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**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

**FORM      10-Q**

| [X] | QUARTERLY                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934 |
|-----|--------------------------------------------------------------------------------------------------------------------------------------|

| [  ] | TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934 |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------|

**Commission      File Number 1-10352**

**COLUMBIA      LABORATORIES, INC.**

| **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**

**  X  **

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**PART      1 - FINANCIAL INFORMATION**

**Item      1.  Financial Statements**

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|                                                                                                                            |   | September                  30, |         |   | December                  31, |   |
|---------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|--------------|--------|-------------------------------|--------|
|                                                                                                                            |   | 2007                           |         |   | 2006                          |   |
|                                                                                                                            |   | (Unaudited)                    |         |   |                          |   |
| ASSETS:                                                                                                                         |   |                           |         |   |                          |   |
| Cash                  and cash equivalents                                                                                      |   | $                              | 19,226,558   |   |                          | $      | 25,270,377 |   |
| Accounts                  receivable, net                                                                                       |   |                           | 4,079,304    |   |                          |   | 2,445,318 |   |
| Inventories                                                                                                                     |   |                           | 2,243,022    |   |                          |   | 2,105,038 |   |
| Prepaid                  expenses and other current assets                                                                      |   |                           | 239,186      |   |                          |   | 853,504 |   |
|   Total                  current assets                                                                               |   |                           | 25,788,070   |   |                          |   | 30,674,237 |   |
|                                                                                                                            |   |                           |         |   |                          |   |   |   |
| Property                  and equipment, net                                                                                    |   |                           | 614,066      |   |                          |   | 763,836 |   |
| Intangible                  assets, net                                                                                         |   |                           | 30,120,970   |   |                          |   | 32,865,556 |   |
| Other                  assets                                                                                                   |   |                           | 1,633,020    |   |                          |   | 1,535,115 |   |
| TOTAL                  ASSETS                                                                                                   |   | $                              | 58,156,126   |   |                          | $      | 65,838,744 |   |
|                                                                                                                            |   |                           |         |   |                          |   |   |   |
| LIABILITIES                  AND STOCKHOLDERS' EQUITY                                                                           |   |                           |         |   |                          |   |   |   |
| Current                  portion of financing agreements                                                                        |   | $                              | 3,829,484    |   |                          | $      | 553,947 |   |
| Accounts                  payable                                                                                               |   |                           | 2,925,640    |   |                          |   | 3,586,770 |   |
| Accrued                  expenses                                                                                               |   |                           | 3,310,557    |   |                          |   | 3,123,092 |   |
|   Total                  current liabilities                                                                          |   |                           | 10,065,681   |   |                          |   | 7,263,809 |   |
| Notes                  payable                                                                                                  |   |                           | 26,951,333   |   |                          |   | 25,299,135 |   |
| Deferred                  revenue                                                                                               |   |                           | 3,760,351    |   |                          |   | 4,182,648 |   |
| Long-term                  portion of financing agreements                                                                      |   |                           | 9,642,422    |   |                          |   | 11,229,777 |   |
| TOTAL                  LIABILITIES                                                                                              |   |                           | 50,419,787   |   |                          |   | 47,975,369 |   |
|                                                                                                                            |   |                           |         |   |                          |   |   |   |
| Stockholders'                  equity                                                                                           |   |                           |         |   |                          |   |   |   |
|   Preferred                  Stock, $0.01 par value; 1,000,000 shares authorized                                      |   |                           |         |   |                          |   |   |   |
|     Series                  B Convertible Preferred Stock, 130 shares issued and                            |   |                           |         |   |                          |   |   |   |
|       and                  outstanding in 2007 and 2006                                           |   |                           | 1            |   |                          |   | 1 |   |
|     Series                  C Convertible Preferred Stock, 1,125 and 3,200 shares                           |   |                           |         |   |                          |   |   |   |
|       issued                  and outstanding in 2007 and 2006                                    |   |                           | 11           |   |                          |   | 32 |   |
|                        Series E Convertible Preferred Stock, 68,742 and 69,000                  shares |   |                           |         |   |                          |
|       issued                  and outstanding in 2007 and 2006                                    |   |                           | 687          |   |                          |   | 690 |   |
|   Common                  Stock, $0.01 par value; 100,000,000                                                         |   |                           |         |   |                          |   |   |   |
|     authorized;                  51,470,401 and 49,694,213 shares issued                                    |   |                           |         |   |                          |   |   |   |
|     in                  2007 and 2006 respectively                                                          |   |                           | 514,704      |   |                          |   | 496,942 |   |
| Capital                  in excess of par value                                                                                 |   |                           | 223,190,328  |   |                          |   | 221,887,945 |   |
| Less                  cost of 12,000 and 6,000 treasury shares in 2007 and 2006                  respectively                   |   |                           |         |   |                          |   |   |   |
| respectively                                                                                                                    |   |                           | (40,140      | )      |                          |   | (26,880 | ) |
| Accumulated                  deficit                                                                                            |   |                           | (216,137,217 | )      |                          |   | (204,694,399 | ) |
| Accumulated                  other comprehensive income                                                                         |   |                           | 207,965      |   |                          |   | 199,044 |   |
| TOTAL                  STOCKHOLDERS' EQUITY                                                                                     |   |                           | 7,736,339    |   |                          |   | 17,863,375 |   |
| TOTAL                  LIABILITIES AND STOCKHOLDERS                                                                             |   |                           |         |   |                          |   |   |   |
| EQUITY                                                                                                                          |   | $                              | 58,156,126   |   |                          | $      | 65,838,744 |   |
|                                                                                                                            |   |                           |         |   |                          |   |   |   |
|                                                                                                                            |   |
| See                  notes to condensed consolidated financial statements                                                       |   |

