EXHIBIT 99.1
 
 For release at 6:30 a.m.
 Contact:
 DUSA Pharmaceuticals Reports
Third Quarter 2009 Corporate Highlights and Financial Results
 Q3 Domestic PDT revenues up 32% year over year;
Q3 Non-GAAP loss improves 86% year over year to ($0.2) million
 WILMINGTON, Mass.  November 6, 2009 ® ®
 Third quarter and year-to-date financial highlights include:
 
    
    Domestic PDT revenues totaled $6.2 million for the third quarter of 2009, representing a
$1.5 million, or 32%, improvement as compared to the third quarter of 2008. Year-to-date
2009 domestic PDT revenues totaled $18.7 million, representing a $3.8 million, or 25%,
improvement year over year.
    
    Domestic Kerastick® revenues totaled $5.8 million for the third quarter of
2009, representing a $1.4 million, or 32%, improvement as compared to the third quarter of
2008. Year-to-date 2009 domestic Kerastick®revenues totaled $17.1 million,
representing a $3.4 million, or 25%, improvement year over year.
    
    Domestic BLU-U® revenues totaled $0.5 million for the third quarter of 2009,
representing a $0.1 million, or 22%, improvement as compared to the third quarter of 2008.
Year-to-date 2009 domestic BLU-U® revenues totaled $1.6 million, representing a
$0.4 million, or 32%, improvement year over year.
    
    Kerastick® gross margins for the third quarter of 2009 reached a record high
of 86%.
    
    Non-GAAP loss for the third quarter of 2009 improved 86% year over year, and narrowed to
$0.2 million.
 Management Comments:




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   Third Quarter 2009 Financial Results:
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Year-to-Date 2009 Financial Results:
 ® ® ® ® ® ® ® ® ®
    Other Updates:
 
    
    Solid Organ Transplant Recipients Clinical Development.
 
    
    In May 2009, the Company announced the initiation of its Phase II clinical trial
that is examining the safety and efficacy of PDT for the treatment of broad area AKs
and the prevention of squamous cell carcinomas in high risk chronically
immunosuppressed solid organ transplant recipients. All seven clinical sites have been
initiated and trial enrollment is currently underway.
 
    
    In May 2008, DUSA filed an Orphan Drug Designation application with the FDA with
respect to the prevention of cancer occurrence in these patients. The Company received
initial correspondence that the application was not granted on the basis that the
agency believes that the prevalence of the target population with the disease state is
greater than 200,000, which is the maximum number of patients allowed under the Orphan
Drug legislation. During the third quarter of 2009, DUSA met with




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the FDA to clarify and explain in more detail our rationale for the application and,
based on that meeting, the agency has invited us to submit an amendment to our
application for further evaluation. DUSA is in the process of drafting the amendment
and expects to submit it to the FDA later this month.
 
    
    BLU-U® Claims Expansion.
 
    
    In May 2009, the Company filed a 510(k) application with the FDA to expand the
allowed claims on BLU-U® to include severe acne. The filing was based on
the results of our Phase IIb clinical trial. We received a response to our
application from the FDA in June 2009. The agency requested additional information in
order to complete its review of our application, including supplementary clinical data
in support of our claims. Based on the FDAs requests and the anticipated costs of
additional clinical trials, the Company has decided not to pursue the 510(k)
application for an expansion of the BLU-U® claims at this time.




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Three-months ended September 30,
    
    
    Nine-months ended September 30,2009
    
    
    2008
    
    
    2009
    
    
    2008(Unaudited)
    
    
    (Unaudited)
    
    
    (Unaudited)
    
    
    (Unaudited)PDT Drug & Device Product RevenuesKerastick® Product Revenues:United States
    
    $
    5,790,000
    
    
    $
    4,374,000
    
    
    $
    17,096,000
    
    
    $
    13,720,000Canada
    
    
    162,000
    
    
    
    72,000
    
    
    
    404,000
    
    
    
    449,000Korea
    
    
    201,000
    
    
    
    186,000
    
    
    
    498,000
    
    
    
