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
                  For the quarterly period ended June 30, 1999

                                       OR

[ ]      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
         OF THE SECURITIES EXCHANGE ACT OF 1934
                  For the transition period from _____________ to _____________

                         COMMISSION FILE NUMBER 1-10352

                           COLUMBIA LABORATORIES, INC.
               (Exact name of Company as specified in its charter)

          DELAWARE                                            59-2758596
(State or other jurisdiction of                           (I.R.S. Employer
 incorporation or organization)                            Identification No.)

         2875 NORTHEAST 191ST STREET, STE 400
         AVENTURA, FLORIDA                                      33180
(Address of principal executive offices)                      (Zip Code)

Company's telephone number, including area code: (305) 933-6089

         Indicate by check mark whether the Company (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the Company
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes __X__  No ____

         Number of shares of the Common Stock of Columbia Laboratories, Inc.
issued and outstanding as of July 31, 1999: 28,989,686

<PAGE>

                  COLUMBIA LABORATORIES, INC. AND SUBSIDIARIES

                         PART 1 - FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

         The following unaudited, condensed consolidated financial statements of
the Company have been prepared in accordance with the instructions to Form 10-Q
and, therefore, omit or condense certain footnotes and other information
normally included in financial statements prepared in accordance with generally
accepted accounting principles. In the opinion of management, all adjustments
(consisting only of normal recurring accruals) necessary for a fair presentation
of the financial information for the interim periods reported have been made.
Results of operations for the six months ended June 30, 1999 are not necessarily
indicative of the results for the year ending December 31, 1999.

         Except for historical information contained herein, the matters
discussed in this document are forward looking statements made pursuant to the
safe harbor provisions of the Securities Litigation Reform Act of 1995. Such
statements involve risks and uncertainties, including but not limited to
economic, competitive, governmental and technological factors affecting the
Company's operations, markets, products and prices, and other factors discussed
elsewhere in this report.

                                  Page 2 of 17

<PAGE>

                  COLUMBIA LABORATORIES, INC. AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>

                                                                     June 30,                  December 31,
                                                                      1999                         1998
                                                                   -----------                 ------------
                                                                   (Unaudited)

<S>                                                                 <C>                           <C>
ASSETS
   Current assets-
     Cash and cash equivalents                                      $  3,298,217                  $    315,288
     Accounts receivable, net                                          4,578,989                     1,323,271
     Inventories                                                       1,764,235                     2,411,434
     Prepaid expenses                                                    634,822                       472,538
     Other current assets                                                288,639                       288,639
                                                                    ------------                  ------------
        Total current assets                                          10,564,902                     4,811,170

   Property and equipment, net                                         1,209,308                     1,373,451
   Intangible assets, net                                              5,107,645                     5,283,277
   Other assets                                                          403,716                       411,648
                                                                    ------------                  ------------
       TOTAL ASSETS                                                 $ 17,285,571                  $ 11,879,546
                                                                    ============                  ============

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY)
   Current liabilities-
     Accounts payable                                              $   2,718,155                  $  4,153,151
     Accrued expenses                                                 1,296,539                      1,480,839
     Deferred revenue                                                    578,150                       578,150
                                                                      ----------                    ----------
            Total current liabilities                                  4,592,844                     6,212,140

   Convertible subordinated note payable                              10,000,000                    10,000,000
                                                                      ----------                    ----------
            TOTAL LIABILITIES                                         14,592,844                    16,212,140
                                                                      ----------                    ----------

