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<H5 align="left" style="page-break-before:always"><A HREF="#Y92206tocpage">Table of Contents</A></H5><P>

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    <!-- XBRL,dc --><B>As filed with the Securities and Exchange
    Commission on August&#160;2, 2011</B>
</DIV>

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    <B><!-- /XBRL,dc -->Registration
    No.&#160;333-&#160;&#160;&#160;&#160;&#160;&#160;</B>
</DIV>

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<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

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    <B><FONT style="font-size: 14pt">UNITED STATES SECURITIES AND
    EXCHANGE COMMISSION</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 12pt">Washington, DC 20549</FONT></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 18pt"><FONT style="white-space: nowrap">Form&#160;S-8</FONT></FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 12pt">REGISTRATION STATEMENT<BR>
    UNDER</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 12pt">THE SECURITIES ACT OF
    1933</FONT></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 24pt">DUSA PHARMACEUTICALS,
    INC.</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I><FONT style="font-size: 8pt">(Exact Name of Registrant as
    Specified in Its Charter)</FONT></I>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="49%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
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<TD nowrap align="center" valign="top">
    <B>New Jersey</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <B>22-3103129</B>
</TD>
</TR>
<TR valign="bottom">
<TD align="center" valign="top">
    <I><FONT style="font-size: 8pt">(State or Other Jurisdiction
    of<BR>
    Incorporation or Organization)</FONT></I>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <I><FONT style="font-size: 8pt">(I.R.S. Employer<BR>
    Identification No.) </FONT></I>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>25 Upton Drive</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>Wilmington, Massachusetts 01887</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I><FONT style="font-size: 8pt">(Address of Principal Executive
    Offices) (Zip Code)</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>DUSA Pharmaceuticals, Inc. Amended and Restated 2011 Equity
    Compensation Plan</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I><FONT style="font-size: 8pt">(Full Title of the
    Plan)</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>Nanette W. Mantell,&#160;Esq.</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>Reed Smith LLP</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>Princeton Forrestal Village</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>136 Main Street&#160;&#151; Suite&#160;250</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>Princeton, New Jersey 08543</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>(609)&#160;514-8541</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I><FONT style="font-size: 8pt">(Name and Address and Telephone
    of Agent for Service)</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>Copies to:</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B> Robert F. Doman, President and Chief Executive Officer</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>DUSA Pharmaceuticals, Inc.</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>25 Upton Drive</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>Wilmington, Massachusetts 01887</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>(978) 657-7500</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 3%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Indicate by check mark whether the registrant is a large
    accelerated filer, an accelerated filer, a non-accelerated
    filer, or a smaller reporting company. See the definitions of
    &#147;large accelerated filer,&#148; &#147;accelerated
    filer&#148; and &#147;smaller reporting company&#148; in Rule
    <FONT style="white-space: nowrap">12b-2</FONT> of the
    Exchange Act. (Check one):
</DIV>

<DIV style="margin-top: 5pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

<TR>
    <TD width="25%"></TD>
    <TD width="25%"></TD>
    <TD width="25%"></TD>
    <TD width="25%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">    <FONT style="font-family: 'Times New Roman', Times">Large
    accelerated
    filer&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;</FONT>
    </FONT></TD>
    <TD nowrap align="center">    <FONT style="font-family: 'Times New Roman', Times"> Accelerated
    filer&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;</FONT>
    </FONT></TD>
    <TD nowrap align="center">    <FONT style="font-family: 'Times New Roman', Times">
    <FONT style="white-space: nowrap">Non-accelerated</FONT>
    filer&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#254;</FONT>
    </FONT></TD>
    <TD nowrap align="right">    <FONT style="font-family: 'Times New Roman', Times"> Smaller
    reporting
    company&#160;<FONT style="font-family: Wingdings; font-variant: normal">&#111;</FONT>
    </FONT></TD>
</TR>

</TABLE>



<DIV align="center" style="margin-left: 22%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (Do not check if a smaller reporting company)
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">CALCULATION
    OF REGISTRATION FEE</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="36%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterright -->
    <TD width="14%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutterright -->
    <TD width="14%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=04 type=gutterright -->
    <TD width="14%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=05 type=gutterright -->
    <TD width="14%">&nbsp;</TD>	<!-- colindex=05 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 3px double #000000">
    <B>Proposed Maximum<BR>
    </B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 3px double #000000">
    <B>Proposed Maximum<BR>
    </B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 3px double #000000">
    <B>Amount of<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
    <B>Title of Securities to<BR>
    </B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Amount<BR>
    </B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Offering Price<BR>
    </B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Aggregate<BR>
    </B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Registration<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
    <B>be Registered</B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>to be Registered(1)</B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>per Share(2)</B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Offering Price(2)</B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Fee</B>
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="top" style="border-top: 1px solid #000000">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Common Stock, no par value per share, issued or issuable under
    the Amended and Restated 2011 Equity Compensation Plan
</DIV>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
    1,292,802
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
    $5.00
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
    $6,464,010
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
    $750.47
</TD>
</TR>
<TR style="font-size: 1pt">
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 3px double #000000">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    In addition, this registration statement covers such
    indeterminate number of shares of common stock, no par value per
    share (&#147;Common Stock&#148;), as may be issued under the
    Amended and Restated 2011 Equity Compensation Plan (the
    &#147;2011 Plan&#148;) by reason of any stock split, stock
    dividend or similar transactions effected without receipt of
    consideration, in accordance with Rule&#160;416 under the
    Securities Act of 1933, as amended (the &#147;Securities
    Act&#148;).</TD>
</TR>

<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>



<TR>
    <TD valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    Estimated solely for the purpose of calculating the amount of
    the registration fee pursuant to Rule&#160;457(h) promulgated
    under the Securities Act. The offering price per share and
    aggregate offering price are based upon the average of the high
    and low prices for the Common Stock as reported on the Nasdaq
    Global Market on July&#160;28, 2011, in accordance with
    Rule&#160;457(c) of the Securities Act.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<CENTER><DIV style="font-size: 1pt; width: 100%; border-bottom: 1pt solid #000000"></DIV></CENTER>

<CENTER><DIV style="font-size: 1pt; width: 100%; border-bottom: 2pt solid #000000"></DIV></CENTER>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#Y92206tocpage">Table of Contents</A></H5><P>

<DIV style="width: 94%; margin-left: 3%"><!-- BEGIN PAGE WIDTH -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">EXPLANATORY
    NOTE</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The 1,292,802&#160;shares of our common stock, no par value per
    share (&#147;Common Stock&#148;), being registered pursuant to
    this
    <FONT style="white-space: nowrap">Form&#160;S-8</FONT>
    have been issued or are issuable pursuant to the DUSA
    Pharmaceuticals, Inc. (&#147;DUSA&#148; or the
    &#147;Company&#148;) Amended and Restated 2011 Equity
    Compensation Plan (the &#147;2011 Plan&#148;). This Registration
    Statement contains two parts. The first part contains a
    &#147;Reoffer&#148; Prospectus prepared in accordance with
    Part&#160;I of
    <FONT style="white-space: nowrap">Form&#160;S-3</FONT>
    (in accordance with Section&#160;C of the General Instructions
    to the
    <FONT style="white-space: nowrap">Form&#160;S-8),</FONT>
    which covers reoffers and resales of &#147;restricted
    securities&#148;
    <FONT style="white-space: nowrap">and/or</FONT>
    &#147;control securities&#148; (as such terms are defined in
    Section&#160;C of the General Instructions to
    <FONT style="white-space: nowrap">Form&#160;S-8)</FONT>
    by certain of our shareholders, as more fully set forth therein.
    The second part of this Registration Statement contains
    Information Required in the Registration Statement pursuant to
    Part&#160;II of
    <FONT style="white-space: nowrap">Form&#160;S-8.</FONT>
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">PART&#160;I<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">INFORMATION
    REQUIRED IN THE SECTION&#160;10(a) PROSPECTUS</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;1.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Plan
    Information*</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

<TR>
    <TD width="8%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">Item&#160;2.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Registrant
    Information and Employee Plan Annual Information*</FONT></I></B>
</TD>
</TR>

</TABLE>
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<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV><DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>
<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    &#160;*&#160;The document(s) containing the information
    specified in Part&#160;I of
    <FONT style="white-space: nowrap">Form&#160;S-8</FONT>
    will be sent or given to participants in the 2011 Plan as
    specified by Rule&#160;428(b)(1) under the Securities Act of
    1933, as amended (the &#147;Securities Act&#148;). Such
    documents are not being filed with the Securities and Exchange
    Commission, but constitute, along with the documents
    incorporated by reference into this Registration Statement, a
    prospectus that meets the requirements of Section&#160;10(a) of
    the Securities Act.
</DIV>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#Y92206tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">PROSPECTUS</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 14pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">14,000&#160;Shares
    of Common Stock by Selling Securityholders</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 24pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">DUSA
    Pharmaceuticals, Inc.</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<CENTER><DIV style="font-size: 1pt; width: 18%; border-bottom: 1pt solid #000000"></DIV></CENTER>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The shares of Common Stock of DUSA Pharmaceuticals, Inc. covered
    by this prospectus may be offered and sold to the public by
    certain selling securityholders of the Company. The selling
    securityholders have acquired or will acquire the shares under
    the 2011 Plan.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Our Common Stock is quoted on the Nasdaq Global Market under the
    symbol &#147;DUSA.&#148; On August&#160;1, 2011, the closing
    price of a share of our Common Stock on the Nasdaq Global Market
    was $5.28 per share.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<CENTER><DIV style="font-size: 1pt; width: 18%; border-bottom: 1pt solid #000000"></DIV></CENTER>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 12pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>Investing in our Common Stock involves risks. See &#147;Risk
    Factors&#148; beginning on page&#160;2.</B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<CENTER><DIV style="font-size: 1pt; width: 18%; border-bottom: 1pt solid #000000"></DIV></CENTER>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>Neither the Securities and Exchange Commission nor any state
    securities commission has approved or disapproved these
    securities or passed upon the adequacy or accuracy of this
    prospectus. Any representation to the contrary is a criminal
    offense.</B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<CENTER><DIV style="font-size: 1pt; width: 18%; border-bottom: 1pt solid #000000"></DIV></CENTER>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The date of this prospectus is August&#160;&#160;&#160;, 2011.
</DIV>
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<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV><!-- END PAGE WIDTH -->
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">TABLE OF
    CONTENTS</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<DIV align="left">
<!-- TOC -->
</DIV>

<DIV align="left">
<A name="Y92206tocpage"></A>
</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="97%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Page</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y92206101'>DUSA Pharmaceuticals, Inc.&#160;</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y92206102'>Risk Factors</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y92206103'>Special Note Regarding Forward-Looking
    Statements</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y92206104'>Use of Proceeds</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y92206105'>Selling Securityholders</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    14
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y92206106'>Plan of Distribution</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y92206107'>Legal Matters</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y92206108'>Experts</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y92206109'>Where You Can Find More Information</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#Y92206110'>Incorporation of Certain Documents by
    Reference</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y92206exv5w1.htm">EX-5.1</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="y92206exv23w1.htm">EX-23.1</A></FONT></TD></TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<CENTER><DIV style="font-size: 1pt; width: 18%; border-bottom: 1pt solid #000000"></DIV></CENTER>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    You should rely only on the information contained in this
    prospectus or any supplement, including the documents that we
    incorporate by reference. We have not authorized anyone to
    provide you with information different from that which is
    contained in or incorporated by reference to this prospectus. We
    are offering to sell shares of Common Stock and seeking offers
    to buy shares of Common Stock only in jurisdictions where offers
    and sales are permitted. The information contained in this
    prospectus is accurate only as of the date of the prospectus,
    regardless of the time of delivery of this prospectus or of any
    sale of the Common Stock.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#Y92206tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='Y92206101'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">DUSA
    PHARMACEUTICALS, INC.</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We are a vertically integrated dermatology company that is
    developing and marketing
    Levulan<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    photodynamic therapy, or
    Levulan<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    PDT, and other products for common skin conditions. Our marketed
    products include
    Levulan<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    Kerastick<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    20% Topical Solution with PDT, the
    BLU-U<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    brand light source, and
    ClindaReach<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>.

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We devote most of our resources to advancing the development and
    marketing of our
    Levulan<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    PDT technology platform. When
    Levulan<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    is used and followed with exposure to light to treat a medical
    condition, it is known as
    Levulan<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    PDT. The
    Kerastick<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    is our proprietary applicator that delivers
    Levulan<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>.

    The
    BLU-U<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    is our patented light device.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The
    Levulan<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    Kerastick<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    20% Topical Solution with PDT and the
    BLU-U<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    were launched in the United States, or U.S., in September 2000
    for the treatment of non-hyperkeratotic actinic keratoses, or
    AKs, of the face or scalp. AKs are precancerous skin lesions
    caused by chronic sun exposure that can develop over time into a
    form of skin cancer called squamous cell carcinoma. In addition,
    in September 2003 we received clearance from the United States
    Food and Drug Administration, or FDA, to market the
    BLU-U<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    without
    Levulan<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    PDT for the treatment of moderate inflammatory acne vulgaris and
    general dermatological conditions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We manufacture our
    Levulan<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    Kerastick<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    in our Wilmington, Massachusetts facility. We are also
    responsible for the regulatory, sales, marketing, customer
    service and other related activities for all of our products,
    including our
    Levulan<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    Kerastick<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>.

    We began marketing
    Levulan<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    PDT under an exclusive worldwide license of patents many of
    which have expired, and technology from PARTEQ Research and
    Development Innovations, the licensing arm of Queen&#146;s
    University, Kingston, Ontario, Canada. We also own or license
    certain other patents relating to our
    BLU-U<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    device and methods for using pharmaceutical formulations which
    contain our drug and related processes and improvements. In the
    United States,
    DUSA<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>,

    DUSA Pharmaceuticals,
    Inc.<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>,

    Levulan<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>,

    Kerastick<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>,

    BLU-U<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>,

    ClindaReach<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>,

    Meted<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>,

    and
    Psoriacap<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    are registered trademarks which we own. Several of these
    trademarks are also registered in Europe, Australia, Canada, and
    in other parts of the world. Numerous other trademark
    applications are pending.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    As of June&#160;30, 2011, we had an accumulated deficit of
    approximately $141,150,000. Our financial goal for 2011 is to be
    cash flow positive and to maintain profitability on an annual
    basis, however, we cannot guarantee that our products will
    achieve significant enough market acceptance or generate
    sufficient revenues to achieve these goals or to maintain
    profitability. We must continue to increase sales from current
    levels in order for us to sustain profitability on an annual
    basis as we wish to continue to invest in research and
    development activities related to
    Levulan<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>.

    We cannot provide assurance that an increase in sales will
    necessarily cause us to continue to be profitable.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    As of June&#160;30, 2011, we had a staff of 93&#160;employees,
    including 1&#160;part-time employee, who worked across all
    operating functions at DUSA.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Unless the context otherwise requires, the terms &#147;we,&#148;
    &#147;our,&#148; &#147;us,&#148; &#147;the Company&#148; and
    &#147;DUSA&#148; refer to DUSA Pharmaceuticals, Inc., a New
    Jersey corporation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We were incorporated on February&#160;21, 1991, under the laws
    of the State of New Jersey. Our principal executive office is
    located at 25 Upton Drive, Wilmington, Massachusetts 01887
    (telephone:
    <FONT style="white-space: nowrap">(978)&#160;657-7500)</FONT>
    (web address: www.dusapharma.com).
</DIV>
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<A name='Y92206102'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">RISK
    FACTORS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Investing in our common stock is very speculative and involves a
    high degree of risk. You should carefully consider and evaluate
    all of the information in, or incorporated by reference in, this
    registration statement. The following are among the risks we
    face related to our business, assets and operations. They are
    not the only ones we face. Any of these risks could materially
    and adversely affect our business, results of operations and
    financial condition, which in turn could materially and
    adversely affect the trading price of our common stock and you
    might lose all or part of your investment.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    This registration statement contains forward-looking statements
    within the meaning of the Private Securities Litigation Reform
    Act of 1995 that involve risks and uncertainties, such as
    statements of our plans, objectives, expectations and
    intentions. We use words such as &#147;anticipate&#148;,
    &#147;believe&#148;, &#147;expect&#148;, &#147;future&#148; and
    &#147;intend&#148; and similar expressions to identify
    forward-looking statements. Our actual business, financial
    condition and results of operations could differ materially from
    those anticipated in these forward-looking statements for many
    reasons, including the factors described below and elsewhere in
    this registration statement. You should not place undue reliance
    on these forward-looking statements, which apply only as of the
    date of this registration statement.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Risks
    Related To DUSA</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Any
    Failure To Comply With Ongoing Governmental Regulations In The
    United States And Elsewhere Will Limit Our Ability To Market Our
    Products And Achieve Profitability On A Quarterly
    Basis.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The manufacture and marketing of our products are subject to
    continuing FDA review as well as comprehensive regulation by the
    FDA and by state and local regulatory authorities. These laws
    require, among other things:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    approval of manufacturing facilities, including adherence to
    good manufacturing and laboratory practices during production
    and storage,
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    controlled research and testing of some of these products even
    after approval,
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    control of marketing activities, including sales promotions,
    advertising and labeling,&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    state permits for the sale and distribution of products
    manufactured in and
    <FONT style="white-space: nowrap">out-of-state.</FONT>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If we, or any of our contract manufacturers, fail to comply with
    these requirements, we may be limited in the jurisdictions in
    which we are permitted to sell our products. Additionally, if we
    or our manufacturers fail to comply with applicable regulatory
    approval requirements, a regulatory agency may:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    send warning letters,
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    impose fines and other civil penalties on us,
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    seize our products,
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    suspend our regulatory approvals,
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    cease the manufacture of our products,
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    refuse to approve pending applications or supplements to
    approved applications filed by us,
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    refuse to permit exports of our products from the United States,
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    require us to recall products,
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    require us to notify physicians of labeling changes
    <FONT style="white-space: nowrap">and/or</FONT>
    product related problems,
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    impose restrictions on our operations, and/or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    criminally prosecute us.
</TD>
</TR>

</TABLE>
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    <BR>
    2
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<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We and our manufacturers must continue to comply with current
    Good Manufacturing Practice regulations, or cGMP, and Quality
    System Regulations, or QSR, and equivalent foreign regulatory
    requirements. The cGMP and QSR requirements govern quality
    control and documentation policies and procedures. In complying
    with cGMP, QSR and foreign regulatory requirements, we and our
    third-party manufacturers will be obligated to expend time,
    money and effort in production, record keeping and quality
    control to assure that our products meet applicable
    specifications and other requirements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Manufacturing facilities are subject to ongoing periodic
    inspection by the FDA, including unannounced inspections. We
    cannot guarantee that our third-party supply sources, including
    our sole source supplier for the active ingredient in
    Levulan<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    and the component parts in the
    BLU-U<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>,

    or our own
    Kerastick<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    facility, will continue to meet all applicable FDA regulations.
    If we, or any of our manufacturers, fail to maintain compliance
    with FDA regulatory requirements, it would be time-consuming and
    costly to remedy the problem(s) or to qualify other sources.
    These consequences could have a significant adverse effect on
    our financial condition and operations. Additionally, if
    previously unknown problems with the product, a manufacturer or
    its facility are discovered in the future, changes in product
    labeling restrictions or withdrawal of the product from the
    market may occur. Any such problems could affect our ability to
    become profitable on an ongoing basis.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Any significant interruption in our operation caused by FDA
    could have a negative effect on our revenues.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We May
    Not Maintain Profitability On A Quarterly Basis Unless We Can
    Successfully Market And Sell Higher Quantities Of Our
    Products.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <I><FONT style="font-family: 'Times New Roman', Times">If A
    Competitive Product Is Successful Our Revenues Could Decline,
    And Our Ability To Maintain Profitability On A Quarterly Basis
    Could Be Delayed.</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Galderma, S.A., a large dermatology company, holds a
    non-exclusive license from us to
    Metvixia<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>,

    which was transferred to Galderma by Photocure ASA, our original
    licensee. This product received FDA approval for treatment of
    AKs in July 2004 and is directly competitive with our
    Levulan<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    Kerastick<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    product. While we are entitled to royalties on net sales of
    Metvixia<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>,

    Galderma has considerably more resources than we have, which
    could adversely affect our ability to maintain or increase our
    market share and make it more difficult for us to achieve
    profitability on an ongoing basis. Metvixia&#146;s
    U.S.&#160;product revenues have not been significant to date. We
    have also become aware that Photocure has launched an ALA
    ester-based product,
    Allumera<SUP style="font-size: 85%; vertical-align: top"><FONT style="font-variant: SMALL-CAPS">tm</FONT></SUP>,

    as a cosmetic, during the second quarter of 2011, which could
    cause disruption in the marketplace. In addition, Leo Pharma, a
    Danish corporation that acquired
    Peplin<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    in 2009, has announced that in 2012 it will be launching PEP005
    for the treatment of AKs. These products could negatively impact
    the market penetration of our PDT products. Our ability to be
    profitable on a quarterly basis may also be affected by
    fluctuations in the demand for our products caused by both
    seasonal changes, such as when patient visits slow during the
    summer months, and the timing of pricing changes, which may
    impact the purchasing patterns of our customers.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <I><FONT style="font-family: 'Times New Roman', Times">If We Do
    Not Continue To Generate Positive Cash Flow, We May Need More
    Capital.</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We have approximately $24,121,000 in cash, cash equivalents and
    marketable securities as of June&#160;30, 2011. Our cash, cash
    equivalents and marketable securities should be sufficient for
    current operations for at least the next 12&#160;months.
    Although we expect continued growth in our PDT segment revenues,
    we are susceptible to the uncertain economic conditions,
    particularly with our customer base in the U.S.&#160;and
    internationally where our product lacks reimbursement, and to
    increased competition, particularly from
    Metvixia<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    and
    Allumera<SUP style="font-size: 85%; vertical-align: top"><FONT style="font-variant: SMALL-CAPS">tm</FONT></SUP>.

