanced Formula LegatrinPM®,a product for the relief of occasional pain and sleeplessness associated withminor muscle aches, to Lil’ Drug Store. Lil’ Drug Store pays the Company aroyalty of 20% of the net sales of the product. The license agreement had aninitial five-year term with provisions for automatic renewal. The license forAdvanced Formula Legatrin PM was renewed to May 2010.

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Patents, Trademarks andProprietary Information

| Year      Granted |   | Nature      of Patent                                                                                                                                               |
|-------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2006              |   | Bioadhesive      progressive hydration tablets using desmopressin or prostaglandin E2 as      the active                                                            |
|              |   |                                                                                                                                                                |
| 2004              |   | Compositions      and methods for safely preventing or treating premature labor using a      beta-adrenergic agonist, such as terbutaline.                          |
|              |   |                                                                                                                                                                |
| 2004              |   | Methods      of safely treating endometriosis or infertility, and for improving      fertility, using a beta-adrenergic agonist.                                    |
|              |   |                                                                                                                                                                |
| 2003              |   | Use      of progestin therapy for maintaining amenorrhea.                                                                                                           |
|              |   |                                                                                                                                                                |
| 2003              |   | Bioadhesive      progressive hydration tablet.                                                                                                                      |
|              |   |                                                                                                                                                                |
| 2002              |   | Use      of certain polycarboxylic acid polymers for vaginal pH buffering to      prevent miscarriage and premature labor associated with bacterial      vaginosis. |

----

| Subject of patent                             |   | Year      of Expiration |   | Product      or Project                                                                                      |
|----------------------------------------------------|--------|-------------------------|--------|--------------------------------------------------------------------------------------------------------------|
| Progressive      hydration tablets                 |   | 2019                    |   | STRIANT—testosterone      progressive hydration vaginal tablet—peptide      delivery system      |
|                                               |   |                    |   |                                                                                                         |
|                                               |   |                    |   |                                                                                                         |
| First      Uterine Pass Effect™              |   | 2018                    |   | vaginally      administered lidocaine—terbutaline      vaginal gel—testosterone      vaginal gel |
|                                               |   |                    |   |                                                                                                         |
|                                               |   |                    |   |                                                                                                         |
|   Progesterone      delivery   |   |   2013        |   |   CRINONE      /PROCHIEVE                                                                          |
|                                               |   |                    |   |                                                                                                         |

----

|   | ·        | CRINONE             8% progesterone gel marketed and sold by us in the U.S. |
|--------|--------------------|----------------------------------------------------------------------------------|
|   |               |                                                                             |
|   | ·        | CRINONE      8% sold by us to Merck Serono for resale outside the  U.S.          |
|   |               |                                                                             |
|   | ·        | PROCHIEVE      8% progesterone gel sold by us in the U.S.                        |
|   |               |                                                                             |
|   | ·        | PROCHIEVE      4% progesterone gel sold to Ascend for sale in the  U.S.          |

|   | ·        | STRIANT      testosterone buccal system marketed by us in the U.S.               |
|--------|--------------------|-------------------------------------------------------------------------------------------------|
|   |               |                                                                                            |
|   | ·        | STRIANT      sold to MiPharm for resale in Italy.                                               |
|   |               |                                                                                            |
|   | ·        | Replens® Vaginal      Moisturizer sold to Lil' Drug Store for resale outside the      U.S. |
|   |               |                                                                                            |
|   | ·        | RepHresh® Vaginal Gel      sold to Lil' Drug Store for resale on a worldwidebasis.         |
|   |               |                                                                                            |
|   | ·        | Royalty      and licensing revenues.                                                            |

----

|   | ·        | Perceived      efficacy of our products;                                                              |
|--------|--------------------|-------------------------------------------------------------------------------------------------------|
|   |               |                                                                                                  |
|   | ·        | Convenience      and ease of administration;                                                          |
|   |               |                                                                                                  |
|   | ·        | Prevalence      and severity of adverse side effects in both clinical trials and      commercial use; |
|   |               |                                                                                                  |
|   | ·        | Availability      of alternative treatments;                                                          |
|   |               |                                                                                                  |
|   | ·        | Cost      effectiveness;                                                                              |
|   |               |                                                                                                  |
|   | ·        | The      pricing of our products; and                                                                 |
|   |               |                                                                                                  |
|   | ·        | Our      ability to obtain third party coverage or reimbursement for our      products.               |

|   | ·        | The      effectiveness of our production, distribution and marketing      capabilities;        |
|--------|--------------------|------------------------------------------------------------------------------------------------|
|   |               |                                                                                           |
|   | ·        | The      successful marketing of our products by our distribution and marketing      partners; |
|   |               |                                                                                           |
|   | ·        | The      success of competing products; and                                                    |
|   |               |                                                                                           |
|   | ·        | The      availability and extent of reimbursement from third party      payors.                |

----

|                              |   | 2008 |   | 2007 |   | 2006 |   |
|-----------------------------------|--------|------|--------|------|--------|------|--------|
| CRINONE®                     |   | 59%  |   | 64%  |   | 39%  |   |
| RepHresh®                    |   | 9%   |   | 11%  |   | 4%   |   |
| Replens®                     |   | 8%   |   | 8%   |   | 16%  |   |
| PROCHIEVE®                   |   | 7%   |   | 5%   |   | 16%  |   |
| STRIANT®                     |   | 6%   |   | 7%   |   | 5%   |   |
| Royalty      income               |   | 9%   |   | 2%   |   | 12%  |   |
| Sales      force promotional fees |   | 0%   |   | 0%   |   | 4%   |   |
| Licensing      fees               |   | 2%   |   | 3%   |   | 4%   |   |
|                              |   | 100% |   | 100% |   | 100% |   |

----

| in      millions                    | 2008                                                                  |   | 2007                                                                  |   | 2006                                                                  |   |
|-------------------------------------|-----------------------------------------------------------------------|--------|-----------------------------------------------------------------------|--------|-----------------------------------------------------------------------|--------|
|                                |                                                                  |   |                                                                  |   |                                                                  |   |
| Merck-Serono      (formerly Serono) |  $        9.2            |   |  $        8.2            |   |  $        8.2            |   |
| Lil'      Drug Store Products, Inc. |            6.2 |   |            6.0 |   |            4.6 |   |
| Cardinal      Healthcare            |            5.6 |   |            6.0 |   |            2.1 |   |
| McKesson                            |            5.0 |   |            3.9 |   |            1.9 |   |
| All      others (none over 5%)      |          10.3            |   |            5.5 |   |            0.6 |   |
|                                |  $      36.3                       |   |  $      29.6                       |   |  $      17.4                       |   |
|                                |                                                                  |   |                                                                  |   |                                                                  |   |

| in      millions              | 2008                                                                  |   | 2007                                                                  |   | 2006                                                                  |   |
|-------------------------------|-----------------------------------------------------------------------|--------|-----------------------------------------------------------------------|--------|-----------------------------------------------------------------------|--------|
|                          |                                                                  |   |                                                                  |   |                                                                  |   |
| United      States            |  $      18.1                       |   |  $      15.2                       |   |  $        8.0            |   |
| Switzerland                   |            9.2 |   |            8.1 |   |            5.7 |   |
| Other      European Countries |            9.0 |   |            6.3 |   |            3.7 |   |
| Subtotal      International   |          18.2            |   |          14.4            |   |            9.4 |   |
|                          |  $      36.3                       |   |  $      29.6                       |   |  $      17.4                       |   |
|                          |                                                                  |   |                                                                  |   |                                                                  |   |

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|   | ·        | Clinical      trials may show our product candidates to be ineffective for the      indications studied or to have harmful side effects;                                |
|--------|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |               |                                                                                                                                                                    |
|   | ·        | Product      candidates may fail to receive regulatory approvals required to bring the      products to market;                                                         |
|   |               |                                                                                                                                                                    |
|   | ·        | Manufacturing      costs or other factors may make our product candidates uneconomical;      and                                                                        |
|   |               |                                                                                                                                                                    |
|   | ·        | The      proprietary rights of others and their competing products and technologies      may prevent our product candidates from being effectively      commercialized. |

|   | ·        | The      rate of patient enrollment, which is a function of factors including the      size of the patient population, the proximity of patients to clinical      sites, the eligibility criteria for the study, and the nature of the study      protocol; |
|--------|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |               |                                                                                                                                                                                                                                                        |
|   | ·        | Institutional      review board, or IRB, approval of the study protocol and the informed      consent form;                                                                                                                                                 |
|   |               |                                                                                                                                                                                                                                                        |
|   | ·        | Prior      regulatory agency review and approval;                                                                                                                                                                                                           |
|   |               |                                                                                                                                                                                                                                                        |
|   | ·        | Analysis      of data obtained from clinical activities, which are susceptible to      varying interpretations and which interpretations could delay, limit or      prevent regulatory approval;                                                            |
|   |               |                                                                                                                                                                                                                                                        |
|   | ·        | Changes      in the policies of regulatory authorities for drug approval during the      period of product development; and                                                                                                                                 |
|   |               |                                                                                                                                                                                                                                                        |
|   | ·        | The      availability of skilled and experienced staff to conduct and monitor      clinical studies and to prepare the appropriate regulatory      applications.                                                                                            |

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|   | ·        | Our      ability to raise any additional funds that we need to complete our      trials;                                                                             |
|--------|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |               |                                                                                                                                                                 |
|   | ·        | The      number and outcome of clinical trials conducted by us and/or our      collaborators;                                                                        |
|   |               |                                                                                                                                                                 |
|   | ·        | The      number of products we may have in clinical development;                                                                                                     |
|   |               |                                                                                                                                                                 |
|   | ·        | In      licensing or other partnership activities, including the timing and amount      of related development funding, license fees or milestone payments;      and |
|   |               |                                                                                                                                                                 |
|   | ·        | Future      levels of our revenue.                                                                                                                                   |

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|   | ·        | A      product candidate may not be deemed to be safe or    effective;                                                           |
|--------|--------------------|----------------------------------------------------------------------------------------------------------------------------------|
|   |               |                                                                                                                             |
|   | ·        | The      manufacturing processes or facilities we have selected may not meet the      applicable requirements; and               |
|   |               |                                                                                                                             |
|   | ·        | Changes      in their approval policies or adoption of new regulations may require      additional clinical trials or otherdata. |

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Ourproducts could demonstrate hormone replacement risks.

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Bio-Mimetics, Inc. held the patent upon which our originalBioadhesive Delivery System, or BDS, was based and granted us a license underthat patent. Bio-Mimetics’ patent contained broad claims covering controlledrelease products that include a bioadhesive. However, this U.S. patent and itscorresponding foreign patents expired in November 2003. Based upon theexpiration of the original Bio-Mimetics patent, other parties will be permittedto make, use or sell products covered by the claims of the Bio-Mimetics patent,subject to other patents, including those which we hold. We have obtainednumerous patents with claims covering improved methods of formulating anddelivering therapeutic compounds using the BDS. We cannot assure you that any ofthese patents will enable us to prevent infringement, or that our competitorswill not develop alternative methods of delivering compounds, potentiallyresulting in competitive products outside the protection that may be afforded byour patents. Other companies may independently develop or obtain patent orsimilar rights to equivalent or superior technologies or processes.Additionally, although we believe that our patented technology has beenindependently developed and does not infringe on the proprietary rights ofothers, we cannot assure you that our products do not and will not infringe onthe proprietary rights of others. In the event of infringement, we may berequired to modify our technology or products, obtain licenses or pay licensefees. We may not be able to do so in a timely manner or upon acceptable termsand conditions. This may have a material adverse effect on ouroperations.

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We currently purchase testosterone from only one supplier andprogesterone from two suppliers. If our suppliers are unable or unwilling tosatisfy our needs, we will be required to seek alternative sources of supply.While several alternative sources of progesterone and testosterone exist, thetime needed to obtain regulatory approvals for new suppliers may impair ourability to manufacture and sell our products.

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We could be negatively impacted by future interpretation orimplementation of federal and state fraud and abuse laws, includinganti-kickback laws, false claims laws and federal and state anti-referrallaws.

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Item 1B. Unresolved StaffComments

| Location            |   | Use    |                           | Square      feet |   | Expiration |   | Annual      Rent |                 |
|---------------------|--------|--------|--------------------------------|------------------|--------|------------|--------|------------------|----------------------|
| Livingston,      NJ |   |   | Corporate      office          |             |   | 9,450      |   |             | October,      2013   |   | $ | 214,594 |   |
| Paris,      France  |   |   | European      logistics office |             |   | 150        |   |             | 3      months notice |   | $ | 16,043 |   |

----

Executive Officers and Directors ofthe Registrant

| Name                                |   | Age            |   | Position      with the Company                                    |
|-------------------------------------|--------|----------------|--------|-------------------------------------------------------------------|
| Robert      S. Mills                |   | 56             |   | President      and Chief Executive Officer, Director              |
| Michael      McGrane                |   | 59             |   | Senior      Vice President, General Counsel and Secretary         |
| James      A. Meer                  |   | 63             |   | Senior      Vice President, Chief Financial Officer and Treasurer |
| Stephen      G. Kasnet              |   | 62             |   | Chairman      of the Board                                        |
| Edward      A. Blechschmidt         |   | 56             |   | Vice      Chairman of the Board                                   |
| Valerie      L. Andrews             |   | 49             |   | Director                                                          |
| Anthony      R. Campbell            |   | 61             |   | Director                                                          |
| Frank      C. Condella              |   | 54             |   | Director                                                          |
| James      S. Crofton               |   | 56             |   | Director                                                          |
| Denis      M. O’Donnell, M.D. |   | 55             |   | Director                                                          |
| Selwyn      P. Oskowitz, M.D.  |   | 63   |   | Director                                                     |

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Code of Ethics

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|                                     |   | High   |   | Low    |   |
|------------------------------------------|--------|--------|--------|--------|--------|
|                                     |   |   |   |   |   |
| Fiscal Year Ended December 31,      2007 |   |
| First      Quarter                       |   | $      | 5.25   |   | $      | 1.04 |   |
| Second      Quarter                      |   |   | 3.20   |   |   | 1.29 |   |
| Third      Quarter                       |   |   | 2.72   |   |   | 2.00 |   |
| Fourth      Quarter                      |   |   | 2.96   |   |   | 2.03 |   |
|                                     |   |   |   |   |   |   |   |
| Fiscal Year Ended December 31,      2008 |
| First      Quarter                       |   | $      | 2.51   |   | $      | 1.89 |   |
| Second      Quarter                      |   |   | 4.29   |   |   | 2.13 |   |
| Third      Quarter                       |   |   | 4.47   |   |   | 2.15 |   |
| Fourth      Quarter                      |   |   | 2.76   |   |   | .92 |   |

----

On December 22, 2006, the Company raised approximately $40million in gross proceeds to the Company from the issuance and sale ofconvertible subordinated notes. The notes bear interest at a rate of 8% perannum and mature on December 31, 2011. They are convertible into shares ofCommon Stock at a conversion price of $5.25. Investors also received warrants topurchase 2,285,714 shares of Common Stock at an exercise price of $5.50 pershare. The warrants became exercisable on June 20, 2007, and expire on December22, 2011, unless earlier exercised or terminated. The Company used the proceedsof this offering to acquire from Merck Serono the U.S. marketing rights toCRINONE for $33 million, purchase Serono’s current inventory of that product,and pay other costs related to the transaction. On April 1, 2007, the Companyrecorded a liability from the contract with Merck Serono for certain salesreturns associated with sales made by Merck Serono. The Company recorded theestimated liability of $1,000,000 as an increase in the purchase price that isbeing amortized aver the remaining term of the license. The balance ofapproximately $3.7 million was used for general corporatepurposes.

| Plan      Category                                              |   | Number      of securities to be issued upon exercise of outstanding options, warrants      and rights |      | Weighted      average exercise price of outstanding options, warrants and      rights |   | Number      of securities remaining available for future issuance under equity      compensation plans (excluding securities reflected in column      (a)) |   |
|-----------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------|-----------|---------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                            |   | (a)                                                                                                   |      | (b)                                                                                   |   | (c)                                                                                                                                                        |   |
| Equity      compensation plans approved by security holders     |   |                                                                                                  | 4,863,488 |                                                                                  | $      | 3.47                                                                                                                                                       |   |   | 7,453,221 |   |
| Equity      compensation plans not approved by security holders |   |                                                                                                  | 625,000   |                                                                                  | $      | 7.28                                                                                                                                                       |   |   | 0 |   |
| Total                                                           |   |                                                                                                  | 5,488,488 |                                                                                  | $      | 3.91                                                                                                                                                       |   |   | 7,453,221 |   |

----

The equity compensation plan not approved by the security holdersrepresents 10 year warrant grants to key executives of the Company in 1999 and2001.

