The present invention is directed to a water soluble, randomly substituted partial N-, partial O-acetylated chitosans or chitosan derivatives and methods of preparing water soluble, randomly substituted partial N-, partial O-acetylated chitosans or chitosan derivatives comprising the steps of dissolving the chitosan or chitosan derivative into an aqueous acidic solution and reacting the chitosan or chitosan derivative with an acetylating agent in the presence of a phase transfer reagent. The present invention is further directed to a pharmaceutical preserving composition comprising: (a) at least one chitosan or chitosan derivative and (b) at least one buffer solution, as well as methods of preserving contact lens solutions and disinfecting contact lens using such composition.