Innocoll, Inc. and Bourne Partners Announce Joint Venture to Build Leading U.S. Advanced Wound Care Business - Formation of CollMED Laboratories, Inc.

CHARLOTTE, NC and ASHBURN, VA--(MARKET WIRE)--Sep 6, 2007 -- Innocoll, Inc. and Bourne Partners today announced the formation of CollMED Laboratories, Inc. ("CollMED") to commercialize and develop four products in the U.S. advanced wound care segment. The company's first product, CollaGUARD(TM), was approved by the FDA in late 2006 and is based on Innocoll's proprietary CollaRx(TM) membrane technology. The launch of CollaGUARD(TM) is targeted to take place in the fourth quarter of 2007.

Products in development include CollaGUARD(TM) Ag (CM002), a bioactive dressing with silver for treatment of dermal wounds with mild infection or at risk of infection, DermaSIL(TM) (CM003), a collagen-synthetic polymer composite dressing for deep wounds that penetrate the middle or deepest dermal layers and CM004, an anti adhesion barrier for prevention of surgical adhesions in gastrointestinal and gynaecologic procedures. CollMED expects to file U.S. 510(k) registrations for both CollaGUARD(TM) Ag and DermaSIL(TM) in 2008. Ownership of the U.S. registration and marketing rights for these four products, which represent Innocoll's currently approved and pipeline wound care product portfolio, are transferred to the joint venture.

Banks Bourne, Senior Managing Director of Bourne Partners, remarked, "This marks the second partnership we have formed with Innocoll. We see an opportunity to deliver innovative and advanced products, such as those developed by Innocoll, into the $4.1 billion wound care market that is growing at double digit rates. This joint venture is further strengthened by the leadership team we have assembled to drive the partnership. Together, we plan to be very active in acquiring, licensing and developing additional high quality products that can be delivered cost effectively to the patient."

Dr. Michael Myers, President and CEO of Innocoll, commented, "We are delighted to expand our relationship with Bourne Partners into the area of wound care. The formation of this joint venture marks an excellent opportunity for Innocoll to commercialize its wound care product portfolio while retaining a strong interest and influence over the U.S. marketing strategy and future commercial success."

About CollaGUARD(TM)

CollaGUARD(TM) is comprised almost entirely of purified type-I collagen protein, which is indicated for the management of superficial and deep wounds, including coverage of skin ulcers and temporary dermatoplasty in the case of lesion and burns. Unlike alginates, hydrogels and hydrocolloids used in other categories of advanced wound care products, collagen is a fully biodegradable and bioactive material with a pharmacological action that stimulates the natural wound healing process. In addition, CollaGUARD(TM) provides the barrier protection and transparency of film dressings, which allows the clinician to visually inspect and monitor the wound without removal.

The world-wide market for advanced wound care dressings is worth well in excess of $4 billion. In the past, collagen-based dressings have dominated the premium priced market with the so-called "artificial skins" (collagen membranes incorporating living cells) or "synthetic skin substitutes" made of complex composite layers. Other products are based upon lyophilized collagen sponges, a relatively slow and expensive manufacturing process. By contrast, CollaGUARD(TM) can be manufactured using a streamlined, cost-effective production process.

About CollMED Laboratories, Inc.

CollMED is a leading advanced wound care company focused on the innovation and distribution of high quality products. The company currently markets CollaGUARD(TM) and has three products in development. CollMED is headquartered in Charlotte, North Carolina and is a joint venture between Innocoll, Inc. and Bourne Partners. For more information, please visit www.collmedlabs.com.

About CollaRx(TM)

CollaRx(TM) is Innocoll Technologies' lead technology platform for the site specific targeted delivery of a wide variety of medicines with particular emphasis on antibiotics and anesthetics. The CollaRx(TM) technology also forms the basis of Innocoll Pharmaceuticals' lead product, Gentamicin Surgical Implant, a biodegradable leave-behind implant indicated for the treatment and prevention of post-surgical acquired infection in both hard and soft tissues.

About Innocoll, Inc.

Innocoll is a privately held, fully integrated, global, hospital specialty pharmaceutical company specializing in surgical and dermatological products. It develops and markets internationally a range of medical products using its proprietary collagen-based technologies, CollaRx(TM) and LiquiColl®. Innocoll, Inc. acquired the product rights for Gentamicin Surgical Implant from Essex Chemis AG, an affiliated company of Schering-Plough Corporation and has since assumed all sales, marketing and distribution activities for the product. For more information, please visit www.innocoll.com.

About Bourne Partners

Headquartered in Charlotte, North Carolina, Bourne Partners is a leading healthcare-focused merchant banking firm that provides advisory services and capital to companies throughout the world. The firm specializes in domestic and cross border advisory assignments with primary concentration on the pharmaceutical and medical device fields. The firm's principals have completed over 20 transactions in the healthcare area in 17 different countries aggregating over $2.5 billion in value.

Contact:

For more information on this transaction and/or Bourne Partners, please contact:

R. Banks Bourne Senior Managing Director 704.552.8407 ext. 221 Email Contact

or

Jeremy C. Johnson Vice President 704.552.8407 ext. 230 Email Contact

Source: CollMED Laboratories

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