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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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MIC-Info: RSA-MD5,RSA,
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<SEC-DOCUMENT>0000903100-04-000122.txt : 20040309
<SEC-HEADER>0000903100-04-000122.hdr.sgml : 20040309
<ACCEPTANCE-DATETIME>20040309161759
ACCESSION NUMBER:		0000903100-04-000122
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20040305
FILED AS OF DATE:		20040309

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			GALLAGHER BRIAN M
		CENTRAL INDEX KEY:			0001233931

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-28308
		FILM NUMBER:		04657703

	MAIL ADDRESS:	
		STREET 1:		C/O COLLAGENEX PHARMACEUTICALS INC
		STREET 2:		41 UNIVERSITY DR STE 200
		CITY:			NEWTOWN
		STATE:			PA
		ZIP:			18940

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			COLLAGENEX PHARMACEUTICALS INC
		CENTRAL INDEX KEY:			0001012270
		STANDARD INDUSTRIAL CLASSIFICATION:	PHARMACEUTICAL PREPARATIONS [2834]
		IRS NUMBER:				521758016
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		41 UNIVERSITY DRIVE
		CITY:			NEWTON
		STATE:			PA
		ZIP:			18940
		BUSINESS PHONE:		2155797388

	MAIL ADDRESS:	
		STREET 1:		41 UNIVERSITY DRIVE
		CITY:			NEWTON
		STATE:			PA
		ZIP:			18940
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>form4_gallagher-030904ex.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0201</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2004-03-05</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0001012270</issuerCik>
        <issuerName>COLLAGENEX PHARMACEUTICALS INC</issuerName>
        <issuerTradingSymbol>CGPI</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001233931</rptOwnerCik>
            <rptOwnerName>GALLAGHER BRIAN M</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O COLLAGENEX PHARMACEUTICALS INC</rptOwnerStreet1>
            <rptOwnerStreet2>41 UNIVERSITY DR STE 200</rptOwnerStreet2>
            <rptOwnerCity>NEWTOWN</rptOwnerCity>
            <rptOwnerState>PA</rptOwnerState>
            <rptOwnerZipCode>18940</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <transactionDate>
                <value>2004-03-05</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>M</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>75000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>6.25</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>200000</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Options to Purchase Common Stock</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>6.25</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2004-03-05</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>M</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>50000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <footnoteId id="F1"/>
            </exerciseDate>
            <expirationDate>
                <value>2007-02-11</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>75000</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>395000</value>
                    <footnoteId id="F2"/>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">Represents options granted by the Issuer pursuant to its 1992 Stock Option Plan on February 12, 1998.  Such options vested as follows: 15,000 shares subject to such options vested on February 12, 1999, 15,000 shares subject to such options vested on February 12, 2000, 15,000 shares subject to such options vested on February 12, 2001; 15,000 shares subject to such options vested on February 12, 2002 and 15,000 shares subject to such options vested on February 12, 2003.</footnote>
        <footnote id="F2">Includes multiple option grants with different exercise prices and vesting dates.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ Brian M. Gallagher</signatureName>
        <signatureDate>2004-03-09</signatureDate>
    </ownerSignature>
</ownershipDocument>

</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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