$5.5M raised in private placement, reports financial status.(Cellegy Pharmaceuticals Inc.)

2002 DEC 12 - (NewsRx.com & NewsRx.net) -- Cellegy Pharmaceuticals, Inc., (CLGY) announced that it has raised $5.5 million in a private placement of its common stock to John M. Gregory, managing partner of SJ Strategic Investments LLC.

Gregory was the founder of King Pharmaceuticals, a leading specialty pharmaceutical company, and earlier this year retired from his position as chairman and CEO.

The transaction consisted of a sale of 2.2 million shares of common stock at a price of $2.50 per share. The purchase brings Gregory's ownership in Cellegy to approximately 19.9%, including previous open market purchases over the last 3 months.

"We are pleased that Gregory has accumulated this position in Cellegy," said K. Michael Forrest, Cellegy's chairman and CEO. "His success in the specialty pharmaceutical industry is well recognized, and we are honored to have him join our other prestigious investors as a major Cellegy shareholder. We believe his investment is a strong vote of confidence in the commercial potential of our lead products and our overall strategic direction."

Gregory commented, "In my opinion, Cellegy Pharmaceuticals has tremendous upside potential with their three late stage products, Tostrex gel, Tostrelle gel, and Cellegesic ointment.

"The company also reported that revenues for the third quarter ended September 30, 2002, were $145,000 compared with $265,000 for the same period last year.

Revenues from the 2002 third quarter consisted of $75,000 in Rectogesic ointment sales in Australia (a 20% increase over last year's third quarter), $43,000 in cosmeceutical sales and $27,000 in grants received by Cellegy Canada. For the same period in 2001, revenues consisted of $63,000 in Rectogesic sales and $202,000 in product sales to Gryphon Development, the product development subsidiary of a major specialty retailer.