Stockholders' equity (deficiency)-
    Preferred stock, $.01 par value; 1,000,000 shares authorized:
       Series A Convertible Preferred Stock, 923
           shares issued and outstanding in 1999 and 1998                      9                             9
       Series B Convertible Preferred Stock, 1,630
           shares issued and outstanding in 1999 and 1998                     16                            16
       Series C Convertible Preferred Stock, 6,660
           shares issued and outstanding in 1999                              67                             -
    Common stock, $.01 par value; 40,000,000 shares
      authorized; 28,689,687 and 28,684,687 shares
      issued and outstanding in 1999 and 1998, respectively              286,897                       286,846
    Capital in excess of par value                                    99,518,729                    93,221,998
    Accumulated deficit                                             (96,670,034)                  (97,988,640)
    Accumulated other comprehensive income                               157,043                       147,177
    Less: notes receivable for purchase of stock                       (600,000)                       -
                                                                  --------------                --------------
       TOTAL STOCKHOLDERS' EQUITY(DEFICIENCY)                          2,692,727                   (4,332,594)
                                                                  --------------                --------------
       TOTAL LIABILITIES AND STOCKHOLDERS'
            EQUITY (DEFICIENCY)                                   $   17,285,571                $   11,879,546
                                                                  ==============                ==============
</TABLE>

            See notes to condensed consolidated financial statements.

                                  Page 3 of 17

<PAGE>

                  COLUMBIA LABORATORIES, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                         Six Months Ended                 Three Months Ended
                                                             June 30,                          June 30,
                                                       1999             1998              1999           1998
                                                   ------------     ------------       ----------    -----------
<S>                                               <C>                 <C>             <C>             <C>

NET SALES                                         $  12,625,578       $4,396,712      $ 7,159,117     $2,124,727

COST OF GOODS SOLD                                    3,625,038        2,372,282        1,848,197        966,298
                                                  -------------       ----------      -----------     ----------

         Gross profit                                 9,000,540        2,024,430        5,310,920      1,158,429
                                                  -------------       ----------      -----------     ----------

OPERATING EXPENSES:
    Selling and distribution                          2,012,089        1,757,088        1,154,262      1,119,322
    General and administrative                        2,774,490        2,847,161        1,289,892      1,270,608
    Research and development                          2,875,246        3,722,493        1,485,170      1,931,384
                                                  -------------       ----------      -----------     ----------

        Total operating expenses                      7,661,825        8,326,742        3,929,324      4,321,314
                                                  -------------       ----------      -----------     ----------

        Income (loss) from operations                 1,338,715      (6,302,312)        1,381,596    (3,162,885)
                                                  -------------       ----------      -----------     ----------

OTHER INCOME (EXPENSE):
    License fees, net of expenses                       387,500              -                               -
    Interest income                                      56,263          107,883           25,768         65,013
    Interest expense                                  (377,676)        (222,097)        (188,838)      (188,838)
    Other, net                                         (20,198)         (70,057)              968        (2,448)
                                                  -------------       ----------      -----------     ----------

                                                         45,889        (184,271)        (162,102)      (126,273)
                                                  -------------       ----------      -----------     ----------

    Income (loss) before income taxes                 1,384,604      (6,486,583)        1,219,494    (3,289,158)
    Provision for income taxes                           69,000             -              44,000           -
                                                  -------------       ----------      -----------     ----------

        Net income (loss)                         $   1,315,604     $(6,486,583)     $ 1,175,494    $(3,289,158)
                                                  =============     ============     ===========    ============

INCOME (LOSS) PER COMMON AND
     COMMON EQUIVALENT SHARE:
 Basic                                            $         .04     $      (.23)     $       .03    $      (.11)
                                                  =============     ============     ===========    ============
 Diluted                                          $         .04     $      (.23)     $       .03    $      (.11)
                                                  =============     ============     ===========    ============

WEIGHTED AVERAGE NUMBER OF
 COMMON AND COMMON EQUIVALENT
 SHARES OUTSTANDING:
  Basic                                              28,685,000       28,673,000      28,686,000      28,685,000
                                                  =============     ============     ===========    ============

  Diluted                                            29,474,000       28,673,000      29,881.000      28,685,000
                                                  =============     ============     ===========    ============
</TABLE>

           See notes to condensed consolidated financial statements.