    In addition, we expect our Non-PDT product revenues for 2011 to
    be reduced from 2010 levels since the
    AVAR<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    royalty period ended during the fourth quarter of 2010. If we
    are unable to continue to be profitable on an ongoing basis, we
    may have to reduce our headcount, curtail certain variable
    expenses, or raise funds through financing transactions.
</DIV>
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    <BR>
    3
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<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We
    Have Had Significant Cumulative Losses And May Have Losses In
    The Future.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We reported net income (loss) of $506,000 and $(236,000) for the
    six-month periods ended June&#160;30, 2011 and 2010,
    respectively. Prior to 2010, we had a history of annual
    operating losses and we may incur losses in the future. We
    reported net income (loss) of $2,703,000, $(2,508,000) and
    $(6,250,000) for the years ended December&#160;31, 2010, 2009
    and 2008, respectively. As of June&#160;30, 2011, our
    accumulated deficit was approximately $141,151,000. We expect to
    incur significant additional research and development and other
    costs including costs related to preclinical studies and
    clinical trials. Our costs, including research and development
    costs for our product candidates and sales, marketing and
    promotion expenses for any of our existing or future products to
    be marketed by us or our distributors may exceed revenues in the
    future, which may result in future losses from operations.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">If
    Product Sales Do Not Continue to Increase, We May Not Be Able To
    Advance Development Of Other Potential Products As Quickly As We
    Would Like To, Which Would Delay The Approval Process And
    Marketing Of New Potential Products, If Approved.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If we do not generate sufficient revenues from our approved
    products, we may be forced to delay or abandon our development
    program for programs we may wish to initiate. The pharmaceutical
    development and commercialization process is time consuming and
    costly, and any delays might result in higher costs which could
    adversely affect our financial condition and results of
    operations. Without sufficient product sales, we would need
    alternative sources of funding. There is no guarantee that
    adequate funding sources could be found to continue the
    development of our technology.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">If We
    Are Unable To Obtain The Necessary Capital To Fund&#160;Our
    Operations, We Will Have To Delay Our Development Program And
    May Not Be Able To Complete Our Clinical Trials.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We may need substantial additional funds to fully develop,
    manufacture, market and sell other potential products. We may
    obtain funds through other public or private financings,
    including equity financing,
    <FONT style="white-space: nowrap">and/or</FONT>
    through collaborative arrangements. We may also choose to
    license rights to third parties to commercialize products or
    technologies that we would otherwise have attempted to develop
    and commercialize on our own which could reduce our potential
    revenues.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The availability of additional capital to us is uncertain. There
    can be no assurance that additional funding will be available to
    us on favorable terms, if at all. Any equity financing, if
    needed, would likely result in dilution to our existing
    shareholders, and debt financing, if available, would likely
    involve significant cash payment obligations and could include
    restrictive covenants that would adversely affect the operation
    of our business. Failure to raise capital, if needed, could
    materially adversely affect our clinical program, our financial
    condition, results of operations and cash flows.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Global
    Credit And Financial Market Conditions May Affect Our
    Business.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Sales of our products are dependent, in large part, on
    reimbursement from government health and administration
    authorities, private health insurers, distribution partners and
    other organizations. As a result of the global credit and
    financial market conditions, government authorities and private
    insurers may not satisfy their reimbursement obligations or may
    delay payment. In addition, federal and state health authorities
    may reduce Medicare and Medicaid reimbursements, and private
    insurers may increase their scrutiny of claims. A reduction in
    the availability or extent of reimbursement could negatively
    affect our product sales and revenues.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Due to the tightening of global credit, there may be disruption
    or delay in the performance by our third-party contractors,
    suppliers or collaborators. We rely on third parties for several
    important aspects of our business, including the active
    ingredient in
    Levulan<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    and key components of the
    BLU-U<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>,

    portions of our product manufacturing, conduct of clinical
    trials and the supply of raw materials. If such third parties
    are unable to satisfy their commitments to us, our business
    would be adversely affected.
</DIV>
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">If The
    Economic Slowdown Adversely Affects Our Customer&#146;s Ability
    To Meet Our Payment Terms, Our Cash Flow Would Be Adversely
    Affected And Our Ability To Continue To Be Profitable Could Be
    Jeopardized.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If our customers were unable to pay us or pay us on a timely
    basis for their purchases of our products, we may not be able to
    maintain profitability on a sustainable on-going basis, and our
    financial position, results of operations and cash flows could
    be negatively affected.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We
    Have Only Three Therapies That Have Received Regulatory Approval
    Or Clearance, And We Cannot Predict Whether We Will Ever Develop
    Or Commercialize Any Other
    Levulan<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    Product Or Indications.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <I><FONT style="font-family: 'Times New Roman', Times">Potential
    Products Or PDT Indications Are In Early Stages Of Development
    And May Never Result In Any Additional Commercially Successful
    Products.</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Except for
    Levulan<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    PDT for AKs, the
    BLU-U<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    for acne, the
    Clindareach<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    pledget and other products we acquired in our merger with
    Sirius, all of our other potential product candidates are being
    studied by independent investigators, or are at a very early
    stage of development, including the planning of our BASDI
    clinical study. These candidates are subject to the risks of
    failure inherent in the development of new pharmaceutical
    products and products based on new technologies. These risks
    include:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    delays in product development, clinical testing or manufacturing,
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    unplanned expenditures in product development, clinical testing
    or manufacturing,
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    failure in clinical trials or failure to receive regulatory
    approvals,
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    emergence of superior or equivalent products,
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    inability to market products due to third-party proprietary
    rights,&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    failure to achieve market acceptance.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We cannot predict how long the development of our
    investigational stage products will take or whether they will be
    medically effective. We cannot be sure that a successful market
    will continue to develop for our
    Levulan<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    drug technology.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <I><FONT style="font-family: 'Times New Roman', Times">We Must
    Receive Separate Approval For Any Drug Or Medical Device
    Products Before We Can Sell Them Commercially In The United
    States Or Abroad.</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Any potential
    Levulan<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    product will require the approval of the FDA before it can be
    marketed in the United States. Before an application to the FDA
    seeking approval to market a new drug, called an NDA, can be
    filed, a product must undergo, among other things, extensive
    animal testing and human clinical trials. The process of
    obtaining FDA approvals can be lengthy, costly, and
    time-consuming. Following the acceptance of an NDA, the time
    required for regulatory approval can vary and is usually one to
    three years or more. The FDA may require additional animal
    studies
    <FONT style="white-space: nowrap">and/or</FONT> human
    clinical trials before granting approval. Our
    Levulan<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    PDT products are based on relatively new technology. To our
    knowledge, the FDA has approved only four drugs for use in
    photodynamic therapy, including
    Levulan<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>.

    This factor may lengthen the approval process. We face much
    trial and error and we may fail at numerous stages along the way.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We cannot predict whether we will obtain any other regulatory
    approvals. Data obtained from preclinical testing and clinical
    trials can be susceptible to varying interpretations which could
    delay, limit or prevent regulatory approvals. Future clinical
    trials may not show that
    Levulan<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    PDT is safe and effective for any new use we may study. In
    addition, delays or disapprovals may be encountered based upon
    additional governmental regulation resulting from future
    legislation or administrative action or changes in FDA policy.
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    5
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#Y92206tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We
    Have Limited Patent Protection, And If We Are Unable To Protect
    Our Proprietary Rights, Competitors Might Be Able To Develop
    Similar Products To Compete With Our Products And
    Technology.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Our ability to compete successfully depends, in part, on our
    ability to defend patents that have issued, obtain new patents,
    protect trade secrets and operate without infringing the
    proprietary rights of others. We have no compound patent
    protection for our
    Levulan<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    brand of the compound ALA. Our basic ALA patents are for methods
    of detecting and treating various diseased tissues using ALA (or
    related compounds called precursors), in combination with light.
    We own or exclusively license ALA patents and patent
    applications related to the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    methods of using ALA and its unique physical forms in
    combination with light to treat conditions such as AKs and acne,
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    compositions and apparatus for those methods,&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    unique physical forms of ALA.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We also own patents covering our
    Kerastick<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    and
    BLU-U<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>,

    which also cover our AK therapy. However, other third parties
    may have blue light devices or drug delivery devices that do not
    infringe our patents.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The patents we license from PARTEQ, the licensor of our ALA
    patents, relating to methods of using ALA for detecting or
    treating disease, other than for acne and our approved
    indication for AKs of the face or scalp, started to expire in
    July 2009. The PARTEQ patent which covers our approved AK
    product expires in September 2013. With the newly allowed claims
    which issued on May&#160;25, 2010, relating to use of our
    <FONT style="white-space: nowrap">BLU-U</FONT><SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>,

    we now have additional claims that relate to our AK product, and
    these will not expire until June 2019.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We have limited ALA patent protection outside the United States,
    which may make it easier for third parties to compete there. Our
    basic methods of treatment patents and applications have
    counterparts in only four foreign countries, and certain
    countries under the European Patent Convention. Even where we
    have patent protection, there is no guarantee that we will be
    able to enforce our patents. Additionally, enforcement of a
    given patent may not be practicable or an economically viable
    alternative. Some of the indications for which we may develop
    PDT therapies may not be covered by the claims in any of our
    existing patents. Even with the issuance of additional patents
    to us, other parties are free to develop other uses of ALA,
    including medical uses, and to market ALA for such uses,
    assuming that they have obtained appropriate regulatory
    marketing approvals. ALA in the chemical form has been
    commercially supplied for decades, and is not itself subject to
    patent protection. There are reports of third parties conducting
    clinical studies with ALA in countries outside the United States
    where PARTEQ does not have patent protection. In addition, a
    number of third parties are seeking patents for uses of ALA not
    covered by our patents. These other uses, whether patented or
    not, and the commercial availability of ALA, could limit the
    scope of our future operations because ALA products could come
    on the market which would not infringe our patents, but would
    compete with our
    Levulan<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    product even though they are marketed for different uses.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Metvixia<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    was approved by the FDA as a treatment of AKs in July 2004, and
    this ALA-derived product is directly competitive with our
    Levulan<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    Kerastick<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    product. While we are entitled to royalties on net sales of
    Metvixia,
    Galderma<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>,

    our licensee, has considerably more resources than we have,
    which could adversely affect our ability to maintain or increase
    our market share. Metvixia&#146;s U.S.&#160;product revenues
    have not been significant to date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    While we attempt to protect our proprietary information as trade
    secrets through agreements with each employee, licensing
    partner, consultant, university, pharmaceutical company and
    agent, we cannot guarantee that these agreements will provide
    effective protection for our proprietary information. It is
    possible that all of the following issues could negatively
    impact our ability to be profitable:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    these persons or entities might breach the agreements,
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    we might not have adequate remedies for a breach, and/or,
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our competitors will independently develop or otherwise discover
    our trade secrets.
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    6
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#Y92206tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Since
    We Now Operate The Only FDA Approved Manufacturing Facility For
    The
    Kerastick<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    And Continue To Rely Heavily On Sole Suppliers For The
    Manufacture Of
    Levulan<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>,

    The
    BLU-U<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>,

    Clindareach<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>,

    And
    Meted<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>,

    Any Supply Or Manufacturing Problems Could Negatively Impact Our
    Sales.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If we experience problems producing
    Levulan<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    Kerastick<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    units in our facility, or if any of our contract suppliers fail
    to supply our requirements for products or services, our
    business, financial condition and results of operations would
    suffer. Although we have received approval by the FDA to
    manufacture the
    BLU-U<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    and the
    Levulan<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    Kerastick<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    in our Wilmington, Massachusetts facility, at this time, with
    respect to the
    BLU-U<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>,

    we expect to utilize our own facility only as a
    <FONT style="white-space: nowrap">back-up</FONT> to
    our current third party manufacturers or for repairs.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Manufacturers and their subcontractors often encounter
    difficulties when commercial quantities of products are
    manufactured for the first time, or large quantities of products
    are manufactured, including problems involving:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    product yields,
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    quality control,
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    component and service availability,
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    compliance with FDA regulations,&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the need for further FDA approval if manufacturers make material
    changes to manufacturing processes
    <FONT style="white-space: nowrap">and/or</FONT>
    facilities.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We cannot guarantee that problems will not arise with production
    yields, costs or quality as we and our suppliers manufacture our
    products. Any manufacturing problems could delay or limit our
    supplies which would hinder our marketing and sales efforts. If
    our facility, any facility of our contract manufacturers, or any
    equipment in those facilities is damaged or destroyed, we may
    not be able to quickly or inexpensively replace it. Likewise, if
    there is quality or supply problems with any components or
    materials needed to manufacture our products, we may not be able
    to quickly remedy the problem(s). Any of these problems could
    cause our sales to suffer and could increase costs.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    Ability To Use Net Operating Loss Carryforwards And Tax Credit
    Carryforwards To Offset Future Taxable Income May Be Further
    Limited As A Result Of Past Or Future Transactions Involving Our
    Common Stock.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Under Internal Revenue Code, or IRC, Section&#160;382 the amount
    of our net operating loss carryforwards and other tax attributes
    that we may utilize to offset future taxable income, when
    earned, may be subject to certain limitations, based upon
    changes in the ownership of our common stock. In general, under
    IRC Section&#160;382, a corporation that undergoes an
    &#147;ownership change&#148; is subject to limitations on its
    ability to utilize its pre-change net operating losses and
    certain other tax assets to offset future taxable income. An
    ownership change occurs if the aggregate stock ownership of
    certain shareholders increases by more than 50&#160;percentage
    points over such shareholders&#146; lowest percentage ownership
    during the testing period, which is generally three years.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Based on an Internal Revenue Code, or IRC, Section&#160;382
    evaluation, we determined that we have experienced prior
    ownership changes, as defined under IRC Section&#160;382, with
    the most recent change in ownership occurring in 2007 (the 2007
    Ownership Change). Our pre-change NOL carryforwards are subject
    to an annual limitation of approximately $2.2&#160;million per
    year. Further, additional rules provide for the enhancement of
    the aforementioned annual limitation for the first five years
    after the ownership change. A loss corporation may increase its
    IRC Section&#160;382 limitation by the amount of the net
    unrealized built-in gain, or NUBIG, recognized within five years
    of the ownership change. Our calculated aggregate amount of
    NUBIG enhancement is approximately $4.3&#160;million (i.e.,
    approximately $868,000 per year for the first five years after
    the ownership change). This NUBIG enhancement will be utilized
    in conjunction with the approximately $2.2&#160;million of IRC
    Section&#160;382 base annual limitation, resulting in
    approximately $3.0&#160;million per year for the first five
    years after the ownership change. Based on these additional
    factors, we estimate that we will be able to utilize
    approximately $54.3&#160;million of our current net operating
    losses, provided that sufficient income
</DIV>
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    <BR>
    7
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    is generated and no further ownership changes were to occur.
    However, it is reasonably possible that a future ownership
    change, which could be the result of transactions involving our
    common stock that are outside of our control (such as sales by
    existing shareholders), could occur during 2011 or thereafter.
    Future ownership changes could further restrict our utilization
    of our net operating losses and tax credits, reducing or
    eliminating the benefit of such net operating losses and tax
    credits. If such future ownership changes were to occur, it is a
    possibility that the Company could be required to pay federal
    income taxes in the near-term. An ownership change occurs under
    IRC Section&#160;382 if the aggregate stock ownership of certain
    shareholders increases by more than 50&#160;percentage points
    over such shareholders&#146; lowest percentage ownership during
    the testing period, which is generally three years.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We
    Have Only Limited Experience Marketing And Selling
    Pharmaceutical Products Outside Of The United States And As A
    Result, Our Revenues From Product Sales May
    Suffer.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If we are unable to successfully market and sell sufficient
    quantities of our products, revenues from product sales will be
    lower than anticipated and our financial condition may be
    adversely affected. We are responsible for marketing our
    products in the United States and the rest of the world, except
    Canada, and parts of Asia, where we have distributors. If our
    sales and marketing efforts fail, then sales of the
    Levulan<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    Kerastick<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>,

    the
    BLU-U<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>,

    and other products will be adversely affected, which would
    adversely affect our results of operations and financial
    condition.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    Commercial Success Of Any Product That We May Develop Will
    Depend Upon The Degree Of Market Acceptance Of Our Products
    Among Physicians, Patients, Health Care Payors, Private Health
    Insurers And The Medical Community.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Our ability to commercialize any product that we may develop
    will be highly dependent upon the extent to which the product
    gains market acceptance among physicians, patients, health care
    payors, such as Medicare and Medicaid, private health insurers,
    including managed care organizations and group purchasing
    organizations, and the medical community. If a product does not
    achieve an adequate level of acceptance, we may not generate
    material product revenues. The degree of market acceptance of
    our currently marketed products will depend on a number of
    factors, including:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the effectiveness, or perceived effectiveness, of our product in
    comparison to competing products,
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the existence of any significant side effects, as well as their
    severity in comparison to any competing products,
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    potential advantages over alternative treatments,
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the ability to offer our product for sale at competitive prices,
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    relative convenience and ease of administration,
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the strength of marketing and distribution support,&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    sufficient third-party coverage or reimbursement.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">If We
    Cannot Maintain Or Improve Physician Reimbursement And/Or
    Convince More Private Insurance Carriers To Adequately Reimburse
    Physicians For Our Product, Sales May Suffer.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Without adequate levels of reimbursement by government health
    care programs and private health insurers, the market for our
    Levulan<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    Kerastick<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    for AK therapy will be limited. While we continue to support
    efforts to improve reimbursement levels to physicians and are
    working with the major private insurance carriers to improve
    coverage for our therapy, if our efforts are not successful,
    broader adoption of our therapy and sales of our products could
    be negatively impacted. Although positive reimbursement changes
    related to AK were made over the last five years, some
    physicians still believe that reimbursement levels do not fully
    reflect the required efforts to routinely execute our therapy in
    their practices.
</DIV>
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    <BR>
    8
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If insurance companies do not cover our products, or government
    payors reduce the amounts of coverage or stop covering our
    products which are covered, our sales could be dramatically
    reduced.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Litigation
    Is Expensive And We May Not Be Able To Afford The
    Costs.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The costs of litigation or any proceeding relating to our
    intellectual property or contractual rights could be substantial
    even if resolved in our favor. Some of our competitors have far
    greater resources than we do and may be better able to afford
    the costs of complex litigation. Also, in a lawsuit against a
    third party for infringement of our patents in the United
    States, that third party may challenge the validity of our
    patent(s). We cannot guarantee that a third party will not
    claim, with or without merit, that our patents are not valid or
    that we have infringed their patent(s) or misappropriated their
    proprietary material. We could get drawn into or decide to join,
    litigation as the holder of the patent. Defending these types of
    legal actions involve considerable expense and could negatively
    affect our financial results.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Additionally, if a third-party were to file a United States
    patent application, or be issued a patent claiming technology
    also claimed by us in a pending United States application(s), we
    may be required to participate in interference proceedings in
    the USPTO to determine the priority of the invention. A
    third-party could also request the declaration of a patent
    interference between one of our issued United States patents and
    one of its patent applications. Any interference proceedings
    likely would require participation by us
    <FONT style="white-space: nowrap">and/or</FONT>
    PARTEQ, which could involve substantial legal fees and result in
    a loss or lessening of our patent protection.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Because
    Of The Nature Of Our Business, The Loss Of Key Members Of Our
    Management Team Could Delay Achievement Of Our
    Goals.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We are a small company with only 93&#160;employees, including
    1&#160;part-time employee, as of June&#160;30, 2011. We are
    highly dependent on several key officer/employees with
    specialized scientific and technical skills without whom our
    business, financial condition and results of operations would
    suffer, especially in the photodynamic therapy portion of our
    business. The photodynamic therapy industry is still quite small
    and the number of experts is limited. The loss of these key
    employees could cause significant delays in achievement of our
    business and research goals since very few people with their
    expertise could be hired. Our growth and future success will
    depend, in large part, on the continued contributions of these
    key individuals as well as our ability to motivate and retain
    other qualified personnel in our specialty drug and light device
    areas.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Collaborations
    With Outside Scientists May Be Subject To Restriction And
    Change.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We work with scientific and clinical advisors and collaborators
    at academic and other institutions that assist us in our
    research and development efforts. These scientists and advisors
    are not our employees and may have other commitments that limit
    their availability to us. Although our advisors and
    collaborators generally agree not to do competing work, if a
    conflict of interest between their work for us and their work
    for another entity arises, we may lose their services. In
    addition, although our advisors and collaborators sign
    agreements not to disclose our confidential information, it is
    possible that valuable proprietary knowledge may become publicly
    known through them.
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Risks
    Related To Our Industry</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Product
    Liability And Other Claims Against Us May Reduce Demand For Our
    Products Or Result In Damages.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <I><FONT style="font-family: 'Times New Roman', Times">We Are
    Subject To Risk From Potential Product Liability Lawsuits Which
    Could Negatively Affect Our Business.</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The development, manufacture and sale of medical products expose
    us to product liability claims related to the use or misuse of
    our products. Product liability claims can be expensive to
    defend and may result in significant judgments against us. A
    successful claim could materially harm our business, financial
    condition and results of
</DIV>
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    <BR>
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    operations. Additionally, we cannot guarantee that continued
    product liability insurance coverage will be available in the
    future at acceptable costs. If we believe the cost of coverage
    is too high, we may self-insure.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <I><FONT style="font-family: 'Times New Roman', Times">Our
    Business Involves Environmental Risks And We May Incur
    Significant Costs Complying With Environmental Laws And
    Regulations.</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We have used various hazardous materials, such as mercury in
    fluorescent tubes in our research and development activities. We
    are subject to federal, state and local laws and regulations
    which govern the use, manufacture, storage, handling and
    disposal of hazardous materials and specific waste products. We
    believe that we are in compliance in all material respects with
    currently applicable environmental laws and regulations.
    However, we cannot guarantee that we will not incur significant
    costs to comply with environmental laws and regulations in the
    future. We also cannot guarantee that current or future
    environmental laws or regulations will not materially adversely
    affect our operations, business or financial condition. In
    addition, although we believe our safety procedures for handling
    and disposing of these materials comply with federal, state and
    local laws and regulations, we cannot completely eliminate the
    risk of accidental contamination or injury from these materials.
    In the event of such an accident, we could be held liable for
    any resulting damages, and this liability could exceed our
    resources.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">We May
    Not Be Able To Compete Against Traditional Treatment Methods Or
    Keep Up With Rapid Changes In The Biotechnology And
    Pharmaceutical Industries That Could Make Some Or All Of Our
    Products Non-Competitive Or Obsolete.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <I><FONT style="font-family: 'Times New Roman', Times">Competing
    Products And Technologies Based On Traditional Treatment Methods
    May Make Our Products Or Potential Products Noncompetitive Or
    Obsolete.</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Well-known pharmaceutical, biotechnology and medical device
    companies are marketing well-established therapies for the
    treatment of AKs and acne. Doctors may prefer to use familiar
    methods, rather than trying our products. Reimbursement issues
    affect the economic competitiveness of our products as compared
    to other more traditional therapies.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Many companies are also seeking to develop new products and
    technologies, and receiving approval for treatment of AKs and
    acne. Our industry is subject to rapid, unpredictable and
    significant technological change. Competition is intense. Our
    competitors may succeed in developing products that are safer,
    more effective or more desirable than ours. Many of our
    competitors have substantially greater financial, technical and
    marketing resources than we have. In addition, several of these
    companies have significantly greater experience than we do in
    developing products, conducting preclinical and clinical testing
    and obtaining regulatory approvals to market products for health
    care.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We cannot guarantee that new drugs or future developments in
    drug technologies will not have a material adverse effect on our
    business. Increased competition could result in:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    price reductions,
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    lower levels of third-party reimbursements,
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    failure to achieve market acceptance,&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    loss of market share,
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    any of which could adversely affect our business, results of
    operations and financial condition.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Further, we cannot give any assurance that developments by our
    competitors or future competitors will not render our technology
    obsolete or less advantageous.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Galderma, S.A., a large dermatology company, holds a
    non-exclusive license from us to
    Metvixia<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>,

