----

----

| [X]  [  ]  | QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934For the quarterly period ended September      30, 2009OR                TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|-------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  Delaware                                                                                                         |   |  59-2758596                                          |
|------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------|
|  (State or      other jurisdiction of  incorporation or      organization)                         |   |  (I.R.S.      Employer Identification      No.) |
|                                                                                                                   |   |                                                      |
| 354 Eisenhower      ParkwayLivingston, New      Jersey ( Address of principal executive offices)   |   | 07039(Zip      Code)                                      |

----

----

|                                                                                                                                               |   | September      30 |         |   | December      31 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|--------------|--------|------------------|--------|
|                                                                                                                                               |   | 2009              |         |   | 2008             |   |
|                                                                                                                                               |   | (Unaudited)       |         |   |             |   |
| ASSETS                                                                                                                                             |   |              |         |   |             |   |
| Current      Assets:                                                                                                                               |   |              |         |   |             |   |
| Cash      and cash equivalents of which $4,228,668 and                                                                                             |   | $                 | 7,331,577    |   |             | $      | 12,497,382 |   |
| $12,099,318      is interest bearing                                                                                                               |   |              |         |   |             |   |   |   |
| Accounts      receivable, net of allowances for                                                                                                    |   |              | 3,228,851    |   |             |   | 3,562,277 |   |
| doubtful      accounts of $100,000 and $100,000                                                                                                    |   |              |         |   |             |   |   |   |
| Inventories                                                                                                                                        |   |              | 2,312,211    |   |             |   | 2,377,139 |   |
| Prepaid      expenses and other current assets                                                                                                     |   |              | 386,475      |   |             |   | 1,102,525 |   |
| Total      current assets                                                                                                                          |   |              | 13,259,114   |   |             |   | 19,539,323 |   |
|                                                                                                                                               |   |              |         |   |             |   |   |   |
| Property      and equipment, net                                                                                                                   |   |              | 744,667      |   |             |   | 821,857 |   |
| Intangible      assets - net                                                                                                                       |   |              | 20,031,514   |   |             |   | 23,815,060 |   |
| Other      assets                                                                                                                                  |   |              | 1,853,631    |   |             |   | 1,446,249 |   |
|                                                                                                                                               |   |              |         |   |             |   |   |   |
| TOTAL      ASSETS                                                                                                                                  |   | $                 | 35,888,926   |   |             | $      | 45,622,489 |   |
|                                                                                                                                               |   |              |         |   |             |   |   |   |
| LIABILITIES      AND SHAREHOLDERS' DEFICIT                                                                                                         |   |              |         |   |             |   |   |   |
| Current      Liabilities:                                                                                                                          |   |              |         |   |             |   |   |   |
| Current      portion of financing agreements                                                                                                       |   | $                 | 134,526      |   |             | $      | 168,034 |   |