                                  Page 4 of 17

<PAGE>

                  COLUMBIA LABORATORIES, INC. AND SUBSIDIARIES
          CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE OPERATIONS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                         Six Months Ended                Three Months Ended
                                                            June 30,                          June 30,
                                                     1999               1998             1999            1998
                                                 ------------       ------------      ----------     -----------
<S>                                               <C>             <C>                 <C>           <C>

NET INCOME (LOSS)                                 $1,315,604      $(6,486,583)        $1,175,494    $(3,289,158)

Other comprehensive income (loss):
  Foreign currency translation, net of tax            (9,373)           2,335            (47,663)        (5,530)
                                                  -----------     -----------         -----------   ------------


Comprehensive income (loss)                       $1,306,231      $(6,484,248)        $1,127,831    $(3,294,688)
                                                  ==========      ============        ==========    ============
</TABLE>

            See notes to condensed consolidated financial statements.

                                  Page 5 of 17

<PAGE>

                  COLUMBIA LABORATORIES, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                                             Six Months Ended June 30,
                                                                        1999                          1998
                                                                      ----------                  ------------
<S>                                                                   <C>                         <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income (loss)                                                   $1,315,604                  $(6,486,583)
  Adjustments to reconcile net income (loss) to net
   cash used in operating activities-
    Depreciation and amortization                                        498,235                      574,015
    Issuance of warrants  for consulting services                         25,398                      333,456

    Changes in assets and liabilities-
       (Increase) decrease in:
        Accounts receivable                                          (3,255,718)                    2,805,611
        Inventories                                                      647,199                    (946,748)
        Prepaid expenses                                               (162,284)                      274,389
        Other assets                                                       7,931                    (314,372)

      Increase (decrease) in:
        Accounts payable                                             (1,313,339)                       24,217
        Accrued expenses                                               (184,300)                     (281,808)
        Deferred revenue                                                  -                          (355,295)
                                                                     -----------                  ------------

Net cash used in operating activities                                (2,421,274)                   (4,373,118)
                                                                     -----------                  ------------

CASH FLOWS FROM INVESTING ACTIVITIES:
    Purchase of product rights                                            -                        (4,600,000)
    Purchase of property and equipment                                  (55,456)                     (238,523)
    Acquisition of licensing rights                                    (100,000)                        -
                                                                     -----------                  ------------

 Net cash used in investing activities                                 (155,456)                   (4,838,523)
                                                                     -----------                  ------------

CASH FLOWS FROM FINANCING ACTIVITIES:
 Proceeds from issuance of preferred stock                             5,789,639                        -
 Dividends paid                                                        (266,721)                        -
 Issuance of note payable                                                 -                         10,000,000
 Proceeds from exercise of options and warrants                           26,875                       356,188
                                                                     -----------                  ------------

    Net cash provided by financing activities                          5,549,793                    10,356,188
                                                                     -----------                  ------------
</TABLE>

                                   (Continued)

                                  Page 6 of 17

<PAGE>

                  COLUMBIA LABORATORIES, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

                                   (Continued)

<TABLE>
<CAPTION>
                                                                             Six Months Ended June 30,
                                                                         1999                          1998
                                                                     -----------                  ------------
<S>                                                                        <C>                         <C>

EFFECT OF EXCHANGE RATE CHANGES ON CASH                                    9,866                       (2,823)
                                                                     -----------                  ------------

NET INCREASE (DECREASE) IN CASH
  AND CASH EQUIVALENTS                                                 2,982,929                     1,141,724

CASH AND CASH EQUIVALENTS,
  beginning of period                                                    315,288                     2,256,590
                                                                     -----------                  ------------

CASH AND CASH EQUIVALENTS,
  end of period                                                      $ 3,298,217                  $  3,398,314
                                                                     ===========                  ============
</TABLE>



SUPPLEMENTAL SCHEDULE OF NONCASH OPERTING AND FINANCING ACTIVITIES:

         As of June 30, 1998, dividends on the Series A Preferred Stock of
$120,473 ($3,692 relating to the six months ended June 30, 1998) were earned but
not declared.