    which was transferred to Galderma by Photocure ASA, our original
    licensee. This product received FDA approval for treatment of
    AKs in July 2004 and is directly competitive with our
    Levulan<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    Kerastick<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    product and its price is comparable to the price of
    Levulan<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>.

    While we are entitled to royalties on net sales of
    Metvixia<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>,

    Galderma
</DIV>
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    <BR>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    has considerably more resources than we have, which could
    significantly hamper our ability to maintain or increase our
    market share. Metvixia&#146;s U.S.&#160;product revenues have
    not been significant to date.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <I><FONT style="font-family: 'Times New Roman', Times">Our
    Competitors In The Biotechnology And Pharmaceutical Industries
    May Have Better Products, Manufacturing Capabilities Or
    Marketing Expertise.</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We are aware of several companies commercializing
    <FONT style="white-space: nowrap">and/or</FONT>
    conducting research with ALA or ALA-related compounds,
    including: Galderma, medac GmbH and photonamic GmbH&#160;&#038;
    Co. KG (Germany); Biofrontera, PhotoTherapeutics, Inc. (U.K.),
    and Photocure ASA (Norway). We also anticipate that we will face
    increased competition as the scientific development of PDT
    advances and new companies enter our markets. Several companies
    are developing PDT agents other than
    Levulan<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>.

    These include: QLT Inc. (Canada); Axcan Pharma Inc. (U.S.);
    Miravant, Inc. (U.S.); Leo Pharma A/S (Denmark), and
    Pharmacyclics, Inc. (U.S.). There are many pharmaceutical
    companies that compete with us in the field of dermatology,
    particularly in the acne market.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We expect that our principal methods of competition with other
    PDT products will be based upon such factors as:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the ease of administration of our method of PDT,
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the degree of generalized skin sensitivity to light,
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the number of required doses,
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the selectivity of our drug for the target lesion or tissue of
    interest,&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the type and cost of our light systems.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Our primary competition in the acne market includes oral and
    topical antibiotics, other topical prescription and
    <FONT style="white-space: nowrap">over-the-counter</FONT>
    products, as well as various laser and non-laser light
    treatments. The market is highly competitive and other large and
    small companies have more experience than we do which could make
    it difficult for us to penetrate the market. The entry of new
    products from time to time would likely cause us to lose market
    share.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Risks
    Related To Our Stock</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    Stock Price Is Highly Volatile And Sudden Changes In The Market
    Value Of Our Stock Occur Making An Investment
    Risky.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The price of our common stock has been highly volatile, which
    may create an increase in the risk of capital losses for our
    shareholders. From January&#160;1, 2010 to June&#160;30, 2011,
    the closing price of our stock has ranged from a low of $1.35 to
    a high of $6.77. The significant general market volatility in
    similar stage pharmaceutical and biotechnology companies also
    made the market price of our stock volatile.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Significant
    Fluctuations In Orders For Our Products, On A Monthly And
    Quarterly Basis, Are Commonly Based On External Factors And
    Sales Promotion Activities. These Fluctuations Could Increase
    The Volatility Of Our Stock Price.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The price of our common stock may be affected by the amount of
    quarterly shipments of our products to end-users. Since our PDT
    products are still in relatively early stages of adoption, and
    sales volumes are still low, a number of factors could affect
    product sales levels and growth rates in any period. These could
    include the level of penetration in new markets outside of the
    United States, the timing of medical conferences, sales
    promotion activities, and large volume purchases by our higher
    usage customers. In addition, seasonal fluctuations in the
    number of patients seeking treatment at various times during the
    year could impact sales volumes. These factors could, in turn,
    affect the volatility of our stock price.
</DIV>
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    <B><I><FONT style="font-family: 'Times New Roman', Times">Future
    Sales Of Securities May Cause Our Stock Price To
    Decline.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    As of June&#160;30, 2011, there were outstanding options and
    warrants to purchase 3,981,000&#160;shares of common stock, with
    exercise prices ranging from $1.10 to $15.90 per share for
    options, and $2.85 per share for warrants. In addition, there
    were approximately 901,000&#160;shares of unvested common stock.
    The holders of the options and warrants have the opportunity to
    profit if the market price for the common stock exceeds the
    exercise price of their respective securities, without assuming
    the risk of ownership. Also, if some or all of such shares are
    sold into the public market over a short period of time, the
    value of all publicly traded shares could decline, as the market
    may not be able to absorb those shares at then-current market
    prices. Additionally, such sales may make it more difficult for
    us to sell equity securities or equity-related securities in the
    future at a time and price that our management deems acceptable,
    or at all. The holders may exercise their securities during a
    time when we would likely be able to raise capital from the
    public on terms more favorable than those provided in these
    securities.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Our
    Common Stock May Not Continue To Trade On The Nasdaq Global
    Market, Which Could Reduce The Value Of Your Investment And Make
    Your Shares&#160;More Difficult To Sell.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In order for our common stock to trade on the Nasdaq Global
    Market, we must continue to meet the listing standards of that
    market. Among other things, those standards require that our
    common stock maintain a minimum closing bid price of at least
    $1.00 per share. During 2009 and 2010, our common stock traded
    at prices near and below $1.00. If we do not continue to meet
    Nasdaq&#146;s applicable minimum listing standards, Nasdaq could
    delist us from the Nasdaq Global Market. If our common stock is
    delisted from the Nasdaq Global Market, we could seek to have
    our common stock listed on the Nasdaq Capital Market or other
    Nasdaq markets. However, delisting of our common stock from the
    Nasdaq Global Market could hinder your ability to sell, or
    obtain an accurate quotation for the price of, your shares of
    our common stock. Delisting could also adversely affect the
    perception among investors of DUSA and its prospects, which
    could lead to further declines in the market price of our common
    stock. Delisting may also make it more difficult and expensive
    for us to raise capital. In addition, delisting might subject us
    to a Securities and Exchange Commission rule that could
    adversely affect the ability of broker-dealers to sell or make a
    market in our common stock, thus hindering your ability to sell
    your shares.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Effecting
    A Change Of Control Of DUSA Would Be Difficult, Which May
    Discourage Offers For Shares&#160;Of Our Common
    Stock.</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Our certificate of incorporation authorizes the board of
    directors to issue up to 100,000,000&#160;shares of stock,
    40,000,000 of which are common stock. The board of directors has
    the authority to determine the price, rights, preferences and
    privileges, including voting rights, of the remaining
    60,000,000&#160;shares without any further vote or action by the
    shareholders. The rights of the holders of our common stock will
    be subject to, and may be adversely affected by, the rights of
    the holders of any preferred stock that may be issued in the
    future.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    On September&#160;27, 2002, we adopted a shareholder rights plan
    at a special meeting of our board of directors. The rights plan
    could discourage, delay or prevent a person or group from
    acquiring 15% or more of our common stock, thereby limiting,
    perhaps, the ability of certain of our shareholders to benefit
    from such a transaction.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The rights plan provides for the distribution of one right as a
    dividend for each outstanding share of our common stock to
    holders of record as of October&#160;10, 2002. Each right
    entitles the registered holder to purchase one one-thousandths
    of a share of preferred stock at an exercise price of $37.00 per
    right. The rights will be exercisable subsequent to the date
    that a person or group either has acquired, obtained the right
    to acquire, or commences or discloses an intention to commence a
    tender offer to acquire, 15% or more of our outstanding common
    stock or if a person or group is declared an &#147;Adverse
    Person&#148;, as such term is defined in the rights plan. The
    rights may be redeemed by us at a redemption price of one
    one-hundredth of a cent per right until ten days following the
    date the person or group acquires, or discloses an intention to
    acquire, 15%
</DIV>
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    or more, as the case may be, of DUSA, or until such later date
    as may be determined by our board of directors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Under the rights plan, if a person or group acquires the
    threshold amount of common stock, all holders of rights (other
    than the acquiring person or group) may, upon payment of the
    purchase price then in effect, purchase shares of common stock
    of DUSA having a value of twice the purchase price. In the event
    that we are involved in a merger or other similar transaction
    where we are not the surviving corporation, all holders of
    rights (other than the acquiring person or group) shall be
    entitled, upon payment of the purchase price then in effect, to
    purchase common stock of the surviving corporation having a
    value of twice the purchase price. The rights will expire on
    October&#160;10, 2012, unless previously redeemed. Our board of
    directors has also adopted certain amendments to our certificate
    of incorporation consistent with the terms of the rights plan.
</DIV>

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<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">SPECIAL
    NOTE&#160;REGARDING FORWARD-LOOKING STATEMENTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    This registration statement contains various
    &#147;forward-looking statements&#148; within the meaning of
    Section&#160;27A of the Securities Act of 1933 and 21E of the
    Securities Exchange Act of 1934 which represent our expectations
    or beliefs concerning future events, including, but not limited
    to our intention to announce a price increase on an annual basis
    in the fourth quarter of each year; our beliefs regarding
    reimbursement for our products and the effect of changes to
    reimbursement policies; our beliefs regarding the global credit
    and financial market conditions, the softness in the
    international markets, effects of inflation and the economic
    recovery; our beliefs regarding interest rate and foreign
    currency exchange rate fluctuations; our beliefs concerning
    Non-PDT products revenues; our expectations regarding general
    and administrative costs; our beliefs regarding the sufficiency
    of our cash, cash equivalents and marketable securities, our
    liquidity and capital resource needs and our ability to be
    profitable each quarter; our expectations regarding potential
    for reduction of headcount, curtailment of variable expenses and
    the affect of fluctuations in the demand for our product; our
    beliefs regarding our ability to raise funds through financing
    transactions and on reasonable terms and the impact of such
    future sales of securities; our beliefs regarding the outcome if
    some or all of our shares are sold into the public market over a
    short period of time; our beliefs regarding our research and
    development programs and expectations for costs thereof; our
    beliefs regarding regulatory approvals, filings and timelines,
    including but not limited to the future development of
    Levulan<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    and our expectations regarding the initiation of objectives and
    timing of our BASDI clinical trial; our expectations regarding
    our manufacturing facility or any facility of our contract
    manufacturers, including but not limited to expectations
    concerning manufacture of the
    BLU-U<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    in our facility; our beliefs regarding our manufacturing
    capabilities and impact on our business if problems arise; our
    beliefs regarding compliance with and changes to governmental
    laws and regulations; our beliefs concerning product liability
    and insurance thereof, safety procedures for hazardous materials
    and environmental compliance; our beliefs regarding the market
    for our products and our product candidates and the growth in
    our PDT segments revenues and beliefs regarding improved gross
    margins on the
    Kerastick<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>

    and low margins on BLU-U
    <SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>;

    our beliefs regarding competitive products and their impact on
    our market share expectations regarding short-dated inventory in
    Korea and impact on revenues; our beliefs regarding off-label
    use; our expectations regarding the confidentiality of our
    proprietary information; our ability and intentions to obtain,
    secure, defend and enforce our patents and our beliefs regarding
    the financial impact thereof; our beliefs concerning patent
    disputes or patents issued to third parties and potential
    litigation and cost thereof; our beliefs regarding the impact of
    a third-party&#146;s regulatory compliance status and
    fulfillment of contractual obligations; our expectations
    regarding the adequacy and availability of insurance; our
    expectations regarding sales and marketing costs and efforts;
    our beliefs regarding the dependence on key personnel; our
    intention to pursue licensing, marketing, co-promotion, other
    arrangements, additional business or new technologies and our
    beliefs regarding collaborations; our beliefs regarding the
    impact of our rights plan; our beliefs regarding the volatility
    of our stock price and its impact on value of warrants and our
    Nasdaq Global Market listing; our beliefs regarding
    Section&#160;382 on our current and future NOLs and our ability
    to use net operating loss carryforwards and tax credit
    carryforwards to offset future taxable income and the impact of
    a future ownership change or change of control on the
    utilization by us of such NOLs and the possibility of payment of
    income tax in the near-term. These forward-looking statements
    are further qualified by important factors that could cause
    actual results to differ materially from those in the
    forward-looking statements. These factors
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    include, without limitation, changing market and regulatory
    conditions, actual clinical results of our trials, the impact of
    competitive products and pricing, the timely development, FDA
    and foreign regulatory approval, and market acceptance of our
    products, environmental risks relating to our products, reliance
    on third-parties for the production, manufacture, sales and
    marketing of our products, the availability of products for
    acquisition
    <FONT style="white-space: nowrap">and/or</FONT>
    license on terms agreeable to us, sufficient sources of funds,
    the securities regulatory process, the maintenance of our patent
    portfolio and ability to obtain competitive levels of
    reimbursement by third-party payors, none of which can be
    assured. Results actually achieved may differ materially from
    expected results included in these statements as a result of
    these or other factors.
</DIV>

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<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">USE OF
    PROCEEDS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    DUSA will not receive any proceeds from the sale of shares of
    Common Stock which may be sold pursuant to this prospectus for
    the respective accounts of the selling securityholders. All such
    proceeds, net of brokerage commissions, if any, will be received
    by the selling securityholders. See the sections titled
    &#147;Selling Securityholders&#148; and &#147;Plan of
    Distribution.&#148;
</DIV>

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<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">SELLING
    SECURITYHOLDERS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    This prospectus relates to the shares of Common Stock that are
    being registered for resale by the selling securityholders
    listed below. All of these shares were acquired pursuant to the
    2011 Plan. The selling securityholders may resell any or all of
    these shares at any time they choose and from time to time,
    while this prospectus is effective. The selling securityholders
    may also sell, transfer or otherwise dispose of some or all of
    their shares in transactions exempt from the registration
    requirements of the Securities Act. Although a person&#146;s
    name is included in the table below, neither that person nor we
    are making an admission that the named person is our
    &#147;affiliate.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The following table is a list, as of August&#160;1, 2011, of the
    selling securityholders and the number of shares beneficially
    owned by each selling securityholder. The number of shares in
    the column &#147;Number of Shares&#160;Owned&#148; represents
    the total number of shares that a selling securityholder
    currently owns or has the right to acquire within sixty
    (60)&#160;days of August&#160;1, 2011. The number of shares in
    the columns &#147;Number of Shares to be Offered&#148; represent
    all of the shares that a selling securityholder may offer under
    this prospectus. The table and footnotes assume that the selling
    securityholders will sell all of such shares. However, because
    the selling securityholders may sell all or some of their shares
    under this prospectus from time to time, or in another permitted
    manner, we cannot assure you as to the actual number of shares
    that will be sold by the selling securityholders or that will be
    held by the selling securityholders after completion of any
    sales. We do not know how long the selling securityholders will
    hold the shares before selling them. Information concerning the
    selling securityholders may change from time to time and changed
    information will be presented in a supplement to this prospectus
    if and when necessary and required. Beneficial ownership is
    determined in accordance with
    <FONT style="white-space: nowrap">Rule&#160;13d-3(d)</FONT>
    promulgated by the SEC under the Securities Exchange Act of
    1934, as amended (the &#147;Exchange Act&#148;).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="47%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Percentage of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Shares<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Shares to be<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Shares Owned<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Shares Owned<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Name</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Owned</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Offered(1)(2)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>After Offering</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>After Offering</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Alfred Altomari(3)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    *
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    David M. Bartash 4)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    126,250
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    124,250
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    *
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Alexander W. Casdin(5)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    237,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    235,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    *
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Jay M. Haft(6)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    144,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    142,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    *
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Paul J. Hondros(7)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    *
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Magnus Moliteus(8)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    90,750
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    88,750
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    *
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    David M. Wurzer(9)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    *
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    *&#160;</TD>
    <TD></TD>
    <TD valign="bottom">
    Less than one percent.</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    14
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#Y92206tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    For each individual, these shares represent 2,000 vested shares
    granted under the 2011 Plan. In addition, each individual has
    rights to 6,000 unvested restricted shares granted under the
    2011 Plan which shall vest in the amount of 2,000&#160;shares on
    each of the first, second and third anniversaries of the date of
    the grant, i.e., June&#160;30, 2012, 2013 and 2014.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    Does not constitute a commitment to sell any or all of the
    stated number of shares of Common Stock. The number of shares
    offered shall be determined from time to time by each selling
    securityholder at their sole discretion.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (3) </TD>
    <TD></TD>
    <TD valign="bottom">
    Mr.&#160;Altomari has served as a director since July 2010.
    Beneficial ownership includes 4,000&#160;shares of Common Stock
    and 15,000&#160;shares of Common Stock underlying vested stock
    options granted to Mr.&#160;Altomari. The number of shares
    beneficially owned does not include 6,000 restricted shares of
    Common Stock granted to Mr.&#160;Altomari which will vest more
    than sixty (60)&#160;days after August&#160;1, 2011.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (4) </TD>
    <TD></TD>
    <TD valign="bottom">
    Mr.&#160;Bartash has served as a director since November 2001.
    Beneficial ownership includes 21,250&#160;shares of Common Stock
    and 105,000&#160;shares of Common Stock underlying vested stock
    options granted to Mr.&#160;Bartash. The number of shares
    beneficially owned does not include 9,750 restricted shares of
    Common Stock granted to Mr.&#160;Bartash which will vest more
    than sixty (60)&#160;days after August&#160;1, 2011.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (5) </TD>
    <TD></TD>
    <TD valign="bottom">
    Mr.&#160;Casdin has served as a director since January 2009.
    Beneficial ownership includes 202,000&#160;shares of Common
    Stock and 35,000&#160;shares of Common Stock underlying vested
    stock options granted to Mr.&#160;Casdin. The number of shares
    beneficially owned does not include 6,000 restricted shares of
    Common Stock granted to Mr.&#160;Casdin which will vest more
    than sixty (60)&#160;days after August&#160;1, 2011.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (6) </TD>
    <TD></TD>
    <TD valign="bottom">
    Mr.&#160;Haft has served as the Chairman of the Board of
    Directors since December 2008. He has served as a director since
    September 1996 and has also served as Chairman of the Board from
    June 2003 to December 2004 and as Vice Chairman of the Board and
    Lead Director from December 2004 to December 2008. Beneficial
    ownership includes 54,000&#160;shares of Common Stock and
    90,000&#160;shares of Common Stock underlying vested stock
    options granted to Mr.&#160;Haft. The number of shares
    beneficially owned does not include 13,500 restricted shares of
    Common Stock granted to Mr.&#160;Haft which will vest more than
    sixty (60)&#160;days after August&#160;1, 2011. Under
    <FONT style="white-space: nowrap">Rule&#160;13d-3</FONT>
    of the Securities and Exchange Act of 1934, as amended,
    Mr.&#160;Haft disclaims, but may be deemed to be the beneficial
    owner of, 34,500&#160;shares of Common Stock held indirectly by
    Mr.&#160;Haft&#146;s spouse.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (7) </TD>
    <TD></TD>
    <TD valign="bottom">
    Mr.&#160;Hondros has served as a director since July 2010.
    Beneficial ownership includes 2,000&#160;shares of Common Stock
    and 15,000&#160;shares of Common Stock underlying vested stock
    options granted to Mr.&#160;Hondros. The number of shares
    beneficially owned does not include 6,000 restricted shares of
    Common Stock granted to Mr.&#160;Hondros which will vest more
    than sixty (60)&#160;days after August&#160;1, 2011.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (8) </TD>
    <TD></TD>
    <TD valign="bottom">
    Mr.&#160;Moliteus has served as a director since August 2003.
    Beneficial ownership includes 40,750&#160;shares of Common Stock
    and 50,000&#160;shares of Common Stock underlying vested stock
    options granted to Mr.&#160;Moliteus. The number of shares
    beneficially owned does not include 9,750 restricted shares of
    Common Stock granted to Mr.&#160;Moliteus which will vest more
    than sixty (60)&#160;days after August&#160;1, 2011.</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    (9) </TD>
    <TD></TD>
    <TD valign="bottom">
    Mr.&#160;Wurzer has served as a director since July 2010.
    Beneficial ownership includes 7,000&#160;shares of Common Stock
    and 15,000&#160;shares of Common Stock underlying vested stock
    options granted to Mr.&#160;Wurzer. The number of shares
    beneficially owned does not include restricted 6,000&#160;shares
    of Common Stock granted to Mr.&#160;Wurzer which will vest more
    than sixty (60)&#160;days after August&#160;1, 2011.</TD>
</TR>