----

Performance Graph

|        Comparison of      Five-Year Cumulative Total Return*                             |
|-----------------------------------------------------------------------------------------------|
|   Columbia Laboratories, Inc.,      Russell 2000 Index, Value Line Drug, And Peer  Group |
|   (Performance      Results Through 12/31/08)                                            |

| *      Assumes $100 invested at the close of trading on December 31, 2003 in      Columbia Laboratories, Inc. Common Stock, Russell 2000 Index, Value Line      Drug, and Peer Group. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                  |
|   Source: Value Line,      Inc.                                                                                                                                                  |
|                                                                                                                                                                                  |   |   |   |   |   |   |
| Factual      material is obtained from sources believed to be reliable, but the      publisher is not responsible for any errors or omissions contained      herein.                  |

----

Item 6. Selected FinancialData

Financial Highlights

|                                                  |   |   |                                                         |                                                                           |                                                         |                                             |                                 |                                             |                                            |                                             |                                 |                                             |                                 |
|-------------------------------------------------------|--------|--------|--------------------------------------------------------------|--------------------------------------------------------------------------------|--------------------------------------------------------------|--------------------------------------------------|--------------------------------------|--------------------------------------------------|-------------------------------------------------|--------------------------------------------------|--------------------------------------|--------------------------------------------------|--------------------------------------|
|                                                  |   |   |                                                         |                                                                           | 2008                                                         |                                             | 2007                                 |                                             | 2006                                            |                                             | 2005                                 |                                             | 2004                                 |
|                                                  |   |   |                                                         |                                                                           |                                                         |                                             |                                 |                                             |                                            |                                             |                                 |                                             |                                 |
| Statement      of Operations Data:                    |   |   |                                                         |                                                                           |                                                         |                                             |                                 |                                             |                                            |                                             |                                 |
| (000's      except per share data)                    |   |   |                                                         |                                                                           |                                                         |                                             |                                 |                                             |                                            |                                             |                                 |
|                                                  |   |   |                                                         |                                                                           |                                                         |                                             |                                 |                                             |                                            |                                             |                                 |                                             |                                 |
| Net      Revenues                                     |   |   |                                                         | $36,340                                                                        |                                                         | $29,627                                          |                                 | $17,393                                          |                                            | $22,041                                          |                                 | $17,860                                          |
| Gross      Profit                                     |   |   |                                                         |                                                                           |          25,406 |                                             |      20,613 |                                             |        9,573 |                                             |      13,929 |                                             |      10,072 |
| Operating      Expenses                               |   |   |                                                         |          32,663                   |                                                         |      28,721             |                                 |      20,733             |                                            |      21,160             |                                 |      32,044             |
| Interest      Expense                                 |   |   |                                                         |            7,882        |                                                         |        7,946  |                                 |        2,670  |                                            |        3,491  |                                 |        3,928  |
| Net      Loss                                         |   |   |                                                         |                                                                           |         (14,077)     |                                             |    (14,292)           |                                             |    (12,485)                      |                                             |    (10,104)           |                                             |    (26,067)           |
| Loss      per common share                            |   |   |                                                         |             (0.27) |                                                         |        (0.28) |                                 |        (0.26) |                                            |        (0.25) |                                 |        (0.64) |
| Weighted      average number of common                |   |   |                                                         |                                                                           |                                                         |                                             |                                 |                                             |                                            |                                             |                                 |
|   shares      outstanding-basic and diluted |   |   |          52,439 |                                                                           |      51,124                         |                                             |      48,089 |                                             |      41,752            |                                             |      40,984 |
|                                                  |   |   |                                                         |                                                                           |                                                         |                                             |                                 |                                             |                                            |                                             |                                 |                                             |                                 |
| Balance      Sheet Data at December 31                |   |   |                                                         |                                                                           |                                                         |                                             |                                 |                                             |                                            |                                             |                                 |
| (000's)                                               |   |   |                                                         |                                                                           |                                                         |                                             |                                 |                                             |                                            |                                             |                                 |                                             |                                 |
|                                                  |   |   |                                                         |                                                                           |                                                         |                                             |                                 |                                             |                                            |                                             |                                 |                                             |                                 |
| Working      capital (deficiency)                     |   |   | $12,305                                                      |                                                                           | $14,461                                                      |                                             | $23,410                              |                                             | ($3,471)                                        |                                             | $9,303                               |
| Total      Assets                                     |   |   |                                                         |                                                                           | 45,622                                                       |                                             | 56,589                               |                                             | 65,839                                          |                                             | 14,732                               |                                             | 29,268                               |
| Notes      payable                                    |   |   |                                                         | 30,075                                                                         |                                                         | 27,536                                           |                                 | 25,299                                           |                                            | -                                                |                                 | -                                                |
| Long-term      portion of financing agreements        |   | 13,126 |                                                         | 11,426                                                                         |                                                         | 13,277                                           |                                 | 10,921                                           |                                            | 20,299                                           |
| Redeemable      Preferred Series C Stock              |   |   | 775                                                          |                                                                           | 1,125                                                        |                                             | 3,200                                |                                             | 3,250                                           |                                             | 3,250                                |
| Shareholders'      equity (deficiency)                |   |   | (5,893)                                                      |                                                                           | 2,015                                                        |                                             | 12,616                               |                                             | (20,573)                                        |                                             | (17,157)                             |

----

|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | · | Continued      strong presence at the annual meeting of the American Society of      Reproductive Medicine in 2008, which we believe effectively emphasized our      objective of becoming a major player in the market for infertility      treatments                                                                                                                                                                                                                                                                                                                           |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | · | Emphasis      on marketing materials showing 16 clinical trials that have been conducted      to compare CRINONE to other forms of progesterone, which provided us with      a compelling case for the efficacy of CRINONE. We believe that these data      show that CRINONE is as effective as, and in some cases numerically more      effective than other delivery systems for progesterone. In the six      clinical trials that included an arm evaluating patient preference,      patients preferred CRINONE over the competing product in all six clinical      trials; |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | · | Meetings      of our Infertility Advisory Committee of respected reproductive      endocrinologists from around the United States who provide us with insight      on how to best communicate to physicians and patients all the clinical      information that is available for CRINONE                                                                                                                                                                                                                                                                                          |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | · | Outreach      to key opinion leaders and a number of reproductive endocrinologists who      have agreed to speak on behalf ofCRINONE                                                                                                                                                                                                                                                                                                                                                                                                                                              |

----

----

|   | ·        | CRINONE             8% progesterone gel marketed and sold by us in the U.S. |
|--------|--------------------|----------------------------------------------------------------------------------|
|   |               |                                                                             |
|   | ·        | CRINONE      8% sold by us to Merck Serono for resale outside the  U.S.          |
|   |               |                                                                             |
|   | ·        | PROCHIEVE      8% progesterone gel sold by us in the U.S.                        |
|   |               |                                                                             |
|   | ·        | PROCHIEVE      4% progesterone gel sold to Ascend for sale in the  U.S.          |

|   | ·        | STRIANT      testosterone buccal system marketed by us in the U.S.               |
|--------|--------------------|-------------------------------------------------------------------------------------------------|
|   |               |                                                                                            |
|   | ·        | STRIANT      sold to MiPharm for resale in Italy.                                               |
|   |               |                                                                                            |
|   | ·        | Replens® Vaginal      Moisturizer sold to Lil' Drug Store for resale outside the      U.S. |
|   |               |                                                                                            |
|   | ·        | RepHresh® Vaginal Gel      sold to Lil' Drug Store for resale on a worldwidebasis.         |
|   |               |                                                                                            |
|   | ·        | Royalty      and licensingrevenues.                                                             |

----

 

| (In      thousands, except percentages) | 2008    |   | Percentagefrom      prioryear | 2007   |    | Percentagefrom      prioryear | 2006   |   |
|-----------------------------------------|---------|--------|-------------------------------|--------|---------|-------------------------------|--------|--------|
|                                    |    |   |                          |   |    |                          |   |   |   |   |
|                                    |    |   |                          |   |    |                          |   |   |   |   |
|                                    |    |   |                          |   |    |                          |   |   |   |   |
|                                    |    |   |                          |   |    |                          |   |   |   |   |
| Net      Revenues                       | $36,340 |   | 23%                           |   | $29,628 |                          | 70%    |   | $17,393 |   |

----

| (In      thousands, except percentages) | 2008    |   | Percentagefrom      prioryear | 2007   |    | Percentagefrom      prioryear | 2006   |
|-----------------------------------------|---------|--------|-------------------------------|--------|---------|-------------------------------|--------|
|                                    |    |   |                          |   |    |                          |   |   |   |
|                                    |    |   |                          |   |    |                          |   |   |   |
| Selling      and distribution           | $12,797 |   | 27%                           |   | $10,112 |                          | 53%    |   | $6,600 |
| As      a percentage of revenue         | 35%     |   | 1pp                           |   | 34%     |                          | (4)pp  |   | 38% |
|                                    |    |   |                          |   |    |                          |   |   |   |

| (In      thousands, except percentages) | 2008   |   | Percentagefrom      prioryear | 2007   |   | Percentagefrom      prioryear | 2006   |
|-----------------------------------------|--------|--------|-------------------------------|--------|--------|-------------------------------|--------|
|                                    |   |   |                          |   |   |                          |   |   |   |
|                                    |   |   |                          |   |   |                          |   |   |   |
| General      and administrative         | $8,615 |   | 10%                           |   | $7,825 |                          | 6%     |   | $7,402 |
| As      a percentage of revenue         | 25%    |   | (1)pp                         |   | 26%    |                          | (17)pp |   | 43% |

----

| (In      thousands, except percentages) | 2008   |   | Percentagefrom      prioryear | 2007   |   | Percentagefrom      prioryear | 2006         |
|-----------------------------------------|--------|--------|-------------------------------|--------|--------|-------------------------------|--------------|
|                                    |   |   |                          |   |   |                          |         |   |   |
|                                    |   |   |                          |   |   |                          |         |   |   |
| Research      and development           | $6,206 |   | 7%                            |   | $5,779 |                          | (12)%        |   | $6,596 |
| As      a percentage of revenue         | 17%    |   | (3)      pp                   |   | 20%    |                          | (18)      pp |   | 38% |

           Otherincome in 2008 reflects interest income of $0.3 million and foreign exchangelosses.  In 2007 and 2006 other income included interest income frommarketable securities of $1.0 million and $0.9 million,respectively.

----

|                                           | For      the Fiscal Years Ended December 31,          |   |                                                            |   |                                                      |   |
|------------------------------------------------|-------------------------------------------------------|--------|-----------------------------------------------------------------|--------|-----------------------------------------------------------|--------|
|                                           | Total                                                 |   | 2009                                                            |   | 2010                                                      |   | 2011 |   | 2012 |   | Beyond |
|                                           | (in      thousands)                                   |   |                                                            |   |                                                      |   |   |   |   |
|                                           |                                                  |   |                                                            |   |                                                      |   |   |   |   |   |   |
| $40      million convertible notes             | $40,000                                               |   |                                                            |   |                                                      |   | $40,000 |   |   |   |   |
| Interest      on $40 million convertible notes |       10,400            |   |  $    3,200                            |   |  $   3,200                            |   |        4,000 |   |   |   |   |
| PharmaBio      Striant®                   |                                                  |   |                                                            |   |                                                      |   |   |   |   |   |   |
|    finance      agreement       |       16,572            |   |           168 |   |     16,404                            |   |   |   |   |   |   |
| Operating      lease obligations               |         1,206 |   |           270 |   |          271 |   |           245 |   |  $       233 |   |  $       187 |
| Executive      agreements                      |         1,481 |   |        1,481                 |   |                                                      |   |   |   |   |   |   |
|     Total                  |  $   69,659                       |   |  $    5,119                            |   |  $      19,875                                       |   |  $  44,245 |   |  $       233 |   |  $       187 |
|                                           |                                                  |   |                                                            |   |                                                      |   |   |   |   |   |   |

----

----

----

|                      |                                                                      | 2008   |                                                                             | 2007   |                                                 | 2006   |
|---------------------------|---------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------|--------|------------------------------------------------------|--------|
| Cash      flows:          |                                                                      |   |                                                                             |   |                                                 |   |
| Operating      activities |  $   (5,136,488)                                      |   |  $    (7,914,299)                                       |   |  $  (13,080,977)                      |
| Investing      activities |          (375,926)           |   |           (102,021)            |   |      (33,015,757)           |
| Financing      activities |            959,191 |   |             (40,803) |   |        64,208,356 |

FinancingActivities:

----

----

Accounting ForPharmaBio Agreements. In July 2002 and March 2003, the Company enteredinto agreements with PharmaBio under which the Company received upfront moneypaid in quarterly installments in exchange for royalty payments on certain ofthe Company’s products to be paid to PharmaBio for a fixed period of time. Theroyalty payments are subject to minimum and maximum amounts. Because the minimumamounts exceed the amount received by the Company, the Company has recorded themonies received as liabilities. We are recording the excess of the minimum to bepaid by the Company over the amount received by the Company as interest expenseover the terms of the agreements.

