Exhibit 99.1
 
 For release at 6:30 a.m.
 Contact:
 DUSA Pharmaceuticals Reports
Third Quarter 2010 Corporate Highlights and Financial Results
 Company Records Significant Bottom Line Improvement;
Quarterly Domestic Kerastick ® Revenues Increase 15%
 th
 WILMINGTON, Mass.  November 5, 2010 ® ®
 Third quarter and year-to-date financial highlights:
 
    
    Domestic Kerastick® revenues totaled $6.7 million for the third quarter of
2010, representing a $0.9 million or 15% improvement as compared to the third quarter of
2009. Year-to-date 2010 domestic Kerastick®revenues totaled $21.8 million,
representing a $4.7 million or 27% improvement year-over-year.
    
    The Company experienced significant bottom line improvement on a GAAP basis for both the
third quarter of 2010 and on a year-to-date basis.
 o
    
    The Company reached break-even on a GAAP basis for the third quarter of
2010, representing a $0.4 million improvement year-over-year.o
    
    The Companys GAAP net loss on a year-to-date basis for 2010 was ($0.2)
million, representing a $2.7 million improvement year-over-year.
 
    
    The Company generated net income on a non-GAAP basis for both the third quarter of 2010
and on a year-to-date basis.
 o
    
    Non-GAAP net income for the third quarter of 2010 was $0.6 million,
representing a $0.8 million improvement year-over-year.o
    
    Non-GAAP net income on a year-to-date basis for 2010 was $1.2 million,
representing a $3.1 million year-over-year improvement.




---



##### 



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




---



##### 



Year-to-Date 2010 Financial Results:
 ® ® ® ® ® ® ® ®
    Other Updates:
 
    
    On August 6, 2010, the Company reported that it had been notified by the U.S. Food and
Drug Administration (FDA) that it had not been granted Orphan Drug Designation for the
use of Levulan® (aminolevulinic acid HCl) Photodynamic Therapy (PDT) for the
prevention of cutaneous squamous cell carcinomas (SCCs) in patients who have a proven
history of multiple localized cutaneous SCCs over a 12 month period. The FDA
acknowledged that cutaneous SCC is a serious problem in patients at high risk for
developing SCCs, such as solid organ transplant recipients (SOTRs), and that
aminolevulinic acid would be a potential preventative therapy in these patients.
However, the FDA also stated that it believes there are other factors which place
patients at high risk of developing SCCs that should be included in determining the
target population which FDA determined would then exceed the maximum population




---



##### 



permitted by orphan drug laws. As a result, the Company plans to close out its SOTR pilot
clinical trial program for this indication.
    
    On September 30, 2010, the Company terminated its Marketing, Distribution and Supply
Agreement with Stiefel Laboratories, Inc. for Latin America. The termination of the
agreement accelerated the recognition of deferred revenues for drug shipments made; as
well as, the remaining unamortized balance of milestone payments received. This event
caused the recognition of $0.5 million in income from operations, which was recorded
during the third quarter of 2010.
    
    On October 26, 2010, the Company announced that it had been named to Deloittes 2010
Technology Fast 500 list. For the third consecutive year, Deloitte recognized DUSA as
one of the Top 500 fastest growing technology, media, telecommunications, life sciences,
and clean technology companies in North America. Rankings are based on percentage of
fiscal year revenue growth during the period 2005-2009.




---



##### 



Conference Call Details and Dial-in Information:
  th




---



##### 



Three-months ended September 30,
    
    
    Nine-months ended September 30,2010
    
    
    2009
    
    
    2010
    
    
    2009(Unaudited)
    
    
    (Unaudited)
    
    
    (Unaudited)
    
    
    (Unaudited)PDT Drug & Device Product RevenuesKerastick® Product Revenues:United States
    
    $
    6,663,000
    
    
    $
    5,790,000
    
    
    $
    21,780,000
    
    
    $
    17,096,000Canada
    
    
    153,000
    
    
    
    162,000
    
    
    
    379,000
    
    
    
    404,000Korea
    
    
    109,000
    
    
    
    201,000
    
    
    
    322,000
    
    
    