| Accounts      payable                                                                                                                              |   |              | 2,482,689    |   |             |   | 2,085,463 |   |
| Accrued      expenses                                                                                                                              |   |              | 4,855,400    |   |             |   | 4,980,643 |   |
| Total      current liabilities                                                                                                                     |   |              | 7,472,615    |   |             |   | 7,234,140 |   |
|                                                                                                                                               |   |              |         |   |             |   |   |   |
| Notes      payable                                                                                                                                 |   |              | 32,207,556   |   |             |   | 30,074,966 |   |
| Deferred      revenue                                                                                                                              |   |              | 267,298      |   |             |   | 305,433 |   |
| Long-term      portion of financing agreements                                                                                                     |   |              | 14,679,091   |   |             |   | 13,126,210 |   |
| TOTAL      LIABILITIES                                                                                                                             |   |              | 54,626,560   |   |             |   | 50,740,749 |   |
|                                                                                                                                               |   |              |         |   |             |   |   |   |
| COMMITMENTS      AND CONTINGENCIES                                                                                                                 |   |              |         |   |             |   |   |   |
|                                                                                                                                               |   |              |         |   |             |   |   |   |
| Contingently      Redeemable Series C Preferred Stock,                                                                                             |   |              |         |   |             |   |   |   |
| 600      and 775 shares issued and outstanding in 2009 and 2008, respectively      (liquidation preference of  $600,000 and    $775,000) |   |              | 600,000      |   |             |   | 775,000 |   |
|                                                                                                                                               |   |              |         |   |             |   |   |   |
| SHAREHOLDERS'      DEFICIT:                                                                                                                        |   |              |         |   |             |   |   |   |
| Preferred      stock, $.01 par value; 1,000,000 shares authorized                                                                                  |   |              |         |   |             |   |   |   |
| Series      B Convertible Preferred Stock, 130 shares issued and outstanding      (liquidation preference of $13,000)                              |   |              | 1            |   |             |   | 1 |   |
| Series      E Convertible Preferred Stock, 59,000 shares issued and outstanding      (liquidation preference of $5,900,000)                        |   |              | 590          |   |             |   | 590 |   |
| Common      Stock $.01 par value; 100,000,000 shares                                                                                               |   |              |         |   |             |   |   |   |
| authorized;      54,849,986 and 54,007,579 shares issued in 2009 and 2008,      respectively                                                       |   |              | 548,499      |   |             |   | 540,076 |   |
| Capital      in excess of par value                                                                                                                |   |              | 231,726,951  |   |             |   | 228,686,942 |   |
| Less      cost of 131,935 and 63,644 treasury shares                                                                                               |   |              | (280,813     | )      |             |   | (189,229 | ) |
| Accumulated      deficit                                                                                                                           |   |              | (251,537,195 | )      |             |   | (235,109,705 | ) |
| Accumulated      other comprehensive income                                                                                                        |   |              | 204,333      |   |             |   | 178,065 |   |
| Shareholders'      deficit                                                                                                                         |   |              | (19,337,634  | )      |             |   | (5,893,260 | ) |
| TOTAL      LIABILITIES AND SHAREHOLDERS' DEFICIT                                                                                                   |   | $                 | 35,888,926   |   |             | $      | 45,622,489 |   |

