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DUSA Pharmaceuticals Receives Orphan Drug Desi gnation for Levulan,PDT to Treat Esophage al Dysplasia

Researchers' Study Shows Promising Treatment for People Suffering from Barrett's Esophagus, a Leading Cause of Esophageal Cancer

WILMINGTON, MASSACHUSETTS--(CCNMatthews - May 17, 2007) - DUSA Pharmaceuticals, Inc. (NASDAQ GM:DUSA) announced that the U.S. Food and Drug Administration (FDA) has granted Orphan Drug Designation for Levulan(R) (aminolevulinic acid HCl) Photodynamic Therapy (PDT) for the treatment of esophageal dysplasia. This disease occurs in some patients with Barrett's esophagus, a leading cause of esophageal cancer. The incidence of esophageal cancer is one of the most rapidly growing in the U.S., with more than 11,000 new diagnoses each year. Patients diagnosed with high grade dysplasia are at high risk for developing esophageal cancer and currently have limited treatment options.

"We are pleased to receive orphan drug designation for Levulan" said Robert Doman, DUSA's President and Chief Operating Officer. "We believe that Levulan, in combination with our proprietary endoscopic light delivery system, is ideal for this significant unmet medical need and we are excited that it may someday provide patients at high risk of developing esophageal cancer with an effective and well tolerated therapeutic alternative."

Independent investigator clinical studies have reported that treatment of dysplasia with ALA PDT may help avoid the need for the removal of the esophagus and its associated morbidity. Findings from the study, "Low Incidence of Esophageal Adenocarcinoma Following Optimal Regimen of ALA PDT for High Grade Dysplasia in Barrett's Esophagus," will be presented at the Digestive Disease Week (DDW) meeting in Washington, D.C. on Sunday, May 20, 2007.

"This is a potential breakthrough for Barrett's patients and we've demonstrated this treatment can work effectively," says Laurance Lovat, M.D., senior lecturer and consultant gastroenterologist, University College Hospital in Lo
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