</TABLE>

<A name='Y92206106'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">PLAN OF
    DISTRIBUTION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Shares offered hereby may be sold from time to time directly by
    or on behalf of the selling securityholders in one or more
    transactions on the Nasdaq Global Market or on any stock
    exchange on which the Common Stock may be listed at the time of
    sale, in privately negotiated transactions, or through a
    combination of such methods, at market prices prevailing at the
    time of sale, at prices related to such prevailing market
    prices, at fixed prices (which may be changed) or at negotiated
    prices. The selling securityholders may sell shares through one
    or more agents, brokers or dealers or directly to purchasers.
    Such brokers or dealers may receive compensation in the form of
    commissions, discounts or concessions from the
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    15
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#Y92206tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    selling securityholders
    <FONT style="white-space: nowrap">and/or</FONT>
    purchasers of the shares or both (which compensation as to a
    particular broker or dealer may be in excess of customary
    commissions).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In connection with such sales, the selling securityholders and
    any participating broker or dealer may be deemed to be
    &#147;underwriters&#148; within the meaning of the Securities
    Act, and any commissions they receive and the proceeds of any
    sale of shares may be deemed to be underwriting discounts and
    commissions under the Securities Act.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In order to comply with certain state securities laws, if
    applicable, the shares may be sold in such jurisdictions only
    through registered or licensed brokers or dealers. In certain
    states, the shares may not be sold unless the shares have been
    registered or qualified for sale in such state or an exemption
    from regulation or qualification is available and is complied
    with. Sales of shares must also be made by the selling
    securityholders in compliance with all other applicable state
    securities laws and regulations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In addition to any shares sold hereunder, selling
    securityholders may, at the same time, sell any shares of Common
    Stock owned by them in compliance with all of the requirements
    of Rule&#160;144, regardless of whether such shares are covered
    by this reoffer prospectus. There can be no assurance that any
    of the selling securityholders will sell any or all of the
    shares offered by them hereby.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    DUSA will pay all expenses of the registration of the shares.
    DUSA has notified certain selling securityholders of the need to
    deliver a copy of this reoffer prospectus in connection with any
    sale of the shares.
</DIV>

<A name='Y92206107'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">LEGAL
    MATTERS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The validity of the shares being offered hereby has been passed
    upon for DUSA by Reed Smith LLP. Nanette W. Mantell,&#160;Esq.,
    a partner of Reed Smith LLP, serves as DUSA&#146;s Secretary,
    which is an officer position.
</DIV>

<A name='Y92206108'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">EXPERTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The consolidated financial statements, incorporated in this
    prospectus by reference from the Company&#146;s Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2010, have been audited by
    Deloitte&#160;&#038; Touche LLP, an independent registered
    public accounting firm, as stated in their report, which is
    incorporated herein by reference. Such financial statements have
    been so incorporated in reliance upon the report of such firm
    given upon their authority as experts in accounting and auditing.
</DIV>

<A name='Y92206109'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">WHERE YOU
    CAN FIND MORE INFORMATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We have filed with the SEC a registration statement on
    <FONT style="white-space: nowrap">Form&#160;S-8</FONT>
    under the Securities Act with respect to the shares of Common
    Stock offered hereby. This prospectus does not contain all of
    the information set forth in the registration statement and the
    exhibits thereto. You can find additional information regarding
    us and the Common Stock in the registration statement and the
    exhibits. Statements contained in this prospectus regarding the
    contents of any contract or any other document to which
    reference is made are not necessarily complete, and, in each
    instance where a copy of such contract or other document has
    been filed as an exhibit to the registration statement,
    reference is made to the copy so filed, each such statement
    being qualified in all respects by such reference.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We are subject to the informational requirements of the Exchange
    Act, and, in accordance therewith, file reports and other
    information with the SEC. The registration statement, including
    exhibits, and the reports and other information filed by us can
    be inspected without charge at the public reference facilities
    maintained by the SEC at the SEC&#146;s public reference room at
    100&#160;F&#160;Street, N.E., Washington,&#160;D.C. 20549.
    Copies of such material can be obtained from such offices at
    fees prescribed by the SEC. The public may obtain information on
    the operation of the Public Reference room by calling the SEC at
    <FONT style="white-space: nowrap">1-800-SEC-0330.</FONT>
    The SEC maintains a World Wide Web site that contains reports,
    proxy and information statements and other information regarding
</DIV>
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    <BR>
    16
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    registrants that file electronically with the SEC. The address
    of this site is
    <FONT style="white-space: nowrap">http://www.sec.gov.</FONT>
    In addition, you can also access documents we file with the SEC
    at our website,
    <FONT style="white-space: nowrap">http://www.dusapharma.com,</FONT>
    which is not a part of this prospectus and is not incorporated
    herein by reference.
</DIV>

<A name='Y92206110'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">INCORPORATION
    OF CERTAIN DOCUMENTS BY REFERENCE</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The following documents, which have been filed by us with the
    SEC pursuant to the Exchange Act, are incorporated by reference
    in this prospectus as of their respective dates:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (a)&#160;Our Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2010;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (b)&#160;Our Quarterly Reports on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarter ended March&#160;31, 2011 and June&#160;30, 2011;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (c)&#160;Our Schedule&#160;14A filed with the SEC on
    April&#160;19, 2011;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (d)&#160;Our Current Reports on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed with the SEC on June, 10, 2011 and July&#160;1, 2011;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (e)&#160;The description of DUSA&#146;s Common Stock contained
    in its registration statement on
    <FONT style="white-space: nowrap">Form&#160;8-A</FONT>
    which was filed on January&#160;3, 1992 and amended on
    <FONT style="white-space: nowrap">Form&#160;8-A</FONT>
    filed on October&#160;24, 1997, and in DUSA&#146;s Quarterly
    Report on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    which was filed on November&#160;12, 1997.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    All documents filed by us pursuant to Section&#160;13(a), 13(c),
    14 and 15(d) of the Exchange Act after the date hereof and prior
    to the termination of the offering, shall be deemed to be
    incorporated by reference into this prospectus and to be a part
    hereof from the date of filing of such documents. Any statement
    contained in a document incorporated or deemed to be
    incorporated herein by reference shall be deemed to be modified
    or superseded for purposes of this prospectus to the extent that
    a statement contained herein or in any other subsequently filed
    document which also is or is deemed to be incorporated by
    reference herein modifies or supersedes such statement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We will provide without charge to any person, including any
    beneficial owner, to whom this prospectus is delivered, upon
    written or oral request of such person, a copy of each document
    incorporated by reference in the prospectus (other than exhibits
    to such documents unless such exhibits are specifically
    incorporated by reference into this prospectus). We will provide
    such copies at no cost, upon written or oral request, by writing
    or telephoning us at:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>DUSA Pharmaceuticals, Inc.</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>25 Upton Drive</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>Wilmington, Massachusetts 01887</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>Attention: Mr.&#160;Richard Christopher</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>Telephone:
    <FONT style="white-space: nowrap">(978)&#160;657-7500</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>Attention: Mr.&#160;Richard Christopher</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="white-space: nowrap">E-mail</FONT>
    to: ChristopherR@DusaPharma.com</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Our World Wide Web site is located at www.dusapharma.com.
    Information on the Web site is not incorporated by reference
    into this prospectus.
</DIV>
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    <BR>
    17
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<CENTER><DIV style="font-size: 1pt; width: 100%; border-bottom: 2pt solid #000000"></DIV></CENTER>

<CENTER><DIV style="font-size: 1pt; width: 100%; border-bottom: 1pt solid #000000"></DIV></CENTER>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 14pt">14,000&#160;Shares</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 24pt">DUSA</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 24pt">PHARMACEUTICALS, INC.</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 14pt">Common Stock</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 12pt">
    <FONT style="word-spacing: 100pt; white-space: nowrap; font-size: 1pt; color: #000000"><U>&#173;
    &#173;</U></FONT></FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 12pt">PROSPECTUS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<CENTER><DIV style="font-size: 1pt; width: 14%; border-bottom: 1pt solid #000000"></DIV></CENTER>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    August&#160;&#160;&#160;, 2011
</DIV>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<CENTER><DIV style="font-size: 1pt; width: 100%; border-bottom: 1pt solid #000000"></DIV></CENTER>

<CENTER><DIV style="font-size: 1pt; width: 100%; border-bottom: 2pt solid #000000"></DIV></CENTER>
<!-- XBRL Pagebreak Begin -->

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#Y92206tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">PART&#160;II<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">INFORMATION
    REQUIRED TO BE IN THE REGISTRATION STATEMENT</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">ITEM&#160;3.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Incorporation
    of Documents by Reference</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The following documents, which have been filed by us with the
    SEC pursuant to the Exchange Act, are incorporated by reference
    in this registration statement as of their respective dates:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (a)&#160;Our Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2010;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (b)&#160;Our Quarterly Reports on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarters ended March&#160;31, 2011 and June&#160;30,
    2011;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (c)&#160;Our Schedule&#160;14A filed with the SEC on
    April&#160;19, 2011;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (d)&#160;Our Current Reports on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed with the SEC on June, 10, 2011 and July&#160;1, 2011;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (e)&#160;The description of DUSA&#146;s Common Stock contained
    in its registration statement on
    <FONT style="white-space: nowrap">Form&#160;8-A</FONT>
    which was filed on January&#160;3, 1992 and amended on
    <FONT style="white-space: nowrap">Form&#160;8-A</FONT>
    filed on October&#160;24, 1997, and in DUSA&#146;s Quarterly
    Report on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    which was filed on November&#160;12, 1997.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    All documents filed by us pursuant to Section&#160;13(a), 13(c),
    14 and 15(d) of the Exchange Act after the date hereof and prior
    to the termination of the offering, shall be deemed to be
    incorporated by reference into this registration statement and
    to be a part hereof from the date of filing of such documents.
    Any statement contained in a document incorporated or deemed to
    be incorporated herein by reference shall be deemed to be
    modified or superseded for purposes of this registration
    statement to the extent that a statement contained herein or in
    any other subsequently filed document which also is or is deemed
    to be incorporated by reference herein modifies or supersedes
    such statement.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">ITEM&#160;4.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Description
    of Securities</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Not applicable.
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">ITEM&#160;5.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Interests
    of Named Experts and Counsel</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Not applicable.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">ITEM&#160;6.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Indemnification
    of Directors and Officers</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The New Jersey Business Corporation Act provides that a New
    Jersey corporation has the power to indemnify a director or
    officer against his expenses and liabilities in connection with
    any proceeding involving the director or officer by reason of
    his being or having been such a director or officer, other than
    a proceeding by or in the right of the corporation, if such a
    director or officer acted in good faith and in a manner he
    reasonably believed to be in or not opposed to the best
    interests of the corporation; and with respect to any criminal
    proceeding, such director or officer had no reasonable cause to
    believe his conduct was unlawful.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The indemnification and advancement of expenses shall not
    exclude any other rights, including the right to be indemnified
    against liabilities and expenses incurred in proceedings by or
    in the right of the corporation, to which a director or officer
    may be entitled under a certificate of incorporation, bylaw,
    agreement, vote of shareholders, or otherwise; provided that no
    indemnification shall be made to or on behalf of a director or
    officer if a judgment or other final adjudication adverse to the
    director or officer establishes that his acts or omissions
    (a)&#160;were in breach of his duty of loyalty to the
    corporation or its shareholders, (b)&#160;were not in good faith
    or involved a knowing violation of law or (c)&#160;resulted in
    receipt by the director or officer of an improper personal
    benefit.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Article&#160;5 of the Company&#146;s Certificate of
    Incorporation, as amended, provides that any director and
    officer of the Corporation shall not be personally liable to the
    Corporation or its shareholders for damages for breach of any
    duty owed to the Corporation or its shareholders, except that
    this provision shall not relieve a director or officer from
    liability for any breach of duty based upon an act or omission
    (a)&#160;in breach of such person&#146;s duty of loyalty to the
    Corporation or its shareholders; (b)&#160;not in good faith or
    involving a knowing violation of law; or (c)&#160;resulting in
    receipt by such person of an improper personal benefit.
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    II-1
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#Y92206tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company&#146;s By-laws, as amended, pursuant to the New
    Jersey Business Corporation Act, N.J.S.A. 14A:3-5, provide that
    a former, present or future director, officer, trustee or
    employee of the Company or of any constituent corporation
    absorbed by the Corporation in a consolidation or merger or the
    legal representative of any such director, officer, trustee or
    employee or agent of any constituent corporation absorbed by the
    Corporation in a consolidation or merger shall be indemnified by
    the Company as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (a)&#160;against expenses, costs, disbursements (including
    attorneys&#146; fees), judgments, fines and amounts actually and
    reasonably incurred by him in good faith and in connection with
    such action, suit or proceeding if he acted in a manner he
    reasonably believed to be in or not opposed to the best
    interests of the Corporation, and with respect to any criminal
    action or proceeding, he had no reasonable cause to believe that
    his conduct was unlawful. The termination of any action, suit or
    proceeding by judgment, order, settlement, conviction, or upon a
    plea of <U>nolo contendere</U> or its equivalent, shall not, of
    itself, create a presumption that the person did not meet the
    applicable standard of conduct,&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (b)&#160;against expenses (including attorneys&#146; fees)
    actually and reasonably incurred by him in connection with the
    defense or settlement of such action or suit if he acted in good
    faith and in a manner he reasonably believed to be in or not
    opposed to the best interests of the Corporation and except that
    no indemnification shall be made in respect of any claim, issue
    or matter as to which such person shall have been adjudged to be
    liable to the Corporation unless and only to the extent that the
    New Jersey Superior Court or the court in which such action or
    suit was brought shall determine upon application that, despite
    the adjudication of liability but in view of all the
    circumstances of the case, such person is fairly and reasonably
    entitled to indemnity for such expenses which the New Jersey
    Superior Court or such other court shall deem proper,&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (c)&#160;to the extent that a person who is or was a director,
    officer, trustee, employee or agent of the Corporation or of any
    constituent corporation absorbed by the Corporation by
    consolidation or merger, or the legal representative of any such
    person, has been successful on the merits or otherwise in
    defense of any action, suit or proceeding referred to above, or
    in defense of any claim, issue, or matter therein, he shall be
    indemnified against expenses (including attorneys&#146; fees)
    actually and reasonably incurred by him in connection therewith.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We also maintain directors&#146; and officers&#146; liability
    insurance which may, in some instances, reimburse us for
    judgments against us or our directors or officers.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">ITEM&#160;7.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Exemption
    from Registration Claimed.</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Restricted securities to be reoffered and resold pursuant to
    this Registration Statement were issued under the 2011 Plan in
    transactions exempt from registration pursuant to
    Section&#160;4(2) of the Securities Act.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">ITEM&#160;8.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Exhibits</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=01 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=01 type=body -->
    <TD width="2%" align="left">&nbsp;</TD>	<!-- colindex=01 type=align1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="93%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Exhibit<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>No.</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Description of Exhibit</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    4
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Common Stock specimen, filed as Exhibit 4(a) to the
    Registrant&#146;s Form 10-K for the fiscal year ended December
    31, 2002, and is incorporated herein by reference.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    4
</TD>
<TD nowrap align="left" valign="top">
    .2
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Rights Agreement, dated as of September 27, 2002, between the
    Registrant and American Stock Transfer and Trust Company filed
    as Exhibit 4.0 to Registrant&#146;s Current Report on Form 8-K
    filed October 11, 2002, and is incorporated herein by reference.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    4
</TD>
<TD nowrap align="left" valign="top">
    .3
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Rights Certificate relating to the rights granted to holders of
    Common Stock under the Rights Agreement filed as Exhibit 4.0 to
    Registrant&#146;s Current Report on Form 8-K, filed on October
    11, 2002, and is incorporated herein by reference.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    5
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Opinion of Reed Smith LLP.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    DUSA Pharmaceuticals, Inc. Amended and Restated 2011 Equity
    Compensation Plan (incorporated by reference to Appendix A to
    the Company&#146;s Definitive Proxy Statement filed with the
    Securities and Exchange Commission on April 19, 2011).
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    23
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent of independent registered public accounting firm.
</TD>
</TR>
</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    II-2
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#Y92206tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
<!-- XBRL Table Pagebreak -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=01 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=01 type=body -->
    <TD width="2%" align="left">&nbsp;</TD>	<!-- colindex=01 type=align1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="93%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Exhibit<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>No.</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Description of Exhibit</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    23
</TD>
<TD nowrap align="left" valign="top">
    .2
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent of Reed Smith LLP (included in Exhibit 5.1).
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    24
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Power of Attorney (contained on Signature Page).
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    99
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Nonqualified Stock Option Grant Agreement filed as
    Exhibit 99.1 to the Registrant&#146;s registration statement on
    Form S-8 (file no. 333-141615) filed on March 28, 2007, and is
    incorporated herein by reference.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    99
</TD>
<TD nowrap align="left" valign="top">
    .2
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Incentive Stock Option Grant Agreement filed as Exhibit
    99.2 to the Registrant&#146;s registration statement on Form S-8
    (file no. 333-141615) filed on March 28, 2007, and is
    incorporated herein by reference.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    99
</TD>
<TD nowrap align="left" valign="top">
    .3
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Stock Award Grant Agreement filed as Exhibit 99.3 to the
    Registrant&#146;s registration statement on Form S-8 (file no.
    333-141615) filed on March 28, 2007, and is incorporated herein
    by reference.
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD>
    <B><FONT style="font-family: 'Times New Roman', Times">ITEM&#160;9.<I>&#160;&#160;</I></FONT></B>
</TD>
    <TD>
    <B><I><FONT style="font-family: 'Times New Roman', Times">Undertakings</FONT></I></B>
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (a)&#160;The undersigned registrant hereby undertakes:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (1)&#160;to file, during any period in which offers or sales are
    being made, a post-effective amendment to this registration
    statement:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (i)&#160;to include in any prospectus required by
    Section&#160;10(a)(3) of the Securities Act of 1933;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (ii)&#160;to reflect in the prospectus any facts or events
    arising after the effective date of this registration statement
    (or the most recent post-effective amendment thereof) which,
    individually or in the aggregate, represent a fundamental change
    in the information set forth in this registration statement.
    Notwithstanding the foregoing, any increase or decrease in
    volume of securities offered (if the total dollar value of
    securities offered would not exceed that which was registered)
    and any deviation from the low or high end of the estimated
    maximum offering range may be reflected in the form of
    prospectus filed with the SEC pursuant to Rule&#160;424(b) if,
    in the aggregate, the changes in volume and price represent no
    more than a 20% change in the maximum aggregate offering price
    set forth in the &#147;Calculation of Registration Fee&#148;
    table in the effective registration statement;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (iii)&#160;to include any material information with respect to
    the plan of distribution not previously disclosed in this
    registration statement or any material change to such
    information in this registration statement;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    provided, however, that paragraphs (a)(1)(i), and (a)(1)(ii)
    above do not apply if the registration statement is on
    <FONT style="white-space: nowrap">Form&#160;S-8</FONT>
    and the information required to be included in a post-effective
    amendment by those paragraphs is contained in periodic reports
    filed with or furnished to the SEC by the registrant pursuant to
    Section&#160;13 or 15(d) of the Exchange Act that are
    incorporated by reference in the registration statement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (2)&#160;that, for the purpose of determining any liability
    under the Securities Act of 1933, each such post-effective
    amendment shall be deemed to be a new registration statement
    relating to the securities offered therein, and the offering of
    such securities at that time shall be deemed to be the initial
    bona fide offering thereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (3)&#160;to remove from registration by means of a
    post-effective amendment any of the securities being registered
    which remain unsold at the termination of the offering.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (b)&#160;The undersigned registrant hereby undertakes that, for
    purposes of determining any liability under the Securities Act,
    each filing of the registrant&#146;s annual report pursuant to
    Section&#160;13 (a)&#160;or Section&#160;15(d) of the Exchange
    Act (and, where applicable, each filing of an employee benefit
    plan&#146;s annual report pursuant to Section&#160;15(d) of the
    Exchange Act) that is incorporated by reference in the
    registration statement shall be deemed to be a new registration
    statement relating to the securities offered therein, and the
    offering of such securities at that time shall be deemed to be
    the initial bona fide offering thereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (c)&#160;Insofar as indemnification for liabilities arising
    under the Securities Act may be permitted to directors, officers
    and controlling persons of the registrant pursuant to the
    foregoing provisions, or otherwise,
</DIV>
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<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    II-3
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#Y92206tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    the registrant has been advised that in the opinion of the SEC
    such indemnification is against public policy as expressed in
    the Securities Act and is, therefore, unenforceable. In the
    event that a claim for indemnification against such liabilities
    (other than the payment by the registrant of expenses incurred
    or paid by a director, officer or controlling person of the
    registrant in the successful defense of any action, suit or
    proceeding) is asserted by such director, officer or controlling
    person in connection with the securities being registered, the
    registrant will, unless in the opinion of its counsel the matter
    has been settled by controlling precedent, submit to a court of
    appropriate jurisdiction the question whether such
    indemnification by it is against public policy as expressed in
    the Securities Act and will be governed by the final
    adjudication of such issue.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    II-4
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#Y92206tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">SIGNATURES</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>The Registrant:</I>&#160;&#160;Pursuant to the requirements
    of the Securities Act of 1933, as amended, the registrant
    certifies that it has reasonable grounds to believe that it
    meets all of the requirements for filing on
    <FONT style="white-space: nowrap">Form&#160;S-8</FONT>
    and has duly caused this registration statement on
    <FONT style="white-space: nowrap">Form&#160;S-8</FONT>
    to be signed on its behalf by the undersigned, thereunto duly
    authorized, in the City of Wilmington, Commonwealth of
    Massachusetts, on this 2nd&#160;day of August, 2011.
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 49%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    DUSA PHARMACEUTICALS, INC.
</DIV>