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

----

|                                 |   |                                                                             | Nine      Months Ended                                                           | Three      Months Ended                                                                                                   |
|--------------------------------------|--------|----------------------------------------------------------------------------------|----------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|
|                                 |   |                                                                             | September      30,                                                               | September      30,                                                                                                        |
|                                 |   |                                                                             | 2009                                                                             | 2008                                                                                                                      | 2009 | 2008 |
|                                 |   |                                                                             |                                                                             |                                                                                                                      |   |   |
| NET      REVENUES                    |   | $                                                                                | 23,647,848                                                                       |  $     29,177,914                                                                           |  $       7,902,957 |  $     11,117,358 |
|                                 |   |                                                                             |                                                                             |                                                                                                                      |   |   |
| COST      OF REVENUES                |   | 6,680,929                                                                        | 8,769,496                                                                        | 2,561,560                                                                                                                 | 2,859,590 |
| Gross      profit                    |   |                                                                             |         16,966,919                       | 20,408,418                                                                                                                |          5,341,397 | 8,257,768 |
|                                 |   |                                                                             |                                                                             |                                                                                                                      |   |   |
| OPERATING      EXPENSES:             |   |                                                                             |                                                                             |                                                                                                                      |   |
| Selling      and distribution        |   | 8,999,177                                                                        | 9,809,695                                                                        | 3,096,810                                                                                                                 | 3,494,083 |
| General      and administrative      |   | 7,708,514                                                                        | 6,628,649                                                                        | 2,147,515                                                                                                                 | 2,079,201 |
| Research      and development        |   | 6,206,028                                                                        | 5,051,949                                                                        | 2,258,656                                                                                                                 | 1,510,186 |
| Amortization      of licensing right |   | 3,783,546                                                                        | 3,783,546                                                                        | 1,261,182                                                                                                                 | 1,261,182 |
| Total      operating expenses        |   |         26,697,265                       | 25,273,839                                                                       |          8,764,163                                                           | 8,344,652 |
|                                 |   |                                                                             |                                                                             |                                                                                                                      |   |   |
| Loss      from operations            |   |         (9,730,346)                      | (4,865,421)                                                                      |         (3,422,766)                                                               | (86,884) |
|                                 |   |                                                                             |                                                                             |                                                                                                                      |   |   |
| OTHER      INCOME (EXPENSES):        |   |                                                                             |                                                                             |                                                                                                                      |
| Interest      income                 |   |                                                                             | 33,801                                                                           | 249,496                                                                                                                   | 5,057 | 58,836 |
| Interest      expense                |   |                                                                             | (6,488,859)                                                                      | (5,871,513)                                                                                                               | (2,283,524) | (1,998,832) |
| Other,      net                      |   |                                                                             | (225,156)                                                                        | (82,915)                                                                                                                  | (152,029) | 6,792 |
| Total      other expenses            |   |         (6,680,214)                      | (5,704,932)                                                                      |         (2,430,496)                                                               | (1,933,204) |
|                                 |   |                                                                             |                                                                             |                                                                                                                      |   |   |
| Loss      before taxes               |   |                                                                             |       (16,410,560)                                 |       (10,570,353)                                                                          |         (5,853,262) |         (2,020,088) |
| State      income taxes              |   |             (16,930) |             (54,750) |                     - |             (30,048) |
| NET      LOSS                        |   | $                                                                                | (16,427,490)                                                                     |  $   (10,625,103)                                                                                     |  $     (5,853,262) |  $     (2,050,136) |
|                                 |   |                                                                             |                                                                             |                                                                                                                      |   |   |
| NET      LOSS PER COMMON SHARE:      |   |                                                                             |                                                                             |                                                                                                                      |
| Basic      and diluted               |   | $                                                                                | (0.30)                                                                           |  $             (0.20)                               |  $             (0.11) |  $             (0.04) |
|                                 |   |                                                                             |                                                                             |                                                                                                                      |   |   |
| WEIGHTED      AVERAGE NUMBER OF      |   |                                                                             |                                                                             |                                                                                                                      |
| COMMON      SHARES OUTSTANDING:      |   |                                                                             |                                                                             |                                                                                                                      |
| Basic      and diluted               |   |                                                                             | 54,397,545                                                                       | 52,073,900                                                                                                                | 54,455,731 | 52,613,653 |

----

|                                    |   | Nine      Months Ended September      30, |         | Three      Months Ended September      30, |   |
|-----------------------------------------|--------|-------------------------------------------|--------------|--------------------------------------------|--------|
|                                    |   |                                      |         |                                       |   |   |   |   |   |
|                                    |   | 2009                                      |         | 2008                                       |   | 2009 |   | 2008 |   |
|                                    |   |                                      |         |                                       |   |   |   |   |   |
| NET      LOSS                           |   | $                                         | (16,427,490) |                                       | $      | (10,625,103) |   | $ | (5,853,262) |   | $ | (2,050,136) |   |
|                                    |   |                                      |         |                                       |   |   |   |   |   |   |   |   |   |
| Other      comprehensive income (loss): |   |                                      |         |                                       |   |   |   |   |   |   |   |   |   |
| Foreign      currency translation       |   |                                      | 26,268       |                                       |   | (8,633) |   |   | 7,427 |   |   | (18,627) |   |
|                                    |   |                                      |         |                                       |   |   |   |   |   |   |   |   |   |
| COMPREHENSIVE      LOSS                 |   | $                                         | (16,401,222) |                                       | $      | (10,633,736) |   | $ | (5,845,835) |   | $ | (2,068,763) |   |