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|                                                                    |   | Nine                Months Ended |        |   | Three                Months Ended |   |
|-------------------------------------------------------------------------|--------|----------------------------------|-------------|--------|-----------------------------------|--------|
|                                                                    |   | September                30,     |        |   | September                30,      |   |
|                                                                    |   | 2007                             |        |   | 2006                              |   |   | 2007 |   |   | 2006 |   |
|                                                                    |   |                             |        |   |                              |   |   |   |   |   |   |   |
| NET                REVENUES                                             |   | $                                | 21,279,713  |   |                              | $      | 15,014,877 |   |   | $ | 7,308,079 |   |   | $ | 4,946,387 |   |
|                                                                    |   |                             |        |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| COST                OF REVENUES                                         |   |                             | 6,604,558   |   |                              |   | 6,355,988 |   |   |   | 1,729,082 |   |   |   | 2,173,981 |   |
| Gross                profit                                             |   |                             | 14,675,155  |   |                              |   | 8,658,889 |   |   |   | 5,578,997 |   |   |   | 2,772,406 |   |
|                                                                    |   |                             |        |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| OPERATING                EXPENSES:                                      |   |                             |        |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Selling                and distribution                                 |   |                             | 6,908,326   |   |                              |   | 4,859,602 |   |   |   | 2,847,194 |   |   |   | 1,620,112 |   |
| General                and administrative                               |   |                             | 5,813,335   |   |                              |   | 5,064,597 |   |   |   | 1,913,562 |   |   |   | 1,715,801 |   |
| Research                and development                                 |   |                             | 3,803,257   |   |                              |   | 5,073,292 |   |   |   | 1,443,657 |   |   |   | 1,702,922 |   |
| Amortization                of licensing right                          |   |                             | 3,744,586   |   |                              |   | - |   |   |   | 1,261,182 |   |   |   | - |   |
| Total                operating expenses                                 |   |                             | 20,269,504  |   |                              |   | 14,997,491 |   |   |   | 7,465,595 |   |   |   | 5,038,835 |   |
|                                                                    |   |                             |        |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Loss                from operations                                     |   |                             | (5,594,349  | )      |                              |   | (6,338,602 | ) |   |   | (1,886,598 | ) |   |   | (2,266,429 | ) |
| OTHER                INCOME (EXPENSE):                                  |   |                             |        |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Interest                income                                          |   |                             | 739,895     |   |                              |   | 612,691 |   |   |   | 234,306 |   |   |   | 256,792 |   |
| Interest                expense                                         |   |                             | (6,501,844  | )      |                              |   | (1,741,433 | ) |   |   | (2,210,258 | ) |   |   | (524,963 | ) |
| Other,                net                                               |   |                             | (86,522     | )      |                              |   | (313,970 | ) |   |   | (67,749 | ) |   |   | (22,797 | ) |
|                                                                    |   |                             | (5,848,471  | )      |                              |   | (1,442,712 | ) |   |   | (2,043,701 | ) |   |   | (290,968 | ) |
|                                                                    |   |                             |        |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Net                loss                                                 |   | $                                | (11,442,820 | )      |                              | $      | (7,781,314 | ) |   | $ | (3,930,299 | ) |   | $ | (2,557,397 | ) |
|                                                                    |   |                             |        |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| NET                LOSS PER COMMON SHARE:                               |   |                             |        |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Basic                and diluted                                        |   | $                                | (0.23       | )      |                              | $      | (0.17 | ) |   | $ | (0.08 | ) |   | $ | (0.05 | ) |
|                                                                    |   |                             |        |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| WEIGHTED                AVERAGE NUMBER OF                               |   |                             |        |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| COMMON                SHARES OUTSTANDING:                               |   |                             |        |   |                              |   |   |   |   |
| Basic                and diluted                                        |   |                             | 50,955,758  |   |                              |   | 47,547,819 |   |   |   | 51,432,770 |   |   |   | 49,673,962 |   |
|                                                                    |   |                             |        |   |                              |   |   |   |   |   |   |   |   |   |   |   |
|                                                                    |   |                             |        |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| See                notes to condensed consolidated financial statements |   |