            See notes to condensed consolidated financial statements.

                                  Page 7 of 17

<PAGE>

                  COLUMBIA LABORATORIES, INC. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

(1) SIGNIFICANT ACCOUNTING POLICIES:

         The accounting policies followed for quarterly financial reporting are
the same as those disclosed in Note (1) of the Notes to Consolidated Financial
Statements included in the Company's Annual Report on Form 10-K for the fiscal
year ended December 31, 1998.

(2) INVENTORIES:

                                June 30,                        December 31,
                                  1999                             1998
                             -------------                     ------------

Finished goods                 $1,025,643                         $1,550,917
Raw materials                     738,592                            860,517
                             ------------                      -------------
                               $1,764,235                         $2,411,434
                             ============                      =============

(3) SERIES C CONVERTIBLE PREFERRED STOCK:

         In January 1999, the Company raised approximately $6.4 million, net of
expenses from the issuance and sale of Series C Convertible Preferred Stock
("Preferred Stock"). The Preferred Stock, sold to twenty-four accredited
investors, has a stated value of $1,000 per share. The Preferred Stock is
convertible into common stock at the lower of: (i) $3.50 per common share (based
on 125% of the average of the five day's closing bid prices immediately
preceding the transaction) and (ii) 100% of the average of the closing prices
during the three trading days immediately preceding the conversion notice. If
conversion is based on the $3.50 conversion price, conversion may take place
after the underlying common stock is registered. If conversion is based on the
alternative calculation, conversion cannot take place for fifteen months. The
Preferred Stock pays a 5% dividend, payable quarterly in arrears on the last day
of the quarter. At June 30, 1999, the Preferred Stock had a liquidity preference
of $6,600,000.

         In connection with the issuance of the Series C Convertible Preferred
Stock in January 1999, the Company received two notes receivable from Norman M.
Meier, the President and Chief Executive Officer, and from William J. Bologna,
the Chairman of the Board, for $350,000 and $250,000, respectively. The notes
bear interest at 5% per annum and are due on July 28, 1999. The notes totaling
$600,000 have been presented as a reduction of stockholders' equity in the
accompanying balance sheets.

                                  Page 8 of 17

<PAGE>

(4) INCOME (LOSS) PER COMMON AND COMMON EQUIVALENT SHARE:

         The Calculation of basic and diluted income (loss) per common and
common equivalent share is as follows:

<TABLE>
<CAPTION>
                                             Six Months Ended June 30,                Three Months Ended June 30,
                                             1999                 1998                 1999                 1998
                                          ----------         ------------           -----------         ------------
<S>                                       <C>                <C>                    <C>                 <C>

Net income (loss)                         $1,315,604         $(6,486,583)           $ 1,175,494         $ (3,289,158)
   Less: Preferred stock dividends         (145,064)               -                   (85,096)               -
         Deduction related to Series C
          Convertible Preferred Stock      (133,320)               -                  (133,320)               -
                                          ----------         ------------           -----------         ------------

Net income (loss) applicable to
 common stock                             $1,037,220         $(6,486,583)           $   957,078         $(3,289,158)
                                          ==========         ============           ===========         ============

Basic:
      Weighted average number of
       common shares outstanding          28,685,000           28,673,000            28,686,000           28,685,000
                                          ==========         ============           ===========         ============

      Basic net income (loss) per common
       and common equivalent share              $.04               $(.23)                  $.03               $(.11)
                                          ==========         ============           ===========         ============

Diluted:
       Weighted average number of
        common shares outstanding         28,685,000           28,673,000            28,686,000           28,685,000
       Weighted average number of
        dilutive common equivalents          789,000                -                 1,195,000                -
                                          ----------         ------------           -----------         ------------
       Weighted average number of
        common and common
        Equivalent shares outstanding     29,474,000           28,673,000            29,881,000           28,685,000
                                          ==========         ============           ===========         ============