----

|                                                   |   | Nine      Months Ended September 30, |        |
|--------------------------------------------------------|--------|--------------------------------------|-------------|
|                                                   |   | 2009                                 |        |   | 2008 |   |
| CASH      FLOWS FROM OPERATING ACTIVITIES:             |   |                                 |        |   |   |   |
| Net      loss                                          |   | $                                    | (16,427,490 | ) |   | $ | (10,625,103 | ) |
| Adjustments      to reconcile net loss to net          |   |                                 |        |   |   |   |   |   |
| cash      used in operating activities-                |   |                                 |        |   |   |   |   |   |
| Depreciation      and amortization                     |   |                                 | 4,211,858   |   |   |   | 4,124,526 |   |
| Amortization      on beneficial conversion features    |   |                                 | 1,222,692   |   |   |   | 1,066,158 |   |
| Amortization      on warrant valuation                 |   |                                 | 909,898     |   |   |   | 806,701 |   |
| Provision      for doubtful accounts                   |   |                                 | -           |   |   |   | 4,267 |   |
| Provision      for sales returns                       |   |                                 | 848,662     |   |   |   | 1,095,853 |   |
| Writedown      of inventories                          |   |                                 | 1,496       |   |   |   | 746,905 |   |
| Stock      based compensation                          |   |                                 | 1,428,217   |   |   |   | 1,061,865 |   |
| Non-cash      interest expense on financing agreements |   |                                 | 1,519,374   |   |   |   | 1,260,678 |   |
| Acceleration      of Ardana deferred revenue           |   |                                 | -           |   |   |   | (2,891,188 | ) |
| Loss      on disposal of fixed assets                  |   |                                 | -           |   |   |   | 3,048 |   |
| Changes      in assets and liabilities-                |   |                                 |        |   |   |   |   |   |
| (Increase)      decrease in:                           |   |                                 |        |   |   |   |   |   |
| Accounts      receivable                               |   |                                 | 333,426     |   |   |   | (1,374,949 | ) |
| Inventories                                            |   |                                 | 63,432      |   |   |   | (156,018 | ) |
| Prepaid      expenses and other current assets         |   |                                 | 716,050     |   |   |   | (192,887 | ) |
| Other      assets                                      |   |                                 | 9,438       |   |   |   | 4,867 |   |
|  Increase      (decrease) in:                     |   |                                 |        |   |   |   |   |   |
| Accounts      payable                                  |   |                                 | 397,226     |   |   |   | 532,952 |   |
| Accrued      expenses                                  |   |                                 | (987,109    | ) |   |   | (3,469 | ) |
| Deferred      revenue                                  |   |                                 | (38,135     | ) |   |   | (371,527 | ) |
| Net      cash used in operating activities             |   |                                 | (5,790,965  | ) |   |   | (4,907,321 | ) |
|                                                   |   |                                 |        |   |   |   |   |   |
| CASH      FLOWS FROM INVESTING ACTIVITIES:             |   |                                 |        |   |   |   |   |   |
| Purchase      of property and equipment                |   |                                 | (48,039     | ) |   |   | (432,558 | ) |
| Net      cash used in investing activities             |   |                                 | (48,039     | ) |   |   | (432,558 | ) |
|                                                   |   |                                 |        |   |   |   |   |   |
| CASH      FLOWS FROM FINANCING ACTIVITIES:             |   |                                 |        |   |   |   |   |   |
| Net      proceeds from the sale of common stock        |   |                                 | 750,000     |   |   |   | 4,095,628 |   |
| Proceeds      from exercise of options                 |   |                                 | -           |   |   |   | 583,566 |   |
| Payments      for purchase of treasury stock           |   |                                 | (91,584     | ) |   |   | (135,199 | ) |
| Payments      pursuant to financing agreements         |   |                                 | -           |   |   |   | (3,540,949 | ) |
| Dividends      paid                                    |   |                                 | (24,688     | ) |   |   | (42,187 | ) |
| Net      cash provided by financing activities         |   |                                 | 633,728     |   |   |   | 960,859 |   |
|                                                   |   |                                 |        |   |   |   |   |   |
| (continued)                                            |   |                                 |        |   |   |   |   |   |