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|                                                                    |   | Nine                Months Ended |        |   | Three                Months Ended |   |
|-------------------------------------------------------------------------|--------|----------------------------------|-------------|--------|-----------------------------------|--------|
|                                                                    |   | September                30,     |        |   | September                30,      |   |
|                                                                    |   | 2007                             |        |   | 2006                              |   |   | 2007 |   |   | 2006 |   |
|                                                                    |   |                             |        |   |                              |   |   |   |   |   |   |   |
| NET                LOSS                                                 |   | $                                | (11,442,820 | )      |                              | $      | (7,781,314 | ) |   | $ | (3,930,299 | ) |   | $ | (2,557,397 | ) |
|                                                                    |   |                             |        |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Other                comprehensive income (loss):                       |   |                             |        |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Foreign                currency translation, net of tax                 |   |                             | 8,921       |   |                              |   | 21,143 |   |   |   | 5,319 |   |   |   | (2,611 | ) |
|                                                                    |   |                             |        |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive                loss                                       |   | $                                | (11,433,899 | )      |                              | $      | (7,760,171 | ) |   | $ | (3,924,980 | ) |   | $ | (2,560,008 | ) |
|                                                                    |   |                             |        |   |                              |   |   |   |   |   |   |   |   |   |   |   |
|                                                                    |   |                             |        |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| See                notes to condensed consolidated financial statements |   |