----

----

----

----

----

----

----

| Exhibit No |  Description                                                                                                                                                               |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1             | Restated      Certificate of Incorporation of the Company, as amended (14)                                                                                                      |
|            |                                                                                                                                                                            |
| 3.2             | Amended      and Restated By-laws of Company (3)                                                                                                                                |
|            |                                                                                                                                                                            |
| 4.1             | Certificate      of Designations, Preferences and Rights of Series C Convertible Preferred      Stock of the Company, dated as of January 7, 1999 (3)                           |
|            |                                                                                                                                                                            |
| 4.2             | Securities      Purchase Agreement, dated as of January 7, 1999, between the Company and      each of the purchasers named on the signature pages thereto (3)                   |
|            |                                                                                                                                                                            |
| 4.3             | Securities      Purchase Agreement, dated as of January 19, 1999, among the Company, David      M. Knott and Knott Partners, L.P. (3)                                           |
|            |                                                                                                                                                                            |
| 4.4             | Form      of Warrant to Purchase Common Stock (3)                                                                                                                               |
|            |                                                                                                                                                                            |
| 4.5             | Warrant      to Purchase Common Stock granted to James J. Apostolakis on September 23,      1999 (5)                                                                            |
|            |                                                                                                                                                                            |
| 4.6             | Certificate      of Designations of Series E Convertible Preferred Stock, filed May 10,      2005 with the Delaware Secretary of State (13)                                     |
|            |                                                                                                                                                                            |
| 4.7             | Preferred      Stock Purchase Agreement, dated as of May 10, 2005, among Columbia      Laboratories, Inc., Perry Partners L.P. and Perry Partners International,      Inc. (13) |
|            |                                                                                                                                                                            |
| 4.8             | Securities      Purchase Agreement, dated March 10, 2006, by and between Columbia      Laboratories, Inc. and the Purchasers listed on Exhibit A thereto (15)                   |
|            |                                                                                                                                                                            |
| 4.9*            | Form      of Restricted Stock Agreement (17)                                                                                                                                    |
|            |                                                                                                                                                                            |
| 4.10*           | Form      of Option Agreement (24)                                                                                                                                              |
|            |                                                                                                                                                                            |
| 4.11            | Securities      Purchase Agreement, dated December 21, 2006, by and between Columbia      Laboratories, Inc. and the Purchasers listed on Exhibit A thereto      (19) |
|            |                                                                                                                                                                            |
| 10.1            | 1996      Long-term Performance Plan, as amended, of the Company (2)                                                                                                            |
|            |                                                                                                                                                                            |
| 10.2            | Asset      Purchase, License and Option Agreement between Bio-Mimetics, Inc. and      Columbia Laboratories, Inc., dated November 22, 1989 (1)                                  |
|            |                                                                                                                                                                            |
| 10.3            | License      and Supply Agreement by and between the Company and Mipharm S.p.A. dated      March 5, 1999 (4)                                                                    |
|            |                                                                                                                                                                            |
| 10.4            | Settlement      Agreement and Release dated as of March 16, 2000 between Columbia      Laboratories (Bermuda) Ltd. and Lake Consumer Products, Inc. (5)                         |
|            |                                                                                                                                                                            |
| 10.5            | License      Agreement dated April 18, 2000, between the Company and Lil’ Drug Store      Products, Inc. (6)                                                              |
|            |                                                                                                                                                                            |
| 10.6            | Rights      Agreement dated as of March 13, 2002, by and between Columbia      Laboratories, Inc. and First Union National Bank, as Rights Agent (7)                            |

----

| ExhibitNo.   | Description                                                                                                                                                                                                        |
|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.7†  | Semi-Exclusive      Supply Agreement dated May 7, 2002 between the Company and Mipharm S.p.A.      (8)                                                                                                             |
|         |                                                                                                                                                                                                               |
| 10.8†  | Amended      and Restated License and Supply Agreement dated June 4, 2002 between the      Company and Ares Trading S.A.(8)                                                                                   |
|         |                                                                                                                                                                                                               |
| 10.9†  | Investment      and Royalty Agreement dated March 5, 2003 between the Company and      PharmaBio Development Inc. (9)                                                                                              |
|         |                                                                                                                                                                                                               |
| 10.10† | License      and Supply Agreement Dated May 27, 2003 between the Company and Mipharm      S.p.A. (10)/                                                                                                             |
|         |                                                                                                                                                                                                               |
| 10.11*       | Form      of Indemnification Agreement for Officers and Directors (11)                                                                                                                                             |
|         |                                                                                                                                                                                                               |
| 10.12† | Asset      Purchase Agreement Dated June 29, 2004, between the Company and Lil’ Drug      Store Products, Inc. (12)/                                                                                         |
|         |                                                                                                                                                                                                               |
| 10.13† | Supply      Agreement dated June 29, 2004, between the Company and Lil’ Drug Store      Products, Inc.(12)/                                                                                                  |
|         |                                                                                                                                                                                                               |
| 10.14        | Letter      Agreement Supplement to STRIANT Investment and Royalty Agreement dated      April 14, 2006 (16)                                                                                                        |
|         |                                                                                                                                                                                                               |
| 10.15*       | Separation      Agreement by and between Columbia Laboratories, Inc. and David L. Weinberg      effective as of December 12, 2006 (18)/                                                                            |
|         |                                                                                                                                                                                                               |
| 10.16† | Agreement,      dated December 21, 2006, by and among Ares Trading S.A., Serono,      Inc., the Company and its wholly-owned subsidiary, Columbia Laboratories      (Bermuda), Ltd (19)                       |
|         |                                                                                                                                                                                                               |
| 10.17        | Amendment      No. 1 to the Amended and Restated License and Supply Agreement,      entered into December 21, 2006, by and between Ares Trading S.A and      Columbia Laboratories (Bermuda), Ltd. (19)/ |
|         |                                                                                                                                                                                                               |
| 10.18        | Description      of the Registrant’s Compensation and Reimbursement Practices for      Non-employee Directors. (20)                                                                                          |
|         |                                                                                                                                                                                                               |
| 10.19        | Lease      Agreement between Allwood Associates I and Columbia Laboratories, Inc.,      dated July 6, 2007 (20)                                                                                                    |
|         |                                                                                                                                                                                                               |
| 10.20† | License      and Supply Agreement between Columbia Laboratories, Inc. and Ascend      Therapeutics, Inc., dated September 27, 2007 (21)/                                                                      |
|         |                                                                                                                                                                                                               |
| 10.21        | Supply      Agreement between Columbia Laboratories (Bermuda) Limited and Fleet      Laboratories Limited, dated July 12, 1996  (22)/                                                                    |
|         |                                                                                                                                                                                                               |
| 10.22        | Packaging      Agreement between Columbia Laboratories (Ireland) Ltd. and Maropack AG,      dated October 28, 1993  (22)                                                                                 |
|         |                                                                                                                                                                                                               |
| 10.23*       | Columbia      Laboratories, Inc., 2008 Long-Term Incentive Plan (23)/                                                                                                                                              |
|         |                                                                                                                                                                                                               |
| 10.24*       | Columbia      Laboratories, Inc., Amended and Restated Incentive Plan (24)/                                                                                                                                        |
|         |                                                                                                                                                                                                               |
| 10.25*       | Form      of Executive Change of Control Severance Agreement (24)                                                                                                                                                  |
|         |                                                                                                                                                                                                               |
| 10.26*       | Amended      and Restated Employment Agreement by and between Columbia Laboratories,      Inc. and Robert S. Mills dated March 11, 2009 (24)                                                                       |
|         |                                                                                                                                                                                                               |
| 10.27*       | Amended      and Restated Employment Agreement by and between Columbia Laboratories,      Inc. and Michael McGrane dated March 11, 2009 (24)                                                                       |
|         |                                                                                                                                                                                                               |
| 10.28*       | Amended      and Restated Employment Agreement by and between Columbia Laboratories,      Inc. and James Meer dated March 11, 2009 (24)/                                                                           |
|         |                                                                                                                                                                                                               |
| 14           | Code      of Ethics of the Company (11)/                                                                                                                                                                           |
|         |                                                                                                                                                                                                               |
| 21           | Subsidiaries      of the Company  (24)                                                                                                                                                              |
|         |                                                                                                                                                                                                               |
| 23.1         | Consent      of Goldstein Golub Kessler LLP (24)/                                                                                                                                                             |

----

| ExhibitNo.  | Description                                                                                                                                                       |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 23.2             | Consent      of McGladrey & Pullen, LLP (24)                                                                                                             |
|             |                                                                                                                                                              |
| 23.3             | Consent      of BDO Seidman, LLP (24)/                                                                                                                       |
|             |                                                                                                                                                              |
| 31(i).1          | Certification      of Chief Executive Officer of the Company (24)                                                                                                 |
|             |                                                                                                                                                              |
| 31(i).2          | Certification      of Chief Financial Officer of the Company (24)                                                                                                 |
|             |                                                                                                                                                              |
| 32.1             | Certification      of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted      pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (24)  |
|             |                                                                                                                                                              |
| 32.2             | Certification      of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted      pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (24) |

|    |                                                                                                                                                                 |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| † | Confidential      treatment has been requested with respect to certain portions of this      exhibit. Omitted portions have been filed separately with the      SEC. |
|    |                                                                                                                                                                 |
| *       | Management      contract or compensatory plans orarrangements                                                                                                        |

| 1/     | Incorporated      by reference to the Registrant's Registration Statement on Form S-1 (File      No. 33-31962) declared effective on May 14, 1990 |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                              |
| 2/     | Incorporated      by reference to the Registrant's Proxy Statement dated May 10,      2000                                                        |
|   |                                                                                                                                              |
| 3/     | Incorporated      by reference to the Registrant’s Annual Report on Form 10-K for the year      ended December 31, 1998                     |
|   |                                                                                                                                              |
| 4/     | Incorporated      by reference to the Registrant’s Quarterly Report on Form 10-Q for the      quarter ended March 31, 1999                  |
|   |                                                                                                                                              |
| 5/     | Incorporated      by reference to the Registrant’s Annual Report on Form 10-K for the year      ended December 31, 1999                     |
|   |                                                                                                                                              |
| 6/     | Incorporated      by reference to the Registrant’s Quarterly Report on Form 10-Q for the      quarter ended March 31, 2000                  |
|   |                                                                                                                                              |
| 7/     | Incorporated      by reference to the Registrant’s Current Report on Form 8-K, dated March      12, 2002                                    |
|   |                                                                                                                                              |
| 8/     | Incorporated      by reference to the Registrant’s Quarterly Report on Form 10-Q dated      August 14, 2002                                 |
|   |                                                                                                                                              |
| 9/     | Incorporated      by reference to the Registrant’s Annual Report on Form 10-K for the year      ended December 31, 2002                     |
|   |                                                                                                                                              |
| 10/    | Incorporated      by reference to the Registrant’s Quarterly Report on Form 10-Q dated      August 14, 2003                                 |
|   |                                                                                                                                              |
| 11/    | Incorporated      by reference to the Registrant’s Annual Report on Form 10-K for the year      ended December 31, 2003                     |
|   |                                                                                                                                              |
| 12/    | Incorporated      by reference to the Registrant’s Quarterly Report on Form 10-Q dated      August 4, 2004                                  |
|   |                                                                                                                                              |
| 13/    | Incorporated      by reference to the Registrant’s Current Report on Form 8-K, dated May 12,      2005                                      |
|   |                                                                                                                                              |
| 14/    | Incorporated      by reference to the Registrant’s Annual Report on Form 10-K for the year      ended December 31, 2005                     |
|   |                                                                                                                                              |
| 15/    | Incorporated      by reference to the Registrant’s Current Report on Form 8-K, dated March      16, 2006                                    |
|   |                                                                                                                                              |
| 16/    | Incorporated      by reference to the Registrant’s Current Report on Form 8-K, dated April      17, 2006                                    |
|   |                                                                                                                                              |
| 17/    | Incorporated      by reference to the Registrant’s Current Report on Form 8-K, dated May 17,      2006                                      |
|   |                                                                                                                                              |

----

| 18/    | Incorporated      by reference to the Registrant’s Current Report on Form 8-K, dated      December 15, 2006             |
|--------|-------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                          |
| 19/    | Incorporated      by reference to the Registrant’s Current Report on Form 8-K, dated      December 26, 2006             |
|   |                                                                                                                          |
| 20/    | Incorporated      by reference to the Registrant’s Quarterly Report on Form 10-Q, dated      August 8, 2007             |
|   |                                                                                                                          |
| 21/    | Incorporated      by reference to the Registrant’s Quarterly Report on Form 10-Q, dated      November 8, 2007           |
|   |                                                                                                                          |
| 22/    | Incorporated      by reference to the Registrant’s Annual Report on Form 10-K for the year      ended December 31, 2007 |
|   |                                                                                                                          |
| 23/    | Incorporated      by reference to the Registrant’s Proxy Statement dated April 8,      2008                             |
|   |                                                                                                                          |
| 24/    | Filed      herewith                                                                                                           |

----

|   | SIGNATURES |
|--------|------------|

|                      |                                            |                                          |
|---------------------------|-------------------------------------------------|-----------------------------------------------|
|                      | COLUMBIA      LABORATORIES, INC.                |
|                      |                                            |                                          |
| Date:      March 11, 2009 | By:                                   | /s/    James      A. Meer |
|                      |  James      A. Meer, Senior Vice President |

| /s/    Robert      S. Mills          |   | President      and Chief Executive Officer                                             |   | March      11, 2009 |
|----------------------------------------------------------|--------|----------------------------------------------------------------------------------------|--------|---------------------|
| Robert      S. Mills                                     |   | (Principal      Executive Officer)                                                     |   |                |
|                                                     |   |                                                                                   |   |                |
| /s/    James      A. Meer            |   | Senior      Vice President, Chief                                                      |   | March      11, 2009 |
| James      A. Meer                                       |   | Financial      Officer and Treasurer (Principal      Financial and Accounting Officer) |   |                |
|                                                     |   |                                                                                   |   |                |
| /s/    Valerie      L. Andrews       |   | Director                                                                               |   | March      13, 2009 |
| Valerie      L. Andrews                                  |   |                                                                                   |   |                |
|                                                     |   |                                                                                   |   |                |
| /s/    Edward      A. Blechschmidt   |   | Vice      Chairman of the Board of Directors                                           |   | March      11, 2009 |
| Edward      A. Blechschmidt                              |   |                                                                                   |   |                |
|                                                     |   |                                                                                   |   |                |
| /s/    Anthony      R. Campbell      |   | Director                                                                               |   | March      11, 2009 |
| Anthony      R. Campbell                                 |   |                                                                                   |   |                |
|                                                     |   |                                                                                   |   |                |
| /s/    Frank      C. Condella, Jr.   |   | Director                                                                               |   | March      11, 2009 |
| Frank      C. Condella, Jr.                              |   |                                                                                   |   |                |
|                                                     |   |                                                                                   |   |                |
| /s/    James      S. Crofton         |   | Director                                                                               |   | March      13, 2009 |
| James      S. Crofton                                    |   |                                                                                   |   |                |
|                                                     |   |                                                                                   |   |                |
| /s/    Stephen      G. Kasnet        |   | Chairman      of the Board of Directors                                                |   | March      11, 2009 |
| Stephen      G. Kasnet                                   |   |                                                                                   |   |                |
|                                                     |   |                                                                                   |   |                |
| /s/    Denis      M. O’Donnell |   | Director                                                                               |   | March      11, 2009 |
| Denis      M. O’Donnell                            |   |                                                                                   |   |                |
|                                                     |   |                                                                                   |   |                |
| /s/    Selwyn      P. Oskowitz       |   | Director                                                                               |   | March      11, 2009 |
| Selwyn      P. Oskowitz                                  |   |                                                                                   |   |                |

----

|                                                                                                               | Page                      |
|--------------------------------------------------------------------------------------------------------------------|---------------------------|
|                                                                                                               |                      |
| Reports      of Independent Registered Public Accounting Firms                                                     | F-2 –      F-4 |
|                                                                                                               |                      |
| Consolidated      Balance Sheets as of December 31, 2008 and 2007                                                  | F-5      – F-6      |
|                                                                                                               |                      |
| Consolidated      Statements of Operations for the Three Years Ended December 31,      2008                        | F-7                       |
|                                                                                                               |                      |
| Consolidated      Statements of Comprehensive Operations for the Three Years Ended December      31, 2008          | F-8                       |
|                                                                                                               |                      |
| Consolidated      Statements of Shareholders' Equity (Deficiency) for the Three Years Ended      December 31, 2008 | F-9–      F-10      |
|                                                                                                               |                      |
| Consolidated      Statements of Cash Flows for the Three Years Ended December 31,      2008                        | F-11      – F-12    |
|                                                                                                               |                      |
| Notes      to Consolidated Financial Statements                                                                    | F-13                      |

----

----

----

In our opinion, the consolidated financial statementsreferred to above present fairly, in all material respects, the results ofoperations and cash flows of Columbia Laboratories, Inc. and Subsidiaries forthe year ended December 31, 2006 in conformity with United States generallyaccepted accounting principles.