       Diluted net income (loss) per
        common and common
        equivalent share                        $.04               $(.23)                  $.03               $(.11)
                                          ==========         ============           ===========         ============
</TABLE>

                                  Page 9 of 17

<PAGE>

(5) SEGMENT INFORMATION:

The Company and its subsidiaries are engaged in one line of business, the
development and sale of pharmaceutical products and cosmetics. The following
table shows selected unaudited information by geographic area:

<TABLE>
<CAPTION>
                                                                              INCOME
                                                      NET                   (LOSS) FROM              IDENTIFIABLE
                                                      SALES                  OPERATIONS                 ASSETS
                                                   -------------             -----------           ---------------
<S>                                                  <C>                     <C>                       <C>
As of and for the six months
 ended June 30, 1999-

      United States                                  $11,065,160              $4,217,655               $12,091,114
      Europe                                           1,560,418             (2,878,940)                 5,194,457
                                                     -----------              ----------               -----------

                                                     $12,625,578              $1,338,715               $17,285,571
                                                     ===========              ==========               ===========

As of and for the six months
 ended June 30, 1998-

      United States                                   $3,015,263            $(2,486,822)               $11,373,550
      Europe                                           1,381,449             (3,815,490)                 6,902,683
                                                   -------------             -----------               -----------

                                                      $4,396,712           $(6,302,312)                $18,276,233
                                                   =============           =============               ===========

As of and for the three months
ended June 30, 1999

    United States                                     $6,566,273              $2,989,092
    Europe                                               592,844             (1,607,496)
                                                   -------------           -------------

                                                      $7,159,117              $1,381,596
                                                   =============           =============

As of and for the three months
Ended June 30, 1998

    United States                                     $1,582,533            $(1,177,965)
    Europe                                               542,194             (1,984,920)
                                                   -------------            ------------

                                                      $2,124,727            $(3,162,885)
                                                   =============            ============
</TABLE>

                                 Page 10 of 17

<PAGE>

                  COLUMBIA LABORATORIES, INC. AND SUBSIDIARIES

                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                      CONDITIONS AND RESULTS OF OPERATIONS

LIQUIDITY AND CAPITAL RESOURCES

          The Company and its representatives from time to time make written or
verbal forward looking statements, including statements contained in this and
other filings with the Securities and Exchange Commission and in the Company's
reports to stockholders, which are made pursuant to the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995. Such statements
include, without limitation, the Company's expectations regarding sales,
earnings or other future financial performance and liquidity, product
introductions, entry into new geographic regions and general optimism about
future operations or operating results. Although the Company believes that its
expectations are based on reasonable assumptions within the bounds of its
knowledge of its business and operations, there can be no assurance that actual
results will not differ materially from its expectations. Factors that could
cause actual results to differ from expectations include, without limitation:
(i) increased competitive activity from companies in the pharmaceutical
industry, some of which have greater resources than the Company; (ii) social,
political and economic risks to the Company's foreign operations, including
changes in foreign investment and trade policies and regulations of the host
countries and of the United States; (iii) changes in the laws, regulations and
policies, including changes in accounting standards, that affect, or will
affect, the Company in the United States and abroad; (iv) foreign currency
fluctuations affecting the relative prices at which the Company and foreign
competitors sell their products in the same market; and (v) the ability of the
Company and third parties, including customers or suppliers, to adequately
address Year 2000 issues. Additional information on factors that may affect the
business and financial results of the Company can be found in filings of the
Company with the Securities and Exchange Commission. All forward-looking
statements should be considered in light of these risks and uncertainties. The
Company assumes no responsibility to update forward-looking statements made
herein or otherwise.

          Cash and cash equivalents increased from approximately $315,000 at
December 31, 1998 to approximately $3.3 million at June 30, 1999. The Company
received approximately $5.8 million, net of expenses, from the issuance and
sales of Series C Convertible Preferred Stock (see note 3 to unaudited condensed
consolidated financial statements).