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|                                                                                                                                      |        |   |        | Nine                  Months Ended September 30, |   |
|-------------------------------------------------------------------------------------------------------------------------------------------|-------------|--------|-------------|--------------------------------------------------|--------|
|                                                                                                                                      |        |   |        | 2007                                             |   |   | 2006 |   |
| CASH                  FLOWS FROM OPERATING ACTIVITIES:                                                                                    |        |   |        |                                             |   |   |
|                      Net loss                                                                                              |        | $      | (11,442,820 | )                                                |   | $ | (7,781,314 | ) |
|                      Adjustments to reconcile net loss to net                                                              |        |   |        |                                             |   |   |   |   |
|                          cash used in operating activities-                                            |        |   |        |                                             |   |   |   |   |
|                              Depreciation and amortization                         |        |   | 4,084,445   |                                             |   |   | 192,543 |   |
|                              Amortization on beneficial conversion features        |        |   | 933,767     |                                             |   |   | - |   |
|                              Amortization on warrant valuation                     |        |   | 718,432     |                                             |   |   | - |   |
|                              Provision for doubtful accounts                       |        |   | -           |                                             |   |   | 105,855 |   |
|                              Provision for sales returns                           |        |   | 641,023     |                                             |   |   | 712,908 |   |
|                              Writedown of inventories                              |        |   | -           |                                             |   |   | 455,393 |   |
|                              Stock based compensation                              |        |   | 1,319,712   |                                             |   |   | 701,086 |   |
|                              Interest expense on financing agreements              |        |   | 2,268,643   |                                             |   |   | 1,731,873 |   |
|                              Loss on partial extinguishment of financing agreement |        |   | -           |                                             |   |   | 280,000 |   |
|                              Loss on disposal of fixed asset                       |        |   | -           |                                             |   |   | 3,275 |   |
|                      Changes in assets and liabilities-                                                                    |        |   |        |                                             |   |   |   |   |
|                          (Increase) decrease in:                                                       |        |   |        |                                             |   |   |   |   |
|                              Accounts receivable                                   |        |   | (1,633,986  | )                                                |   |   | (211,839 | ) |
|                              Inventories                                           |        |   | (137,984    | )                                                |   |   | (297,298 | ) |
|                              Prepaid expenses and other current assets             |        |   | 614,318     |                                             |   |   | (483,377 | ) |
|                              Other assets                                          |        |   | (278,907    | )                                                |   |   | 4,566 |   |
|                      Increase (decrease) in:                                                                               |        |   |        |                                             |   |   |   |   |
|                              Accounts payable                                      |        |   | (661,130    | )                                                |   |   | (165,469 | ) |
|                              Accrued expenses                                      |        |   | 1,453,558   |                                             |   |   | (279,745 | ) |
|                              Deferred revenue                                      |        |   | (422,297    | )                                                |   |   | 300,950 |   |
|                      Net cash used in operating activities                                                                 |        |   | (2,543,226  | )                                                |   |   | (4,730,593 | ) |
|                                                                                                                                      |        |   |        |                                             |   |   |   |   |
| CASH                  FLOWS FROM INVESTING ACTIVITIES:                                                                                    |        |   |        |                                             |   |   |   |   |
|                      Purchase of property and equipment                                                                    |        |   | (9,085      | )                                                |   |   | (14,210 | ) |
|                              Net cash used in investing activities                 |        |   | (9,085      | )                                                |   |   | (14,210 | ) |
|                                                                                                                                      |        |   |        |                                             |   |   |   |   |
| CASH                  FLOWS FROM FINANCING ACTIVITIES:                                                                                    |        |   |        |                                             |   |   |   |   |
|                      Proceeds from the sale of common stock, net                                                           |        |   | -           |                                             |   |   | 28,766,126 |   |
|                      Proceeds from exercise of options                                                                     |        |   | 63,241      |                                             |   |   | 1,021,759 |   |
|                      Payment for purchase of treasury stock                                                                |        |   | (13,260     | )                                                |   |   | - |   |
|                      Payments pursuant to financing agreements                                                             |        |   | (580,462    | )                                                |   |   | (12,027,614 | ) |
|                      Dividends paid                                                                                        |        |   | (62,832     | )                                                |   |   | (121,379 | ) |
|                             Net cash provided by (used in) financing activities         |        |   | (593,313    | )                                                |   |   | 17,638,892 |   |
|                                                                                                                                      |        |   |        |                                             |   |   |   |   |
|                                                                                                                                      | (continued) |   |        |                                             |   |   |   |   |   |

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|                                                                     |   | Nine                Months Ended September 30, |       |
|--------------------------------------------------------------------------|--------|------------------------------------------------|------------|
|                                                                     |   | 2007                                           |       |   | 2006 |   |
|                                                                     |   |                                           |       |   |   |   |
| EFFECT                OF EXCHANGE RATE CHANGES ON CASH                   |   |                                           | 8,921      |   |   |   | 21,143 |   |
|                                                                     |   |                                           |       |   |   |   |   |   |
| NET                INCREASE (DECREASE) IN CASH                           |   |                                           | (6,043,819 | ) |   |   | 12,915,232 |   |
|                                                                     |   |                                           |       |   |   |   |   |   |
| CASH                AND CASH EQUIVALENTS, BEGINNING OF PERIOD            |   |                                           | 25,270,377 |   |   |   | 7,136,854 |   |
|                                                                     |   |                                           |       |   |   |   |   |   |
| CASH                AND CASH EQUIVALENTS, END OF PERIOD                  |   | $                                              | 19,226,558 |   |   | $ | 20,052,086 |   |
|                                                                     |   |                                           |       |   |   |   |   |   |
| SUPPLEMENTAL                DISCLOSURES OF CASH FLOW INFO                |   |                                           |       |   |   |   |   |   |
|                                                                     |   |                                           |       |   |   |   |   |   |
| NON-CASH                INVESTING ACTIVITIES                             |   |                                           |       |   |   |   |   |   |
| Accrued                US Crinone Licensing Right purchase cost increase |   | $                                              | 1,000,000  |   |   | $ | - |   |
|                                                                     |   |                                           |       |   |   |   |   |   |
| NON-CASH                FINANCING ACTIVITIES                             |   |                                           |       |   |   |   |   |   |
| Conversion                of preferred Series C&E shares             |   | $                                              | 15,751     |   |   | $ | - |   |
|                                                                     |   |                                           |       |   |   |   |   |   |
|                                                                     |   |                                           |       |   |   |   |   |   |
| See                notes to condensed consolidated financial statements  |   |