<DIV style="margin-top: 48pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="49%"></TD>
    <TD width="4%"></TD>
    <TD width="47%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    By:&#160;
</TD>
    <TD align="left">
    <DIV style="display:inline; text-align:left;">/s/&#160;&#160;Robert
    F. Doman</DIV>
</TD>
</TR>

</TABLE>

<DIV style="font-size: 2pt; margin-left: 53%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV align="left" style="margin-left: 53%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Robert F. Doman
</DIV>

<DIV align="left" style="margin-left: 53%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    President and Chief Executive Officer
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><U><FONT style="font-family: 'Times New Roman', Times">POWER
    OF ATTORNEY</FONT></U></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Know All Men By These Presents, that each person whose signature
    appears below constitutes and appoints Robert F. Doman and
    Richard C. Christopher, and each of them singly, as
    <FONT style="white-space: nowrap">his/her</FONT> true
    and lawful attorney-in-fact and agent with full power of
    substitution and resubstitution, for him/her and in
    <FONT style="white-space: nowrap">his/her</FONT>
    name, place and stead, in any and all capacities, to sign any or
    all amendments (including post-effective amendments) to this
    registration statement or any related registration statement,
    including any amendment to this registration statement for the
    purpose of registering additional shares in accordance with
    General Instruction&#160;E to
    <FONT style="white-space: nowrap">Form&#160;S-8,</FONT>
    and to file the same, with all exhibits thereto, and other
    documents in connection therewith, with the Securities and
    Exchange Commission, granting unto said attorney-in-fact and
    agent full power and authority to do and perform each and every
    act and thing requisite and necessary to be done in connection
    with the above premises, as fully to all intents and purposes as
    <FONT style="white-space: nowrap">he/she</FONT> might
    or could do in person, hereby ratifying and confirming all that
    said attorney-in-fact and agent or
    <FONT style="white-space: nowrap">his/her</FONT>
    substitute or substitutes, may lawfully do or cause to be done
    by virtue thereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Pursuant to the requirements of the Securities Act of 1933, as
    amended, this Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;S-8</FONT>
    has been signed by the following persons in the capacities and
    on the dates indicated:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="4%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="38%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="38%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="13%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
    <DIV style="display:inline; text-align:left;">/s/&#160;&#160;Alfred
    Altomari</DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>Alfred
    Altomari
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    August&#160;2,&#160;2011<BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%; border-bottom: 1pt solid #000000"></DIV>Date
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
    <DIV style="display:inline; text-align:left;">/s/&#160;&#160;David
    M. Bartash</DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>David
    M. Bartash
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    Vice Chairman of the <BR>
    Board of Directors and Lead Director
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    August&#160;2,&#160;2011<BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%; border-bottom: 1pt solid #000000"></DIV>Date
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
    <DIV style="display:inline; text-align:left;">/s/&#160;&#160;Alexander
    W. Casdin</DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>Alexander
    W. Casdin
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    August&#160;2,&#160;2011<BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%; border-bottom: 1pt solid #000000"></DIV>Date
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
    <DIV style="display:inline; text-align:left;">/s/&#160;&#160;Richard
    C. Christopher</DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>Richard
    C. Christopher
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    Vice President, Finance and Chief<BR>
    Financial Officer (principal financial<BR>
    officer and principal accounting officer)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    August&#160;2,&#160;2011<BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%; border-bottom: 1pt solid #000000"></DIV>Date
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
    <DIV style="display:inline; text-align:left;">/s/&#160;&#160;Robert
    F. Doman</DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>Robert
    F. Doman
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    Director, President and Chief Executive Officer (principal
    executive officer)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    August&#160;2,&#160;2011<BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%; border-bottom: 1pt solid #000000"></DIV>Date
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
    <DIV style="display:inline; text-align:left;">/s/&#160;&#160;Jay
    M. Haft,&#160;Esq.&#160;</DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>Jay
    M. Haft,&#160;Esq.&#160;
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    Chairman of the <BR>
    Board of Directors and Director
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    August&#160;2,&#160;2011<BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%; border-bottom: 1pt solid #000000"></DIV>Date
</TD>
</TR>
</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    II-5
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#Y92206tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
<!-- XBRL Table Pagebreak -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="4%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="38%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="38%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="13%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
    <DIV style="display:inline; text-align:left;">/s/&#160;&#160;Paul
    J. Hondros</DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>Paul
    J. Hondros
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    August&#160;2,&#160;2011<BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%; border-bottom: 1pt solid #000000"></DIV>Date
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
    <DIV style="display:inline; text-align:left;">/s/&#160;&#160;Magnus
    Moliteus</DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>Magnus
    Moliteus
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    August&#160;2,&#160;2011<BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%; border-bottom: 1pt solid #000000"></DIV>Date
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="3">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="3" valign="top">
    <DIV style="display:inline; text-align:left;">/s/&#160;&#160;David
    M. Wurzer</DIV><BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>David
    M. Wurzer
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Director
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="top">
    August&#160;2,&#160;2011<BR>
    <DIV style="font-size: 2pt; margin-left: 0%; width: 100%; border-bottom: 1pt solid #000000"></DIV>Date
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    II-6
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#Y92206tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">EXHIBIT&#160;INDEX</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=01 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=01 type=body -->
    <TD width="2%" align="left">&nbsp;</TD>	<!-- colindex=01 type=align1 -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="93%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Exhibit<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="3" nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>No.</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Description of Exhibit</B>
</DIV>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    4
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Common Stock specimen, filed as Exhibit 4(a) to the
    Registrant&#146;s Form 10-K for the fiscal year ended December
    31, 2002, and is incorporated herein by reference.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    4
</TD>
<TD nowrap align="left" valign="top">
    .2
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Rights Agreement, dated as of September 27, 2002, between the
    Registrant and American Stock Transfer and Trust Company filed
    as Exhibit 4.0 to Registrant&#146;s Current Report on Form 8-K
    filed October 11, 2002, and is incorporated herein by reference.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    4
</TD>
<TD nowrap align="left" valign="top">
    .3
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Rights Certificate relating to the rights granted to holders of
    Common Stock under the Rights Agreement filed as Exhibit 4.0 to
    Registrant&#146;s Current Report on Form 8-K, filed on October
    11, 2002, and is incorporated herein by reference.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    5
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Opinion of Reed Smith LLP.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    10
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    DUSA Pharmaceuticals, Inc. Amended and Restated 2011 Equity
    Compensation Plan (incorporated by reference to Appendix A to
    the Company&#146;s Definitive Proxy Statement filed with the
    Securities and Exchange Commission on April 19, 2011).
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    23
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent of independent registered public accounting firm.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    23
</TD>
<TD nowrap align="left" valign="top">
    .2
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Consent of Reed Smith LLP (included in Exhibit 5.1).
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    24
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Power of Attorney (contained on Signature Page).
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    99
</TD>
<TD nowrap align="left" valign="top">
    .1
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Nonqualified Stock Option Grant Agreement filed as
    Exhibit 99.1 to the Registrant&#146;s registration statement on
    Form S-8 (file no. 333-141615) filed on March 28, 2007, and is
    incorporated herein by reference.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    99
</TD>
<TD nowrap align="left" valign="top">
    .2
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Incentive Stock Option Grant Agreement filed as Exhibit
    99.2 to the Registrant&#146;s registration statement on Form S-8
    (file no. 333-141615) filed on March 28, 2007, and is
    incorporated herein by reference.
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="right" valign="top">
&nbsp;
</TD>
<TD nowrap align="right" valign="top">
    99
</TD>
<TD nowrap align="left" valign="top">
    .3
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Form of Stock Award Grant Agreement filed as Exhibit 99.3 to the
    Registrant&#146;s registration statement on Form S-8 (file no.
    333-141615) filed on March 28, 2007, and is incorporated herein
    by reference.
</TD>
</TR>
</TABLE>

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sv8
Table of Contents
As filed with the Securities and Exchange
    Commission on August 2, 2011
Registration
    No. 333-
UNITED STATES SECURITIES AND
    EXCHANGE COMMISSION
Washington, DC 20549
Form S-8
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF
    1933
DUSA PHARMACEUTICALS,
    INC.
(Exact Name of Registrant as
    Specified in Its Charter)
New Jersey
22-3103129
(State or Other Jurisdiction
    of
Incorporation or Organization)
(I.R.S. Employer
Identification No.)
25 Upton Drive
Wilmington, Massachusetts 01887
(Address of Principal Executive
    Offices) (Zip Code)
DUSA Pharmaceuticals, Inc. Amended and Restated 2011 Equity
    Compensation Plan
(Full Title of the
    Plan)
Nanette W. Mantell, Esq.
Reed Smith LLP
Princeton Forrestal Village
136 Main Street — Suite 250
Princeton, New Jersey 08543
(609) 514-8541
(Name and Address and Telephone
    of Agent for Service)
Copies to:
Robert F. Doman, President and Chief Executive Officer
DUSA Pharmaceuticals, Inc.
25 Upton Drive
Wilmington, Massachusetts 01887
(978) 657-7500
Indicate by check mark whether the registrant is a large
    accelerated filer, an accelerated filer, a non-accelerated
    filer, or a smaller reporting company. See the definitions of
    "large accelerated filer," "accelerated
    filer" and "smaller reporting company" in Rule
12b-2
of the
    Exchange Act. (Check one):
Large
    accelerated
    filer
o
Accelerated
    filer
o
Non-accelerated
filer
þ
Smaller
    reporting
    company
o
(Do not check if a smaller reporting company)
CALCULATION
    OF REGISTRATION FEE
Proposed Maximum
Proposed Maximum
Amount of
Title of Securities to
Amount
Offering Price
Aggregate
Registration
be Registered
to be Registered(1)
per Share(2)
Offering Price(2)
Fee
Common Stock, no par value per share, issued or issuable under
    the Amended and Restated 2011 Equity Compensation Plan
1,292,802
$5.00
$6,464,010
$750.47
(1)
In addition, this registration statement covers such
    indeterminate number of shares of common stock, no par value per
    share ("Common Stock"), as may be issued under the
    Amended and Restated 2011 Equity Compensation Plan (the
    "2011 Plan") by reason of any stock split, stock
    dividend or similar transactions effected without receipt of
    consideration, in accordance with Rule 416 under the
    Securities Act of 1933, as amended (the "Securities
    Act").
(2)
Estimated solely for the purpose of calculating the amount of
    the registration fee pursuant to Rule 457(h) promulgated
    under the Securities Act. The offering price per share and
    aggregate offering price are based upon the average of the high
    and low prices for the Common Stock as reported on the Nasdaq
    Global Market on July 28, 2011, in accordance with
    Rule 457(c) of the Securities Act.
Table of Contents
EXPLANATORY
    NOTE
The 1,292,802 shares of our common stock, no par value per
    share ("Common Stock"), being registered pursuant to
    this
Form S-8
have been issued or are issuable pursuant to the DUSA
    Pharmaceuticals, Inc. ("DUSA" or the
    "Company") Amended and Restated 2011 Equity
    Compensation Plan (the "2011 Plan"). This Registration
    Statement contains two parts. The first part contains a
    "Reoffer" Prospectus prepared in accordance with
    Part I of
Form S-3
(in accordance with Section C of the General Instructions
    to the
Form S-8),
which covers reoffers and resales of "restricted
    securities"
and/or
"control securities" (as such terms are defined in
    Section C of the General Instructions to
Form S-8)
by certain of our shareholders, as more fully set forth therein.
    The second part of this Registration Statement contains
    Information Required in the Registration Statement pursuant to
    Part II of
Form S-8.
PART I
INFORMATION
    REQUIRED IN THE SECTION 10(a) PROSPECTUS
Item 1.
Plan
    Information*
Item 2.
Registrant
    Information and Employee Plan Annual Information*
* The document(s) containing the information
    specified in Part I of
Form S-8
will be sent or given to participants in the 2011 Plan as
    specified by Rule 428(b)(1) under the Securities Act of
    1933, as amended (the "Securities Act"). Such
    documents are not being filed with the Securities and Exchange
    Commission, but constitute, along with the documents
    incorporated by reference into this Registration Statement, a
    prospectus that meets the requirements of Section 10(a) of
    the Securities Act.
Table of Contents
PROSPECTUS
14,000 Shares
    of Common Stock by Selling Securityholders
DUSA
    Pharmaceuticals, Inc.
The shares of Common Stock of DUSA Pharmaceuticals, Inc. covered
    by this prospectus may be offered and sold to the public by
    certain selling securityholders of the Company. The selling
    securityholders have acquired or will acquire the shares under
    the 2011 Plan.
Our Common Stock is quoted on the Nasdaq Global Market under the
    symbol "DUSA." On August 1, 2011, the closing
    price of a share of our Common Stock on the Nasdaq Global Market
    was $5.28 per share.
Investing in our Common Stock involves risks. See "Risk
    Factors" beginning on page 2.
Neither the Securities and Exchange Commission nor any state
    securities commission has approved or disapproved these
    securities or passed upon the adequacy or accuracy of this
    prospectus. Any representation to the contrary is a criminal
    offense.
The date of this prospectus is August   , 2011.
TABLE OF
    CONTENTS
Page
DUSA Pharmaceuticals, Inc.
1
Risk Factors
2
Special Note Regarding Forward-Looking
    Statements
13
Use of Proceeds
14
Selling Securityholders
14
Plan of Distribution
15
Legal Matters
16
Experts
16
Where You Can Find More Information
16
Incorporation of Certain Documents by
    Reference
17
EX-5.1
EX-23.1
You should rely only on the information contained in this
    prospectus or any supplement, including the documents that we
    incorporate by reference. We have not authorized anyone to
    provide you with information different from that which is
    contained in or incorporated by reference to this prospectus. We
    are offering to sell shares of Common Stock and seeking offers
    to buy shares of Common Stock only in jurisdictions where offers
    and sales are permitted. The information contained in this
    prospectus is accurate only as of the date of the prospectus,
    regardless of the time of delivery of this prospectus or of any
    sale of the Common Stock.
Table of Contents
DUSA
    PHARMACEUTICALS, INC.
We are a vertically integrated dermatology company that is
    developing and marketing
    Levulan
®
photodynamic therapy, or
    Levulan
®
PDT, and other products for common skin conditions. Our marketed
    products include
    Levulan
®
Kerastick
®
20% Topical Solution with PDT, the
    BLU-U
®
brand light source, and
    ClindaReach
®
.
We devote most of our resources to advancing the development and
    marketing of our
    Levulan
®
PDT technology platform. When
    Levulan
®
is used and followed with exposure to light to treat a medical
    condition, it is known as
    Levulan
®
PDT. The
    Kerastick
®
is our proprietary applicator that delivers
    Levulan
®
.

    The
    BLU-U
®
is our patented light device.
The
    Levulan
®
Kerastick
®
20% Topical Solution with PDT and the
    BLU-U
®
were launched in the United States, or U.S., in September 2000
    for the treatment of non-hyperkeratotic actinic keratoses, or
    AKs, of the face or scalp. AKs are precancerous skin lesions
    caused by chronic sun exposure that can develop over time into a
    form of skin cancer called squamous cell carcinoma. In addition,
    in September 2003 we received clearance from the United States
    Food and Drug Administration, or FDA, to market the
    BLU-U
®
without
    Levulan
®
PDT for the treatment of moderate inflammatory acne vulgaris and
    general dermatological conditions.
We manufacture our
    Levulan
®
Kerastick
®
in our Wilmington, Massachusetts facility. We are also
    responsible for the regulatory, sales, marketing, customer
    service and other related activities for all of our products,
    including our
    Levulan
®
Kerastick
®
.

    We began marketing
    Levulan
®
PDT under an exclusive worldwide license of patents many of
    which have expired, and technology from PARTEQ Research and
    Development Innovations, the licensing arm of Queen's
    University, Kingston, Ontario, Canada. We also own or license
    certain other patents relating to our
    BLU-U
®
device and methods for using pharmaceutical formulations which
    contain our drug and related processes and improvements. In the
    United States,
    DUSA
®
,

    DUSA Pharmaceuticals,
    Inc.
®
,

    Levulan
®
,

    Kerastick
®
,

    BLU-U
®
,

    ClindaReach
®
,

    Meted
®
,

    and
    Psoriacap
®
are registered trademarks which we own. Several of these
    trademarks are also registered in Europe, Australia, Canada, and
    in other parts of the world. Numerous other trademark
    applications are pending.
As of June 30, 2011, we had an accumulated deficit of
    approximately $141,150,000. Our financial goal for 2011 is to be
    cash flow positive and to maintain profitability on an annual
    basis, however, we cannot guarantee that our products will
    achieve significant enough market acceptance or generate
    sufficient revenues to achieve these goals or to maintain
    profitability. We must continue to increase sales from current
    levels in order for us to sustain profitability on an annual
    basis as we wish to continue to invest in research and
    development activities related to
    Levulan
®
.