    498,000Latin America
    
    
    602,000
    
    
    
    78,000
    
    
    
    778,000
    
    
    
    226,000Rest-of-world
    
    
    15,000
    
    
    
    13,000
    
    
    
    57,000
    
    
    
    35,000Subtotal Kerastick® Product Revenues
    
    
    7,542,000
    
    
    
    6,244,000
    
    
    
    23,316,000
    
    
    
    18,259,000BLU-U® Product Revenues:United States
    
    
    295,000
    
    
    
    456,000
    
    
    
    1,223,000
    
    
    
    1,577,000Canada
    
    
    
    
    
    
    
    
    
    
    5,000
    
    
    
    Subtotal BLU-U® Product Revenues
    
    
    295,000
    
    
    
    456,000
    
    
    
    1,228,000
    
    
    
    1,577,000Total PDT Drug & Device Product Revenues
    
    
    7,837,000
    
    
    
    6,700,000
    
    
    
    24,544,000
    
    
    
    19,836,000Total Non-PDT Product Revenues
    
    
    179,000
    
    
    
    230,000
    
    
    
    886,000
    
    
    
    1,198,000TOTAL PRODUCT REVENUES
    
    $
    8,016,000
    
    
    $
    6,930,000
    
    
    $
    25,430,000
    
    
    $
    21,034,000




---



##### 



September 30,
    
    
    December 31,2010
    
    
    2009(Unaudited)ASSETSCURRENT ASSETSCash and cash equivalents
    
    $
    6,184,261
    
    
    $
    7,613,378Marketable securities
    
    
    10,796,735
    
    
    
    9,055,959Accounts receivable, net
    
    
    2,451,709
    
    
    
    2,629,189Inventory
    
    
    2,269,605
    
    
    
    2,170,275Prepaid and other current assets
    
    
    935,815
    
    
    
    1,561,467TOTAL CURRENT ASSETS
    
    
    22,638,125
    
    
    
    23,030,268Restricted cash
    
    
    174,587
    
    
    
    174,255Property, plant and equipment, net
    
    
    1,494,630
    
    
    
    1,660,755Deferred charges and other assets
    
    
    68,099
    
    
    
    68,099TOTAL ASSETS
    
    $
    24,375,441
    
    
    $
    24,933,377LIABILITIES AND SHAREHOLDERS EQUITYCURRENT LIABILITIESAccounts payable
    
    $
    675,870
    
    
    $
    630,144Accrued compensation
    
    
    1,029,035
    
    
    
    1,260,609Other accrued expenses
    
    
    2,128,985
    
    
    
    2,456,612Deferred revenue
    
    
    475,034
    
    
    
    902,597TOTAL CURRENT LIABILITIES
    
    
    4,308,924
    
    
    
    5,249,962Deferred revenues
    
    
    2,255,650
    
    
    
    2,906,020Warrant liability
    
    
    1,299,869
    
    
    
    812,905Other liabilities
    
    
    80,015
    
    
    
    123,016TOTAL LIABILITIES
    
    
    7,944,458
    
    
    
    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: 24,221,715 and
24,108,908 shares of common stock, no
par, at September 30, 2010 and December
31, 2009, respectively
    
    
    151,801,550
    
    
    
    151,683,399Additional paid-in capital
    
    
    9,077,912
    
    
    
    8,291,805Accumulated deficit
    
    
    (144,562,682
    )
    
    
    (144,359,217
    )Accumulated other comprehensive loss
    
    
    114,203
    
    
    
    225,487TOTAL SHAREHOLDERS EQUITY
    
    
    16,430,983
    
    
    
    15,841,474TOTAL LIABILITIES AND SHAREHOLDERS EQUITY
    
    $
    24,375,441
    
    
    $
    24,933,377




---



##### 



Three-months ended September 30,
    
    
    Nine-months ended September 30,2010
    
    
    2009
    
    
    2010
    
    
    2009(Unaudited)
    
    
    (Unaudited)
    
    
    (Unaudited)
    
    
    (Unaudited)Product revenues
    
    $
    8,015,546
    
    
    $
    6,930,110
    
    
    $
    25,430,363
    
    
    $
    21,033,920Cost of product revenues and royalties
    
    
    1,627,782
    
    
    