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|                                                                        |   | Nine                months ended |      |   | Nine                months ended |   |
|-----------------------------------------------------------------------------|--------|----------------------------------|-----------|--------|----------------------------------|--------|
|                                                                        |   | September                30,     |      |   | September                30,     |   |
|                                                                        |   | 2007                             |      |   | 2006                             |   |
|                                                                        |   |                             |      |   |                             |   |
| Balance                at beginning of period                               |   | $                                | 1,240,234 |   |                             | $      | 745,882 |   |
|                                                                        |   |                             |      |   |                             |   |   |   |
| Provision:                                                                  |   |                             |      |   |                             |   |   |   |
|   Related                to current period sales                  |   |                             | 368,015   |   |                             |   | 165,362 |   |
|   Related                to prior period sales                    |   |                             | 273,008   |   |                             |   | 547,546 |   |
|   Related                to CRINONE®                purchase |   |                             | 1,000,000 |   |                             |   |   |   |
|                                                                        |   |                             | 1,641,023 |   |                             |   | 712,908 |   |
|                                                                        |   |                             |      |   |                             |   |   |   |
| Returns:                                                                    |   |                             |      |   |                             |   |   |   |
|   Related                to prior period sales                    |   |                             | 1,172,867 |   |                             |   | 674,858 |   |
|                                                                        |   |                             |      |   |                             |   |   |   |
|                                                                        |   |                             |      |   |                             |   |   |   |
| Balance                at end of period                                     |   | $                                | 1,708,390 |   |                             | $      | 783,932 |   |

|                          |   | September                30, |      |   | December                31, |   |
|-------------------------------|--------|------------------------------|-----------|--------|-----------------------------|--------|
|                          |   | 2007                         |      |   | 2006                        |   |
| Finished                goods |   | $                            | 1,400,746 |   |                        | $      | 1,305,872 |   |
| Raw                materials  |   |                         | 842,276   |   |                        |   | 799,166 |   |
|                          |   |                         |      |   |                        |   |   |   |
|                          |   | $                            | 2,243,022 |   |                        | $      | 2,105,038 |   |

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|                                             |   |                         |       |   |                        |   |
|--------------------------------------------------|--------|------------------------------|------------|--------|-----------------------------|--------|
|                                             |   | September                30, |       |   | December                31, |   |
|                                             |   | 2007                         |       |   | 2006                        |   |
| July                31, 2002 financing agreement |   | $                            | 3,658,658  |   |                        | $      | 3,485,672 |   |
| March                5, 2003 financing agreement |   |                         | 9,813,248  |   |                        |   | 8,298,052 |   |
|                                             |   |                         | 13,471,906 |   |                        |   | 11,783,724 |   |
| Less:                current portion             |   |                         | 3,829,484  |   |                        |   | 553,947 |   |
|                                             |   | $                            | 9,642,422  |   |                        | $      | 11,229,777 |   |