----

|                                                    |   | 2008   |        |   | 2007   |   |
|---------------------------------------------------------|--------|--------|-------------|--------|--------|--------|
|                                                    |   |   |        |   |   |   |
| CURRENT      ASSETS                                     |   |   |        |   |   |   |
| Cash      and cash equivalents of which $12,099,318 and |   |   | $12,497,382 |   |   |   | $17,221,811 |   |
| $16,982,742      is interest bearing                    |   |   |        |   |   |   |   |   |
| Accounts      receivable, net of allowances for         |   |   | 3,562,277   |   |   |   | 3,810,993 |   |
| doubtful      accounts of $100,000 and $95,733          |   |   |        |   |   |   |   |   |
| Inventories                                             |   |   | 2,377,139   |   |   |   | 3,047,129 |   |
| Prepaid      expenses and other current assets          |   |   | 1,102,525   |   |   |   | 1,287,300 |   |
| Total      current assets                               |   |   | 19,539,323  |   |   |   | 25,367,233 |   |
|                                                    |   |   |        |   |   |   |   |   |
|                                                    |   |   |        |   |   |   |   |   |
| PROPERTY      AND EQUIPMENT                             |   |   |        |   |   |   |   |   |
| Machinery      and equipment                            |   |   | 2,479,602   |   |   |   | 2,252,222 |   |
| Computer      software                                  |   |   | 534,302     |   |   |   | 444,332 |   |
| Office      equipment and furniture and fixtures        |   |   | 698,920     |   |   |   | 643,390 |   |
|                                                    |   |   | 3,712,824   |   |   |   | 3,339,944 |   |
| Less-accumulated      depreciation and amortization     |   |   | (2,890,967  | )      |   |   | (2,687,977 | ) |
|                                                    |   |   | 821,857     |   |   |   | 651,967 |   |
| INTANGIBLE      ASSETS - NET                            |   |   | 23,815,060  |   |   |   | 28,859,788 |   |
| OTHER      ASSETS                                       |   |   | 1,446,249   |   |   |   | 1,710,289 |   |
|                                                    |   |   |        |   |   |   |   |   |
| TOTAL      ASSETS                                       |   |   | $45,622,489 |   |   |   | $56,589,277 |   |
|                                                    |   |   |        |   |   |   |   |   |
|                                                    |   |   |        |   |   |   |   |   |

----

|                                                 |                                                                      |                                                                |                                                                                   | 2008                                                                                                                      |                                                      | 2007                                                                                                                      |
|------------------------------------------------------|---------------------------------------------------------------------------|---------------------------------------------------------------------|----------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|
|                                                 |                                                                      |                                                                |                                                                                   |                                                                                                                      |                                                      |                                                                                                                      |
| CURRENT      LIABILITIES:                            |                                                                      |                                                                |                                                                                   |
|                                                 |                                                                      |                                                                |                                                                                   |                                                                                                                      |                                                      |                                                                                                                      |
|                                                 | Current      portion of financing agreements                              |  $        168,034      |                                                                                   |  $      3,786,538                                                                      |
|                                                 | Accounts      payable                                                     |         2,085,463           |                                                                                   |         2,215,942                                                                 |
|                                                 | Accrued      expenses                                                     |         4,980,643           |                                                                                   |         4,903,881                                                                 |
|                                                 |                                                                      | Total      Current Liabilities                                      |         7,234,140                              |                                                                                                                      |        10,906,361      |
| NOTES      PAYABLE                                   |        30,074,966                      |                                                                |        27,536,178                                   |
| DEFERRED      REVENUE                                |            305,433 |                                                                |         3,580,880                              |
| LONG-TERM      PORTION OF FINANCING AGREEMENTS       |        13,126,210                      |                                                                |        11,425,601                                   |
| TOTAL      LIABILITIES                               |        50,740,749                      |                                                                |        53,449,020                                   |
|                                                 |                                                                      |                                                                |                                                                                   |                                                                                                                      |                                                      |                                                                                                                      |
| COMMITMENTS      AND CONTINGENCIES                   |                                                                      |                                                                |                                                                                   |
|                                                 |                                                                      |                                                                |                                                                                   |                                                                                                                      |                                                      |                                                                                                                      |
|                                                 |                                                                      | Contingently      Redeemable Series C Preferred Stock               |            775,000              |                                                                                                                      |         1,125,000 |
|                                                 |                                                                      |                                                                | 775      and 1,125 shares issued and outstanding in 2008                               |                                                                                                                      |                                                      |                                                                                                                      |
|                                                 |                                                                      |                                                                | 2007,      respectively (liquidation preferance of $775,000 and                        |                                                                                                                      |                                                      |                                                                                                                      |
|                                                 |                                                                      |                                                                | $1,125,000)                                                                            |                                                                                                                      |                                                      |                                                                                                                      |
|                                                 |                                                                      |                                                                |                                                                                   |                                                                                                                      |                                                      |                                                                                                                      |
| SHAREHOLDERS'      EQUITY (DEFICIENCY):              |                                                                      |                                                                |                                                                                   |
|                                                 | Preferred      stock, $.01 par value; 1,000,000 shares authorized         |                                                                |                                                                                   |                                                                                                                      |
|                                                 |                                                                      | Series      B Convertible Preferred Stock, 130 shares issued        |                                                                                   |                                                                                                                      |                                                      |
|                                                 |                                                                      |                                                                | and      outstanding (liquidation preference of $13,000)                               |                     1 |                                                      |                     1 |
|                                                 |                                                                      | Series      E Convertible Preferred Stock, 59,000 and 63,547 shares |                                                                                   |                                                                                                                      |                                                      |
|                                                 |                                                                      |                                                                | issued      and outstanding (liquidation preference of $5,900,000 and      $6,354,700) |                  590                 |                                                      |                  635                 |
| Common      Stock $.01 par value; 100,000,000 shares |                                                                      |                                                                |                                                                                   |
|                                                 |                                                                      |                                                                | authorized;      54,007,579 and 51,730,151 shares issued                               |            540,076                                                 |                                                      |            517,302                                                 |
| Capital      in excess of par value                  |      228,686,942                                 |                                                                |      222,376,941                                              |
| Less      cost of 63,644 and 18,000 treasury shares  |          (189,229)           |                                                                |            (54,030)             |
| Accumulated      deficit                             |    (235,109,705)                                           |                                                                |    (221,033,196)                                                        |
| Accumulated      other comprehensive income          |            178,065 |                                                                |            207,604              |
| Shareholders'      equity (deficiency)               |        (5,893,260)                     |                                                                |         2,015,257                              |
| TOTAL      LIABILITIES AND SHAREHOLDERS' EQUITY      |  $    45,622,489                                 |                                                                |  $    56,589,277                                              |
|                                                 |                                                                      |                                                                |                                                                                   |                                                                                                                      |                                                      |                                                                                                                      |

----

|                                 |   | 2008   |         |   | 2007   |   |         | 2006   |   |
|--------------------------------------|--------|--------|--------------|--------|--------|--------|--------------|--------|--------|
|                                 |   |   |         |   |   |   |         |   |   |
| NET      REVENUES                    |   |   | $36,340,132  |   |   |   | $29,627,638  |   |   |   | $17,393,081 |   |
|                                 |   |   |         |   |   |   |         |   |   |   |   |   |
| COST      OF REVENUES                |   |   | 10,934,615   |   |   |   | 9,014,540    |   |   |   | 7,819,843 |   |
| Gross      Profit                    |   |   | 25,405,517   |   |   |   | 20,613,098   |   |   |   | 9,573,238 |   |
|                                 |   |   |         |   |   |   |         |   |   |   |   |   |
| OPERATING      EXPENSES:             |   |   |         |   |   |   |         |   |   |   |   |   |
| Selling      and distribution        |   |   | 12,796,636   |   |   |   | 10,111,796   |   |   |   | 6,600,371 |   |
| General      and administrative      |   |   | 8,615,381    |   |   |   | 7,824,741    |   |   |   | 7,402,188 |   |
| Research      and development        |   |   | 6,206,157    |   |   |   | 5,778,641    |   |   |   | 6,596,339 |   |
| Amortization      of licensing right |   |   | 5,044,728    |   |   |   | 5,005,768    |   |   |   | 134,444 |   |
| Total      operating expenses        |   |   | 32,662,902   |   |   |   | 28,720,946   |   |   |   | 20,733,342 |   |
|                                 |   |   |         |   |   |   |         |   |   |   |   |   |
| Loss      from operations            |   |   | (7,257,385   | )      |   |   | (8,107,848   | )      |   |   | (11,160,104 | ) |
|                                 |   |   |         |   |   |   |         |   |   |   |   |   |
| OTHER      INCOME (EXPENSE):         |   |   |         |   |   |   |         |   |   |   |   |   |
| Interest      income                 |   |   | 299,805      |   |   |   | 979,953      |   |   |   | 862,068 |   |
| Interest      expense                |   |   | (7,882,183   | )      |   |   | (7,946,048   | )      |   |   | (2,669,771 | ) |
| Other,      net                      |   |   | (100,516     | )      |   |   | (5,440       | )      |   |   | (55,773 | ) |
|                                 |   |   | (7,682,894   | )      |   |   | (6,971,535   | )      |   |   | (1,863,476 | ) |
|                                 |   |   |         |   |   |   |         |   |   |   |   |   |
| Net      loss before taxes           |   |   | (14,940,279  | )      |   |   | (15,079,383  | )      |   |   | (13,023,580 | ) |
| State      income tax benefits       |   |   | 863,770      |   |   |   | 787,593      |   |   |   | 538,201 |   |
| Net      loss                        |   |   | $(14,076,509 | )      |   |   | $(14,291,790 | )      |   |   | $(12,485,379 | ) |
|                                 |   |   |         |   |   |   |         |   |   |   |   |   |
|                                 |   |   |         |   |   |   |         |   |   |   |   |   |
| LOSS      PER COMMON                 |   |   |         |   |   |   |         |   |   |   |   |   |
| SHARE      - BASIC AND DILUTED       |   |   | $(0.27       | )      |   |   | $(0.28       | )      |   |   | $(0.26 | ) |
|                                 |   |   |         |   |   |   |         |   |   |   |   |   |
| WEIGHTED      - AVERAGE NUMBER OF    |   |   |         |   |   |   |         |   |   |   |   |   |
| COMMON      SHARES OUTSTANDING       |   |   |         |   |   |   |         |   |   |   |   |   |
| BASIC      AND DILUTED               |   |   | 52,439,327   |   |   |   | 51,124,266   |   |   |   | 48,088,516 |   |
|                                 |   |   |         |   |   |   |         |   |   |   |   |   |

----

|                                               |   | 2008   |         |   | 2007   |   |         | 2006   |   |
|----------------------------------------------------|--------|--------|--------------|--------|--------|--------|--------------|--------|--------|
|                                               |   |   |         |   |   |   |         |   |   |
| NET      LOSS                                      |   |   | $(14,076,509 | )      |   |   | $(14,291,790 | )      |   |   | $(12,485,379 | ) |
|                                               |   |   |         |   |   |   |         |   |   |   |   |   |
| Other      comprehensive income (loss):            |   |   |         |   |   |   |         |   |   |   |   |   |
|    Foreign      curency translation |   |   | (29,539      | )      |   |   | 8,560        |   |   |   | 21,901 |   |
|                                               |   |   |         |   |   |   |         |   |   |   |   |   |
| Comprehensive      loss                            |   |   | $(14,106,048 | )      |   |   | $(14,283,230 | )      |   |   | $(12,463,478 | ) |
|                                               |   |   |         |   |   |   |         |   |   |   |   |   |

----

|                                        |                                                                  | Series      B ConvertiblePreferred      Stock | Series      E ConvertiblePreferred      Stock            | Common      Stock |                                                          |   |                                                       | Capital      inExcess      ofPar      Value | TreasuryStock                                                                              | AccumulatedDeficit | Accumulated      OtherComprehensiveIncome      (Loss)                                               | Total  |                                                                                                                      |
|---------------------------------------------|-----------------------------------------------------------------------|-----------------------------------------------|----------------------------------------------------------|-------------------|---------------------------------------------------------------|--------|------------------------------------------------------------|---------------------------------------------|--------------------------------------------------------------------------------------------|--------------------|-----------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------|
|                                        |                                                                  | Number      ofShares                          | Amount                                                   |              | Number      ofShares                                          | Amount |                                                       | Number      ofShares                        |                                                                                       | Amount             |                                                                                                |   |                                                                                                                      |   |   |   |   |   |   |   |   |
| Balance,      December 31, 2005             |            130 |                                          |  $        1 |              |        69,000              |   |  $    690                         |                                        |        41,754,784                                       |               |  $     417,548                                                        |   |  $      172,090,055                                                                    |   |  $               - |   |  $      (193,258,323) |   |  $                  177,143 |   |  $     (20,572,886) |   |
| Cumulative      effect adjustment           |                                                                  |                                          |                                                     |              |                                                          |   |                                                       |                                        |                                                                                       |               |                                                                                                |   |                                                                                                                      |   |   |   |   |   |   |   |   |   |
|                                        | on      stock options                                                 |                                          |                                                     |              |                                                          |   |                                                       |                                        |                                                                                       |               |                                                                                                |   |                                                                                                                      |                  997,705 |   |   |   |             (997,705) |   |                                 - |   |                              - |   |
| Issuance      of common stock               |                                                                  |                                          |                                                     |              |                                                          |   |                                                       |                                        |        7,428,220                                        |               |          74,282                                        |   |           28,691,844                                                    |   |   |   |   |   |   |   |           28,766,126 |   |
| Options      exercised                      |                                                                  |                                          |                                                     |              |                                                          |   |                                                       |                                        |            335,049                  |               |             3,350                       |   |               1,018,409                             |   |   |   |   |   |   |   |               1,021,759 |   |
| Share      based compensation expense       |                                                                  |                                          |                                                     |              |                                                          |   |                                                       |                                        |              161,875      |               |              1,619                 |   |              1,246,830                                   |   |   |   |   |   |   |   |             1,248,449 |   |
| Beneficial      conversion & warrant    |                                                                  |                                          |                                                     |              |                                                          |   |                                                       |                                        |                                                                                       |               |                                                                                                |   |                                                                                                                      |   |   |   |   |   |   |   |                              - |   |
|                                        | value      for convertible notes                                      |                                          |                                                     |              |                                                          |   |                                                       |                                        |                                                                                       |               |                                                                                                |   |                                                                                                                      |             14,754,656 |   |   |   |   |   |   |   |            14,754,656 |   |
| Conversion      of Series C Preferred Stock |                                                                  |                                          |                                                     |              |                                                          |   |                                                       |                                        |               14,285 |               |                 143 |   |                    49,857  |   |   |   |   |   |   |   |                   50,000 |   |
| Purchase      of treasury stock             |                                                                  |                                          |                                                     |              |                                                          |   |                                                       |                                        |                                                                                       |               |                                                                                                |   |                                                                                                                      |   |     (26,880) |   |   |   |   |   |                (26,880) |   |
| Dividends      on preferred stock           |                                                                  |                                          |                                                     |              |                                                          |   |                                                       |                                        |                                                                                       |               |                                                                                                |   |                 (161,379)                 |   |   |   |   |   |   |   |                (161,379) |   |
| Translation      adjustment                 |                                                                  |                                          |                                                     |              |                                                          |   |                                                       |                                        |                                                                                       |               |                                                                                                |   |                                                                                                                      |   |   |   |   |   |                       21,901 |   |                    21,901 |   |
| Net      loss                               |                                                                  |                                          |                                                     |              |                                                          |   |                                                       |                                        |                                                                                       |               |                                                                                                |   |                                                                                                                      |   |   |   |        (12,485,378) |   |   |   |          (12,485,378) |   |
| Balance,      December 31, 2006             |            130 |                                          |  $        1 |              |        69,000              |   |  $    690                         |                                        |      49,694,213                                                   |               |  $   496,942                                                                    |   |  $      218,687,977                                                                    |   |  $      (26,880) |   |  $      (206,741,406) |   |  $                199,044 |   |  $        12,616,368 |   |
| Options      exercised                      |                                                                  |                                          |                                                     |              |                                                          |   |                                                       |                                        |              43,050       |               |                 431 |   |                    62,810  |   |   |   |   |   |   |   |                   63,241 |   |
| Share      based compensation expense       |                                                                  |                                          |                                                     |              |                                                          |   |                                                       |                                        |             155,690            |               |               1,557           |   |              1,646,365                                   |   |   |   |   |   |   |   |              1,647,922 |   |
| Conversion      of Series C Preferred Stock |                                                                  |                                          |                                                     |              |                                                          |   |                                                       |                                        |          1,564,548                            |               |            15,645                            |   |              2,059,355                                   |   |   |   |   |   |   |   |             2,075,000 |   |
| Conversion      of Series E Preferred Stock |                                                                  |                                          |                                                     |              |          (5,453) |   |          (55) |                                        |            272,650                  |               |             2,727                       |   |                    (2,672) |   |   |   |   |   |   |   |                              - |   |
| Purchase      of treasury stock             |                                                                  |                                          |                                                     |              |                                                          |   |                                                       |                                        |                                                                                       |               |                                                                                                |   |                                                                                                                      |   |       (27,150) |   |   |   |   |   |                  (27,150) |   |
| Dividends      on preferred stock           |                                                                  |                                          |                                                     |              |                                                          |   |                                                       |                                        |                                                                                       |               |                                                                                                |   |                 (76,894)                  |   |   |   |   |   |   |   |                 (76,894) |   |
| Translation      adjustment                 |                                                                  |                                          |                                                     |              |                                                          |   |                                                       |                                        |                                                                                       |               |                                                                                                |   |                                                                                                                      |   |   |   |   |   |                        8,560 |   |                     8,560 |   |
| Net      loss                               |                                                                  |                                          |                                                     |              |                                                          |   |                                                       |                                        |                                                                                       |               |                                                                                                |   |                                                                                                                      |   |   |   |        (14,291,790) |   |   |   |          (14,291,790) |   |
| Balance,      December 31, 2007             |            130 |                                          |  $        1 |              |         63,547        |   |  $     635                   |                                        |          51,730,151                           |               |  $     517,302                                                        |   |  $     222,376,941                                                                          |   |  $  (54,030) |   |  $      (221,033,196) |   |  $               207,604 |   |  $           2,015,257 |   |