          In May 1995, the Company entered into a worldwide, except for South
Africa, license and supply agreement with American Home Products Corporation
("AHP") under which the Wyeth-Ayerst Laboratories division of AHP will market
Crinone. Under the terms of the agreement, as of June 30, 1999, the Company has
earned $17 million in milestone payments and will continue to receive additional
milestone payments. The Company also supplies Crinone to AHP at a price equal to
30% of AHP's net selling price. On July 2, 1999, AHP assigned the license and
supply agreement to Ares-Serono, a Swiss pharmaceutical company. The Company
will supply Crinone to Ares-Serono under the same terms as in the agreement with
AHP.

         In July 1996, Columbia submitted a New Drug Application ("NDA") to the
U.S. Food and Drug Administration ("FDA") for clearance to market Crinone as a
hormonal therapy for patients with secondary amenorrhea (loss of menstrual
period). In November 1996, the Company submitted a second NDA for clearance to
market Crinone for use in Assisted Reproductive Technologies ("ART") procedures,
including IN-VITRO fertilization, ovum donation and stimulated cycles. The FDA
granted the ART filing a priority review. In addition, in February 1997, the FDA
approved the Company's Treatment Protocol under its IND for the use of Crinone
in assisted fertility procedures.

                                 Page 11 of 17

<PAGE>

          In May 1997, the Company received U.S. marketing approval for Crinone
from the FDA for use as a progesterone supplementation or replacement as part of
an Assisted Reproductive Technology (ART) treatment for infertile women with
progesterone deficiency. In July 1997, the Company received U.S. marketing
approval for Crinone from the FDA for the treatment of secondary amenorrhea
(loss of menstrual period).

          In connection with the 1989 purchase of the assets of Bio-Mimetics,
Inc., which assets consisted of the patents underlying the Company's Bioadhesive
Delivery System, other patent applications and related technology, the Company
pays Bio-Mimetics, Inc. a royalty equal to two percent of the net sales of
products based on the Bioadhesive Delivery System, to an aggregate of $7.5
million. The Company is required to prepay a portion of the remaining royalty
obligation, in cash or stock at the option of the Company, if certain conditions
are met. Through June 30, 1999, the Company has paid approximately $1.5 million
in royalty payments.

          In March 1999, the Company entered into a license and supply agreement
with Mipharm SpA under which Mipharm SpA will be the exclusive marketer of the
Company's previously unlicensed women's healthcare products in Italy, Portugal,
Greece and Ireland with a right of first refusal for Spain. Under the terms of
the agreement, the Company received a $387,500, net of expenses, upfront payment
and expects to receive future milestone payments as products are made available
by the Company.

          The Company believes that sales and liquidity will increase as Crinone
is fully marketed by Ares-Serono.

          As of June 30, 1999, the Company has outstanding exercisable options
and warrants that, if exercised, would result in approximately $50.4 million of
additional capital. However, there can be no assurance that such options or
warrants will be exercised.

          Significant expenditures anticipated by the Company in the near future
are concentrated on research and development related to new products. The
Company anticipates it will spend approximately $6.1 million on research and
development in 1999 and an additional $250,000 on property and equipment.

          As of June 30, 1999, the Company had available net operating loss
carryforwards of approximately $45 million to offset its future U.S. taxable
income.

          In accordance with Statement of Financial Accounting Standards No.
109, as of June 30, 1999 and December 31, 1998, other assets in the accompanying
consolidated balance sheets include deferred tax assets of approximately $16
million and $18 million, respectively, (comprised primarily of a net operating
loss carryforward) for which a valuation allowance has been recorded since the
realizability of the deferred tax assets are not determinable.

