For release at 6:30 am
 Contact:
 DUSA Pharmaceuticals Reports
First Quarter 2011 Corporate Highlights and Financial Results
 Q1 Domestic Kerastick ® Revenues up 35% year-over-year;
Domestic PDT Revenues up 33%
 th
 WILMINGTON, Mass.  May 5, 2011 ® ®
 Highlights for the first quarter include:
 
    
    Total product revenues were $11.1 million for the quarter, representing a $2.4 million
or 27% year-over-year improvement.
 o
    
    Domestic PDT revenues totaled $10.7 million for the quarter, representing a
$2.6 million or 33% year-over-year improvement.
 o
    
    Domestic Kerastick® revenues totaled $10.2 million for the
quarter, representing a $2.6 million or 35% year-over-year improvement.
 
    
    Kerastick® gross margins for the quarter reached a record high at 89%.
 
    
    The Company experienced a $1.8 million bottom line year-over-year improvement on a
non-GAAP basis for the quarter. Please refer to the section entitled Use of Non-GAAP
Financial Measures included at the end of this release.
 
    
    The Company generated $1.4 million in positive cash flow (change in cash and cash
equivalents and marketable securities) during the first quarter of 2011.
 
    
    The Company expanded its sales force to 45 with the addition of 5 individuals.
 Management Comments:




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®
 Other updates:
 o
    
    At present, we are continuing to evaluate the initiation of a DUSA-sponsored clinical
trial designed to study the broad area application and/or short drug incubation, or BASDI,
method of using the Levulan® Kerastick®. The protocol objectives
would be to compare the safety and efficacy of various incubation times (1, 2 or 3 hours)
of Levulan® plus BLU-U® PDT versus vehicle plus BLU-U® for
the treatment of multiple actinic keratoses of the face or scalp. The timing on the
initiation of this study has been delayed as we refine the protocol in consultation with
outside experts. We expect to complete our evaluation and determine next steps in the
coming months.
 First Quarter 2011 Financial Results:
 ® ® ® ® ®




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Conference Call and Audio Webcast Details and Dial-in Information:
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3-months ended March 31,2011
    
    
    2010(Unaudited)
    
    
    (Unaudited)PDT Drug & Device Product RevenuesKerastick® Product Revenues:United States
    
    $
    10,187,000
    
    
    $
    7,549,000Canada
    
    
    183,000
    
    
    
    57,000Korea
    
    
    116,000
    
    
    
    109,000Rest of World
    
    
    7,000
    
    
    
    87,000Subtotal Kerastick® Product Revenues
    
    
    10,493,000
    
    
    
    7,802,000BLU-U® Product Revenues:United States
    
    
    489,000
    
    
    
    489,000Canada
    
    
    
    
    
    
    5,000Subtotal BLU-U® Product Revenues
    
    
    489,000
    
    
    
    494,000Total PDT Drug & Device Product Revenues
    
    
    10,982,000
    
    
    
    8,296,000Total Non-PDT Drug Product Revenues
    
    
    100,000
    
    
    
    418,000TOTAL PRODUCT REVENUES
    
    $
    11,082,000
    
    
    $
    8,714,000




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March 31,
    
    
    December 31,2011
    
    
    2010(Unaudited)
    
    
    (Unaudited)ASSETSCURRENT ASSETSCash and cash equivalents
    
    $
    12,474,249
    
    
    $
    8,884,402Marketable securities
    
    
    8,593,100
    
    
    
    10,762,559Accounts receivable, net
    
    
    2,708,462
    
    
    
    3,311,467Inventory
    
    
    2,528,236
    
    
    
    2,165,220Prepaid and other current assets
    
    
    1,123,366
    
    
    
    1,344,062TOTAL CURRENT ASSETS
    
    
    27,427,413
    
    
    
    26,467,710Restricted cash
    
    
    175,028
    
    
    
    174,753Property, plant and equipment, net
    
    
    1,552,104
    
    
    
    1,582,777Deferred charges and other assets
    
    
    132,833
    
    
    