----

|                                        |   | Series      B ConvertiblePreferred      Stock                                                       | Series      E ConvertiblePreferred      Stock | Common      Stock                                                    |                 | Capital      inExcess      ofPar      Value             | TreasuryStock | AccumulatedDeficit                                               | Accumulated      OtherComprehensiveIncome      (Loss) | Total                                                                     |
|---------------------------------------------|--------|-----------------------------------------------------------------------------------------------------|-----------------------------------------------|----------------------------------------------------------------------|----------------------|---------------------------------------------------------|---------------|------------------------------------------------------------------|-------------------------------------------------------|---------------------------------------------------------------------------|
|                                        |   | Number      ofShares                                                                                | Amount                                        |                                                                 | Number      ofShares | Amount                                                  |          | Number      ofShares                                             | Amount                                                |                                                                      |   |   |   |   |   |   |   |   |   |
| Balance,      December 31, 2007             |   |                 130 |                                          |  $          1 |                 |         63,547  |          |  $      635                   |                                                  |       51,730,151                            |   |  $   517,302 |   |  $   222,376,941 |   |  $   (54,030) |   |  $  (221,033,196) |   |  $             207,604 |   |  $    2,015,257 |
| Issuance      of common stock               |   |                                                                                                |                                          |                                                                 |                 |                                                    |          |                                                             |                                                  |        1,333,000                       |   |           13,330 |   |            4,082,298 |   |   |   |   |   |   |   |        4,095,628 |
| Options      exercised                      |   |                                                                                                |                                          |                                                                 |                 |                                                    |          |                                                             |                                                  |            318,149 |   |             3,182 |   |                 591,673 |   |   |   |   |   |   |   |            594,855 |
| Conversion      of Series C Preferred Stock |   |                                                                                                |                                          |                                                                 |                 |                                                    |          |                                                             |                                                  |          235,426             |   |            2,354 |   |                347,646 |   |   |   |   |   |   |   |            350,000 |
| Conversion      of Series E Preferred Stock |   |                                                                                                |                                          |                                                                 |                 |         (4,547) |          |           (45) |                                                  |          227,350             |   |            2,273 |   |                   (2,228) |   |   |   |   |   |   |   |                          - |
| Share      based compensation expense       |   |                                                                                                |                                          |                                                                 |                 |                                                    |          |                                                             |                                                  |           163,503       |   |             1,635 |   |             1,345,756 |   |   |   |   |   |   |   |          1,347,391 |
| Purchase      of treasury stock             |   |                                                                                                |                                          |                                                                 |                 |                                                    |          |                                                             |                                                  |                                                                      |   |   |   |   |   |       (135,199) |   |   |   |   |   |            (135,199) |
| Dividends      on preferred stock           |   |                                                                                                |                                          |                                                                 |                 |                                                    |          |                                                             |                                                  |                                                                      |   |   |   |                 (55,144) |   |   |   |   |   |   |   |             (55,144) |
| Translation      adjustment                 |   |                                                                                                |                                          |                                                                 |                 |                                                    |          |                                                             |                                                  |                                                                      |   |   |   |   |   |   |   |   |   |                   (29,539) |   |            (29,539) |
| Net      loss                               |   |                                                                                                |                                          |                                                                 |                 |                                                    |          |                                                             |                                                  |                                                                      |   |   |   |   |   |   |   |         (14,076,509) |   |   |   |     (14,076,509) |
| Balance,      December 31, 2008             |   |                 130 |                                          |  $          1 |                 |         59,000  |          |  $      590                   |                                                  |    54,007,579                                              |   |  $  540,076 |   |  $  228,686,942 |   |  $      (189,229) |   |  $      (235,109,705) |   |  $              178,065 |   |  $      (5,893,260) |
|                                        |   |                                                                                                |                                          |                                                                 |                 |                                                    |          |                                                             |                                                  |                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                          |                                     |                                                   |                                                                                                                        | 2008                                                        |                                                                                                                                                    | 2007                                                        |                                                                                                                                                    | 2006                                                   |
|-----------------------------------------------|------------------------------------------|--------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------|
|                                          |                                     |                                                   |                                                                                                                        |                                                        |                                                                                                                                                    |                                                        |                                                                                                                                                    |                                                   |
| CASH      FLOWS FROM OPERATING ACTIVITIES:    |                                     |                                                   |                                                                                                                        |                                                        |                                                                                                                                                    |
| Net      loss                                 |  $   (14,076,509)    |                                                   |  $   (14,291,790)                                                                                       |                                                        |  $    (12,485,379)                                                                                                             |
| Adjustments      to reconcile net loss to net |                                     |                                                   |                                                                                                                        |                                                        |                                                                                                                                                    |
|                                          | cash      used in operating activities - |                                                   |                                                                                                                        |                                                        |                                                                                                                                                    |                                                        |
|                                          |                                     | Depreciation      and amortization                     |           5,510,802                                                       |                                                        |           5,462,888                                                                                   |                                                        |               395,003                                                             |
|                                          |                                     | Amortization      of beneficial conversion features    |           1,466,591                                                       |                                                        |           1,265,496                                                                                   |                                                        |                 30,344                                                  |
|                                          |                                     | Amortization      of warrants                          |           1,092,197                                                       |                                                        |              971,548                                                                   |                                                        |                 23,449                                                  |
|                                          |                                     | Provision      for doubtful accounts                   |                  4,267                 |                                                        |                15,000                                                        |                                                        |               105,855                                                             |
|                                          |                                     | Provision      for sales returns                       |           1,399,991                                                       |                                                        |              992,502                                                                   |                                                        |            1,802,868                                                                             |
|                                          |                                     | Write-down      of inventories                         |              746,905                                       |                                                        |                80,961                                                        |                                                        |               612,094                                                             |
|                                          |                                     | Share      based compensation                          |           1,347,391                                                       |                                                        |           1,647,922                                                                                   |                                                        |            1,248,448                                                                             |
|                                          |                                     | Non-cash      interest expense on financing agreements |           1,702,842                                                       |                                                        |           1,381,407                                                                                   |                                                        |          (4,539,253)                                                                                       |
|                                          |                                     | Recognition      of deferred income (Ardana)           |         (2,891,188)                                                                 |                                                        |                          - |                                                        |                          - |
|                                          |                                     | Loss      on disposal of fixed assets                  |                  3,048                 |                                                        |                          - |                                                        |                          - |
|                                          |                                     |                                                   |                                                                                                                        |                                                        |                                                                                                                                                    |                                                        |                                                                                                                                                    |                                                   |
| Changes      in assets and liabilities -      |                                     |                                                   |                                                                                                                        |                                                        |                                                                                                                                                    |
|                                          | (Increase)      decrease in:             |                                                   |                                                                                                                        |                                                        |                                                                                                                                                    |                                                        |
|                                          |                                     | Accounts      receivable                               |              244,449                                       |                                                        |         (1,520,937)                                                                                             |                                                        |            1,345,895                                                                             |
|                                          |                                     | Inventories                                            |              (76,915)                                      |                                                        |         (1,023,052)                                                                                             |                                                        |             (895,699)                                                                       |
|                                          |                                     | Prepaid      expenses and other current assets         |              184,775                                       |                                                        |            (293,534)                                                                             |                                                        |             (104,645)                                                                       |
|                                          |                                     | Other      assets                                      |                     943 |                                                        |            (418,405)                                                                             |                                                        |          (1,416,416)                                                                                       |
|                                          |                                     |                                                   |                                                                                                                        |                                                        |                                                                                                                                                    |                                                        |                                                                                                                                                    |                                                   |
|                                          | Increase      (decrease) in:             |                                                   |                                                                                                                        |                                                        |                                                                                                                                                    |                                                        |
|                                          |                                     | Accounts      payable                                  |            (130,480)                                                 |                                                        |         (1,370,828)                                                                                             |                                                        |            1,681,389                                                                             |
|                                          |                                     | Accrued      expenses                                  |         (1,281,338)                                                                 |                                                        |            (211,709)                                                                             |                                                        |          (1,009,251)                                                                                       |
|                                          |                                     | Deferred      revenue                                  |            (384,259)                                                 |                                                        |            (601,768)                                                                             |                                                        |               124,321                                                             |
|                                          |                                     |                                                   | Net      cash (used in) operating activities                                                                                |         (5,136,488) |                                                                                                                                                    |         (7,914,299) |                                                                                                                                                    |        (13,080,977) |
|                                          |                                     |                                                   |                                                                                                                        |                                                        |                                                                                                                                                    |                                                        |                                                                                                                                                    |                                                   |
|                                          |                                     |                                                   |                                                                                                                        |                                                        |                                                                                                                                                    |                                                        |                                                                                                                                                    |                                                   |
|                                          |                                     |                                                   |                                                                                                                        |                                                        |                                                                                                                                                    |                                                        |                                                                                                                                                    |                                                   |
|                                          |                                     |                                                   |                                                                                                                        |                                                        |                                                                                                                                                    |                                                        |                                                                                                                                                    |                                                   |
|                                          |                                     |                                                   |                                                                                                                        |                                                        |                                                                                                                                                    |                                                        |                                                                                                                                                    |                                                   |

----

COLUMBIA LABORATORIES, INC.AND SUBSIDIARIES

|                                       |                                                           |                                                                                                                                              | 2008                                                                                                                                              |                                                                                                                                  | 2007                                                                                                                                  |                                                                                                                                   | 2006                                                                                                                                   |
|--------------------------------------------|----------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------|
|                                       |                                                           |                                                                                                                                              |                                                                                                                                              |                                                                                                                                  |                                                                                                                                  |                                                                                                                                   |                                                                                                                                   |
| CASH      FLOWS FROM INVESTING ACTIVITIES: |                                                           |                                                                                                                                              |                                                                                                                                              |                                                                                                                                  |                                                                                                                                  |
|                                       |                                                           |                                                                                                                                              |                                                                                                                                              |                                                                                                                                  |                                                                                                                                  |                                                                                                                                   |                                                                                                                                   |
|                                       | Purchase      of property and equipment                        |  $       (375,926)                                                                                        |                                                                                                                                              |  $      (102,021)                                                                                  |                                                                                                                                  |  $          (15,757)                                                            |
|                                       | Acquisition      of intangibles                                |                         - |                                                                                                                                              |                       - |                                                                                                                                  |       (33,000,000)                                                                                       |
|                                       |                                                           | Net      cash used in investing activities                                                                                                        |           (375,926)                                                                             |                                                                                                                                  |          (102,021)                                                                       |                                                                                                                                   |       (33,015,757)                                                                                       |
|                                       |                                                           |                                                                                                                                              |                                                                                                                                              |                                                                                                                                  |                                                                                                                                  |                                                                                                                                   |                                                                                                                                   |
| CASH      FLOWS FROM FINANCING ACTIVITIES: |                                                           |                                                                                                                                              |                                                                                                                                              |                                                                                                                                  |                                                                                                                                  |
|                                       | Net      proceeds from issuance of common stock                |          4,095,628                                                                                   |                                                                                                                                              |                       - |                                                                                                                                  |         28,766,126                                                                             |
|                                       | Proceeds      from issuance of subordinated                    |                                                                                                                                              |                                                                                                                                              |                                                                                                                                  |                                                                                                                                  |                                                                                                                                   |
|                                       |                                                           | convertible      notes                                                                                                                            |                         - |                                                                                                                                  |                       - |                                                                                                                                   |         39,999,998                                                                             |
|                                       | Proceeds      from exercise of options                         |             594,855                                                                   |                                                                                                                                              |             63,241                                                        |                                                                                                                                  |           1,021,759                                                                  |
|                                       | Payment      for purchase of treasury stock                    |           (135,199)                                                                             |                                                                                                                                              |            (27,150)                                                            |                                                                                                                                  |              (26,880)                                                 |
|                                       | Payment      pursuant to financing agreements                  |        (3,540,949)                                                                                             |                                                                                                                                              |                       - |                                                                                                                                  |         (5,391,268)                                                                            |
|                                       | Dividends      paid                                            |             (55,144)                                                                  |                                                                                                                                              |            (76,894)                                                            |                                                                                                                                  |            (161,379)                                                            |
|                                       | Net      cash or provided by or (used in) financing activities |             959,191                                                                   |                                                                                                                                              |            (40,803)                                                            |                                                                                                                                  |         64,208,356                                                                             |
|                                       |                                                           |                                                                                                                                              |                                                                                                                                              |                                                                                                                                  |                                                                                                                                  |                                                                                                                                   |                                                                                                                                   |
| EFFECT      OF EXCHANGE RATE CHANGES ON    |                                                           |                                                                                                                                              |                                                                                                                                              |                                                                                                                                  |                                                                                                                                  |
|                                       | CASH                                                           |           (171,206)                                                                             |                                                                                                                                              |               8,557                                             |                                                                                                                                  |                21,901                                       |
|                                       |                                                           |                                                                                                                                              |                                                                                                                                              |                                                                                                                                  |                                                                                                                                  |                                                                                                                                   |                                                                                                                                   |
| NET      (DECREASE)/ INCREASE IN CASH AND  |                                                           |                                                                                                                                              |                                                                                                                                              |                                                                                                                                  |                                                                                                                                  |
|                                       | CASH      EQUIVALENTS                                          |        (4,724,429)                                                                                             |                                                                                                                                              |       (8,048,566)                                                                                       |                                                                                                                                  |         18,133,522                                                                             |
|                                       |                                                           |                                                                                                                                              |                                                                                                                                              |                                                                                                                                  |                                                                                                                                  |                                                                                                                                   |                                                                                                                                   |
| CASH      AND CASH EQUIVALENTS,            |                                                           |                                                                                                                                              |                                                                                                                                              |                                                                                                                                  |                                                                                                                                  |
|                                       | Beginning      of year                                         |        17,221,811                                                                                              |                                                                                                                                              |      25,270,377                                                                                              |                                                                                                                                  |           7,136,854                                                                  |
|                                       |                                                           |                                                                                                                                              |                                                                                                                                              |                                                                                                                                  |                                                                                                                                  |                                                                                                                                   |                                                                                                                                   |
| CASH      AND CASH EQUIVALENTS,            |                                                           |                                                                                                                                              |                                                                                                                                              |                                                                                                                                  |                                                                                                                                  |
|                                       | End      of year                                               |  $    12,497,382                                                                                                         |                                                                                                                                              |  $  17,221,811                                                                                                         |                                                                                                                                  |  $     25,270,377                                                                                        |
|                                       |                                                           |                                                                                                                                              |                                                                                                                                              |                                                                                                                                  |                                                                                                                                  |                                                                                                                                   |                                                                                                                                   |
| SUPPLEMENTAL      DISCLOSURE OF CASH       |                                                           |                                                                                                                                              |                                                                                                                                              |                                                                                                                                  |                                                                                                                                  |
|                                       | FLOW      INFORMATION                                          |                                                                                                                                              |                                                                                                                                              |                                                                                                                                  |                                                                                                                                  |                                                                                                                                   |
|                                       | Interest      paid                                             |  $      3,200,000                                                                                              |                                                                                                                                              |  $    2,488,889                                                                                              |                                                                                                                                  |  $                     - |
|                                       |                                                           |                                                                                                                                              |                                                                                                                                              |                                                                                                                                  |                                                                                                                                  |                                                                                                                                   |                                                                                                                                   |
|                                       | Taxes      paid                                                |  $           27,403                                                                   |                                                                                                                                              |  $         34,759                                                                   |                                                                                                                                  |  $            49,492                                                  |
|                                       |                                                           |                                                                                                                                              |                                                                                                                                              |                                                                                                                                  |                                                                                                                                  |                                                                                                                                   |                                                                                                                                   |
|                                       | Accrual      of financing costs                                |  $                     -            |                                                                                                                                              |  $         25,000                                                                   |                                                                                                                                  |  $       1,275,000                                                                             |
|                                       |                                                           |                                                                                                                                              |                                                                                                                                              |                                                                                                                                  |                                                                                                                                  |                                                                                                                                   |                                                                                                                                   |
|                                       | Increase      of US Crinone License Right cost                 |  $                     -            |                                                                                                                                              |  $    1,000,000                                                                                              |                                                                                                                                  |  $                     - |
|                                       |                                                           |                                                                                                                                              |                                                                                                                                              |                                                                                                                                  |                                                                                                                                  |                                                                                                                                   |                                                                                                                                   |
|                                       | Conversion      of Series C preference shares to               |  $         350,000                                                                              |                                                                                                                                              |  $    2,075,000                                                                                              |                                                                                                                                  |  $            50,000                                                  |
|                                       |                                                           | common      stock                                                                                                                                 |                                                                                                                                              |                                                                                                                                  |                                                                                                                                  |                                                                                                                                   |                                                                                                                                   |
|                                       |                                                           |                                                                                                                                              |                                                                                                                                              |                                                                                                                                  |                                                                                                                                  |                                                                                                                                   |                                                                                                                                   |
|                                       | Conversion      of Series E preference shares to               |                                                                                                                                              |                                                                                                                                              |                                                                                                                                  |                                                                                                                                  |                                                                                                                                   |
|                                       |                                                           | common      stock                                                                                                                                 |  $         454,700                                                                              |                                                                                                                                  |  $       545,300                                                                              |                                                                                                                                   |  $                     - |
|                                       |                                                           |                                                                                                                                              |                                                                                                                                              |                                                                                                                                  |                                                                                                                                  |                                                                                                                                   |                                                                                                                                   |