----

|                                                      |   | Nine      Months Ended September 30, |       |
|-----------------------------------------------------------|--------|--------------------------------------|------------|
|                                                      |   | 2009                                 |       |   | 2008 |   |
|                                                      |   |                                 |       |   |   |   |
| EFFECT      OF EXCHANGE RATE CHANGES ON CASH              |   |                                 | 39,471     |   |   |   | (17,474 | ) |
|                                                      |   |                                 |       |   |   |   |   |   |
| NET      DECREASE IN CASH                                 |   |                                 | (5,165,805 | ) |   |   | (4,396,494 | ) |
|                                                      |   |                                 |       |   |   |   |   |   |
| CASH,      BEGINNING OF PERIOD                            |   |                                 | 12,497,382 |   |   |   | 17,221,811 |   |
|                                                      |   |                                 |       |   |   |   |   |   |
| CASH      END OF PERIOD                                   |   | $                                    | 7,331,577  |   |   | $ | 12,825,317 |   |
|                                                      |   |                                 |       |   |   |   |   |   |
| NON-CASH      FINANCING ACTIVITIES                        |   |                                 |       |   |   |   |   |   |
|                                                      |   |                                 |       |   |   |   |   |   |
| Conversion      of Series C and Series E preferred shares |   | $                                    | 175,000    |   |   | $ | 2,274 |   |
|                                                      |   |                                 |       |   |   |   |   |   |
| Issuance      of Warrants for Option to Extend            |   |                                 |       |   |   |   |   |   |
|      Pharmabio      Debt         |   | $                                    | 719,904    |   |   | $ | - |   |
|                                                      |   |                                 |       |   |   |   |   |   |
| SUPPLEMENTAL      INFORMATION                             |   |                                 |       |   |   |   |   |   |
|                                                      |   |                                 |       |   |   |   |   |   |
| Interest      paid                                        |   | $                                    | 2,400,003  |   |   | $ | 2,610,528 |   |
|                                                      |   |                                 |       |   |   |   |   |   |
| Taxes      paid                                           |   | $                                    | 31,634     |   |   | $ | 146,242 |   |
|                                                      |   |                                 |       |   |   |   |   |   |

----

|                                 |   | Nine      Months Ended September 30, |      |
|--------------------------------------|--------|--------------------------------------|-----------|
|                                 |   | 2009                                 |      |   | 2008 |   |
|                                 |   |                                 |      |   |   |   |
| Balance      at beginning of year    |   | $                                    | 1,864,316 |   |   | $ | 1,923,769 |   |
|                                 |   |                                 |      |   |   |   |   |   |
| Provision:                           |   |                                 |      |   |   |   |   |   |
| Related      to current period sales |   |                                 | 485,778   |   |   |   | 445,853 |   |
| Related      to prior period sales   |   |                                 | 362,884   |   |   |   | 650,000 |   |
|                                 |   |                                 | 848,662   |   |   |   | 1,095,853 |   |
|                                 |   |                                 |      |   |   |   |   |   |
| Returns:                             |   |                                 |      |   |   |   |   |   |
| Related      to current period sales |   |                                 | (17,896   | ) |   |   | - |   |
| Related      to prior period sales   |   |                                 | (933,321  | ) |   |   | (1,208,819 | ) |
|                                 |   |                                 | (951,217  | ) |   |   | (1,208,819 | ) |
|                                 |   |                                 |      |   |   |   |   |   |
| Balance      at end of period        |   | $                                    | 1,761,761 |   |   | $ | 1,810,803 |   |

|                | September      30,           |   | December      31,                  |
|---------------------|------------------------------|--------|------------------------------------|
|                | 2009                         |   | 2008                               |
| Finished      goods |  $  1,384,190 |   |  $   1,745,222 |
| Raw      materials  | 928,021                      |   | 631,917                            |
|                |                         |   |                               |
|                |  $  2,312,211 |   |  $   2,377,139 |

----

|                       |                                                                            | September      30,                              |                                                          |  December      31,       |
|----------------------------|---------------------------------------------------------------------------------|-------------------------------------------------|---------------------------------------------------------------|-------------------------------|
|                       |                                                                            | 2009                                            |                                                          | 2008                          |
| STRIANT      Agreement     |  $     14,813,617                                 |                                            |  $  13,294,244                                 |
| Less:      current portion |             134,526 |                                            |          168,034 |
|                       |                                                                            |  $     14,679,091 |                                                          |  $  13,126,210 |

