Exhibit 99.1
 
 For release at 6:30 a.m.
 Contact:
 DUSA Pharmaceuticals Reports
Second Quarter 2010 Corporate Highlights and Financial Results
 Domestic Kerastick ® revenues up 35% year over year;
Company generates Q2 profits
 rd
 WILMINGTON, Mass.  August 3, 2010 ® ®
 Financial highlights for the second quarter and first half of the year include:
 
    
    Domestic Kerastick® revenues totaled $7.6 million for the second quarter of
2010, representing a $1.9 million or 35% improvement as compared to the second quarter of
2009. First half 2010 domestic Kerastick®revenues totaled $15.1 million,
representing a $3.8 million or 34% improvement year-over-year.
    
    Kerastick® gross margins for the second quarter of 2010 reached a record high
of 88%.
    
    The Company generated net income on both a GAAP and non-GAAP basis during the second
quarter of 2010.
 o
    
    GAAP net income for the second quarter of 2010 was $0.2 million,
representing a $1.0 million improvement year-over-year.o
    
    Non-GAAP net income for the second quarter of 2010 was $0.6 million,
also representing a $1.0 million improvement year-over-year.
 
    
    The Company experienced significant bottom line improvement on both a GAAP and non-GAAP
basis for the first half of the year.
 o
    
    GAAP net loss for the first half of 2010 was $0.2 million, representing
a $2.2 million improvement year-over-year.o
    
    Non-GAAP net income for the first half of 2010 was $0.6 million,
representing a $2.3 million year-over-year improvement.




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Management Comments:
 ® ®
   Second Quarter 2010 Financial Results:
 ® ® ® ® ® ®




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First Half 2010 Financial Results:
 ® ® ® ® ® ® ® ®
    Other Updates:
 
    
    On June 24, 2010, the Company announced that the United States Patent and Trademark
Office (USPTO) had completed its re-examination of US Patent No. 5,079,262, Method of
detection and treatment of malignant and non-malignant lesions utilizing 5-aminolevulinic
acid. In its latest communication, the USPTO issued a Notice of Intent to Issue Ex
Parte Re-examination Certificate which affirms the patents original seven claims and
adds eight claims. This patent covers the use of aminolevulinic acid, the active
ingredient in DUSAs Levulan® Kerastick®, for the treatment of
actinic keratoses with light. This patent will expire on September 30, 2013. Additional
patents cover DUSAs Levulan® Kerastick® formulation of
aminolevulinic acid HCl in conjunction with its proprietary blue light technology until
June 2019.




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Conference Call Details and Dial-in Information:
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Three-months ended June 30,
    
    
    Six-months ended June 30,2010
    
    
    2009
    
    
    2010
    
    
    2009(Unaudited)
    
    
    (Unaudited)
    
    
    (Unaudited)
    
    
    (Unaudited)PDT Drug & Device Product RevenuesKerastick® Product Revenues:United States
    
    $
    7,568,000
    
    
    $
    5,621,000
    
    
    $
    15,117,000
    
    
    $
    11,306,000Canada
    
    
    169,000
    
    
    
    108,000
    
    
    
    225,000
    
    
    
    243,000Korea
    
    
    104,000
    
    
    
    126,000
    
    
    
    213,000
    
    
    
    296,000Other
    
    
    132,000
    
    
    
    84,000
    
    
    
    219,000
    
    
    
    171,000Subtotal Kerastick® Product Revenues
    
    
    7,973,000
    
    
    
    5,939,000
    
    
    
    15,774,000
    
    
    
    12,016,000BLU-U® Product Revenues:United States
    
    
    438,000
    
    
    
    479,000
    
    
    
    928,000
    
    
    
    1,121,000Canada
    
    
    
    
    
    
    
    
    
    
    5,000
    
    
    
    Subtotal BLU-U® Product Revenues
    
    
    438,000
    
    
    
    479,000
    
    
    
    933,000
    
    
    
    1,121,000Total PDT Drug & Device Product Revenues
    
    
    8,411,000
    
    
    
    6,418,000
    
    
    
    16,707,000
    
    
    
    13,137,000Total Non-PDT Product Revenues
    
    
    290,000
    
    
    
    548,000
    
    
    
    708,000
    
    
    
    967,000TOTAL PRODUCT REVENUES
    
    $
    8,701,000
    
    
    $
    6,966,000
    
    
    $
    17,415,000
    
    
    $
    14,104,000




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June 30,
    
    
    December 31,2010
    
    
    2009(Unaudited)ASSETSCURRENT ASSETSCash and cash equivalents
    
    $
    5,669,331
    
    
    $
    7,613,378Marketable securities
    
    
    11,865,113
    
    
    
    9,055,959Accounts receivable, net
    
    
    1,926,810
    
    
    
    2,629,189Inventory
    
    
    2,264,421
    
    
    
    2,170,275Prepaid and other current assets
    
    
    1,160,700
    
    
    
    1,561,467TOTAL CURRENT ASSETS
    
    
    22,886,375
    
    
    
    23,030,268Restricted cash
    
    
    174,473
    
    
    
    174,255Property, plant and equipment, net
    
    
    1,548,934
    
    
    
    1,660,755Deferred charges and other assets
    
    
    68,099
    
    
    
    68,099TOTAL ASSETS
    
    $
    24,677,881
    
    
    $
    24,933,377LIABILITIES AND SHAREHOLDERS EQUITYCURRENT LIABILITIESAccounts payable
    
    $
    963,140
    
    
    $
    630,144Accrued compensation
    
    
    754,595
    
    
    
    1,260,609Other accrued expenses
    
    
    2,261,243
    
    
    
    2,456,612Deferred revenue
    
    
    644,243
    
    
    