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|                                          |   |     |       |   |                              |   |       |         |   |
|-----------------------------------------------|--------|----------|------------|--------|-----------------------------------|--------|------------|--------------|--------|
|                                          |   | Net      |       |   | Profit                (loss) from |   |       | Identifiable |   |
|                                          |   | Revenues |       |   | Operations                        |   |       | Assets       |   |
|                                          |   |     |       |   |                              |   |       |         |   |
| As                of and for the nine months  |   |     |       |   |                              |   |       |         |   |
| ended                September 30, 2007       |   |     |       |   |                              |   |       |         |   |
| United                States                  |   | $        | 11,123,814 |   |                              | $      | (9,788,817 | )            |   | $ | 51,536,669 |   |
| Europe                                        |   |     | 10,155,899 |   |                              |   | 4,194,468  |         |   |   | 6,619,457 |   |
|                                          |   |     |       |   |                              |   |       |         |   |   |   |   |
|                                          |   | $        | 21,279,713 |   |                              | $      | (5,594,349 | )            |   | $ | 58,156,126 |   |
|                                          |   |     |       |   |                              |   |       |         |   |   |   |   |
| As                of and for the nine months  |   |     |       |   |                              |   |       |         |   |   |   |   |
| ended                September 30, 2006       |   |     |       |   |                              |   |       |         |   |   |   |   |
| United                States                  |   | $        | 7,881,017  |   |                              | $      | (9,117,662 | )            |   | $ | 20,811,483 |   |
| Europe                                        |   |     | 7,133,860  |   |                              |   | 2,779,060  |         |   |   | 7,080,390 |   |
|                                          |   |     |       |   |                              |   |       |         |   |   |   |   |
|                                          |   | $        | 15,014,877 |   |                              | $      | (6,338,602 | )            |   | $ | 27,891,873 |   |
|                                          |   |     |       |   |                              |   |       |         |   |   |   |   |
| As                of and for the three months |   |     |       |   |                              |   |       |         |   |   |   |   |
| ended                September 30, 2007       |   |     |       |   |                              |   |       |         |   |   |   |   |
| United                States                  |   | $        | 4,138,412  |   |                              | $      | (3,566,319 | )            |   |   |   |   |
| Europe                                        |   |     | 3,169,667  |   |                              |   | 1,679,721  |         |   |   |   |   |
|                                          |   |     |       |   |                              |   |       |         |   |   |   |   |
|                                          |   | $        | 7,308,079  |   |                              | $      | (1,886,598 | )            |   |   |   |   |
|                                          |   |     |       |   |                              |   |       |         |   |   |   |   |
| As                of and for the three months |   |     |       |   |                              |   |       |         |   |   |   |   |
| ended                September 30, 2006       |   |     |       |   |                              |   |       |         |   |   |   |   |
| United                States                  |   | $        | 2,864,719  |   |                              | $      | (3,050,769 | )            |   |   |   |   |
| Europe                                        |   |     | 2,081,668  |   |                              |   | 784,340    |         |   |   |   |   |
|                                          |   |     |       |   |                              |   |       |         |   |   |   |   |
|                                          |   | $        | 4,946,387  |   |                              | $      | (2,266,429 | )            |   |   |   |   |
|                                          |   |     |       |   |                              |   |       |         |   |   |   |   |

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|                                                             |   | Nine                Months Ended |        |   | Three                Months Ended |   |
|------------------------------------------------------------------|--------|----------------------------------|-------------|--------|-----------------------------------|--------|
|                                                             |   | September                30,     |        |   | September                30,      |   |
|                                                             |   | 2007                             |        |   | 2006                              |   |   | 2007 |   |   | 2006 |   |
|                                                             |   |                             |        |   |                              |   |   |   |   |   |   |   |
| Net                loss                                          |   | $                                | (11,442,820 | )      |                              | $      | (7,781,314 | ) |   | $ | (3,930,298 | ) |   | $ | (2,557,397 | ) |
| Less:                Preferred stock dividends                   |   |                             | (62,832     | )      |                              |   | (121,379 | ) |   |   | (14,062 | ) |   |   | (40,129 | ) |
|                                                             |   |                             |        |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Net                loss applicable to                            |   |                             |        |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| common                stock                                      |   | $                                | (11,505,652 | )      |                              | $      | (7,902,693 | ) |   | $ | (3,944,360 | ) |   | $ | (2,597,526 | ) |
|                                                             |   |                             |        |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Basic                and diluted:                                |   |                             |        |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Weighted                average number of                        |   |                             |        |   |                              |   |   |   |   |   |   |   |   |   |   |   |
|     common                shares outstanding |   |                             | 50,955,758  |   |                              |   | 47,547,819 |   |   |   | 51,432,770 |   |   |   | 49,673,962 |   |
|                                                             |   |                             |        |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Basic                and diluted net loss per common share       |   | $                                | (0.23       | )      |                              | $      | (0.17 | ) |   | $ | (0.08 | ) |   | $ | (0.05 | ) |

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**Item      2. Management’s Discussion and Analysis of Financial Condition and Results of      Operations**

