DUSA Pharmaceuticals reports 1994 financial results and clinical trial progress.

MISSISSAUGA, Ontario--(BUSINESS WIRE)--Feb. 27, 1995--DUSA Pharmaceuticals Inc. (NASDAQ NMS: DUSA, TSE:DSP) released today its audited financial results for the year ended Dec. 31, 1994.

The net loss for the year was $3,539,892, or 66 cents per share, compared to $2,248,461, or 44 cents per share, a year earlier.

Research and development costs increased $411,013 or 17.5% to $2,759,254, or 70.6% of total 1994 expenses, from $2,348,241 (excluding the write-off of certain license fees of $323,061), or 64.0% of total expenses for 1993.

Revenues totaled $305,891, including interest income of $709,375 and a loss of $405,280 on the sale of U.S. Government securities, compared to 1993 revenues totaling $1,420,282, including interest income of $754,308, and a gain of $725,932 on the sale of U.S. Government securities. The gains and losses on the Company's portfolio of wholly-owned U.S. Government securities primarily reflect the changing interest rate environment over the last two years, as managed by U.S. Trust, the Company's investment advisor.

At year end 1994, the Company had cash and United States Government securities totaling $10,198,329, and shareholders' equity of $10,132,860, or $1.86 per share. This includes $1.2 million from a private placement early in 1994, and is based on the year-end value of the Company's U.S. Government securities. At year end 1993, cash and U.S. Government securities totaled $13,298,715, and shareholders' equity was $13,364,557.

Dr. Geoffrey Shulman, chairman and CEO states that, "These results reflect DUSA's active ALA Photodynamic Therapy (ALA PDT) Dermatology Development Program, which, during 1994, included Phase I/IIA clinical trials on psoriasis, actinic keratoses (AK) and basal cell carcinoma. During the year, the Company also supported independent pilot human safety trials on ALA PDT as a potential non-surgical alternative to hysterectomy. During 1995, besides carrying out a new Phase IIB in AK's, and a new Phase I/IIA, and possibly a Phase IIB, study in psoriasis, the company is planning to conduct pilot clinical trials using ALA PDT for acne and hair removal, and a pilot human treatment trial on ALA PDT as an alternative to hysterectomy. Although the Company is completing the current basal cell carcinoma study, further BCC trials will await full analysis of the data, and additional resources, as the company focuses its dermatology program primarily on AK's and psoriasis."

DUSA Pharmaceuticals Inc. is a development stage New Jersey company, with worldwide rights to ALA PDT, an experimental treatment for skin cancers, psoriasis and other skin and internal disorders. This treatment, a type of photodynamic therapy, combines the use of a pharmaceutical compound with exposure to light to induce a therapeutic effect. DUSA's clinical trial program has made it a world leader in the field of topical (dermatological) PDT. -0-

                         DUSA Pharmaceuticals Inc.
                           Financial Highlights

                            Three Months              Year Ended
                            Ended Dec. 31,             Dec. 31,
                         1994           1993       1994         1993

Interest income        $ 175,149    $ 148,988   $ 709,375    $ 754,308
Research and
 development costs       671,842      582,846   2,759,254    2,348,241
Other operating
 expenses                264,508      282,461   1,149,361      997,441
Gain (loss) on sale
 of securities          (121,540)     (42,533)   (405,280)     725,932
Write-off of
 license fees              --            --          --       (323,061)
Net (loss)             ($882,414)   ($822,508) ($3,539,892) ($2,248,461)
Loss per share            ($0.16)      ($0.16)      ($0.66)      ($0.44)
Average number of
 shares outstanding    5,438,500    5,130,891    5,395,349    5,096,458
Cash and U.S.
 Treasury notes     $ 10,198,329 $ 13,298,715 $ 10,198,329 $ 13,298,715
Shareholders'
 equity             $ 10,132,860 $ 13,364,557 $ 10,132,860 $ 13,364,557

    (All figures are in U.S. dollars and the year end figures are
audited)

CONTACT: DUSA Pharmaceuticals Inc., Mississauga

D. Geoffrey Shulman, 905/677-4554

or

Sunrise Financial Group, New York

Derek Caldwell, 212/421-1616