----

FairValue of Financial Instruments-

----

|                | December      31,                              |   |                                     |   |
|---------------------|------------------------------------------------|--------|------------------------------------------|--------|
|                | 2008                                           |   | 2007                                     |   |
| Finished      goods |  $     1,745,222 |   |  $    1,734,052 |   |
| Raw      materials  | 631,917                                        |   | 1,313,077                                |   |
|                |  $     2,377,139 |   |  $    3,047,129 |   |
|                |                                           |   |                                     |   |

|                         |   | Years  |   |
|------------------------------|--------|--------|--------|
|                         |   |   |   |
| Software                     |   |   | 3      |   |
| Machinery      and equipment |   |   | 5-10   |   |
| Furniture      and fixtures  |   |   | 5      |   |

----

IntangibleAssets-

|                                | 2008                                 |   | 2007                                            |
|-------------------------------------|--------------------------------------|--------|-------------------------------------------------|
|  Balance      at January 1     |  $  34,000,000        |   |  $  34,000,000                   |
|  Accumulated      amortization |     (10,184,940) |   |       (5,140,212) |
|  Balance      at December 31   |  $  23,815,060        |   |  $  28,859,788                   |
|                                |                                 |   |                                            |

| Year   | Amortization                                  |
|--------|-----------------------------------------------|
| 2009   |  $   5,044,728            |
| 2010   |       5,044,728 |
| 2011   |       5,044,728 |
| 2012   |       5,044,728 |
| 2013   |       3,636,148 |
| Total  |  $      23,815,060                       |
|   |                                          |

----

|                                       | 2008                                                                     |   | 2007                                              |
|--------------------------------------------|--------------------------------------------------------------------------|--------|---------------------------------------------------|
| Sales      returns & price adjustments |  $   2,789,316                                       |   |  $      1,923,765                            |
| Salaries                                   |          332,657            |   |        757,587 |
| Interest                                   |          800,000            |   |        800,000 |
| Professional      fees                     |          483,193            |   |        441,525 |
| Inventory      management fees             |          359,376            |   |        553,463 |
| Marketing      expenses                    |            34,652 |   |        244,177 |
| Royalties/Other                            |          181,449            |   |        183,364 |
|                                       |  $   4,980,643                                       |   |  $      4,903,881                            |
|                                       |                                                                     |   |                                              |
|                                       |                                                                     |   |                                              |

|                                            | 2008                                                    |   | 2007                                                     |   | 2006                                                                                                                |
|-------------------------------------------------|---------------------------------------------------------|--------|----------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------|
|                                            |                                                    |   |                                                     |   |                                                                                                                |
| Balance      at beginning of year               |  $  1,923,765                            |   |  $  1,240,234                             |   |  $     745,882                                                                        |
| Addition      Related to Crinone® purchase |                                                    |   |      1,000,000                  |   |                    - |
| Adjusted      Balance at Beginning of year      |      1,923,765                 |   |      2,240,234                  |   |         745,882                                                             |
| Provision:                                      |                                                    |   |                                                     |   |                                                                                                                |
| Related      to current year sales              |         674,020 |   |         527,819  |   |         210,275                                                             |
| Related      to prior years' sales              |         725,971 |   |         500,000  |   |      1,592,592                                                                             |
|                                            |      1,399,991                 |   |      1,027,819                  |   |      1,802,867                                                                             |
|                                            |                                                    |   |                                                     |   |                                                                                                                |
| Returns:                                        |                                                    |   |                                                     |   |                                                                                                                |
| Related      to current year sales              |       (130,551)           |   |         (61,125) |   |         (46,825)                                                            |
| Related      to 2006 Crinone purchase           |       (300,152)           |   |       (328,896)            |   |                    - |
| Related      to prior years' sales              |    (1,028,737)                           |   |       (954,267)            |   |    (1,261,690)                                                                                       |
|                                            |    (1,459,440)                           |   |    (1,344,288)                            |   |    (1,308,515)                                                                                       |
|                                            |                                                    |   |                                                     |   |                                                                                                                |
| Balance      at end of year                     |  $  1,864,316                            |   |  $  1,923,765                             |   |  $  1,240,234                                                                                        |
|                                            |                                                    |   |                                                     |   |                                                                                                                |

----

----

Share-based compensation expense recognized during a period isbased on the value of the portion of share-based awards that is ultimatelyexpected to vest. Stock-based compensation expense recognized in the years endedDecember 31, 2008, 2007 and 2006 included compensation expense for share-basedawards granted prior to, but not yet vested as of December 31, 2005, basedon the fair value on the grant date estimated in accordance with the pro formaprovisions of SFAS 123, and compensation expense for the stock-based awardsgranted or modified subsequent to December 31, 2005, based on the fairvalue on the grant date estimated in accordance with the provisions of SFAS123(R). In conjunction with the adoption of SFAS 123(R), the Company iscontinuing to use the straight line method of attributing the value ofstock-based compensation expense. Because stock-based compensation expense to berecognized in the results for periods beginning after December 31, 2005, isbased on awards ultimately expected to vest, the amounts will be reduced forestimated forfeitures. SFAS 123(R) requires forfeitures to be estimated at thetime of grant and revised, if necessary, in subsequent periods if actualforfeitures differ from those estimates.

----

----

----

|                                     |   | 2008   |   | 2007   |   | 2006   |
|------------------------------------------|--------|--------|--------|--------|--------|--------|
| Federal      income tax rate             | -34.0% |   | -35.0% |   | -34.0% |
| Statutory      rate over expected future |   |   |   |   |   |
| federal      benefit                     | 0.0%   |   | 1.0%   |   | 0.0%   |
| Foreign      income tax benefit/loss     | -18.2% |   | -12.6% |   | -8.4%  |
| State      tax net of federal benefit    | -11.0% |   | -9.9%  |   | -8.2%  |
| Permanent      Items:                    |   |   |   |   |   |
| Incentive      Stock Options             | 1.0%   |   | 0.0%   |   | 0.0%   |
| R&D      Credit                      |   | 0.0%   |   | 0.0%   |   | 1.0%   |
| Other                                    |   | 1.0%   |   | 1.6%   |   | 2.6%   |
| Effect      of permanent differences     | 2.0%   |   | 1.6%   |   | 3.6%   |
| Effective      income tax rate           | -61.2% |   | -54.9% |   | -47.0% |
| Increase      in valuation allowance     | 55.4%  |   | 49.7%  |   | 42.9%  |
| Effective      income tax rate           | -5.8%  |   | -5.2%  |   | -4.1%  |
|                                     |   |   |   |   |   |   |

----

|   |                                                                      |                                                                                                      |   |                                                                                                                                                    |
|--------|---------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                      |                                                                                                      |   |                                                                                                                                                    |
|   | Deferred      Tax Assets (Liabilities)                                    | 2008                                                                                                      |   | 2007                                                                                                                                                    |
|   |                                                                      |                                                                                                      |   |                                                                                                                                                    |
|   |   FASB      123R                                                |  $       533,937                                                  |   |  $          973,848                                                                              |
|   |   Allowance      for doubtful accounts                          |             28,125                            |   |                26,525                                                        |
|   |   Allowance      for returns                                    |           591,241                                       |   |              346,412                                                                   |
|   |   Inventory      reserve                                        |                  163 |   |                71,889                                                        |
|   |   Book      accumulated depreciation net of tax                 |           (19,096)                                      |   |                 (8,779)                                                 |
|   |   Accum      amortization - CRINONE license                     |        2,096,436                                                       |   |           1,054,663                                                                                   |
|   |   Vacation  accrual                                   |             15,000                            |   |                14,634                                                        |
|   |   Inventory      capitalization                                 |             25,604                            |   |                17,318                                                        |
|   |   Patents                                                       |           112,500                                       |   |                          - |
|   |   Long      term debt (book amortization beneficial conversion) |      (2,152,372)                                                                 |   |          (2,694,844)                                                                                       |
|   |   Federal      net operating loss                               |      50,962,090                                                                  |   |         58,983,654                                                                                              |
|   |   State      net operating loss                                 |        2,573,071                                                       |   |                          - |
|   |   Unused      R&D credit                                    |        1,323,385                                                       |   |           1,743,065                                                                                   |
|   | Net      Deferred Tax Assets                                              |      56,090,084                                                                  |   |         60,528,385                                                                                              |
|   |                                                                      |                                                                                                      |   |                                                                                                                                                    |
|   | Less      Valuation Allowance:                                            |                                                                                                      |   |                                                                                                                                                    |
|   |         Federal                   |    (56,090,084)                                                                            |   |        (60,528,385)                                                                                                  |
|   |                                                                      |                                                                                                      |   |                                                                                                                                                    |
|   | Deferred      Tax Assets                                                  |  $                -  |   |  $                    -                        |
|   |                                                                      |                                                                                                      |   |                                                                                                                                                    |
|   |                                                                      |                                                                                                      |   |                                                                                                                                                    |

----

On October 16, 2002, the Company and Ardana entered into alicense and supply agreement for STRIANT in 18 European countries (excludingItaly). Under the agreement the Company received $6.0 million. In July 2008, theCompany terminated the development and license agreement pursuant to its rightsunder the agreement to terminate it in the event of the insolvency of Ardana.Ardana announced in June 2008 that it suspended trading in its shares, was nolonger in a position to continue its operations, and had appointedadministrators of the company. In the quarter ended September 30, 2008, theCompany recognized $2.9 million of deferred revenue from the cancellation of theagreement. The Company recognized license revenue under this agreement of $3.2,$0.7, and $0.7 million in 2008, 2007, and 2006, respectively.

The Company recorded original issue discounts of $6,272,566 tothe notes based upon the fair value of warrants granted. In addition, beneficialconversion features totaling $8,482,090 have been recorded as a discount to thenotes. These discounts are being amortized at an imputed rate over the five yearterm of the related notes. For the years ended December 31, 2008, 2007 and 2006,$2,535,788, $2,237,043 and $53,793, respectively, of amortization related tothese discounts is classified as interest expense in the consolidatedstatements of operations. Unamortized discounts of $9,925,034 and $12,463,822have been reflected as a reduction to the face value of the convertible notes inthe consolidated balance sheets as of December 31, 2008 and 2007,respectively.

----

 

|                                   | December      31                                                    |   |                                                |
|----------------------------------------|---------------------------------------------------------------------|--------|-----------------------------------------------------|
|                                   | 2008                                                                |   | 2007                                                |
|                                   |                                                                |   |                                                |
| July      31, 2002 financing agreement |  -                                                             |   |  $    3,620,653            |
| March      5, 2003 financing agreement |      13,294,244                            |   |      11,591,486            |
|                                   |      13,294,244                            |   |      15,212,139            |
| Less:      current portion             |           168,034 |   |        3,786,538 |
|                                   |  $  13,126,210                                       |   |  $  11,425,601                       |
|                                   |                                                                |   |                                                |

----

----

Warrants-

| Weighted      Average Exercise Price                                                                                                                 | Warrants |
|------------------------------------------------------------------------------------------------------------------------------------------------------|----------|
|                                                                                                                                                 |     |   |
|  $                     4.81            |     |           200,000 |
|                         5.39 |     |        1,857,041 |
|                         5.50 |     |        2,285,714 |
|                         5.85 |     |           100,000 |
|                         7.50 |     |             75,000 |
|                         8.35 |     |           350,000 |
|  $                     5.69            |     |        4,867,755 |
|                                                                                                                                                 |     |   |

----

|                                                     | Twelve      Months Ended                                           |   |                                                    |
|----------------------------------------------------------|--------------------------------------------------------------------|--------|---------------------------------------------------------|
|                                                     | December      31,                                                  |   |                                                    |   |   |
|                                                     | 2008                                                               |   | 2007                                                    |   | 2006 |
| Employee      stock-based compensation in:               |                                                               |   |                                                    |   |   |
| Cost      of revenue                                     |  $       68,046            |   |  $     148,589            |   |  $         82,720 |
|                                                     |                                                               |   |                                                    |   |   |
| Selling      and distribution                            |         175,375            |   |         160,573 |   |             87,032 |
| General      and administrative                          |         973,148            |   |      1,014,702                 |   |           733,695 |
| Research      and development                            |           98,002 |   |         166,195 |   |           161,936 |
|   Total      employee stock-based compensation |                                                               |   |                                                    |   |   |
|     in      operating expenses       |      1,246,525                            |   |      1,341,470                 |   |           982,663 |
|                                                     |                                                               |   |                                                    |   |   |
|   Total      employee stock-based compensation |  $  1,314,571                                       |   |  $  1,490,059                            |   |  $    1,065,383 |
|                                                     |                                                               |   |                                                    |   |   |

|                         | 2008            |   | 2007            |   | 2006            |
|------------------------------|-----------------|--------|-----------------|--------|-----------------|
| Risk      free interest rate | 2.25%           |   | 4.53%           |   | 4.87%           |
| Expected      term           | 4.75      years |   | 4.52      years |   | 4.84      years |
| Dividend      yield          | 0.0             |   | 0.0             |   | 0.0             |
| Expected      volatility     | 85.49%          |   | 85.68%          |   | 72.42%          |