    1,594,692
    
    
    
    5,228,075
    
    
    
    4,973,782Gross margin
    
    
    6,387,764
    
    
    
    5,335,418
    
    
    
    20,202,288
    
    
    
    16,060,138Operating costs:Research and development
    
    
    1,283,771
    
    
    
    963,245
    
    
    
    3,643,849
    
    
    
    3,225,049Marketing and sales
    
    
    2,792,780
    
    
    
    3,013,351
    
    
    
    9,544,564
    
    
    
    9,460,766General and administrative
    
    
    2,208,898
    
    
    
    1,877,928
    
    
    
    6,919,128
    
    
    
    6,360,325Settlements, net
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    75,000Total operating costs
    
    
    6,285,449
    
    
    
    5,854,524
    
    
    
    20,107,541
    
    
    
    19,121,140Income/(loss) from operations
    
    
    102,315
    
    
    
    (519,106
    )
    
    
    94,747
    
    
    
    (3,061,002
    )Other income:Gain/(loss) on change in fair value of warrants
    
    
    (130,674
    )
    
    
    24,051
    
    
    
    (486,964
    )
    
    
    (37,679
    )Other income, net
    
    
    61,183
    
    
    
    79,815
    
    
    
    188,752
    
    
    
    223,801Net income/(loss)
    
    $
    32,824
    
    
    $
    (415,240
    )
    
    $
    (203,465
    )
    
    $
    (2,874,880
    )Basic and diluted net income/(loss) per common share
    
    $
    0.00
    
    
    $
    (0.02
    )
    
    $
    (0.01
    )
    
    $
    (0.12
    )Weighted average number of basic common shares
    
    
    24,209,215
    
    
    
    24,108,908
    
    
    
    24,173,399
    
    
    
    24,099,786Weighted average number of diluted common shares
    
    
    24,658,844
    
    
    
    24,108,908
    
    
    
    24,173,399
    
    
    
    24,099,786




---



##### 



Use of Non-GAAP Financial Measures
   Three-months ended September 30,
    
    
    Nine-months ended September 30,2010
    
    
    2009
    
    
    2010
    
    
    2009(Unaudited)
    
    
    (Unaudited)
    
    
    (Unaudited)
    
    
    (Unaudited)GAAP net income/(loss)
    
    $
    32,824
    
    
    $
    (415,240
    )
    
    $
    (203,465
    )
    
    $
    (2,874,880
    )Stock-based compensation (a)
    
    
    432,723
    
    
    
    207,178
    
    
    
    920,756
    
    
    
    631,770Consideration to former Sirius shareholders (b)
    
    
    4,500
    
    
    
    5,000
    
    
    
    13,500
    
    
    
    310,000Change in fair value of warrants (c)
    
    
    130,674
    
    
    
    (24,051
    )
    
    
    486,964
    
    
    
    37,679Non-GAAP adjusted net income/(loss)
    
    $
    600,721
    
    
    $
    (227,113
    )
    
    $
    1,217,755
    
    
    $
    (1,895,431
    )Non-GAAP basic and diluted net income/(loss)
per common share
    
    $
    0.02
    
    
    $
    (0.01
    )
    
    $
    0.05
    
    
    $
    (0.08
    )Weighted average number of basic common shares
    
    
    24,209,215
    
    
    
    24,108,908
    
    
    
    24,173,399
    
    
    
    24,099,786Weighted average number of diluted common shares
    
    
    24,658,844
    
    
    
    24,108,908
    
    
    
    24,596,729
    
    
    
    24,099,786
 
 (a)
    
    Stock-based compensation expense resulting from the application of SFAS 123(R).(b)
    
    Consideration for the release, consent and the third amendment to the merger agreement
between DUSA and the former Sirius shareholders. $100K was paid in the second quarter of
2009, with an additional $250K being accrued through the fourth quarter of 2011.(c)
    
    Non-cash gain/loss on change in fair value of warrants.




---



##### 



About DUSA Pharmaceuticals
 ® ® ® ® ®