    68,099TOTAL ASSETS
    
    $
    29,287,378
    
    
    $
    28,293,339LIABILITIES AND SHAREHOLDERS EQUITYCURRENT LIABILITIESAccounts payable
    
    $
    1,007,696
    
    
    $
    162,742Accrued compensation
    
    
    401,242
    
    
    
    2,243,997Other accrued expenses
    
    
    2,777,896
    
    
    
    2,348,838Deferred revenue
    
    
    648,006
    
    
    
    712,338TOTAL CURRENT LIABILITIES
    
    
    4,834,840
    
    
    
    5,467,915Deferred revenues
    
    
    1,861,972
    
    
    
    1,917,237Warrant liability
    
    
    3,392,486
    
    
    
    1,203,553Other liabilities
    
    
    170,998
    
    
    
    181,153TOTAL LIABILITIES
    
    
    10,260,296
    
    
    
    8,769,858SHAREHOLDERS 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: 24,413,969 and
24,239,365 shares of common stock, no
par, at March 31, 2011 and December 31,
2010, respectively
    
    
    151,638,956
    
    
    
    151,703,468Additional paid-in capital
    
    
    9,596,083
    
    
    
    9,399,434Accumulated deficit
    
    
    (142,261,500
    )
    
    
    (141,656,600
    )Accumulated other comprehensive loss
    
    
    53,543
    
    
    
    77,179TOTAL SHAREHOLDERS EQUITY
    
    
    19,027,082
    
    
    
    19,523,481TOTAL LIABILITIES AND SHAREHOLDERS EQUITY
    
    $
    29,287,378
    
    
    $
    28,293,339




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3-months ended March 31,2011
    
    
    2010(Unaudited)
    
    
    (Unaudited)Product revenues
    
    $
    11,082,064
    
    
    $
    8,713,880Cost of product revenues and royalties
    
    
    1,760,370
    
    
    
    1,818,185Gross margin
    
    
    9,321,694
    
    
    
    6,895,695Operating costs:Research and development
    
    
    1,323,644
    
    
    
    1,109,667Marketing and sales
    
    
    3,973,224
    
    
    
    3,613,799General and administrative
    
    
    2,457,247
    
    
    
    2,463,164Total operating costs
    
    
    7,754,115
    
    
    
    7,186,630Income/(loss) from operations
    
    
    1,567,579
    
    
    
    (290,935
    )Other income:Loss on change in fair value of warrants
    
    
    (2,188,933
    )
    
    
    (199,275
    )Other Income, net
    
    
    16,454
    
    
    
    65,727Net loss
    
    $
    (604,900
    )
    
    $
    (424,483
    )Basic and diluted net loss per common share
    
    $
    (0.02
    )
    
    $
    (0.02
    )Weighted average number of common shares
    
    
    24,238,398
    
    
    
    24,122,459




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Use of Non-GAAP Financial Measures
   3-months ended March 31,2011
    
    
    2010(Unaudited)
    
    
    (Unaudited)GAAP net loss
    
    $
    (604,900
    )
    
    $
    (424,483
    )Share-based compensation (a)
    
    
    196,649
    
    
    
    211,777Consideration to former Sirius shareholders (b)
    
    
    4,500
    
    
    
    4,500Change in fair value of warrants (c)
    
    
    2,188,933
    
    
    
    199,275Non-GAAP adjusted net income/(loss)
    
    $
    1,785,182
    
    
    $
    (8,931
    )Non-GAAP basic and diluted net income/(loss) per common share
    
    $
    0.07
    
    
    $
    (0.00
    )Weighted average number of basic common shares
    
    
    24,238,398
    
    
    
    24,122,459Weighted average number of diluted common shares
    
    
    25,689,483
    
    
    
    24,122,459
 
 (a)
    
    Share-based compensation expense resulting from the application of SFAS 123(R).(b)
    
    Milestone payment related to Sirius Laboratories acquisition.(c)
    
    Non-cash charge on the change in fair value of warrants.




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