----

A summary of the status of the Company’s two stock option plansas of December 31, 2008, 2007, and 2006 is presented below:

|                                  | 2008                                          |                                                       |   | 2007                                         |                                                 |   | 2006                              |                                                       |
|---------------------------------------|-----------------------------------------------|------------------------------------------------------------|--------|----------------------------------------------|------------------------------------------------------|--------|-----------------------------------|------------------------------------------------------------|
|                                  |                                          | Weighted-                                                  |   |                                         | Weighted-                                            |   |                              | Weighted-                                                  |
|                                  |                                          | Average                                                    |   |                                         | Average                                              |   |                              | Average                                                    |
|                                  |                                          | Exercise                                                   |   |                                         | Exercise                                             |   |                              | Exercise                                                   |
|                                  |                                          | Price                                                      |   | Shares                                       | Price                                                |   | Shares                            | Price                                                      |
| Outstanding      at beginning of year | 4,936,335                                     | $4.64                                                      |   | 4,686,552                                    | $8.57                                                |   | 5,960,525                         | $7.79                                                      |
| Granted                               | 1,275,700                                     | 2.58                                                       |   | 1,710,850                                    | 1.50                                                 |   | 434,900                           | 4.29                                                       |
| Exercised                             |       (318,149) |          1.87 |   |       (43,050) |         1.47 |   |     (335,049) |          3.05 |
| Forfeited                             | (1,030,398)                                   | 9.10                                                       |   | (1,418,017)                                  | 12.84                                                |   | (1,373,824)                       | 6.27                                                       |
| Outstanding      at end of year       | 4,863,488                                     | 3.47                                                       |   | 4,936,335                                    | 4.64                                                 |   | 4,686,552                         | 8.57                                                       |
|                                  |                                          |                                                       |   |                                         |                                                 |   |                              |                                                       |
| Options      exercisable at year end  | 2,688,841                                     |                                                       |   | 3,196,121                                    |                                                 |   | 3,782,060                         |                                                       |
|                                  |                                          |                                                       |   |                                         |                                                 |   |                              |                                                       |

|                 |   | Options      Outstanding |   | Options      Exercisable |   |
|----------------------|--------|--------------------------|--------|--------------------------|--------|
|                 |   |                     |   | Weighted-                |   |   |   |   |   |   |   |
|                 |   |                     |   | Average                  |   | Weighted- |   |   |   | Weighted- |   |
| Range      of        |   | Number                   |   | Remaining                |   | Average |   | Number |   | Average |   |
| Exercise             |   | Outstanding      at      |   | Contractual              |   | Exercise |   | Exercisable      at |   | Exercise |   |
| Prices               |   | 12/31/08                 |   | Life      (Years)        |   | Price |   | 12/31/08 |   | Price |   |
| $1.17      - $1.91   |   | 1,289,841                |   | 5.29                     |   |  $        1.41 |   | 515,619 |   |  $         1.42 |   |
| $2.05      - $3.09   |   | 1,656,450                |   | 5.64                     |   |  $      2.50 |   | 556,425 |   |  $        2.53 |   |
| $3.19      - $4.80   |   | 1,040,897                |   | 4.77                     |   |  $      4.05 |   | 743,197 |   |  $        4.04 |   |
| $4.81      - $7.53   |   | 648,800                  |   | 2.54                     |   |  $      6.20 |   | 646,100 |   |  $         6.21 |   |
| $7.75      - $10.68  |   | 227,500                  |   | 1.43                     |   |  $      8.97 |   | 227,500 |   |  $        8.97 |   |
| $1.42      - $10.675 |   | 4,863,488                |   | 3.47                     |   |  $      3.33 |   | 2,688,841 |   |  $         4.16 |   |
|                 |   |                     |   |                     |   |   |   |   |   |   |   |

----

|                                 |                                              | 2008                                                          |                                                                                                                    |                                                                                                                          |                                              | 2007                                                          |                                                                                                                    |                                                                                                                          |    | 2006                                              |                                                                                                           |                                                                                                                    |
|--------------------------------------|---------------------------------------------------|---------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------|---------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------|---------|---------------------------------------------------|----------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------|
|                                 |                                              |                                                          |                                                                                                                    | Weighted-                                                                                                                     |                                              |                                                          |                                                                                                                    | Weighted-                                                                                                                     |    |                                              |                                                                                                           | Weighted-                                                                                                               |
|                                 |                                              |                                                          |                                                                                                                    | Average      Grant                                                                                                            |                                              |                                                          |                                                                                                                    | Average      Grant                                                                                                            |    |                                              |                                                                                                           | Average      Grant                                                                                                      |
|                                 |                                              | Shares                                                        |                                                                                                                    | Date      Fair Value                                                                                                          |                                              | Shares                                                        |                                                                                                                    | Date      Fair Value                                                                                                          |    | Shares                                            |                                                                                                           | Date      Fair Value                                                                                                    |
| Unvested      at beginning of period |        197,096 |                                                          |  $                  2.36 |                                                                                                                          |        146,875 |                                                          |  $                  4.49 |                                                                                                                          |  - |                                              |  $                 - |
| Granted                              |                                              |        172,553             |                                                                                                                    |  $                  2.36       |                                              |        159,390             |                                                                                                                    |  $                   1.79 |    |      167,875             |                                                                                                           |  $                  4.48 |
| Vested                               |                                              |      (122,484)                       |                                                                                                                    |  $                  2.94       |                                              |      (105,469)                       |                                                                                                                    |  $                   1.69 |    |       (15,000)      |                                                                                                           |  $                  4.34 |
| Forfeited                            |                                              |          (9,050) |                                                                                                                    |  $                   1.94 |                                              |          (3,700) |                                                                                                                    |  $                   1.40 |    |        (6,000) |                                                                                                           |  $                  4.34 |
| Unvested      at December 31,        |                                              |         238,115       |                                                                                                                    |  $                  2.23       |                                              |        197,096             |                                                                                                                    |  $                  2.36       |    |      146,875             |                                                                                                           |  $                  4.49 |
|                                 |                                              |                                                          |                                                                                                                    |                                                                                                                          |                                              |                                                          |                                                                                                                    |                                                                                                                          |    |                                              |                                                                                                           |                                                                                                                    |

|   |   |                                                          |
|--------|--------|---------------------------------------------------------------|
| 2009   |   |  $      270,075            |
| 2010   |   |          271,226 |
| 2011   |   |          244,532 |
| 2012   |   |          233,066 |
| 2013   |   |          187,031 |
|   |   |  $   1,205,930                            |

----

----

|                                     |                        |                                                                  |   | (Loss)      profit from                                                                                                                     |   | Identifiable                                                                                                                                |
|------------------------------------------|-----------------------------|-----------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------|
|                                     |                        | Revenues                                                              |   | Operations                                                                                                                                  |   | Assets                                                                                                                                      |
| As      of and for  the year   |                        |                                                                  |   |                                                                                                                                        |   |
| ended  December      31, 2008- |                        |                                                                  |   |                                                                                                                                        |   |
|                                     |                        |                                                                  |   |                                                                                                                                        |   |                                                                                                                                        |
|                                     | United      States          |  $     18,062,013                       |   |  $    (14,978,075)                                                                                                 |   |  $     38,806,638                                                                                             |
|                                     | Switzerland                 |           9,168,230 |   |                        - |   |                        - |
|                                     | Other                       |           9,109,889 |   |                        - |   |                        - |
|                                     | Subtotal      International |         18,278,119            |   |           7,720,690                                                                       |   |           6,815,851                                                                       |
|                                     |                        |  $     36,340,132                       |   |  $      (7,257,385)                                                                                      |   |  $     45,622,489                                                                                             |
|                                     |                        |                                                                  |   |                                                                                                                                        |   |                                                                                                                                        |
| As      of and for  the year   |                        |                                                                  |   |                                                                                                                                        |   |
| ended  December      31, 2007- |                        |                                                                  |   |                                                                                                                                        |   |
|                                     |                        |                                                                  |   |                                                                                                                                        |   |                                                                                                                                        |
|                                     | United      States          |  $     15,257,884                       |   |  $    (14,339,632)                                                                                                 |   |  $     49,253,642                                                                                             |
|                                     | Switzerland                 |           8,101,831 |   |                        - |   |                        - |
|                                     | Other                       |           6,267,923 |   |                        - |   |                        - |
|                                     | Subtotal      International |         14,369,754            |   |           6,231,784                                                                       |   |           7,335,635                                                                       |
|                                     |                        |  $     29,627,638                       |   |  $      (8,107,848)                                                                                      |   |  $     56,589,277                                                                                             |
|                                     |                        |                                                                  |   |                                                                                                                                        |   |                                                                                                                                        |
| As      of and for the year              |                        |                                                                  |   |                                                                                                                                        |   |
| ended      December 31, 2006-            |                        |                                                                  |   |                                                                                                                                        |   |
|                                     |                        |                                                                  |   |                                                                                                                                        |   |                                                                                                                                        |
|                                     | United      States          |  $       7,950,735            |   |  $    (14,827,488)                                                                                                 |   |  $     60,632,896                                                                                             |
|                                     | Switzerland                 |           5,716,289 |   |                        - |   |                        - |
|                                     | Other                       |           3,726,057 |   |                        - |   |                        - |
|                                     | Subtotal      International |           9,442,346 |   |           3,667,384                                                                       |   |           5,205,848                                                                       |
|                                     |                        |  $     17,393,081                       |   |  $    (11,160,104)                                                                                                 |   |  $     65,838,744                                                                                             |
|                                     |                        |                                                                  |   |                                                                                                                                        |   |                                                                                                                                        |

----

|                                |   | 2008                                                      |   | 2007                                          |   | 2006                                                          |
|-------------------------------------|--------|-----------------------------------------------------------|--------|-----------------------------------------------|--------|---------------------------------------------------------------|
|                                |   |                                                      |   |                                          |   |                                                          |
| MerckSerono                         |   |  $     9,168,230            |   |  $   8,151,292            |   |  $   8,234,198                            |
| Lil'      Drug Store Products, Inc. |   |         6,218,949 |   |       5,958,925 |   |       4,637,928                 |
| Cardinal      Healthcare            |   |         5,612,748 |   |       6,098,510 |   |       2,060,152                 |
| McKesson                            |   |         4,990,960 |   |       3,888,354 |   |       1,892,728                 |
| All      others (none over 5%)      |   |       10,349,245            |   |       5,530,557 |   |          568,075 |
|                                |   |  $   36,340,132                       |   |  $      29,627,638                       |   |  $      17,393,081                                       |

|            |   | 2008                                                                  |   | 2007                                                                  |   | 2006                                                                                  |
|-----------------|--------|-----------------------------------------------------------------------|--------|-----------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------|
| CRINONE®   |   |  $     21,439,847                       |   |  $     18,904,512                       |   |  $       6,719,027                            |
| RepHresh®  |   |           3,316,193 |   |           3,326,927 |   |              724,519 |
| PROCHIEVE® |   |           2,697,255 |   |           1,527,727 |   |           2,965,721                 |
| Other           |   |           8,886,837 |   |           5,868,472 |   |           6,983,814                 |
|            |   |  $     36,340,132                       |   |  $     29,627,638                       |   |  $     17,393,081                                       |
|            |   |                                                                  |   |                                                                  |   |                                                                                  |

----

(11) QUARTERLY FINANCIALINFORMATION (UNAUDITED):

| 2008                         | FirstQuarter                                                                                                                |   | SecondQuarter                                                                               | ThirdQuarter |                                                                                        | FourthQuarter | FullYear                                                                                    |
|------------------------------|-----------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------|--------------|---------------------------------------------------------------------------------------------|---------------|---------------------------------------------------------------------------------------------|
|                         |                                                                                                                        |   |                                                                                        |         |                                                                                        |          |                                                                                        |   |   |
| Net      sales               |  $      8,672,333                                                                        |   |  $      8,832,718                                        |         |  $      8,162,945                                        |          |  $      6,912,266                                        |   |  $      32,580,262 |
| Fee      income and other    |             306,637                                             |   |             320,252             |         |          2,975,696                             |  (1)     |             157,285             |   |            3,759,870 |
|        income           |                                                                                                                        |   |                                                                                        |         |                                                                                        |          |                                                                                        |   |   |
| Gross      profit            |          6,018,874                                                             |   |          6,203,162                             |         |          8,279,049                             |          |          4,904,432                             |   |          25,405,517 |
| Loss      from operations    |        (2,378,635)                                                                       |   |        (2,399,902)                                       |         |             (86,884)            |          |        (2,391,964)                                       |   |          (7,252,385) |
| Net      loss                |        (4,248,795)                                                                       |   |        (4,326,171)                                       |         |        (2,050,136)                                       |          |        (3,451,407)                                       |   |        (14,076,509) |
| Basic      and diluted loss  |                                                                                                                        |   |                                                                                        |         |                                                                                        |          |                                                                                        |   |   |
|        per common share |  $             (0.08)                                 |   |  $             (0.08) |         |  $             (0.04) |          |  $             (0.06) |   |  $               (0.27) |
|                         |                                                                                                                        |   |                                                                                        |         |                                                                                        |          |                                                                                        |   |   |
|                         |                                                                                                                        |   |                                                                                        |         |                                                                                        |          |                                                                                        |   |   |
| 2007                         |                                                                                                                        |   |                                                                                        |         |                                                                                        |          |                                                                                        |   |   |
| Net      sales               |  $      6,362,381                                                                        |   |  $      7,009,075                                        |         |  $      6,906,298                                        |          |  $      8,081,998                                        |   |  $      28,359,752 |
| Fee      income and other    |                                                                                                                        |   |                                                                                        |         |                                                                                        |          |                                                                                        |   |   |
|        income           |             322,239                                             |   |             277,939             |         |             401,781             |          |             265,927             |   |            1,267,886 |
| Gross      profit            |          4,612,433                                                             |   |          4,483,725                             |         |          5,578,997                             |          |          5,937,943                             |   |          20,613,098 |
| Loss      from operations    |        (1,842,496)                                                                       |   |        (1,865,255)                                       |         |        (1,886,598)                                       |          |        (2,513,499)                                       |   |          (8,107,848) |
| Net      loss                |        (3,535,975)                                                                       |   |        (3,589,375)                                       |         |        (3,724,362)                                       |          |        (3,442,078)                                       |   |        (14,291,790) |
| Basic      and diluted loss  |                                                                                                                        |   |                                                                                        |         |                                                                                        |          |                                                                                        |   |   |
|        per common share |  $             (0.07)                                 |   |  $             (0.07) |         |  $             (0.07) |          |  $             (0.07) |   |  $               (0.28) |
|                         |                                                                                                                        |   |                                                                                        |         |                                                                                        |          |                                                                                        |   |   |
|                         | *The      addition of earnings (loss) per share by quarter may not equal total      earnings (loss) per share for the year. |
|                         | (1)      Recognition of deferred royalty income (Ardana) $2,924,852                                                         |   |                                                                                        |         |                                                                                        |