    710,000Other
    
    
    91,000
    
    
    
    99,000
    
    
    
    261,000
    
    
    
    289,000Subtotal Kerastick® Product Revenues
    
    
    6,244,000
    
    
    
    4,731,000
    
    
    
    18,259,000
    
    
    
    15,168,000BLU-U® Product Revenues:United States
    
    
    456,000
    
    
    
    376,000
    
    
    
    1,577,000
    
    
    
    1,198,000Korea
    
    
    
    
    
    
    50,000
    
    
    
    
    
    
    
    50,000Subtotal BLU-U® Product Revenues
    
    
    456,000
    
    
    
    426,000
    
    
    
    1,577,000
    
    
    
    1,248,000Total PDT Drug & Device Product Revenues
    
    
    6,700,000
    
    
    
    5,157,000
    
    
    
    19,836,000
    
    
    
    16,416,000Total Non-PDT Product Revenues
    
    
    230,000
    
    
    
    569,000
    
    
    
    1,198,000
    
    
    
    5,352,000TOTAL PRODUCT REVENUES
    
    $
    6,930,000
    
    
    $
    5,726,000
    
    
    $
    21,034,000
    
    
    $
    21,768,000




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September 30,2009
    
    
    December 31,(Unaudited)
    
    
    2008ASSETSCURRENT ASSETSCash and cash equivalents
    
    $
    5,016,994
    
    
    $
    3,880,673Marketable securities
    
    
    10,012,948
    
    
    
    15,002,830Accounts receivable, net
    
    
    2,519,214
    
    
    
    2,367,803Inventory
    
    
    2,336,167
    
    
    
    2,812,825Prepaid and other current assets
    
    
    1,647,408
    
    
    
    1,873,801TOTAL CURRENT ASSETS
    
    
    21,532,731
    
    
    
    25,937,932Restricted cash
    
    
    174,170
    
    
    
    173,844Property, plant and equipment, net
    
    
    1,721,488
    
    
    
    1,937,978Deferred charges and other assets
    
    
    68,099
    
    
    
    160,700TOTAL ASSETS
    
    $
    23,496,488
    
    
    $
    28,210,454LIABILITIES AND SHAREHOLDERS EQUITYCURRENT LIABILITIESAccounts payable
    
    $
    188,417
    
    
    $
    305,734Accrued compensation
    
    
    889,230
    
    
    
    1,515,912Other accrued expenses
    
    
    2,343,822
    
    
    
    3,226,571Deferred revenue
    
    
    1,045,505
    
    
    
    611,602TOTAL CURRENT LIABILITIES
    
    
    4,466,974
    
    
    
    5,659,819Deferred revenues
    
    
    3,061,700
    
    
    
    4,157,305Warrant liability
    
    
    474,137
    
    
    
    436,458Other liabilities
    
    
    133,544
    
    
    
    244,673TOTAL LIABILITIES
    
    
    8,136,355
    
    
    
    10,498,255SHAREHOLDERS 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: 24,108,908 and
24,089,452 shares of common stock, no
par, at September 30, 2009 and December
31, 2008, respectively
    
    
    151,683,399
    
    
    
    151,663,943Additional paid-in capital
    
    
    8,122,801
    
    
    
    7,514,900Accumulated deficit
    
    
    (144,725,805
    )
    
    
    (141,850,925
    )Accumulated other comprehensive loss
    
    
    279,738
    
    
    
    384,281TOTAL SHAREHOLDERS EQUITY
    
    
    15,360,133
    
    
    
    17,712,199TOTAL LIABILITIES AND SHAREHOLDERS EQUITY
    
    $
    23,496,488
    
    
    $
    28,210,454




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Three-months ended September 30,
    
    
    Nine-months ended September 30,2009
    
    
    2008
    
    
    2009
    
    
    2008(Unaudited)
    
    
    (Unaudited)
    
    
    (Unaudited)
    
    
    (Unaudited)Product revenues
    
    $
    6,930,110
    
    
    $
    5,726,071
    
    
    $
    21,033,920
    
    
    $
    21,767,810Cost of product revenues and royalties
    
    
    1,594,692
    
    
    