    We cannot provide assurance that an increase in sales will
    necessarily cause us to continue to be profitable.
As of June 30, 2011, we had a staff of 93 employees,
    including 1 part-time employee, who worked across all
    operating functions at DUSA.
Unless the context otherwise requires, the terms "we,"
    "our," "us," "the Company" and
    "DUSA" refer to DUSA Pharmaceuticals, Inc., a New
    Jersey corporation.
We were incorporated on February 21, 1991, under the laws
    of the State of New Jersey. Our principal executive office is
    located at 25 Upton Drive, Wilmington, Massachusetts 01887
    (telephone:
(978) 657-7500)
(web address: www.dusapharma.com).
1
Table of Contents
RISK
    FACTORS
Investing in our common stock is very speculative and involves a
    high degree of risk. You should carefully consider and evaluate
    all of the information in, or incorporated by reference in, this
    registration statement. The following are among the risks we
    face related to our business, assets and operations. They are
    not the only ones we face. Any of these risks could materially
    and adversely affect our business, results of operations and
    financial condition, which in turn could materially and
    adversely affect the trading price of our common stock and you
    might lose all or part of your investment.
This registration statement contains forward-looking statements
    within the meaning of the Private Securities Litigation Reform
    Act of 1995 that involve risks and uncertainties, such as
    statements of our plans, objectives, expectations and
    intentions. We use words such as "anticipate",
    "believe", "expect", "future" and
    "intend" and similar expressions to identify
    forward-looking statements. Our actual business, financial
    condition and results of operations could differ materially from
    those anticipated in these forward-looking statements for many
    reasons, including the factors described below and elsewhere in
    this registration statement. You should not place undue reliance
    on these forward-looking statements, which apply only as of the
    date of this registration statement.
Risks
    Related To DUSA
Any
    Failure To Comply With Ongoing Governmental Regulations In The
    United States And Elsewhere Will Limit Our Ability To Market Our
    Products And Achieve Profitability On A Quarterly
    Basis.
The manufacture and marketing of our products are subject to
    continuing FDA review as well as comprehensive regulation by the
    FDA and by state and local regulatory authorities. These laws
    require, among other things:
•
approval of manufacturing facilities, including adherence to
    good manufacturing and laboratory practices during production
    and storage,
•
controlled research and testing of some of these products even
    after approval,
•
control of marketing activities, including sales promotions,
    advertising and labeling, and
•
state permits for the sale and distribution of products
    manufactured in and
out-of-state.
If we, or any of our contract manufacturers, fail to comply with
    these requirements, we may be limited in the jurisdictions in
    which we are permitted to sell our products. Additionally, if we
    or our manufacturers fail to comply with applicable regulatory
    approval requirements, a regulatory agency may:
•
send warning letters,
•
impose fines and other civil penalties on us,
•
seize our products,
•
suspend our regulatory approvals,
•
cease the manufacture of our products,
•
refuse to approve pending applications or supplements to
    approved applications filed by us,
•
refuse to permit exports of our products from the United States,
•
require us to recall products,
•
require us to notify physicians of labeling changes
and/or
product related problems,
•
impose restrictions on our operations, and/or
•
criminally prosecute us.
2
Table of Contents
We and our manufacturers must continue to comply with current
    Good Manufacturing Practice regulations, or cGMP, and Quality
    System Regulations, or QSR, and equivalent foreign regulatory
    requirements. The cGMP and QSR requirements govern quality
    control and documentation policies and procedures. In complying
    with cGMP, QSR and foreign regulatory requirements, we and our
    third-party manufacturers will be obligated to expend time,
    money and effort in production, record keeping and quality
    control to assure that our products meet applicable
    specifications and other requirements.
Manufacturing facilities are subject to ongoing periodic
    inspection by the FDA, including unannounced inspections. We
    cannot guarantee that our third-party supply sources, including
    our sole source supplier for the active ingredient in
    Levulan
®
and the component parts in the
    BLU-U
®
,

    or our own
    Kerastick
®
facility, will continue to meet all applicable FDA regulations.
    If we, or any of our manufacturers, fail to maintain compliance
    with FDA regulatory requirements, it would be time-consuming and
    costly to remedy the problem(s) or to qualify other sources.
    These consequences could have a significant adverse effect on
    our financial condition and operations. Additionally, if
    previously unknown problems with the product, a manufacturer or
    its facility are discovered in the future, changes in product
    labeling restrictions or withdrawal of the product from the
    market may occur. Any such problems could affect our ability to
    become profitable on an ongoing basis.
Any significant interruption in our operation caused by FDA
    could have a negative effect on our revenues.
We May
    Not Maintain Profitability On A Quarterly Basis Unless We Can
    Successfully Market And Sell Higher Quantities Of Our
    Products.
If A
    Competitive Product Is Successful Our Revenues Could Decline,
    And Our Ability To Maintain Profitability On A Quarterly Basis
    Could Be Delayed.
Galderma, S.A., a large dermatology company, holds a
    non-exclusive license from us to
    Metvixia
®
,

    which was transferred to Galderma by Photocure ASA, our original
    licensee. This product received FDA approval for treatment of
    AKs in July 2004 and is directly competitive with our
    Levulan
®
Kerastick
®
product. While we are entitled to royalties on net sales of
    Metvixia
®
,

    Galderma has considerably more resources than we have, which
    could adversely affect our ability to maintain or increase our
    market share and make it more difficult for us to achieve
    profitability on an ongoing basis. Metvixia's
    U.S. product revenues have not been significant to date. We
    have also become aware that Photocure has launched an ALA
    ester-based product,
    Allumera
tm
,

    as a cosmetic, during the second quarter of 2011, which could
    cause disruption in the marketplace. In addition, Leo Pharma, a
    Danish corporation that acquired
    Peplin
®
in 2009, has announced that in 2012 it will be launching PEP005
    for the treatment of AKs. These products could negatively impact
    the market penetration of our PDT products. Our ability to be
    profitable on a quarterly basis may also be affected by
    fluctuations in the demand for our products caused by both
    seasonal changes, such as when patient visits slow during the
    summer months, and the timing of pricing changes, which may
    impact the purchasing patterns of our customers.
If We Do
    Not Continue To Generate Positive Cash Flow, We May Need More
    Capital.
We have approximately $24,121,000 in cash, cash equivalents and
    marketable securities as of June 30, 2011. Our cash, cash
    equivalents and marketable securities should be sufficient for
    current operations for at least the next 12 months.
    Although we expect continued growth in our PDT segment revenues,
    we are susceptible to the uncertain economic conditions,
    particularly with our customer base in the U.S. and
    internationally where our product lacks reimbursement, and to
    increased competition, particularly from
    Metvixia
®
and
    Allumera
tm
.

    In addition, we expect our Non-PDT product revenues for 2011 to
    be reduced from 2010 levels since the
    AVAR
®
royalty period ended during the fourth quarter of 2010. If we
    are unable to continue to be profitable on an ongoing basis, we
    may have to reduce our headcount, curtail certain variable
    expenses, or raise funds through financing transactions.
3
Table of Contents
We
    Have Had Significant Cumulative Losses And May Have Losses In
    The Future.
We reported net income (loss) of $506,000 and $(236,000) for the
    six-month periods ended June 30, 2011 and 2010,
    respectively. Prior to 2010, we had a history of annual
    operating losses and we may incur losses in the future. We
    reported net income (loss) of $2,703,000, $(2,508,000) and
    $(6,250,000) for the years ended December 31, 2010, 2009
    and 2008, respectively. As of June 30, 2011, our
    accumulated deficit was approximately $141,151,000. We expect to
    incur significant additional research and development and other
    costs including costs related to preclinical studies and
    clinical trials. Our costs, including research and development
    costs for our product candidates and sales, marketing and
    promotion expenses for any of our existing or future products to
    be marketed by us or our distributors may exceed revenues in the
    future, which may result in future losses from operations.
If
    Product Sales Do Not Continue to Increase, We May Not Be Able To
    Advance Development Of Other Potential Products As Quickly As We
    Would Like To, Which Would Delay The Approval Process And
    Marketing Of New Potential Products, If Approved.
If we do not generate sufficient revenues from our approved
    products, we may be forced to delay or abandon our development
    program for programs we may wish to initiate. The pharmaceutical
    development and commercialization process is time consuming and
    costly, and any delays might result in higher costs which could
    adversely affect our financial condition and results of
    operations. Without sufficient product sales, we would need
    alternative sources of funding. There is no guarantee that
    adequate funding sources could be found to continue the
    development of our technology.
If We
    Are Unable To Obtain The Necessary Capital To Fund Our
    Operations, We Will Have To Delay Our Development Program And
    May Not Be Able To Complete Our Clinical Trials.
We may need substantial additional funds to fully develop,
    manufacture, market and sell other potential products. We may
    obtain funds through other public or private financings,
    including equity financing,
and/or
through collaborative arrangements. We may also choose to
    license rights to third parties to commercialize products or
    technologies that we would otherwise have attempted to develop
    and commercialize on our own which could reduce our potential
    revenues.
The availability of additional capital to us is uncertain. There
    can be no assurance that additional funding will be available to
    us on favorable terms, if at all. Any equity financing, if
    needed, would likely result in dilution to our existing
    shareholders, and debt financing, if available, would likely
    involve significant cash payment obligations and could include
    restrictive covenants that would adversely affect the operation
    of our business. Failure to raise capital, if needed, could
    materially adversely affect our clinical program, our financial
    condition, results of operations and cash flows.
Global
    Credit And Financial Market Conditions May Affect Our
    Business.
Sales of our products are dependent, in large part, on
    reimbursement from government health and administration
    authorities, private health insurers, distribution partners and
    other organizations. As a result of the global credit and
    financial market conditions, government authorities and private
    insurers may not satisfy their reimbursement obligations or may
    delay payment. In addition, federal and state health authorities
    may reduce Medicare and Medicaid reimbursements, and private
    insurers may increase their scrutiny of claims. A reduction in
    the availability or extent of reimbursement could negatively
    affect our product sales and revenues.
Due to the tightening of global credit, there may be disruption
    or delay in the performance by our third-party contractors,
    suppliers or collaborators. We rely on third parties for several
    important aspects of our business, including the active
    ingredient in
    Levulan
®
and key components of the
    BLU-U
®
,

    portions of our product manufacturing, conduct of clinical
    trials and the supply of raw materials. If such third parties
    are unable to satisfy their commitments to us, our business
    would be adversely affected.
4
Table of Contents
If The
    Economic Slowdown Adversely Affects Our Customer's Ability
    To Meet Our Payment Terms, Our Cash Flow Would Be Adversely
    Affected And Our Ability To Continue To Be Profitable Could Be
    Jeopardized.
If our customers were unable to pay us or pay us on a timely
    basis for their purchases of our products, we may not be able to
    maintain profitability on a sustainable on-going basis, and our
    financial position, results of operations and cash flows could
    be negatively affected.
We
    Have Only Three Therapies That Have Received Regulatory Approval
    Or Clearance, And We Cannot Predict Whether We Will Ever Develop
    Or Commercialize Any Other
    Levulan
®
Product Or Indications.
Potential
    Products Or PDT Indications Are In Early Stages Of Development
    And May Never Result In Any Additional Commercially Successful
    Products.
Except for
    Levulan
®
PDT for AKs, the
    BLU-U
®
for acne, the
    Clindareach
®
pledget and other products we acquired in our merger with
    Sirius, all of our other potential product candidates are being
    studied by independent investigators, or are at a very early
    stage of development, including the planning of our BASDI
    clinical study. These candidates are subject to the risks of
    failure inherent in the development of new pharmaceutical
    products and products based on new technologies. These risks
    include:
•
delays in product development, clinical testing or manufacturing,
•
unplanned expenditures in product development, clinical testing
    or manufacturing,
•
failure in clinical trials or failure to receive regulatory
    approvals,
•
emergence of superior or equivalent products,
•
inability to market products due to third-party proprietary
    rights, and
•
failure to achieve market acceptance.
We cannot predict how long the development of our
    investigational stage products will take or whether they will be
    medically effective. We cannot be sure that a successful market
    will continue to develop for our
    Levulan
®
drug technology.
We Must
    Receive Separate Approval For Any Drug Or Medical Device
    Products Before We Can Sell Them Commercially In The United
    States Or Abroad.
Any potential
    Levulan
®
product will require the approval of the FDA before it can be
    marketed in the United States. Before an application to the FDA
    seeking approval to market a new drug, called an NDA, can be
    filed, a product must undergo, among other things, extensive
    animal testing and human clinical trials. The process of
    obtaining FDA approvals can be lengthy, costly, and
    time-consuming. Following the acceptance of an NDA, the time
    required for regulatory approval can vary and is usually one to
    three years or more. The FDA may require additional animal
    studies
and/or
human
    clinical trials before granting approval. Our
    Levulan
®
PDT products are based on relatively new technology. To our
    knowledge, the FDA has approved only four drugs for use in
    photodynamic therapy, including
    Levulan
®
.

    This factor may lengthen the approval process. We face much
    trial and error and we may fail at numerous stages along the way.
We cannot predict whether we will obtain any other regulatory
    approvals. Data obtained from preclinical testing and clinical
    trials can be susceptible to varying interpretations which could
    delay, limit or prevent regulatory approvals. Future clinical
    trials may not show that
    Levulan
®
PDT is safe and effective for any new use we may study. In
    addition, delays or disapprovals may be encountered based upon
    additional governmental regulation resulting from future
    legislation or administrative action or changes in FDA policy.
5
Table of Contents
We
    Have Limited Patent Protection, And If We Are Unable To Protect
    Our Proprietary Rights, Competitors Might Be Able To Develop
    Similar Products To Compete With Our Products And
    Technology.
Our ability to compete successfully depends, in part, on our
    ability to defend patents that have issued, obtain new patents,
    protect trade secrets and operate without infringing the
    proprietary rights of others. We have no compound patent
    protection for our
    Levulan
®
brand of the compound ALA. Our basic ALA patents are for methods
    of detecting and treating various diseased tissues using ALA (or
    related compounds called precursors), in combination with light.
    We own or exclusively license ALA patents and patent
    applications related to the following:
•
methods of using ALA and its unique physical forms in
    combination with light to treat conditions such as AKs and acne,
•
compositions and apparatus for those methods, and
•
unique physical forms of ALA.
We also own patents covering our
    Kerastick
®
and
    BLU-U
®
,

    which also cover our AK therapy. However, other third parties
    may have blue light devices or drug delivery devices that do not
    infringe our patents.
The patents we license from PARTEQ, the licensor of our ALA
    patents, relating to methods of using ALA for detecting or
    treating disease, other than for acne and our approved
    indication for AKs of the face or scalp, started to expire in
    July 2009. The PARTEQ patent which covers our approved AK
    product expires in September 2013. With the newly allowed claims
    which issued on May 25, 2010, relating to use of our
BLU-U
®
,

    we now have additional claims that relate to our AK product, and
    these will not expire until June 2019.
We have limited ALA patent protection outside the United States,
    which may make it easier for third parties to compete there. Our
    basic methods of treatment patents and applications have
    counterparts in only four foreign countries, and certain
    countries under the European Patent Convention. Even where we
    have patent protection, there is no guarantee that we will be
    able to enforce our patents. Additionally, enforcement of a
    given patent may not be practicable or an economically viable
    alternative. Some of the indications for which we may develop
    PDT therapies may not be covered by the claims in any of our
    existing patents. Even with the issuance of additional patents
    to us, other parties are free to develop other uses of ALA,
    including medical uses, and to market ALA for such uses,
    assuming that they have obtained appropriate regulatory
    marketing approvals. ALA in the chemical form has been
    commercially supplied for decades, and is not itself subject to
    patent protection. There are reports of third parties conducting
    clinical studies with ALA in countries outside the United States
    where PARTEQ does not have patent protection. In addition, a
    number of third parties are seeking patents for uses of ALA not
    covered by our patents. These other uses, whether patented or
    not, and the commercial availability of ALA, could limit the
    scope of our future operations because ALA products could come
    on the market which would not infringe our patents, but would
    compete with our
    Levulan
®
product even though they are marketed for different uses.
Metvixia
®
was approved by the FDA as a treatment of AKs in July 2004, and
    this ALA-derived product is directly competitive with our
    Levulan
®
Kerastick
®
product. While we are entitled to royalties on net sales of
    Metvixia,
    Galderma
®
,

    our licensee, has considerably more resources than we have,
    which could adversely affect our ability to maintain or increase
    our market share. Metvixia's U.S. product revenues
    have not been significant to date.
While we attempt to protect our proprietary information as trade
    secrets through agreements with each employee, licensing
    partner, consultant, university, pharmaceutical company and
    agent, we cannot guarantee that these agreements will provide
    effective protection for our proprietary information. It is
    possible that all of the following issues could negatively
    impact our ability to be profitable:
•
these persons or entities might breach the agreements,
•
we might not have adequate remedies for a breach, and/or,
•
our competitors will independently develop or otherwise discover
    our trade secrets.
6
Table of Contents
Since
    We Now Operate The Only FDA Approved Manufacturing Facility For
    The
    Kerastick
®
And Continue To Rely Heavily On Sole Suppliers For The
    Manufacture Of
    Levulan
®
,

    The
    BLU-U
®
,

    Clindareach
®
,

    And
    Meted
®
,

    Any Supply Or Manufacturing Problems Could Negatively Impact Our
    Sales.
If we experience problems producing
    Levulan
®
Kerastick
®
units in our facility, or if any of our contract suppliers fail
    to supply our requirements for products or services, our
    business, financial condition and results of operations would
    suffer. Although we have received approval by the FDA to
    manufacture the
    BLU-U
®
and the
    Levulan
®
Kerastick
®
in our Wilmington, Massachusetts facility, at this time, with
    respect to the
    BLU-U
®
,

    we expect to utilize our own facility only as a
back-up
to
    our current third party manufacturers or for repairs.
Manufacturers and their subcontractors often encounter
    difficulties when commercial quantities of products are
    manufactured for the first time, or large quantities of products
    are manufactured, including problems involving:
•
product yields,
•
quality control,
•
component and service availability,
•
compliance with FDA regulations, and
•
the need for further FDA approval if manufacturers make material
    changes to manufacturing processes
and/or
facilities.
We cannot guarantee that problems will not arise with production
    yields, costs or quality as we and our suppliers manufacture our
    products. Any manufacturing problems could delay or limit our
    supplies which would hinder our marketing and sales efforts. If
    our facility, any facility of our contract manufacturers, or any
    equipment in those facilities is damaged or destroyed, we may
    not be able to quickly or inexpensively replace it. Likewise, if
    there is quality or supply problems with any components or
    materials needed to manufacture our products, we may not be able
    to quickly remedy the problem(s). Any of these problems could
    cause our sales to suffer and could increase costs.
Our
    Ability To Use Net Operating Loss Carryforwards And Tax Credit
    Carryforwards To Offset Future Taxable Income May Be Further
    Limited As A Result Of Past Or Future Transactions Involving Our
    Common Stock.
Under Internal Revenue Code, or IRC, Section 382 the amount
    of our net operating loss carryforwards and other tax attributes
    that we may utilize to offset future taxable income, when
    earned, may be subject to certain limitations, based upon
    changes in the ownership of our common stock. In general, under
    IRC Section 382, a corporation that undergoes an
    "ownership change" is subject to limitations on its
    ability to utilize its pre-change net operating losses and
    certain other tax assets to offset future taxable income. An
    ownership change occurs if the aggregate stock ownership of
    certain shareholders increases by more than 50 percentage
    points over such shareholders' lowest percentage ownership
    during the testing period, which is generally three years.
Based on an Internal Revenue Code, or IRC, Section 382
    evaluation, we determined that we have experienced prior
    ownership changes, as defined under IRC Section 382, with
    the most recent change in ownership occurring in 2007 (the 2007
    Ownership Change). Our pre-change NOL carryforwards are subject
    to an annual limitation of approximately $2.2 million per
    year. Further, additional rules provide for the enhancement of
    the aforementioned annual limitation for the first five years
    after the ownership change. A loss corporation may increase its
    IRC Section 382 limitation by the amount of the net
    unrealized built-in gain, or NUBIG, recognized within five years
    of the ownership change. Our calculated aggregate amount of
    NUBIG enhancement is approximately $4.3 million (i.e.,
    approximately $868,000 per year for the first five years after
    the ownership change). This NUBIG enhancement will be utilized
    in conjunction with the approximately $2.2 million of IRC
    Section 382 base annual limitation, resulting in
    approximately $3.0 million per year for the first five
    years after the ownership change. Based on these additional
    factors, we estimate that we will be able to utilize
    approximately $54.3 million of our current net operating
    losses, provided that sufficient income
7
Table of Contents
is generated and no further ownership changes were to occur.
    However, it is reasonably possible that a future ownership
    change, which could be the result of transactions involving our
    common stock that are outside of our control (such as sales by
    existing shareholders), could occur during 2011 or thereafter.
    Future ownership changes could further restrict our utilization
    of our net operating losses and tax credits, reducing or
    eliminating the benefit of such net operating losses and tax
    credits. If such future ownership changes were to occur, it is a
    possibility that the Company could be required to pay federal
    income taxes in the near-term. An ownership change occurs under
    IRC Section 382 if the aggregate stock ownership of certain
    shareholders increases by more than 50 percentage points
    over such shareholders' lowest percentage ownership during
    the testing period, which is generally three years.
We
    Have Only Limited Experience Marketing And Selling
    Pharmaceutical Products Outside Of The United States And As A
    Result, Our Revenues From Product Sales May
    Suffer.
If we are unable to successfully market and sell sufficient
    quantities of our products, revenues from product sales will be
    lower than anticipated and our financial condition may be
    adversely affected. We are responsible for marketing our
    products in the United States and the rest of the world, except
    Canada, and parts of Asia, where we have distributors. If our
    sales and marketing efforts fail, then sales of the
    Levulan
®
Kerastick
®
,