----

|                               |                     |                                    | Net                     |                                                                                              | Identifiable            |
|------------------------------------|--------------------------|-----------------------------------------|-------------------------|---------------------------------------------------------------------------------------------------|-------------------------|
|                               |                     |                                    | Revenues                |                                                                                              | Assets                  |
|                               |                     |                                    |                    |                                                                                              |                    |
| As      of and for the nine months |                     |                                    |                    |
| ended      September 30, 2009      |                     |                                    |                    |
|                               | United      States       |  $      14,442,536                 |                    |  $      31,775,481                                                                           |
|                               |                     |                                    |                    |                                                                                              |                    |
|                               | Switzerland              |      6,513,979 |                    |      4,113,445                                                           |
|                               | Other      countries     |      2,691,333 |                    |                 - |
|                               | Total      International |      9,205,312 |                    |      4,113,445                                                           |
|                               | Total                    |                                    |  $      23,647,848 |                                                                                              |  $      35,888,926 |
|                               |                     |                                    |                    |                                                                                              |                    |
| As      of and for the nine months |                     |                                    |                    |
| ended      September 30, 2008      |                     |                                    |                    |
|                               | United      States       |  $      18,195,448                 |                    |  $      40,215,300                                                                           |
|                               |                     |                                    |                    |                                                                                              |                    |
|                               | Switzerland              |      7,498,310 |                    |      9,250,282                                                           |
|                               | Other      countries     |      3,484,156 |                    |                 - |
|                               | Total      International |    10,982,466            |                    |      9,250,282                                                           |
|                               | Total                    |                                    |  $      29,177,914 |                                                                                              |  $      49,465,582 |

|                        |                                                   |                                                                      | Nine      Months Ended September      30, |                                                                      | Three      Months Ended September      30, |
|-----------------------------|--------------------------------------------------------|---------------------------------------------------------------------------|-------------------------------------------|---------------------------------------------------------------------------|--------------------------------------------|
|                        |                                                   |                                                                      |                                      |                                                                      |                                       |   |   |
|                        |                                                   |                                                                      | 2009                                      |                                                                      | 2008                                       |   | 2009 |   | 2008 |
| Net      loss               |                                                   |  $      (16,427,490)                                                 |                                      |  $      (10,625,103)                                                 |                                       |  $(5,853,262) |   |  $(2,050,136) |
|                        | Less:      Preferred stock dividends                   | (24,688)                                                                  |                                      | (42,186)                                                                  |                                       |          (7,500) |   | (14,062) |
|                        |                                                   |                                                                      |                                      |                                                                      |                                       |   |   |   |   |
| Net      loss applicable to |                                                   |                                                                      |                                      |                                                                      |                                       |   |   |
|                        | common      stock                                      |  $      (16,452,178)                                                 |                                      |  $      (10,667,289)                                                 |                                       |  $(5,860,762) |   |  $(2,064,198) |
|                        |                                                   |                                                                      |                                      |                                                                      |                                       |   |   |   |   |
| Basic      and diluted:     |                                                   |                                                                      |                                      |                                                                      |                                       |   |   |
|                        | Weighted      average number of                        |                                                                      |                                      |                                                                      |                                       |   |   |   |
|                        |     common      shares outstanding |      54,397,545                                  |                                      |      52,073,900                                  |                                       |    54,455,731 |   |    52,613,653 |
|                        |                                                   |                                                                      |                                      |                                                                      |                                       |   |   |   |   |
|                        | Basic      and diluted net loss per common share       |  $          (0.30) |                                      |  $          (0.20) |                                       |  $        (0.11) |   |  $        (0.04) |

----

|                            |   | Nine      Months Ended September 30,                                            |
|---------------------------------|--------|---------------------------------------------------------------------------------|
| Stock      Based Compensation   |   | 2009                                                                            |   | 2008 |
|                            |   |                                                                            |   |   |
| Cost      of revenues           |   |  $           58,253 |   |  $          52,482 |
|                            |   |                                                                            |   |   |
| Selling      and distribution   |   |             364,566 |   |            179,087 |
|                            |   |                                                                            |   |   |
| General      and administrative |   |             897,890 |   |            756,773 |
|                            |   |                                                                            |   |   |
| Research      and development   |   |             107,508 |   |              73,523 |
|                            |   |                                                                            |   |   |
| Total                           |   |  $      1,428,217                            |   |  $      1,061,865 |

