DUSA Pharmaceuticals Reports New CPT Code Recommended By American Medical Association For Levulan PDT System.

Health/Medical Writers

WILMINGTON, Mass.--(BW HealthWire)--Nov. 2, 2001

Reimbursement Level Also Proposed By CMS (Formerly HCFA)

DUSA Pharmaceuticals, Inc. (NASDAQ NMS: DUSA) today announced that the American Medical Association has issued a new CPT code, 96567, for the light application portion of DUSA's Levulan(R) Photodynamic Therapy (PDT) System, a novel treatment for pre-cancerous actinic keratoses (AK) of the face and scalp. Simultaneously, the Center for Medicaid and Medicare Services (CMS) has proposed reimbursement levels, effective January 1, 2002.

CPT Code

As with many new treatments that don't yet have their own CPT codes, up until now physicians using Levulan(R) PDT have had to file for reimbursement manually under a miscellaneous code. "With the new CPT code, submissions can be filed electronically, which should result in faster, more consistent Medicare claims submission and processing," said Dr. Geoffrey Shulman, DUSA President and CEO. "This should also help clarify reimbursement questions that physicians have had about the Levulan(R) PDT System, and may increase physician acceptance of this unique and effective therapy for pre-cancerous actinic keratoses (AK) of the face and scalp."

Proposed Fee Schedule

Additionally, the Center for Medicaid and Medicare Services (CMS) has published an interim reimbursement value, which translates into a nationalized fee of approximately $60 for the light application portion of the Levulan(R) PDT System (CPT code 96567, effective January 1, 2002). Reimbursement has also been established for the drug component, at 95% of the average wholesale price. In addition, as a medical treatment, doctors are allowed to charge appropriate level office visit fees related to diagnosis, drug application, and follow-up (if necessary) of patients treated with Levulan(R) PDT. An average office visit fee would be approximately $40. Exact fees will also vary depending on a geographical practice location factor.

The net effect is that for a Medicare patient receiving an initial treatment with Levulan(R) PDT, a doctor would be expected to be reimbursed an average of $40 for the drug application visit, approximately $60 for the light treatment, and full reimbursement for the cost of the drug. After deducting the cost of the drug, the doctor would receive just over $100. Any additional required visits would be billed separately.

Summary

"We are very pleased that Levulan(R) PDT has received the new AMA code, as well as the proposed national reimbursement levels", stated Dr. Shulman. "We believe that these achievements, combined with the ongoing education and marketing programs being carried out by Berlex Laboratories, the US affiliate of Schering AG, Germany, (DUSA's Levulan(R) PDT dermatology marketing partner), will allow increasing acceptance of our therapy as an important new treatment modality for this common pre-cancerous condition". In addition, the CMS has a 60-day comment period during which they will accept input regarding the proposed values they have placed on this application process. Berlex plans to work closely with medical professionals and policy makers to examine the proposed reimbursement levels, and make additional submissions if appropriate.

DUSA Pharmaceuticals, Inc. is a biopharmaceutical company engaged primarily in the development of LEVULAN(R) Photodynamic Therapy (PDT) and Photodetection (PD) for multiple medical conditions. PDT and PD utilize light-activated compounds to induce a therapeutic or detection effect. DUSA is a world leader in topically or locally applied PDT and PD. The Company maintains offices in Wilmington, MA, Valhalla, NY and Toronto, Ontario. Except for historical information, this news release contains certain forward-looking statements that involve known and unknown risk and uncertainties, which may cause actual results to differ materially from any future results, performance or achievements expressed or implied by the statements made. These forward-looking statements relate to the belief that the CPT code should facilitate processing of claims, clarify physicians' questions, and may increase acceptance of the therapy and expectations of a doctor's level of reimbursement. Such risks and uncertainties include whether the reimbursement levels will allow DUSA's products to be competitive with other AK therapies, dependence upon third-party manufacturers of the Kerastick(R), BLU-U(R) and LEVULAN(R) the ability of Berlex to develop a market for the products, and other risks identified in DUSA's SEC filings from time to time, including its Form 10-K for the year ended December 31, 2000.