    1,462,028
    
    
    
    4,973,782
    
    
    
    4,950,039Gross margin
    
    
    5,335,418
    
    
    
    4,264,043
    
    
    
    16,060,138
    
    
    
    16,817,771Operating costs:Research and development
    
    
    963,245
    
    
    
    1,487,816
    
    
    
    3,225,049
    
    
    
    5,049,327Marketing and sales
    
    
    3,013,351
    
    
    
    2,967,431
    
    
    
    9,460,766
    
    
    
    9,520,865General and administrative
    
    
    1,877,928
    
    
    
    1,911,028
    
    
    
    6,360,325
    
    
    
    6,603,989Impairment charge for contingent consideration
    
    
    
    
    
    
    1,500,000
    
    
    
    
    
    
    
    1,500,000Settlements, net
    
    
    
    
    
    
    650
    
    
    
    75,000
    
    
    
    (282,775
    )Total operating costs
    
    
    5,854,524
    
    
    
    7,866,925
    
    
    
    19,121,140
    
    
    
    22,391,406Loss from operations
    
    
    (519,106
    )
    
    
    (3,602,882
    )
    
    
    (3,061,002
    )
    
    
    (5,573,635
    )Other income:Other income, net
    
    
    79,815
    
    
    
    114,260
    
    
    
    223,801
    
    
    
    538,212Gain/(loss) on change in fair value of warrants
    
    
    24,051
    
    
    
    651,767
    
    
    
    (37,679
    )
    
    
    775,636Net loss
    
    $
    (415,240
    )
    
    $
    (2,836,855
    )
    
    $
    (2,874,880
    )
    
    $
    (4,259,787
    )Basic and diluted net loss per common share
    
    $
    (0.02
    )
    
    $
    (0.12
    )
    
    $
    (0.12
    )
    
    $
    (0.18
    )Weighted average number of common shares
    
    
    24,108,908
    
    
    
    24,078,610
    
    
    
    24,099,786
    
    
    
    24,078,546




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Use of Non-GAAP Financial Measures
   Three-months ended September 30,
    
    
    Nine-months ended September 30,2009
    
    
    2008
    
    
    2009
    
    
    2008(Unaudited)
    
    
    (Unaudited)
    
    
    (Unaudited)
    
    
    (Unaudited)GAAP net loss
    
    $
    (415,240
    )
    
    $
    (2,836,855
    )
    
    $
    (2,874,880
    )
    
    $
    (4,259,787
    )Stock-based compensation (a)
    
    
    207,178
    
    
    
    353,262
    
    
    
    631,770
    
    
    
    1,042,812Payment on acquisition (b)
    
    
    
    
    
    
    1,500,000
    
    
    
    
    
    
    
    1,500,000Consideration to former Sirius shareholders (c)
    
    
    5,000
    
    
    
    
    
    
    
    310,000
    
    
    
    Change in fair value of warrants (d)
    
    
    (24,051
    )
    
    
    (651,767
    )
    
    
    37,679
    
    
    
    (775,636
    )Non-GAAP adjusted net loss
    
    $
    (227,113
    )
    
    $
    (1,635,360
    )
    
    $
    (1,895,431
    )
    
    $
    (2,492,611
    )Non-GAAP basic and diluted net loss per common
share
    
    $
    (0.01
    )
    
    $
    (0.07
    )
    
    $
    (0.08
    )
    
    $
    (0.10
    )Weighted average number of common shares
    
    
    24,108,908
    
    
    
    24,078,610
    
    
    
    24,099,786
    
    
    
    24,078,546
 
 (a)
    
    Stock-based compensation expense resulting from the application of SFAS 123(R).(b)
    
    Milestone payment related to Sirius Laboratories acquisition.(c)
    
    Payment of $100,000 and accrual of $210,000 related to the release, consent and the
third amendment to the merger agreement between DUSA and the former Sirius shareholders.(d)
    
    Non-cash gain/loss on change in fair value of warrants.




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