    902,597TOTAL CURRENT LIABILITIES
    
    
    4,623,221
    
    
    
    5,249,962Deferred revenues
    
    
    2,794,179
    
    
    
    2,906,020Warrant liability
    
    
    1,169,195
    
    
    
    812,905Other liabilities
    
    
    94,349
    
    
    
    123,016TOTAL LIABILITIES
    
    
    8,680,944
    
    
    
    9,091,903SHAREHOLDERS EQUITYCapital stockAuthorized: 100,000,000 shares;
40,000,000 shares designated as common
stock, no par, and 60,000,000 shares
issuable in series or classes; and 40,000
junior Series A preferred shares. Issued
and outstanding: 24,207,965 and
24,108,908 shares of common stock, no
par, at June 30, 2010 and December 31,
2009, respectively
    
    
    151,785,950
    
    
    
    151,683,399Additional paid-in capital
    
    
    8,656,438
    
    
    
    8,291,805Accumulated deficit
    
    
    (144,595,506
    )
    
    
    (144,359,217
    )Accumulated other comprehensive loss
    
    
    150,055
    
    
    
    225,487TOTAL SHAREHOLDERS EQUITY
    
    
    15,996,937
    
    
    
    15,841,474TOTAL LIABILITIES AND SHAREHOLDERS EQUITY
    
    $
    24,677,881
    
    
    $
    24,933,377




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Three-months ended June 30,
    
    
    Six-months ended June 30,2010
    
    
    2009
    
    
    2010
    
    
    2009(Unaudited)
    
    
    (Unaudited)
    
    
    (Unaudited)
    
    
    (Unaudited)Product revenues
    
    $
    8,700,937
    
    
    $
    6,965,541
    
    
    $
    17,414,817
    
    
    $
    14,103,810Cost of product revenues and royalties
    
    
    1,782,108
    
    
    
    1,440,864
    
    
    
    3,600,293
    
    
    
    3,379,090Gross margin
    
    
    6,918,829
    
    
    
    5,524,677
    
    
    
    13,814,524
    
    
    
    10,724,720Operating costs:Research and development
    
    
    1,250,411
    
    
    
    1,076,709
    
    
    
    2,360,078
    
    
    
    2,261,804Marketing and sales
    
    
    3,137,985
    
    
    
    3,037,311
    
    
    
    6,751,784
    
    
    
    6,447,415General and administrative
    
    
    2,247,066
    
    
    
    2,340,947
    
    
    
    4,710,230
    
    
    
    4,482,397Settlements, net
    
    
    
    
    
    
    75,000
    
    
    
    
    
    
    
    75,000Total operating costs
    
    
    6,635,462
    
    
    
    6,529,967
    
    
    
    13,822,092
    
    
    
    13,266,616Income/(loss) from operations
    
    
    283,367
    
    
    
    (1,005,290
    )
    
    
    (7,568
    )
    
    
    (2,541,896
    )Other income:Gain/(loss) on change in fair value of warrants
    
    
    (157,015
    )
    
    
    73,183
    
    
    
    (356,290
    )
    
    
    (61,730
    )Other income, net
    
    
    61,842
    
    
    
    79,398
    
    
    
    127,569
    
    
    
    143,986Net income/(loss)
    
    $
    188,194
    
    
    $
    (852,709
    )
    
    $
    (236,289
    )
    
    $
    (2,459,640
    )Basic and diluted net income/(loss) per common share
    
    $
    0.01
    
    
    $
    (0.04
    )
    
    $
    (0.01
    )
    
    $
    (0.10
    )Weighted average number of basic common shares
    
    
    24,187,569
    
    
    
    24,100,874
    
    
    
    24,155,194
    
    
    
    24,095,149Weighted average number of diluted common shares
    
    
    24,566,476
    
    
    
    24,100,874
    
    
    
    24,155,194
    
    
    
    24,095,149




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Use of Non-GAAP Financial Measures
   Three-months ended June 30,
    
    
    Six-months ended June 30,2010
    
    
    2009
    
    
    2010
    
    
    2009(Unaudited)
    
    
    (Unaudited)
    
    
    (Unaudited)
    
    
    (Unaudited)GAAP net income/(loss)
    
    $
    188,194
    
    
    $
    (852,709
    )
    
    $
    (236,289
    )
    
    $
    (2,459,640
    )Stock-based compensation (a)
    
    
    276,255
    
    
    
    225,466
    
    
    
    488,033
    
    
    
    424,593Consideration to former Sirius shareholders (b)
    
    
    4,500
    
    
    
    305,000
    
    
    
    9,000
    
    
    
    305,000Change in fair value of warrants (c)
    
    
    157,015
    
    
    
    (73,183
    )
    
    
    356,290
    
    
    
    61,730Non-GAAP adjusted net income/(loss)
    
    $
    625,964
    
    
    $
    (395,426
    )
    
    $
    617,034
    
    
    $
    (1,668,317
    )Non-GAAP basic and diluted net income/(loss) per common share
    
    $
    0.03
    
    
    $
    (0.02
    )
    
    $
    0.03
    
    
    $
    (0.07
    )Weighted average number of basic common shares
    
    
    24,187,569
    
    
    
    24,100,874
    
    
    
    24,155,194
    
    
    
    24,095,149Weighted average number of diluted common shares
    
    
    24,566,476
    
    
    
    24,100,874
    
    
    
    24,155,194
    
    
    
    24,095,149
 
 (a)
    
    Stock-based compensation expense resulting from the application of SFAS 123(R).(b)
    
    Payment of $100,000 and accrual of $205,000 related to the release, consent and the
third amendment to the merger agreement between DUSA and the former Sirius shareholders.(c)
    
    Non-cash gain/loss on change in fair value of warrants.




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