----

|                       |   | Products      for Fiscal 2009                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|----------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| Progesterone      Products |   |  CRINONE®      8% (progesterone gel) marketed by the Company in the U.S.  CRINONE®      8% sold to Merck Serono for resale outside the U.S.  PROCHIEVE®      8% (progesterone gel) marketed by the Company in the U.S.  PROCHIEVE®      4% sold to Ascend Therapeutics, Inc., for resale in the    U.S.                                                                                                                                                     |
|                       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| Other      Products        |   |  STRIANT®      (testosterone buccal system) marketed by the Company in the      U.S.  STRIANT®      sold to Mipharm, S.p.A. for resale in Italy  Replens®      Vaginal Moisturizer sold to Lil’ Drug Store Products, Inc (“Lil’ Drug      Store”) for resale outside the U.S.  RepHresh®      Vaginal Gel sold to Lil’ Drug Store for resale on a worldwide      basis  Royalty      and licensing revenues |

----

----

----

|                                         | Nine      Months Ended September      30,          |
|----------------------------------------------|----------------------------------------------------|
|                                         |                                               |   |
|                                         | 2009                                               |   | 2008 |
| Cash      flows:                             |                                               |   |   |
|          Operating activities |  $(5,790,965)                                 |   |  $(4,907,321) |
|          Investing activities |        (48,039) |   |       (432,558) |
|          Financing activities |        633,728  |   |        960,859 |

----

----

----

|                         | Nine      Months Ended September      30, |
|------------------------------|-------------------------------------------|
|                         |                                      |   |
|                         | 2009                                      | 2008 |
| Risk      free interest rate | 2.40%                                     | 2.47% |
| Expected      term           | 4.8      years                            | 4.75      years |
| Dividend      yield          | 0                                         | 0 |
| Expected      volatility     | 0.9344                                    | 0.8428 |

----

----

----

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

----

| 4.1         | Form      of Warrant. (1)                                                                                                                                                |
|-------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.1† | Employment      Agreement by and between Columbia Laboratories, Inc. and Lawrence      Gyenes, dated July 15, 2009. (2)                                             |
| 10.2        | Second      Amendment to Investment and Royalty Agreement by and between Columbia      Laboratories, Inc. and PharmaBio Development, Inc., dated July 22, 2009.      (3) |
| 10.3        | Form      of Subscription Agreement. (4)                                                                                                                                 |
| 10.4        | Form      of Warrant to Purchase Common Stock. (5)                                                                                                                       |
| 31.1        | Rule      13a-14(a)/15d-14(a) Certification of Chief Executive Officer of the      Company.*                                                                             |
| 31.2        | Rule      13a-14(a)/15d-14(a) Certification of Chief Financial Officer of the      Company.*                                                                             |
| 32.1        | Certification      Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of      the Sarbanes-Oxley Act of 2002.*                                       |
| 32.2        | Certification      Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of      the Sarbanes-Oxley Act of 2002.*                                       |

|   | * | Filed      herewith. |
|--------|---|----------------------|

|   | † | Management      contract or compensatory plans orarrangements |
|--------|---------|---------------------------------------------------------------|

|   | (1) | Incorporated      by reference to the Registrant’s Current Report on Form 8-K, filed July      24, 2009, Exhibit 4.1. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Incorporated      by reference to the Registrant’s Current Report on Form 8-K, filed July      16, 2009, Exhibit 10.1. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Incorporated      by reference to the Registrant’s Current Report on Form 8-K, filed July      24, 2009, Exhibit 10.1. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | Incorporated      by reference to the Registrant’s Current Report on Form 8-K, filed October      23, 2009, Exhibit 10.1. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | Incorporated      by reference to the Registrant’s Current Report on Form 8-K, filed October      23, 2009, Exhibit 10.2. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------|

----

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

----