RESULTS OF OPERATIONS - SIX MONTHS ENDED JUNE 30, 1999 VERSUS SIX MONTHS ENDED
JUNE 30, 1998

          Net sales increased by approximately $8.2 million to approximately
$12.6 million in 1999 as compared to $4.4 million in 1998. Crinone, accounted
for approximately $7.4 million of the increase with sales of approximately $8.5
million in 1999 as compared to $1.1 million in 1998. Sales of Replens increased
by approximately $700,000 from approximately $1.8 million in 1998 to $2.5
million in 1999. The increase reflects the reacquisition of the product by the
Company from Warner-Lambert Company in

                                 Page 12 of 17

<PAGE>

April 1998. As a result of the reacquisition, the Company sells Replens directly
to chain drug stores, food stores and mass merchandisers at wholesale prices
instead of to Warner-Lambert at contract manufacturing prices which are much
lower than wholesale prices. Gross profit as a percentage of net sales increased
in 1999 as compared to 1998 from 46% to 71% as a result of increased Crinone
sales which has a higher gross profit percentage.

          Selling and distribution expenses increased by approximately $255,000
in 1999 to approximately $2,012,000 as compared to $1,757,000 million in 1998,
primarily as a result of expenses related to the reacquisition of Replens and
the marketing of the product such as the amortization of the Replens trademark
$77,000; media advertising $116,000; advertising billbacks $78,000; and broker
commissions $70,000. In addition, royalty payments based on sales of products
utilizing the Bioadhesive delivery system increased by $159,000. The
aforementioned increases were offset by a decrease in salaries and related
benefits totaling $213,000.

          General and administrative expenses decreased by approximately $73,000
to approximately $2,774,000 in 1999 from $2,847,000 in 1998. The decrease was
primarily due to a $237,000 reduction in salaries and benefits, and a $372,000
reduction in investor relations fees, offset by a $475,000 increase in legal
fees and a $72,000 increase in insurance. The increase in legal fees reflects
additional attorney charges related to litigation.

          Research and development expenses decreased by approximately $847,000
from approximately $3,722,000 in 1998 to $2,875,000 in 1999. The decrease was
primarily due to a $125,000 reimbursement of expenses incurred in 1998
negotiated and received in 1999 from the Wyeth-Ayerst Laboratories' division of
American Home Products Corporation, an approximately $303,000 reduction in
salaries and benefits and other research and development overhead, and an
approximately $413,000 decrease in Crinone and other development costs.

         License fees in 1999 of $387,500, net of expenses totaling $112,500,
represent an upfront payment received in connection with the licensing agreement
with Mipharm SpA entered into in March 1999.

          Interest expense increased in 1999 as a result of the $10 million note
bearing interest at 7 1/8 % issued by the Company on March 16, 1998 to an
institutional investor.

          The Company has recorded a $69,000 alternative minimum tax provision
for U.S. federal taxes in 1999.

         As a result, the net income for the six months ended June 30, 1999 was
$1,315,604 or $.04 per common and common equivalent share as compared to a net
loss in the six months ended June 30, 1998 of $6,486,583 or $(.23) per common
and common equivalent share. The earnings per share calculation for the six
months ended June 30, 1999 reflects a one-time deduction of $133,320 related to
the sale of the Series C Convertible Preferred Stock completed in the first
quarter of 1999. The $133,320, although not required to be reflected as an
expense in the income statement, was deducted from net income in computing net
income per common and common equivalent share.

RESULTS OF OPERATIONS - THREE MONTHS ENDED JUNE 30, 1999 VERSUS THREE MONTHS
ENDED JUNE 30, 1998

          Net sales increased by approximately $5.1 million to approximately
$7.2 million in 1999 as compared to $2.1 million in 1998. Crinone, accounted for
approximately $4.7 million of the increase

                                 Page 13 of 17

<PAGE>

with sales of approximately $5.3 million in 1999 as compared to $575,000 in
1998. Gross profit as a percentage of net sales increased in 1999 as compared to
1998 from 55% to 74% as a result of increased Crinone sales which has a higher
gross profit percentage.