**Overview**

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**Results      of Operations - Nine Months Ended September 30, 2007 compared with Nine Months      Ended September 30, 2006**

| ·   | CRINONE®                  8%                  (progesterone gel) marketed by the Company in the                  U.S.; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------|

| ·   | CRINONE®                  8% sold to                  Merck Serono for foreign                  markets; |
|--------------------|---------------------------------------------------------------------------------------------------------------|

| ·   | PROCHIEVE®                  8%                  (progesterone gel); and, |
|--------------------|-------------------------------------------------------------------------------|

| ·   | PROCHIEVE®                  4%                  (progesterone gel). |
|--------------------|--------------------------------------------------------------------------|

| ·   | STRIANT®                  (testosterone                  buccal system) marketed by the Company in the                  U.S. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------|

| ·   | STRIANT®                  sold to our                  partners for foreign markets; |
|--------------------|-------------------------------------------------------------------------------------------|

| ·   | Replens®                  Vaginal                  Moisturizer sold to Lil’ Drug Store Products, Inc. (“Lil’ Drug Store”) for                  foreign markets; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | RepHresh®                  Vaginal Gel                  sold to Lil’ Drug Store on a worldwide basis;                  and, |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Royalty                  and licensing revenues. |
|--------------------|--------------------------------------------------|

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**Results      of Operations - Three Months Ended September 30, 2007 versus Three Months Ended      September 30, 2006**

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**Liquidity      and Capital Resources**

|                                |   | Nine                Months Ended  |       |
|-------------------------------------|--------|-----------------------------------|------------|
|                                |   | September                30, 2007 |       |
|                                |   | 2007                              |       |   | 2006 |   |
| Cash                flows:          |   |                              |       |   |   |   |
| Operating                activities |   | $                                 | (5,450,342 | ) |   | $ | (4,730,593 | ) |
| Investing                activities |   |                              | (9,085     | ) |   |   | (14,210 | ) |
| Financing                activities |   |                              | (593,313   | ) |   |   | 17,638,892 |   |

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**Contractual      Obligations, Commercial Commitments and Off-Balance Sheet      Arrangements**

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**Recent      Accounting Pronouncements**

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**Critical      Accounting Policies and Estimates**

** **
** **

*Revenue      Recognition. *

*Accounting      for PharmaBio Agreements*

*Stock-Based      Compensation – Employee Stock-Based Awards. *

**Forward-Looking      Information**

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**Item      3.  Quantitative and Qualitative Disclosures About Market      Risk**

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**Item      4.  Controls And Procedures**

**Evaluation      of Disclosure Controls and Procedures**

**Changes      in Internal Control over Financial Reporting**

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**PART      II - OTHER INFORMATION**

**Item      1.    Legal      Proceedings**

**Item 1A.             Risk Factors**

**Item      2.    Unregistered Sales      of Equity Securities and Use of Proceeds**

**Item      3.    Defaults upon      Senior Securities**

|   | None. |
|--------|-------|

**Item      4.    Submission of      Matters to a Vote of Security Holders**

|   | None. |
|--------|-------|

**Item      5.    Other      Information**

**Item      6.    Exhibits**

| (a)    | Exhibits     |                                                                                                                                   |
|--------|--------------|----------------------------------------------------------------------------------------------------------------------------------------|
|   | 31(i).1      | Rule                  13a-14(a)/15d-14(a) Certification of Chief Executive Officer of                  the                  Company.1/ |
|   | 31(i).2      | Rule                  13a-14(a)/15d-14(a) Certification of Chief Financial Officer of                  the                  Company.1/ |
|   | 32.1         | Certification                  Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section                  906                 |
|   |         | of                  the Sarbanes-Oxley Act of 2002.                  1/                                                                |
|   | 32.2         | Certification                  Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section                  906                 |
|   |         | of                  the Sarbanes-Oxley Act of 2002.                  1/                                                                |
|   | 10.74† | License                  and Supply Agreement between Columbia Laboratories, Inc.                  and                                 |
|   |         | Ascend                  Therapeutics, Inc., dated September 27, 2007.1/                                                                |
|   |         |                                                                                                                                   |
|   |         |                                                                                                                                   |
|   | †      | Confidential                  treatment has been requested with respect to certain portions of                  this                   |
|   |         | exhibit.                  Omitted portions have been filed separately with the                  SEC.                                   |
|   |         |                                                                                                                                   |
|   | 1/           | Filed                  herewith.                                                                                                       |

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|   | **SIGNATURES** |
|--------|----------------|

| **COLUMBIA                LABORATORIES, INC.**       |
|------------------------------------------------------|
|                                                 |
| /s/                JAMES A. MEER                     |
| JAMES                A. MEER, Senior Vice President- |
| Chief                Financial Officer and Treasurer |

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