    the
    BLU-U
®
,

    and other products will be adversely affected, which would
    adversely affect our results of operations and financial
    condition.
The
    Commercial Success Of Any Product That We May Develop Will
    Depend Upon The Degree Of Market Acceptance Of Our Products
    Among Physicians, Patients, Health Care Payors, Private Health
    Insurers And The Medical Community.
Our ability to commercialize any product that we may develop
    will be highly dependent upon the extent to which the product
    gains market acceptance among physicians, patients, health care
    payors, such as Medicare and Medicaid, private health insurers,
    including managed care organizations and group purchasing
    organizations, and the medical community. If a product does not
    achieve an adequate level of acceptance, we may not generate
    material product revenues. The degree of market acceptance of
    our currently marketed products will depend on a number of
    factors, including:
•
the effectiveness, or perceived effectiveness, of our product in
    comparison to competing products,
•
the existence of any significant side effects, as well as their
    severity in comparison to any competing products,
•
potential advantages over alternative treatments,
•
the ability to offer our product for sale at competitive prices,
•
relative convenience and ease of administration,
•
the strength of marketing and distribution support, and
•
sufficient third-party coverage or reimbursement.
If We
    Cannot Maintain Or Improve Physician Reimbursement And/Or
    Convince More Private Insurance Carriers To Adequately Reimburse
    Physicians For Our Product, Sales May Suffer.
Without adequate levels of reimbursement by government health
    care programs and private health insurers, the market for our
    Levulan
®
Kerastick
®
for AK therapy will be limited. While we continue to support
    efforts to improve reimbursement levels to physicians and are
    working with the major private insurance carriers to improve
    coverage for our therapy, if our efforts are not successful,
    broader adoption of our therapy and sales of our products could
    be negatively impacted. Although positive reimbursement changes
    related to AK were made over the last five years, some
    physicians still believe that reimbursement levels do not fully
    reflect the required efforts to routinely execute our therapy in
    their practices.
8
Table of Contents
If insurance companies do not cover our products, or government
    payors reduce the amounts of coverage or stop covering our
    products which are covered, our sales could be dramatically
    reduced.
Litigation
    Is Expensive And We May Not Be Able To Afford The
    Costs.
The costs of litigation or any proceeding relating to our
    intellectual property or contractual rights could be substantial
    even if resolved in our favor. Some of our competitors have far
    greater resources than we do and may be better able to afford
    the costs of complex litigation. Also, in a lawsuit against a
    third party for infringement of our patents in the United
    States, that third party may challenge the validity of our
    patent(s). We cannot guarantee that a third party will not
    claim, with or without merit, that our patents are not valid or
    that we have infringed their patent(s) or misappropriated their
    proprietary material. We could get drawn into or decide to join,
    litigation as the holder of the patent. Defending these types of
    legal actions involve considerable expense and could negatively
    affect our financial results.
Additionally, if a third-party were to file a United States
    patent application, or be issued a patent claiming technology
    also claimed by us in a pending United States application(s), we
    may be required to participate in interference proceedings in
    the USPTO to determine the priority of the invention. A
    third-party could also request the declaration of a patent
    interference between one of our issued United States patents and
    one of its patent applications. Any interference proceedings
    likely would require participation by us
and/or
PARTEQ, which could involve substantial legal fees and result in
    a loss or lessening of our patent protection.
Because
    Of The Nature Of Our Business, The Loss Of Key Members Of Our
    Management Team Could Delay Achievement Of Our
    Goals.
We are a small company with only 93 employees, including
    1 part-time employee, as of June 30, 2011. We are
    highly dependent on several key officer/employees with
    specialized scientific and technical skills without whom our
    business, financial condition and results of operations would
    suffer, especially in the photodynamic therapy portion of our
    business. The photodynamic therapy industry is still quite small
    and the number of experts is limited. The loss of these key
    employees could cause significant delays in achievement of our
    business and research goals since very few people with their
    expertise could be hired. Our growth and future success will
    depend, in large part, on the continued contributions of these
    key individuals as well as our ability to motivate and retain
    other qualified personnel in our specialty drug and light device
    areas.
Collaborations
    With Outside Scientists May Be Subject To Restriction And
    Change.
We work with scientific and clinical advisors and collaborators
    at academic and other institutions that assist us in our
    research and development efforts. These scientists and advisors
    are not our employees and may have other commitments that limit
    their availability to us. Although our advisors and
    collaborators generally agree not to do competing work, if a
    conflict of interest between their work for us and their work
    for another entity arises, we may lose their services. In
    addition, although our advisors and collaborators sign
    agreements not to disclose our confidential information, it is
    possible that valuable proprietary knowledge may become publicly
    known through them.
Risks
    Related To Our Industry
Product
    Liability And Other Claims Against Us May Reduce Demand For Our
    Products Or Result In Damages.
We Are
    Subject To Risk From Potential Product Liability Lawsuits Which
    Could Negatively Affect Our Business.
The development, manufacture and sale of medical products expose
    us to product liability claims related to the use or misuse of
    our products. Product liability claims can be expensive to
    defend and may result in significant judgments against us. A
    successful claim could materially harm our business, financial
    condition and results of
9
Table of Contents
operations. Additionally, we cannot guarantee that continued
    product liability insurance coverage will be available in the
    future at acceptable costs. If we believe the cost of coverage
    is too high, we may self-insure.
Our
    Business Involves Environmental Risks And We May Incur
    Significant Costs Complying With Environmental Laws And
    Regulations.
We have used various hazardous materials, such as mercury in
    fluorescent tubes in our research and development activities. We
    are subject to federal, state and local laws and regulations
    which govern the use, manufacture, storage, handling and
    disposal of hazardous materials and specific waste products. We
    believe that we are in compliance in all material respects with
    currently applicable environmental laws and regulations.
    However, we cannot guarantee that we will not incur significant
    costs to comply with environmental laws and regulations in the
    future. We also cannot guarantee that current or future
    environmental laws or regulations will not materially adversely
    affect our operations, business or financial condition. In
    addition, although we believe our safety procedures for handling
    and disposing of these materials comply with federal, state and
    local laws and regulations, we cannot completely eliminate the
    risk of accidental contamination or injury from these materials.
    In the event of such an accident, we could be held liable for
    any resulting damages, and this liability could exceed our
    resources.
We May
    Not Be Able To Compete Against Traditional Treatment Methods Or
    Keep Up With Rapid Changes In The Biotechnology And
    Pharmaceutical Industries That Could Make Some Or All Of Our
    Products Non-Competitive Or Obsolete.
Competing
    Products And Technologies Based On Traditional Treatment Methods
    May Make Our Products Or Potential Products Noncompetitive Or
    Obsolete.
Well-known pharmaceutical, biotechnology and medical device
    companies are marketing well-established therapies for the
    treatment of AKs and acne. Doctors may prefer to use familiar
    methods, rather than trying our products. Reimbursement issues
    affect the economic competitiveness of our products as compared
    to other more traditional therapies.
Many companies are also seeking to develop new products and
    technologies, and receiving approval for treatment of AKs and
    acne. Our industry is subject to rapid, unpredictable and
    significant technological change. Competition is intense. Our
    competitors may succeed in developing products that are safer,
    more effective or more desirable than ours. Many of our
    competitors have substantially greater financial, technical and
    marketing resources than we have. In addition, several of these
    companies have significantly greater experience than we do in
    developing products, conducting preclinical and clinical testing
    and obtaining regulatory approvals to market products for health
    care.
We cannot guarantee that new drugs or future developments in
    drug technologies will not have a material adverse effect on our
    business. Increased competition could result in:
•
price reductions,
•
lower levels of third-party reimbursements,
•
failure to achieve market acceptance, and
•
loss of market share,
any of which could adversely affect our business, results of
    operations and financial condition.
Further, we cannot give any assurance that developments by our
    competitors or future competitors will not render our technology
    obsolete or less advantageous.
Galderma, S.A., a large dermatology company, holds a
    non-exclusive license from us to
    Metvixia
®
,

    which was transferred to Galderma by Photocure ASA, our original
    licensee. This product received FDA approval for treatment of
    AKs in July 2004 and is directly competitive with our
    Levulan
®
Kerastick
®
product and its price is comparable to the price of
    Levulan
®
.

    While we are entitled to royalties on net sales of
    Metvixia
®
,

    Galderma
10
Table of Contents
has considerably more resources than we have, which could
    significantly hamper our ability to maintain or increase our
    market share. Metvixia's U.S. product revenues have
    not been significant to date.
Our
    Competitors In The Biotechnology And Pharmaceutical Industries
    May Have Better Products, Manufacturing Capabilities Or
    Marketing Expertise.
We are aware of several companies commercializing
and/or
conducting research with ALA or ALA-related compounds,
    including: Galderma, medac GmbH and photonamic GmbH &
    Co. KG (Germany); Biofrontera, PhotoTherapeutics, Inc. (U.K.),
    and Photocure ASA (Norway). We also anticipate that we will face
    increased competition as the scientific development of PDT
    advances and new companies enter our markets. Several companies
    are developing PDT agents other than
    Levulan
®
.

    These include: QLT Inc. (Canada); Axcan Pharma Inc. (U.S.);
    Miravant, Inc. (U.S.); Leo Pharma A/S (Denmark), and
    Pharmacyclics, Inc. (U.S.). There are many pharmaceutical
    companies that compete with us in the field of dermatology,
    particularly in the acne market.
We expect that our principal methods of competition with other
    PDT products will be based upon such factors as:
•
the ease of administration of our method of PDT,
•
the degree of generalized skin sensitivity to light,
•
the number of required doses,
•
the selectivity of our drug for the target lesion or tissue of
    interest, and
•
the type and cost of our light systems.
Our primary competition in the acne market includes oral and
    topical antibiotics, other topical prescription and
over-the-counter
products, as well as various laser and non-laser light
    treatments. The market is highly competitive and other large and
    small companies have more experience than we do which could make
    it difficult for us to penetrate the market. The entry of new
    products from time to time would likely cause us to lose market
    share.
Risks
    Related To Our Stock
Our
    Stock Price Is Highly Volatile And Sudden Changes In The Market
    Value Of Our Stock Occur Making An Investment
    Risky.
The price of our common stock has been highly volatile, which
    may create an increase in the risk of capital losses for our
    shareholders. From January 1, 2010 to June 30, 2011,
    the closing price of our stock has ranged from a low of $1.35 to
    a high of $6.77. The significant general market volatility in
    similar stage pharmaceutical and biotechnology companies also
    made the market price of our stock volatile.
Significant
    Fluctuations In Orders For Our Products, On A Monthly And
    Quarterly Basis, Are Commonly Based On External Factors And
    Sales Promotion Activities. These Fluctuations Could Increase
    The Volatility Of Our Stock Price.
The price of our common stock may be affected by the amount of
    quarterly shipments of our products to end-users. Since our PDT
    products are still in relatively early stages of adoption, and
    sales volumes are still low, a number of factors could affect
    product sales levels and growth rates in any period. These could
    include the level of penetration in new markets outside of the
    United States, the timing of medical conferences, sales
    promotion activities, and large volume purchases by our higher
    usage customers. In addition, seasonal fluctuations in the
    number of patients seeking treatment at various times during the
    year could impact sales volumes. These factors could, in turn,
    affect the volatility of our stock price.
11
Table of Contents
Future
    Sales Of Securities May Cause Our Stock Price To
    Decline.
As of June 30, 2011, there were outstanding options and
    warrants to purchase 3,981,000 shares of common stock, with
    exercise prices ranging from $1.10 to $15.90 per share for
    options, and $2.85 per share for warrants. In addition, there
    were approximately 901,000 shares of unvested common stock.
    The holders of the options and warrants have the opportunity to
    profit if the market price for the common stock exceeds the
    exercise price of their respective securities, without assuming
    the risk of ownership. Also, if some or all of such shares are
    sold into the public market over a short period of time, the
    value of all publicly traded shares could decline, as the market
    may not be able to absorb those shares at then-current market
    prices. Additionally, such sales may make it more difficult for
    us to sell equity securities or equity-related securities in the
    future at a time and price that our management deems acceptable,
    or at all. The holders may exercise their securities during a
    time when we would likely be able to raise capital from the
    public on terms more favorable than those provided in these
    securities.
Our
    Common Stock May Not Continue To Trade On The Nasdaq Global
    Market, Which Could Reduce The Value Of Your Investment And Make
    Your Shares More Difficult To Sell.
In order for our common stock to trade on the Nasdaq Global
    Market, we must continue to meet the listing standards of that
    market. Among other things, those standards require that our
    common stock maintain a minimum closing bid price of at least
    $1.00 per share. During 2009 and 2010, our common stock traded
    at prices near and below $1.00. If we do not continue to meet
    Nasdaq's applicable minimum listing standards, Nasdaq could
    delist us from the Nasdaq Global Market. If our common stock is
    delisted from the Nasdaq Global Market, we could seek to have
    our common stock listed on the Nasdaq Capital Market or other
    Nasdaq markets. However, delisting of our common stock from the
    Nasdaq Global Market could hinder your ability to sell, or
    obtain an accurate quotation for the price of, your shares of
    our common stock. Delisting could also adversely affect the
    perception among investors of DUSA and its prospects, which
    could lead to further declines in the market price of our common
    stock. Delisting may also make it more difficult and expensive
    for us to raise capital. In addition, delisting might subject us
    to a Securities and Exchange Commission rule that could
    adversely affect the ability of broker-dealers to sell or make a
    market in our common stock, thus hindering your ability to sell
    your shares.
Effecting
    A Change Of Control Of DUSA Would Be Difficult, Which May
    Discourage Offers For Shares Of Our Common
    Stock.
Our certificate of incorporation authorizes the board of
    directors to issue up to 100,000,000 shares of stock,
    40,000,000 of which are common stock. The board of directors has
    the authority to determine the price, rights, preferences and
    privileges, including voting rights, of the remaining
    60,000,000 shares without any further vote or action by the
    shareholders. The rights of the holders of our common stock will
    be subject to, and may be adversely affected by, the rights of
    the holders of any preferred stock that may be issued in the
    future.
On September 27, 2002, we adopted a shareholder rights plan
    at a special meeting of our board of directors. The rights plan
    could discourage, delay or prevent a person or group from
    acquiring 15% or more of our common stock, thereby limiting,
    perhaps, the ability of certain of our shareholders to benefit
    from such a transaction.
The rights plan provides for the distribution of one right as a
    dividend for each outstanding share of our common stock to
    holders of record as of October 10, 2002. Each right
    entitles the registered holder to purchase one one-thousandths
    of a share of preferred stock at an exercise price of $37.00 per
    right. The rights will be exercisable subsequent to the date
    that a person or group either has acquired, obtained the right
    to acquire, or commences or discloses an intention to commence a
    tender offer to acquire, 15% or more of our outstanding common
    stock or if a person or group is declared an "Adverse
    Person", as such term is defined in the rights plan. The
    rights may be redeemed by us at a redemption price of one
    one-hundredth of a cent per right until ten days following the
    date the person or group acquires, or discloses an intention to
    acquire, 15%
12
Table of Contents
or more, as the case may be, of DUSA, or until such later date
    as may be determined by our board of directors.
Under the rights plan, if a person or group acquires the
    threshold amount of common stock, all holders of rights (other
    than the acquiring person or group) may, upon payment of the
    purchase price then in effect, purchase shares of common stock
    of DUSA having a value of twice the purchase price. In the event
    that we are involved in a merger or other similar transaction
    where we are not the surviving corporation, all holders of
    rights (other than the acquiring person or group) shall be
    entitled, upon payment of the purchase price then in effect, to
    purchase common stock of the surviving corporation having a
    value of twice the purchase price. The rights will expire on
    October 10, 2012, unless previously redeemed. Our board of
    directors has also adopted certain amendments to our certificate
    of incorporation consistent with the terms of the rights plan.
SPECIAL
    NOTE REGARDING FORWARD-LOOKING STATEMENTS
This registration statement contains various
    "forward-looking statements" within the meaning of
    Section 27A of the Securities Act of 1933 and 21E of the
    Securities Exchange Act of 1934 which represent our expectations
    or beliefs concerning future events, including, but not limited
    to our intention to announce a price increase on an annual basis
    in the fourth quarter of each year; our beliefs regarding
    reimbursement for our products and the effect of changes to
    reimbursement policies; our beliefs regarding the global credit
    and financial market conditions, the softness in the
    international markets, effects of inflation and the economic
    recovery; our beliefs regarding interest rate and foreign
    currency exchange rate fluctuations; our beliefs concerning
    Non-PDT products revenues; our expectations regarding general
    and administrative costs; our beliefs regarding the sufficiency
    of our cash, cash equivalents and marketable securities, our
    liquidity and capital resource needs and our ability to be
    profitable each quarter; our expectations regarding potential
    for reduction of headcount, curtailment of variable expenses and
    the affect of fluctuations in the demand for our product; our
    beliefs regarding our ability to raise funds through financing
    transactions and on reasonable terms and the impact of such
    future sales of securities; our beliefs regarding the outcome if
    some or all of our shares are sold into the public market over a
    short period of time; our beliefs regarding our research and
    development programs and expectations for costs thereof; our
    beliefs regarding regulatory approvals, filings and timelines,
    including but not limited to the future development of
    Levulan
®
and our expectations regarding the initiation of objectives and
    timing of our BASDI clinical trial; our expectations regarding
    our manufacturing facility or any facility of our contract
    manufacturers, including but not limited to expectations
    concerning manufacture of the
    BLU-U
®
in our facility; our beliefs regarding our manufacturing
    capabilities and impact on our business if problems arise; our
    beliefs regarding compliance with and changes to governmental
    laws and regulations; our beliefs concerning product liability
    and insurance thereof, safety procedures for hazardous materials
    and environmental compliance; our beliefs regarding the market
    for our products and our product candidates and the growth in
    our PDT segments revenues and beliefs regarding improved gross
    margins on the
    Kerastick
®
and low margins on BLU-U
®
;