          Selling and distribution expenses increased by approximately $35,000
in 1999 to approximately $1,154,000 as compared to $1,119,000 in 1998, primarily
as a result of expenses related to the reacquisition of Replens and the
marketing of the product.

          General and administrative expenses increased by approximately
$19,000 to approximately $1,290,000 in 1999 from $1,271,000 in 1998.

          Research and development expenses decreased by approximately $446,000
from approximately $1,931,000 in 1998 to $1,485,000 in 1999. The decrease was in
part due to an approximately $125,000 reduction in salaries and benefits and
other research and development overhead, and an approximately $269,000 decrease
in Crinone development costs.

          The Company has recorded a $44,000 alternative minimum tax provision
for U.S. federal taxes in 1999.

          As a result, the net income for the three months ended June 30, 1999
was $1,175,494 or $.03 per common and common equivalent share as compared to a
net loss in the three months ended June 30, 1998 of $3,289,158 or $(.11) per
common and common equivalent share. The earnings per share calculation for the
three months ended June 30, 1999 reflects a one-time deduction of $133,320
related to the sale of the Series C Convertible Preferred Stock completed in the
first quarter of 1999. The $133,320, although not required to be reflected as an
expense in the income statement, was deducted from net income in computing net
income per common and common equivalent share.

                                 Page 14 of 17

<PAGE>

                  COLUMBIA LABORATORIES, INC. AND SUBSIDIARIES

                           PART II - OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

                  The Company filed an action in the United States District
         Court for the Southern District of Florida in November 1997 seeking a
         declaratory judgement on certain issues related to its relationship
         with Lake Pharmaceuticals, Inc. ("Lake") as governed in the contract
         between the Company and Lake. Lake filed an action against the Company
         in the United States District Court, Northern District of Illinois, for
         damages alleged by Lake to have been suffered by it as a result of the
         FDA's allegations in July 1997 that the Company's nonoxynol-9 product,
         then marketed by Lake under the tradename Advantage 24, was not
         permitted to be sold under the monograph. This action was dismissed by
         the Illinois Court and transferred to the Florida Court for
         consolidation as a counterclaim in the Florida action. The Company is
         vigorously defending the Lake claims and believes that Lake's action
         will be dismissed without any damage award to Lake and that the Company
         will prevail in its claims against Lake for damages.

                  Other claims and complaints have been filed or are pending
         against the Company with respect to various matters. In the opinion of
         management and counsel, all such matters are adequately reserved for or
         covered by insurance or, if not so covered, are without any or have
         little merit or involve such amounts that if disposed of unfavorably
         would not have a material adverse effect on the Company.

ITEM 2.  CHANGES IN SECURITIES

         None.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

         None.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

         The 1999 annual meeting of shareholders was held on June 2, 1999 for
         the purpose of electing the following eight directors (with each
         nominee receiving at least 22,990,223 votes out of a possible
         28,729,624 votes): James J. Apostolakis, William J. Bologna, Jean
         Carvais, M.D., Dominique de Ziegler, M.D., Norman M. Meier, Denis
         O'Donnell, M.D., Selwyn Oskowitz, M.D. and Robert C. Strauss.

ITEM 5.  OTHER INFORMATION

         None.

                                 Page 15 of 17


<PAGE>

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

         A.     Exhibits

                11.1 -    Statement Re:   Computation of Per Share Earnings

                27.1 -   Financial Data Schedule (SEC use only)

         B.     Reports on Form 8-K

                None.

                                 Page 16 of 17

<PAGE>

                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                                             COLUMBIA LABORATORIES, INC.

                                             /S/ DAVID L. WEINBERG
                                             -----------------------------------
                                             DAVID L. WEINBERG, Vice President-
                                             Finance and Administration,
                                             Chief Financial Officer

DATE: AUGUST 9, 1999

                                 Page 17 of 17

<PAGE>

                                INDEX TO EXHIBITS

EXHIBIT
NUMBERS

11.1     -   Statement Re: Computation of Per Share Earnings.

27       -   Financial Data Schedule.