----

----

----

----

|                                       |                                                     |            |                                                   | Charged      to    |                                                                                               |                |                                              |              |   |
|--------------------------------------------|----------------------------------------------------------|-----------------|--------------------------------------------------------|--------------------|----------------------------------------------------------------------------------------------------|---------------------|---------------------------------------------------|-------------------|--------|
|                                       |                                                     | Balance      at |                                                   | (credited      to) |                                                                                               |                |                                              | Balance           |   |
|                                       |                                                     | beginning       |                                                   | costs      and     |                                                                                               |                |                                              | at  end |   |
|                                       | Description                                              | of      year    |                                                   | expenses           |                                                                                               | Deductions      (A) |                                              | of      year      |   |
|                                       |                                                     |            |                                                   |               |                                                                                               |                |                                              |              |   |
|                                       | YEAR      ENDED DECEMBER  31,  2008: |            |                                                   |               |                                                                                               |                |                                              |              |   |
|  Allowance      for doubtful accounts |  $      95,733        |            |  $       4,267 |               |  $               - |                |  $    100,000            |              |
|                                       |                                                     |            |                                                   |               |                                                                                               |                |                                              |              |   |
|                                       | YEAR      ENDED DECEMBER  31,  2007: |            |                                                   |               |                                                                                               |                |                                              |              |   |
|  Allowance      for doubtful accounts |  $    100,000                   |            |  $     15,000            |               |  $       19,267                                            |                |  $      95,733 |              |
|                                       |                                                     |            |                                                   |               |                                                                                               |                |                                              |              |   |
|                                       | YEAR      ENDED DECEMBER  31,  2006: |            |                                                   |               |                                                                                               |                |                                              |              |   |
|  Allowance      for doubtful accounts |  $      50,000        |            |  $   105,855                       |               |  $       55,855                                            |                |  $    100,000            |              |
|                                       |                                                     |            |                                                   |               |                                                                                               |                |                                              |              |   |

----

| Exhibit No |  Description                                                                                                                                                               |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1             | Restated      Certificate of Incorporation of the Company, as amended (14)                                                                                                      |
|            |                                                                                                                                                                            |
| 3.2             | Amended      and Restated By-laws of Company (3)                                                                                                                                |
|            |                                                                                                                                                                            |
| 4.1             | Certificate      of Designations, Preferences and Rights of Series C Convertible Preferred      Stock of the Company, dated as of January 7, 1999 (3)                           |
|            |                                                                                                                                                                            |
| 4.2             | Securities      Purchase Agreement, dated as of January 7, 1999, between the Company and      each of the purchasers named on the signature pages thereto (3)                   |
|            |                                                                                                                                                                            |
| 4.3             | Securities      Purchase Agreement, dated as of January 19, 1999, among the Company, David      M. Knott and Knott Partners, L.P. (3)                                           |
|            |                                                                                                                                                                            |
| 4.4             | Form      of Warrant to Purchase Common Stock (3)                                                                                                                               |
|            |                                                                                                                                                                            |
| 4.5             | Warrant      to Purchase Common Stock granted to James J. Apostolakis on September 23,      1999 (5)                                                                            |
|            |                                                                                                                                                                            |
| 4.6             | Certificate      of Designations of Series E Convertible Preferred Stock, filed May 10,      2005 with the Delaware Secretary of State (13)                                     |
|            |                                                                                                                                                                            |
| 4.7             | Preferred      Stock Purchase Agreement, dated as of May 10, 2005, among Columbia      Laboratories, Inc., Perry Partners L.P. and Perry Partners International,      Inc. (13) |
|            |                                                                                                                                                                            |
| 4.8             | Securities      Purchase Agreement, dated March 10, 2006, by and between Columbia      Laboratories, Inc. and the Purchasers listed on Exhibit A thereto (15)                   |
|            |                                                                                                                                                                            |
| 4.9*            | Form      of Restricted Stock Agreement (17)                                                                                                                                    |
|            |                                                                                                                                                                            |
| 4.10*           | Form      of Option Agreement (24)                                                                                                                                              |
|            |                                                                                                                                                                            |
| 4.11            | Securities      Purchase Agreement, dated December 21, 2006, by and between Columbia      Laboratories, Inc. and the Purchasers listed on Exhibit A thereto      (19) |
|            |                                                                                                                                                                            |
| 10.1            | 1996      Long-term Performance Plan, as amended, of the Company (2)                                                                                                            |
|            |                                                                                                                                                                            |
| 10.2            | Asset      Purchase, License and Option Agreement between Bio-Mimetics, Inc. and      Columbia Laboratories, Inc., dated November 22, 1989 (1)                                  |
|            |                                                                                                                                                                            |
| 10.3            | License      and Supply Agreement by and between the Company and Mipharm S.p.A. dated      March 5, 1999 (4)                                                                    |
|            |                                                                                                                                                                            |
| 10.4            | Settlement      Agreement and Release dated as of March 16, 2000 between Columbia      Laboratories (Bermuda) Ltd. and Lake Consumer Products, Inc. (5)                         |
|            |                                                                                                                                                                            |
| 10.5            | License      Agreement dated April 18, 2000, between the Company and Lil’ Drug Store      Products, Inc. (6)                                                              |
|            |                                                                                                                                                                            |
| 10.6            | Rights      Agreement dated as of March 13, 2002, by and between Columbia      Laboratories, Inc. and First Union National Bank, as Rights Agent (7)                            |
|            |                                                                                                                                                                            |
| 10.7†     | Semi-Exclusive      Supply Agreement dated May 7, 2002 between the Company and Mipharm S.p.A.      (8)                                                                          |
|            |                                                                                                                                                                            |
| 10.8†     | Amended      and Restated License and Supply Agreement dated June 4, 2002 between the      Company and Ares Trading S.A.(8)                                                |
|            |                                                                                                                                                                            |
| 10.9†     | Investment      and Royalty Agreement dated March 5, 2003 between the Company and      PharmaBio Development Inc. (9)                                                           |

----

| ExhibitNo.   | Description                                                                                                                                                                                                        |
|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.10† | License      and Supply Agreement Dated May 27, 2003 between the Company and Mipharm      S.p.A. (10)/                                                                                                             |
|         |                                                                                                                                                                                                               |
| 10.11*       | Form      of Indemnification Agreement for Officers and Directors (11)                                                                                                                                             |
|         |                                                                                                                                                                                                               |
| 10.12† | Asset      Purchase Agreement Dated June 29, 2004, between the Company and Lil’ Drug      Store Products, Inc. (12)/                                                                                         |
|         |                                                                                                                                                                                                               |
| 10.13† | Supply      Agreement dated June 29, 2004, between the Company and Lil’ Drug Store      Products, Inc.(12)/                                                                                                  |
|         |                                                                                                                                                                                                               |
| 10.14        | Letter      Agreement Supplement to STRIANT Investment and Royalty Agreement dated      April 14, 2006 (16)                                                                                                        |
|         |                                                                                                                                                                                                               |
| 10.15*       | Separation      Agreement by and between Columbia Laboratories, Inc. and David L. Weinberg      effective as of December 12, 2006 (18)/                                                                            |
|         |                                                                                                                                                                                                               |
| 10.16† | Agreement,      dated December 21, 2006, by and among Ares Trading S.A., Serono,      Inc., the Company and its wholly-owned subsidiary, Columbia Laboratories      (Bermuda), Ltd (19)                       |
|         |                                                                                                                                                                                                               |
| 10.17        | Amendment      No. 1 to the Amended and Restated License and Supply Agreement,      entered into December 21, 2006, by and between Ares Trading S.A and      Columbia Laboratories (Bermuda), Ltd. (19)/ |
|         |                                                                                                                                                                                                               |
| 10.18        | Description      of the Registrant’s Compensation and Reimbursement Practices for      Non-employee Directors. (20)                                                                                          |
|         |                                                                                                                                                                                                               |
| 10.19        | Lease      Agreement between Allwood Associates I and Columbia Laboratories, Inc.,      dated July 6, 2007 (20)                                                                                                    |
|         |                                                                                                                                                                                                               |
| 10.20† | License      and Supply Agreement between Columbia Laboratories, Inc. and Ascend      Therapeutics, Inc., dated September 27, 2007 (21)/                                                                      |
|         |                                                                                                                                                                                                               |
| 10.21        | Supply      Agreement between Columbia Laboratories (Bermuda) Limited and Fleet      Laboratories Limited, dated July 12, 1996  (22)/                                                                    |
|         |                                                                                                                                                                                                               |
| 10.22        | Packaging      Agreement between Columbia Laboratories (Ireland) Ltd. and Maropack AG,      dated October 28, 1993  (22)                                                                                 |
|         |                                                                                                                                                                                                               |
| 10.23*       | Columbia      Laboratories, Inc., 2008 Long-Term Incentive Plan (23)/                                                                                                                                              |
|         |                                                                                                                                                                                                               |
| 10.24*       | Columbia      Laboratories, Inc., Amended and Restated Incentive Plan (24)/                                                                                                                                        |
|         |                                                                                                                                                                                                               |
| 10.25*       | Form      of Executive Change of Control Severance Agreement (24)                                                                                                                                                  |
|         |                                                                                                                                                                                                               |
| 10.26*       | Amended      and Restated Employment Agreement by and between Columbia Laboratories,      Inc. and Robert S. Mills dated March 11, 2009 (24)                                                                       |
|         |                                                                                                                                                                                                               |
| 10.27*       | Amended      and Restated Employment Agreement by and between Columbia Laboratories,      Inc. and Michael McGrane dated March 11, 2009 (24)                                                                       |
|         |                                                                                                                                                                                                               |
| 10.28*       | Amended      and Restated Employment Agreement by and between Columbia Laboratories,      Inc. and James Meer dated March 11, 2009 (24)/                                                                           |
|         |                                                                                                                                                                                                               |
| 14           | Code      of Ethics of the Company (11)/                                                                                                                                                                           |
|         |                                                                                                                                                                                                               |
| 21           | Subsidiaries      of the Company  (24)                                                                                                                                                              |
|         |                                                                                                                                                                                                               |
| 23.1         | Consent      of Goldstein Golub Kessler LLP (24)/                                                                                                                                                             |
|         |                                                                                                                                                                                                               |
| 23.2         | Consent      of McGladrey & Pullen, LLP (24)                                                                                                                                                              |
|         |                                                                                                                                                                                                               |
| 23.3         | Consent      of BDO Seidman, LLP (24)/                                                                                                                                                                        |
|         |                                                                                                                                                                                                               |
| 31(i).1      | Certification      of Chief Executive Officer of the Company (24)                                                                                                                                                  |
|         |                                                                                                                                                                                                               |

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| ExhibitNo. | Description                                                                                                                                                       |
|------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 31(i).2    | Certification      of Chief Financial Officer of the Company (24)                                                                                                 |
|       |                                                                                                                                                              |
| 32.1       | Certification      of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted      pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (24)  |
|       |                                                                                                                                                              |
| 32.2       | Certification      of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted      pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (24) |

|    |                                                                                                                                                                 |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| † | Confidential      treatment has been requested with respect to certain portions of this      exhibit. Omitted portions have been filed separately with the      SEC. |
|    |                                                                                                                                                                 |
| *       | Management      contract or compensatory plans orarrangements                                                                                                        |

| 1/     | Incorporated      by reference to the Registrant's Registration Statement on Form S-1 (File      No. 33-31962) declared effective on May 14, 1990 |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                              |
| 2/     | Incorporated      by reference to the Registrant's Proxy Statement dated May 10,      2000                                                        |
|   |                                                                                                                                              |
| 3/     | Incorporated      by reference to the Registrant’s Annual Report on Form 10-K for the year      ended December 31, 1998                     |
|   |                                                                                                                                              |
| 4/     | Incorporated      by reference to the Registrant’s Quarterly Report on Form 10-Q for the      quarter ended March 31, 1999                  |
|   |                                                                                                                                              |
| 5/     | Incorporated      by reference to the Registrant’s Annual Report on Form 10-K for the year      ended December 31, 1999                     |
|   |                                                                                                                                              |
| 6/     | Incorporated      by reference to the Registrant’s Quarterly Report on Form 10-Q for the      quarter ended March 31, 2000                  |
|   |                                                                                                                                              |
| 7/     | Incorporated      by reference to the Registrant’s Current Report on Form 8-K, dated March      12, 2002                                    |
|   |                                                                                                                                              |
| 8/     | Incorporated      by reference to the Registrant’s Quarterly Report on Form 10-Q dated      August 14, 2002                                 |
|   |                                                                                                                                              |
| 9/     | Incorporated      by reference to the Registrant’s Annual Report on Form 10-K for the year      ended December 31, 2002                     |
|   |                                                                                                                                              |
| 10/    | Incorporated      by reference to the Registrant’s Quarterly Report on Form 10-Q dated      August 14, 2003                                 |
|   |                                                                                                                                              |
| 11/    | Incorporated      by reference to the Registrant’s Annual Report on Form 10-K for the year      ended December 31, 2003                     |
|   |                                                                                                                                              |
| 12/    | Incorporated      by reference to the Registrant’s Quarterly Report on Form 10-Q dated      August 4, 2004                                  |
|   |                                                                                                                                              |
| 13/    | Incorporated      by reference to the Registrant’s Current Report on Form 8-K, dated May 12,      2005                                      |
|   |                                                                                                                                              |
| 14/    | Incorporated      by reference to the Registrant’s Annual Report on Form 10-K for the year      ended December 31, 2005                     |
|   |                                                                                                                                              |
| 15/    | Incorporated      by reference to the Registrant’s Current Report on Form 8-K, dated March      16, 2006                                    |
|   |                                                                                                                                              |
| 16/    | Incorporated      by reference to the Registrant’s Current Report on Form 8-K, dated April      17, 2006                                    |
|   |                                                                                                                                              |
| 17/    | Incorporated      by reference to the Registrant’s Current Report on Form 8-K, dated May 17,      2006                                      |
|   |                                                                                                                                              |
| 18/    | Incorporated      by reference to the Registrant’s Current Report on Form 8-K, dated      December 15, 2006                                 |
|   |                                                                                                                                              |
| 19/    | Incorporated      by reference to the Registrant’s Current Report on Form 8-K, dated      December 26, 2006                                 |
|   |                                                                                                                                              |
| 20/    | Incorporated      by reference to the Registrant’s Quarterly Report on Form 10-Q, dated      August 8, 2007                                 |
|   |                                                                                                                                              |

----

| 21/    | Incorporated      by reference to the Registrant’s Quarterly Report on Form 10-Q, dated      November 8, 2007           |
|--------|-------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                          |
| 22/    | Incorporated      by reference to the Registrant’s Annual Report on Form 10-K for the year      ended December 31, 2007 |
|   |                                                                                                                          |
| 23/    | Incorporated      by reference to the Registrant’s Proxy Statement dated April 8,      2008                             |
|   |                                                                                                                          |
| 24/    | Filed      herewith                                                                                                           |

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EXHIBIT 23.1

----

----

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EXHIBIT31(i).1

| Date:      March 13, 2009 |   | /S/ Robert S.      Mills                        |
|---------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                      |   | Robert      S. Mills                                                                                                                                               |
|                      |   | Chief      Executive Officer                                                                                                                                       |

----

| Date:      March 13, 2009 |   | /S/ James A.      Meer                    |
|---------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------|
|                      |   | James      A. Meer                                                                                                                       |
|                      |   | Chief      Financial Officer                                                                                                             |

----

|   | (1) | The      Report fully complies with the requirements of section 13(a) or 15(d) of      the Securities Exchange Act of 1934; and                                    |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (2) | The      information contained in the Report fairly presents, in all material      respects, the financial condition and result of operations of the      Company. |

|   | /s/ Robert S.      Mills               |
|--------|--------------------------------------------------------------------------------------------------------------|
|   | Robert      S. Mills                                                                                         |
|   | Chief      Executive OfficerMarch      13 , 2009                                                             |

----

|   | (1) | The      Report fully complies with the requirements of section 13(a) or 15(d) of      the Securities Exchange Act of 1934; and                                    |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (2) | The      information contained in the Report fairly presents, in all material      respects, the financial condition and result of operations of the      Company. |

|   | /S/ James A.      Meer                   |
|--------|------------------------------------------------------------------------------------------------------------------------------------|
|   | James      A. Meer                                                                                                                 |
|   | Chief      Financial Officer                                                                                                       |
|   | March      13, 2009                                                                                                                |

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