EXHIBIT 99.01

                 Cellegy Acquires Vaxis Therapeutics Corporation

                Acquisition Broadens Product Pipeline and Patents
           for use of Nitric Oxide Donors to Treat Sexual Dysfunction
                              and Other Conditions

SOUTH SAN  FRANCISCO,  CA - November  29, 2001 - Cellegy  Pharmaceuticals,  Inc.
(Nasdaq:   CLGY)  announced  today  that  it  has  acquired  Vaxis  Therapeutics
Corporation,  a  private  Canadian  company  based  in  Kingston,  Ontario.  The
transaction is valued at under $4.0 million  payable  primarily in Cellegy stock
plus  potential  earn out payments  over a seven-year  period.  The  acquisition
achieves one of Cellegy's  near term goals of expanding its pipeline of products
for the  treatment  of sexual  dysfunction  in males and  females to  complement
Anogesic(R) (nitroglycerin ointment) and its TostrexTM/TostrelleTM  (transdermal
testosterone  gels)  products.  In June 2001,  Cellegy  filed an NDA relating to
Anogesic for the treatment of anal  fissures and the company  expects to file an
NDA for Tostrex for male hypogonadism during the first quarter of 2002.

Please join us in a  conference  call today at 1:00 p.m.  (PST) to discuss  this
event.  Dial-in Number:  (800)  247-8929,  Reference:  Cellegy  Pharmaceuticals.
Encore presentation, please dial: (800) 642-1687, Conference ID: 2549600.

In October  2001,  following  reports of  positive  results of a clinical  trial
conducted by Dr. Jennifer Berman at the UCLA Medical Center using  nitroglycerin
ointment for treating pain associated  with  vulvadynia,  Cellegy  announced its
intention to begin a clinical  development  program using Anogesic to treat this
and other highly  prevalent  conditions that cause sexual  dysfunction in women.
The  acquisition of Vaxis  provides  Cellegy with issued U.S.  patents  covering
nitroglycerin  and other nitric oxide donors for the  treatment of female sexual
dysfunction (FSD) as well as a number of other conditions.

In  addition  to the FSD  indication,  the Vaxis  product  pipeline  and patents
consist of  nitroglycerin  and other nitric  oxide  donors for the  treatment of
peripheral vascular disorders  including:  Raynaud's Disease, a painful disorder
which afflicts some 28 million people (most of them women) in the United States,
but for which there is no  satisfactory  treatment;  Restless  Leg  Syndrome,  a
disorder  which  deprives  some 12 million  Americans of adequate  sleep and for
which no effective  therapy  exists;  and refractory  Male Erectile  Dysfunction
(MED), a difficult to treat condition which afflicts  approximately one third of
all men with  erectile  problems and which is  unresponsive  to  treatment  with
Viagra(R).  The pipeline  also consists of a nitric oxide donor product which is
showing  promise in the treatment of prostate  cancer in an early stage clinical
trial.  Cellegy  estimates  the  overall  market  for  products  that  treat the
conditions  relating  to  products  acquired  from  Vaxis to be in  excess of $1
billion per year in the United States alone.

"We are very pleased with this acquisition, not only because of the products and
the intellectual property estate it brings, but also because it provides us with
access to preeminent researchers in the areas of sexual dysfunction,  peripheral
vascular disorders and nitric oxide pharmacology," said K. Michael Forrest,



                                     -more-

Cellegy's Chairman and CEO. "The principal scientists at Vaxis, including Jeremy
Heaton,  M.D., a leading  urologist  and a Full  Professor in the  Department of
Urology and the Department of Pharmacology and Toxicology at Queen's  University
in Ontario.  In addition,  Michael Adams,  Ph.D., full Professor of Pharmacology
and Toxicology and Charles Graham, Ph.D.,  Associate Professor in the Department
of Anatomy and Cell Biology,  both at Queen's University,  will continue working
with  Cellegy to  complement  the  company's  ongoing  research in these  areas.
Doctors  Heaton and Adams are well known for their  contributions  to the sexual
dysfunction  field and are principal  inventors of the use of  apomorphine,  the
active  ingredient  in the  products  Uprima and Ixense,  currently  marketed by
Abbott Laboratories and Takeda Chemical Industries, respectively."

Cellegy  will  continue  to  operate  Vaxis  as a  small  ongoing  research  and
development entity in Kingston, Ontario although the name will change to Cellegy
Canada,  Inc. The Canadian  business  will bring  potential  tax  advantages  to
Cellegy  both for  ongoing  development  research,  and for  clinical  trials on
products from the Vaxis-Cellegy research pipeline.

This press release contains forward-looking statements within the meaning of the
Private  Securities   Litigation  Reform  Act  of  1995.  These  forward-looking
statements are subject to material risks and  uncertainties and investors should
not place undue reliance on these forward-looking  statements,  which speak only
as of the date of this press release. These statements are based on management's
current   expectations   and  are   subject  to   uncertainty   and  changes  in
circumstances.  Actual results may differ  materially  from these  expectations.
Risks and  uncertainties  that may affect future  results  include,  but are not
limited  to, the  following:  the  timing,  cost of  completion  and  outcome of
clinical trials,  potential delays in regulatory  filings,  and the scope of our
patent coverage.  The matters discussed in this press release also involve risks
and  uncertainties  that are described from time to time in our filings with the
Securities and Exchange  Commission (SEC). In particular,  see the discussion of
the risk factors in the Company's  Annual Report on Form 10-K for the year ended
December  31,  2000 and  subsequent  quarterly  reports  on Form  10-Q and other
documents that the company files from time to time with the SEC.


For More Information:

Phone:    (650) 616-2200
Website:  www.cellegy.com


Contacts:
Richard Juelis (x2210)                      K. Michael Forrest (x2206)
Vice President, Finance & CFO               Chairman, President & CEO

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