    our beliefs regarding competitive products and their impact on
    our market share expectations regarding short-dated inventory in
    Korea and impact on revenues; our beliefs regarding off-label
    use; our expectations regarding the confidentiality of our
    proprietary information; our ability and intentions to obtain,
    secure, defend and enforce our patents and our beliefs regarding
    the financial impact thereof; our beliefs concerning patent
    disputes or patents issued to third parties and potential
    litigation and cost thereof; our beliefs regarding the impact of
    a third-party's regulatory compliance status and
    fulfillment of contractual obligations; our expectations
    regarding the adequacy and availability of insurance; our
    expectations regarding sales and marketing costs and efforts;
    our beliefs regarding the dependence on key personnel; our
    intention to pursue licensing, marketing, co-promotion, other
    arrangements, additional business or new technologies and our
    beliefs regarding collaborations; our beliefs regarding the
    impact of our rights plan; our beliefs regarding the volatility
    of our stock price and its impact on value of warrants and our
    Nasdaq Global Market listing; our beliefs regarding
    Section 382 on our current and future NOLs and our ability
    to use net operating loss carryforwards and tax credit
    carryforwards to offset future taxable income and the impact of
    a future ownership change or change of control on the
    utilization by us of such NOLs and the possibility of payment of
    income tax in the near-term. These forward-looking statements
    are further qualified by important factors that could cause
    actual results to differ materially from those in the
    forward-looking statements. These factors
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include, without limitation, changing market and regulatory
    conditions, actual clinical results of our trials, the impact of
    competitive products and pricing, the timely development, FDA
    and foreign regulatory approval, and market acceptance of our
    products, environmental risks relating to our products, reliance
    on third-parties for the production, manufacture, sales and
    marketing of our products, the availability of products for
    acquisition
and/or
license on terms agreeable to us, sufficient sources of funds,
    the securities regulatory process, the maintenance of our patent
    portfolio and ability to obtain competitive levels of
    reimbursement by third-party payors, none of which can be
    assured. Results actually achieved may differ materially from
    expected results included in these statements as a result of
    these or other factors.
USE OF
    PROCEEDS
DUSA will not receive any proceeds from the sale of shares of
    Common Stock which may be sold pursuant to this prospectus for
    the respective accounts of the selling securityholders. All such
    proceeds, net of brokerage commissions, if any, will be received
    by the selling securityholders. See the sections titled
    "Selling Securityholders" and "Plan of
    Distribution."
SELLING
    SECURITYHOLDERS
This prospectus relates to the shares of Common Stock that are
    being registered for resale by the selling securityholders
    listed below. All of these shares were acquired pursuant to the
    2011 Plan. The selling securityholders may resell any or all of
    these shares at any time they choose and from time to time,
    while this prospectus is effective. The selling securityholders
    may also sell, transfer or otherwise dispose of some or all of
    their shares in transactions exempt from the registration
    requirements of the Securities Act. Although a person's
    name is included in the table below, neither that person nor we
    are making an admission that the named person is our
    "affiliate."
The following table is a list, as of August 1, 2011, of the
    selling securityholders and the number of shares beneficially
    owned by each selling securityholder. The number of shares in
    the column "Number of Shares Owned" represents
    the total number of shares that a selling securityholder
    currently owns or has the right to acquire within sixty
    (60) days of August 1, 2011. The number of shares in
    the columns "Number of Shares to be Offered" represent
    all of the shares that a selling securityholder may offer under
    this prospectus. The table and footnotes assume that the selling
    securityholders will sell all of such shares. However, because
    the selling securityholders may sell all or some of their shares
    under this prospectus from time to time, or in another permitted
    manner, we cannot assure you as to the actual number of shares
    that will be sold by the selling securityholders or that will be
    held by the selling securityholders after completion of any
    sales. We do not know how long the selling securityholders will
    hold the shares before selling them. Information concerning the
    selling securityholders may change from time to time and changed
    information will be presented in a supplement to this prospectus
    if and when necessary and required. Beneficial ownership is
    determined in accordance with
Rule 13d-3(d)
promulgated by the SEC under the Securities Exchange Act of
    1934, as amended (the "Exchange Act").
Number of
Number of
Number of
Percentage of
Shares
Shares to be
Shares Owned
Shares Owned
Name
Owned
Offered(1)(2)
After Offering
After Offering
Alfred Altomari(3)
19,000
2,000
17,000
*
David M. Bartash 4)
126,250
2,000
124,250
*
Alexander W. Casdin(5)
237,000
2,000
235,000
*
Jay M. Haft(6)
144,000
2,000
142,000
*
Paul J. Hondros(7)
17,000
2,000
15,000
*
Magnus Moliteus(8)
90,750
2,000
88,750
*
David M. Wurzer(9)
22,000
2,000
20,000
*
*
Less than one percent.
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(1)
For each individual, these shares represent 2,000 vested shares
    granted under the 2011 Plan. In addition, each individual has
    rights to 6,000 unvested restricted shares granted under the
    2011 Plan which shall vest in the amount of 2,000 shares on
    each of the first, second and third anniversaries of the date of
    the grant, i.e., June 30, 2012, 2013 and 2014.
(2)
Does not constitute a commitment to sell any or all of the
    stated number of shares of Common Stock. The number of shares
    offered shall be determined from time to time by each selling
    securityholder at their sole discretion.
(3)
Mr. Altomari has served as a director since July 2010.
    Beneficial ownership includes 4,000 shares of Common Stock
    and 15,000 shares of Common Stock underlying vested stock
    options granted to Mr. Altomari. The number of shares
    beneficially owned does not include 6,000 restricted shares of
    Common Stock granted to Mr. Altomari which will vest more
    than sixty (60) days after August 1, 2011.
(4)
Mr. Bartash has served as a director since November 2001.
    Beneficial ownership includes 21,250 shares of Common Stock
    and 105,000 shares of Common Stock underlying vested stock
    options granted to Mr. Bartash. The number of shares
    beneficially owned does not include 9,750 restricted shares of
    Common Stock granted to Mr. Bartash which will vest more
    than sixty (60) days after August 1, 2011.
(5)
Mr. Casdin has served as a director since January 2009.
    Beneficial ownership includes 202,000 shares of Common
    Stock and 35,000 shares of Common Stock underlying vested
    stock options granted to Mr. Casdin. The number of shares
    beneficially owned does not include 6,000 restricted shares of
    Common Stock granted to Mr. Casdin which will vest more
    than sixty (60) days after August 1, 2011.
(6)
Mr. Haft has served as the Chairman of the Board of
    Directors since December 2008. He has served as a director since
    September 1996 and has also served as Chairman of the Board from
    June 2003 to December 2004 and as Vice Chairman of the Board and
    Lead Director from December 2004 to December 2008. Beneficial
    ownership includes 54,000 shares of Common Stock and
    90,000 shares of Common Stock underlying vested stock
    options granted to Mr. Haft. The number of shares
    beneficially owned does not include 13,500 restricted shares of
    Common Stock granted to Mr. Haft which will vest more than
    sixty (60) days after August 1, 2011. Under
Rule 13d-3
of the Securities and Exchange Act of 1934, as amended,
    Mr. Haft disclaims, but may be deemed to be the beneficial
    owner of, 34,500 shares of Common Stock held indirectly by
    Mr. Haft's spouse.
(7)
Mr. Hondros has served as a director since July 2010.
    Beneficial ownership includes 2,000 shares of Common Stock
    and 15,000 shares of Common Stock underlying vested stock
    options granted to Mr. Hondros. The number of shares
    beneficially owned does not include 6,000 restricted shares of
    Common Stock granted to Mr. Hondros which will vest more
    than sixty (60) days after August 1, 2011.
(8)
Mr. Moliteus has served as a director since August 2003.
    Beneficial ownership includes 40,750 shares of Common Stock
    and 50,000 shares of Common Stock underlying vested stock
    options granted to Mr. Moliteus. The number of shares
    beneficially owned does not include 9,750 restricted shares of
    Common Stock granted to Mr. Moliteus which will vest more
    than sixty (60) days after August 1, 2011.
(9)
Mr. Wurzer has served as a director since July 2010.
    Beneficial ownership includes 7,000 shares of Common Stock
    and 15,000 shares of Common Stock underlying vested stock
    options granted to Mr. Wurzer. The number of shares
    beneficially owned does not include restricted 6,000 shares
    of Common Stock granted to Mr. Wurzer which will vest more
    than sixty (60) days after August 1, 2011.
PLAN OF
    DISTRIBUTION
Shares offered hereby may be sold from time to time directly by
    or on behalf of the selling securityholders in one or more
    transactions on the Nasdaq Global Market or on any stock
    exchange on which the Common Stock may be listed at the time of
    sale, in privately negotiated transactions, or through a
    combination of such methods, at market prices prevailing at the
    time of sale, at prices related to such prevailing market
    prices, at fixed prices (which may be changed) or at negotiated
    prices. The selling securityholders may sell shares through one
    or more agents, brokers or dealers or directly to purchasers.
    Such brokers or dealers may receive compensation in the form of
    commissions, discounts or concessions from the
15
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selling securityholders
and/or
purchasers of the shares or both (which compensation as to a
    particular broker or dealer may be in excess of customary
    commissions).
In connection with such sales, the selling securityholders and
    any participating broker or dealer may be deemed to be
    "underwriters" within the meaning of the Securities
    Act, and any commissions they receive and the proceeds of any
    sale of shares may be deemed to be underwriting discounts and
    commissions under the Securities Act.
In order to comply with certain state securities laws, if
    applicable, the shares may be sold in such jurisdictions only
    through registered or licensed brokers or dealers. In certain
    states, the shares may not be sold unless the shares have been
    registered or qualified for sale in such state or an exemption
    from regulation or qualification is available and is complied
    with. Sales of shares must also be made by the selling
    securityholders in compliance with all other applicable state
    securities laws and regulations.
In addition to any shares sold hereunder, selling
    securityholders may, at the same time, sell any shares of Common
    Stock owned by them in compliance with all of the requirements
    of Rule 144, regardless of whether such shares are covered
    by this reoffer prospectus. There can be no assurance that any
    of the selling securityholders will sell any or all of the
    shares offered by them hereby.
DUSA will pay all expenses of the registration of the shares.
    DUSA has notified certain selling securityholders of the need to
    deliver a copy of this reoffer prospectus in connection with any
    sale of the shares.
LEGAL
    MATTERS
The validity of the shares being offered hereby has been passed
    upon for DUSA by Reed Smith LLP. Nanette W. Mantell, Esq.,
    a partner of Reed Smith LLP, serves as DUSA's Secretary,
    which is an officer position.
EXPERTS
The consolidated financial statements, incorporated in this
    prospectus by reference from the Company's Annual Report on
Form 10-K
for the year ended December 31, 2010, have been audited by
    Deloitte & Touche LLP, an independent registered
    public accounting firm, as stated in their report, which is
    incorporated herein by reference. Such financial statements have
    been so incorporated in reliance upon the report of such firm
    given upon their authority as experts in accounting and auditing.
WHERE YOU
    CAN FIND MORE INFORMATION
We have filed with the SEC a registration statement on
Form S-8
under the Securities Act with respect to the shares of Common
    Stock offered hereby. This prospectus does not contain all of
    the information set forth in the registration statement and the
    exhibits thereto. You can find additional information regarding
    us and the Common Stock in the registration statement and the
    exhibits. Statements contained in this prospectus regarding the
    contents of any contract or any other document to which
    reference is made are not necessarily complete, and, in each
    instance where a copy of such contract or other document has
    been filed as an exhibit to the registration statement,
    reference is made to the copy so filed, each such statement
    being qualified in all respects by such reference.
We are subject to the informational requirements of the Exchange
    Act, and, in accordance therewith, file reports and other
    information with the SEC. The registration statement, including
    exhibits, and the reports and other information filed by us can
    be inspected without charge at the public reference facilities
    maintained by the SEC at the SEC's public reference room at
    100 F Street, N.E., Washington, D.C. 20549.
    Copies of such material can be obtained from such offices at
    fees prescribed by the SEC. The public may obtain information on
    the operation of the Public Reference room by calling the SEC at
1-800-SEC-0330.
The SEC maintains a World Wide Web site that contains reports,
    proxy and information statements and other information regarding
16
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registrants that file electronically with the SEC. The address
    of this site is
http://www.sec.gov.
In addition, you can also access documents we file with the SEC
    at our website,
http://www.dusapharma.com,
which is not a part of this prospectus and is not incorporated
    herein by reference.
INCORPORATION
    OF CERTAIN DOCUMENTS BY REFERENCE
The following documents, which have been filed by us with the
    SEC pursuant to the Exchange Act, are incorporated by reference
    in this prospectus as of their respective dates:
(a) Our Annual Report on
Form 10-K
for the year ended December 31, 2010;
(b) Our Quarterly Reports on
Form 10-Q
for the quarter ended March 31, 2011 and June 30, 2011;
(c) Our Schedule 14A filed with the SEC on
    April 19, 2011;
(d) Our Current Reports on
Form 8-K
filed with the SEC on June, 10, 2011 and July 1, 2011;
(e) The description of DUSA's Common Stock contained
    in its registration statement on
Form 8-A
which was filed on January 3, 1992 and amended on
Form 8-A
filed on October 24, 1997, and in DUSA's Quarterly
    Report on
Form 10-Q
which was filed on November 12, 1997.
All documents filed by us pursuant to Section 13(a), 13(c),
    14 and 15(d) of the Exchange Act after the date hereof and prior
    to the termination of the offering, shall be deemed to be
    incorporated by reference into this prospectus and to be a part
    hereof from the date of filing of such documents. Any statement
    contained in a document incorporated or deemed to be
    incorporated herein by reference shall be deemed to be modified
    or superseded for purposes of this prospectus to the extent that
    a statement contained herein or in any other subsequently filed
    document which also is or is deemed to be incorporated by
    reference herein modifies or supersedes such statement.
We will provide without charge to any person, including any
    beneficial owner, to whom this prospectus is delivered, upon
    written or oral request of such person, a copy of each document
    incorporated by reference in the prospectus (other than exhibits
    to such documents unless such exhibits are specifically
    incorporated by reference into this prospectus). We will provide
    such copies at no cost, upon written or oral request, by writing
    or telephoning us at:
DUSA Pharmaceuticals, Inc.
25 Upton Drive
Wilmington, Massachusetts 01887
Attention: Mr. Richard Christopher
Telephone:
(978) 657-7500
Attention: Mr. Richard Christopher
E-mail
to: ChristopherR@DusaPharma.com
Our World Wide Web site is located at www.dusapharma.com.
    Information on the Web site is not incorporated by reference
    into this prospectus.
17
Table of Contents
14,000 Shares
DUSA
PHARMACEUTICALS, INC.
Common Stock
­
    ­
PROSPECTUS
August   , 2011
Table of Contents
PART II
INFORMATION
    REQUIRED TO BE IN THE REGISTRATION STATEMENT
ITEM 3.
Incorporation
    of Documents by Reference
The following documents, which have been filed by us with the
    SEC pursuant to the Exchange Act, are incorporated by reference
    in this registration statement as of their respective dates:
(a) Our Annual Report on
Form 10-K
for the year ended December 31, 2010;
(b) Our Quarterly Reports on
Form 10-Q
for the quarters ended March 31, 2011 and June 30,
    2011;
(c) Our Schedule 14A filed with the SEC on
    April 19, 2011;
(d) Our Current Reports on
Form 8-K
filed with the SEC on June, 10, 2011 and July 1, 2011;
(e) The description of DUSA's Common Stock contained
    in its registration statement on
Form 8-A
which was filed on January 3, 1992 and amended on
Form 8-A
filed on October 24, 1997, and in DUSA's Quarterly
    Report on
Form 10-Q
which was filed on November 12, 1997.
All documents filed by us pursuant to Section 13(a), 13(c),
    14 and 15(d) of the Exchange Act after the date hereof and prior
    to the termination of the offering, shall be deemed to be
    incorporated by reference into this registration statement and
    to be a part hereof from the date of filing of such documents.
    Any statement contained in a document incorporated or deemed to
    be incorporated herein by reference shall be deemed to be
    modified or superseded for purposes of this registration
    statement to the extent that a statement contained herein or in
    any other subsequently filed document which also is or is deemed
    to be incorporated by reference herein modifies or supersedes
    such statement.
ITEM 4.
Description
    of Securities
Not applicable.
ITEM 5.
Interests
    of Named Experts and Counsel
Not applicable.
ITEM 6.
Indemnification
    of Directors and Officers
The New Jersey Business Corporation Act provides that a New
    Jersey corporation has the power to indemnify a director or
    officer against his expenses and liabilities in connection with
    any proceeding involving the director or officer by reason of
    his being or having been such a director or officer, other than
    a proceeding by or in the right of the corporation, if such a
    director or officer acted in good faith and in a manner he
    reasonably believed to be in or not opposed to the best
    interests of the corporation; and with respect to any criminal
    proceeding, such director or officer had no reasonable cause to
    believe his conduct was unlawful.
The indemnification and advancement of expenses shall not
    exclude any other rights, including the right to be indemnified
    against liabilities and expenses incurred in proceedings by or
    in the right of the corporation, to which a director or officer
    may be entitled under a certificate of incorporation, bylaw,
    agreement, vote of shareholders, or otherwise; provided that no
    indemnification shall be made to or on behalf of a director or
    officer if a judgment or other final adjudication adverse to the
    director or officer establishes that his acts or omissions
    (a) were in breach of his duty of loyalty to the
    corporation or its shareholders, (b) were not in good faith
    or involved a knowing violation of law or (c) resulted in
    receipt by the director or officer of an improper personal
    benefit.
Article 5 of the Company's Certificate of
    Incorporation, as amended, provides that any director and
    officer of the Corporation shall not be personally liable to the
    Corporation or its shareholders for damages for breach of any
    duty owed to the Corporation or its shareholders, except that
    this provision shall not relieve a director or officer from
    liability for any breach of duty based upon an act or omission
    (a) in breach of such person's duty of loyalty to the
    Corporation or its shareholders; (b) not in good faith or
    involving a knowing violation of law; or (c) resulting in
    receipt by such person of an improper personal benefit.
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The Company's By-laws, as amended, pursuant to the New
    Jersey Business Corporation Act, N.J.S.A. 14A:3-5, provide that
    a former, present or future director, officer, trustee or
    employee of the Company or of any constituent corporation
    absorbed by the Corporation in a consolidation or merger or the
    legal representative of any such director, officer, trustee or
    employee or agent of any constituent corporation absorbed by the
    Corporation in a consolidation or merger shall be indemnified by
    the Company as follows:
(a) against expenses, costs, disbursements (including
    attorneys' fees), judgments, fines and amounts actually and
    reasonably incurred by him in good faith and in connection with
    such action, suit or proceeding if he acted in a manner he
    reasonably believed to be in or not opposed to the best
    interests of the Corporation, and with respect to any criminal
    action or proceeding, he had no reasonable cause to believe that
    his conduct was unlawful. The termination of any action, suit or
    proceeding by judgment, order, settlement, conviction, or upon a
    plea of
nolo contendere
or its equivalent, shall not, of
    itself, create a presumption that the person did not meet the
    applicable standard of conduct, and
(b) against expenses (including attorneys' fees)
    actually and reasonably incurred by him in connection with the
    defense or settlement of such action or suit if he acted in good
    faith and in a manner he reasonably believed to be in or not
    opposed to the best interests of the Corporation and except that
    no indemnification shall be made in respect of any claim, issue
    or matter as to which such person shall have been adjudged to be
    liable to the Corporation unless and only to the extent that the
    New Jersey Superior Court or the court in which such action or
    suit was brought shall determine upon application that, despite
    the adjudication of liability but in view of all the
    circumstances of the case, such person is fairly and reasonably
    entitled to indemnity for such expenses which the New Jersey
    Superior Court or such other court shall deem proper, and
(c) to the extent that a person who is or was a director,
    officer, trustee, employee or agent of the Corporation or of any
    constituent corporation absorbed by the Corporation by
    consolidation or merger, or the legal representative of any such
    person, has been successful on the merits or otherwise in
    defense of any action, suit or proceeding referred to above, or
    in defense of any claim, issue, or matter therein, he shall be
    indemnified against expenses (including attorneys' fees)
    actually and reasonably incurred by him in connection therewith.
We also maintain directors' and officers' liability
    insurance which may, in some instances, reimburse us for
    judgments against us or our directors or officers.
ITEM 7.
Exemption
    from Registration Claimed.
Restricted securities to be reoffered and resold pursuant to
    this Registration Statement were issued under the 2011 Plan in
    transactions exempt from registration pursuant to
    Section 4(2) of the Securities Act.
ITEM 8.
Exhibits
Exhibit
No.
Description of Exhibit
4
.1
Common Stock specimen, filed as Exhibit 4(a) to the
    Registrant's Form 10-K for the fiscal year ended December
    31, 2002, and is incorporated herein by reference.
4
.2
Rights Agreement, dated as of September 27, 2002, between the
    Registrant and American Stock Transfer and Trust Company filed
    as Exhibit 4.0 to Registrant's Current Report on Form 8-K
    filed October 11, 2002, and is incorporated herein by reference.
4
.3
Rights Certificate relating to the rights granted to holders of
    Common Stock under the Rights Agreement filed as Exhibit 4.0 to
    Registrant's Current Report on Form 8-K, filed on October
    11, 2002, and is incorporated herein by reference.
5
.1
Opinion of Reed Smith LLP.
10
.1
DUSA Pharmaceuticals, Inc. Amended and Restated 2011 Equity
    Compensation Plan (incorporated by reference to Appendix A to
    the Company's Definitive Proxy Statement filed with the
    Securities and Exchange Commission on April 19, 2011).
23
.1
Consent of independent registered public accounting firm.
II-2
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Exhibit
No.
Description of Exhibit
23
.2
Consent of Reed Smith LLP (included in Exhibit 5.1).
24
.1
Power of Attorney (contained on Signature Page).
99
.1
Form of Nonqualified Stock Option Grant Agreement filed as
    Exhibit 99.1 to the Registrant's registration statement on
    Form S-8 (file no. 333-141615) filed on March 28, 2007, and is
    incorporated herein by reference.
99
.2
Form of Incentive Stock Option Grant Agreement filed as Exhibit
    99.2 to the Registrant's registration statement on Form S-8
    (file no. 333-141615) filed on March 28, 2007, and is
    incorporated herein by reference.
99
.3
Form of Stock Award Grant Agreement filed as Exhibit 99.3 to the
    Registrant's registration statement on Form S-8 (file no.
    333-141615) filed on March 28, 2007, and is incorporated herein
    by reference.
ITEM 9.
Undertakings
(a) The undersigned registrant hereby undertakes:
(1) to file, during any period in which offers or sales are
    being made, a post-effective amendment to this registration
    statement:
(i) to include in any prospectus required by
    Section 10(a)(3) of the Securities Act of 1933;
(ii) to reflect in the prospectus any facts or events
    arising after the effective date of this registration statement
    (or the most recent post-effective amendment thereof) which,
    individually or in the aggregate, represent a fundamental change
    in the information set forth in this registration statement.
    Notwithstanding the foregoing, any increase or decrease in
    volume of securities offered (if the total dollar value of
    securities offered would not exceed that which was registered)
    and any deviation from the low or high end of the estimated
    maximum offering range may be reflected in the form of
    prospectus filed with the SEC pursuant to Rule 424(b) if,
    in the aggregate, the changes in volume and price represent no
    more than a 20% change in the maximum aggregate offering price
    set forth in the "Calculation of Registration Fee"
    table in the effective registration statement;
(iii) to include any material information with respect to
    the plan of distribution not previously disclosed in this
    registration statement or any material change to such
    information in this registration statement;
provided, however, that paragraphs (a)(1)(i), and (a)(1)(ii)
    above do not apply if the registration statement is on
Form S-8
and the information required to be included in a post-effective
    amendment by those paragraphs is contained in periodic reports
    filed with or furnished to the SEC by the registrant pursuant to
    Section 13 or 15(d) of the Exchange Act that are
    incorporated by reference in the registration statement.
(2) that, for the purpose of determining any liability
    under the Securities Act of 1933, each such post-effective
    amendment shall be deemed to be a new registration statement
    relating to the securities offered therein, and the offering of
    such securities at that time shall be deemed to be the initial
    bona fide offering thereof.
(3) to remove from registration by means of a
    post-effective amendment any of the securities being registered
    which remain unsold at the termination of the offering.
(b) The undersigned registrant hereby undertakes that, for
    purposes of determining any liability under the Securities Act,
    each filing of the registrant's annual report pursuant to
    Section 13 (a) or Section 15(d) of the Exchange
    Act (and, where applicable, each filing of an employee benefit
    plan's annual report pursuant to Section 15(d) of the
    Exchange Act) that is incorporated by reference in the
    registration statement shall be deemed to be a new registration
    statement relating to the securities offered therein, and the
    offering of such securities at that time shall be deemed to be
    the initial bona fide offering thereof.
(c) Insofar as indemnification for liabilities arising
    under the Securities Act may be permitted to directors, officers
    and controlling persons of the registrant pursuant to the
    foregoing provisions, or otherwise,
II-3
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the registrant has been advised that in the opinion of the SEC
    such indemnification is against public policy as expressed in
    the Securities Act and is, therefore, unenforceable. In the
    event that a claim for indemnification against such liabilities
    (other than the payment by the registrant of expenses incurred
    or paid by a director, officer or controlling person of the
    registrant in the successful defense of any action, suit or
    proceeding) is asserted by such director, officer or controlling
    person in connection with the securities being registered, the
    registrant will, unless in the opinion of its counsel the matter
    has been settled by controlling precedent, submit to a court of
    appropriate jurisdiction the question whether such
    indemnification by it is against public policy as expressed in
    the Securities Act and will be governed by the final
    adjudication of such issue.
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SIGNATURES
The Registrant:
Pursuant to the requirements
    of the Securities Act of 1933, as amended, the registrant
    certifies that it has reasonable grounds to believe that it
    meets all of the requirements for filing on
Form S-8
and has duly caused this registration statement on
Form S-8
to be signed on its behalf by the undersigned, thereunto duly
    authorized, in the City of Wilmington, Commonwealth of
    Massachusetts, on this 2nd day of August, 2011.
DUSA PHARMACEUTICALS, INC.
By:
/s/  Robert
    F. Doman
Robert F. Doman
President and Chief Executive Officer
POWER
    OF ATTORNEY
Know All Men By These Presents, that each person whose signature
    appears below constitutes and appoints Robert F. Doman and
    Richard C. Christopher, and each of them singly, as
his/her
true
    and lawful attorney-in-fact and agent with full power of
    substitution and resubstitution, for him/her and in
his/her
name, place and stead, in any and all capacities, to sign any or
    all amendments (including post-effective amendments) to this
    registration statement or any related registration statement,
    including any amendment to this registration statement for the
    purpose of registering additional shares in accordance with
    General Instruction E to
Form S-8,
and to file the same, with all exhibits thereto, and other
    documents in connection therewith, with the Securities and
    Exchange Commission, granting unto said attorney-in-fact and
    agent full power and authority to do and perform each and every
    act and thing requisite and necessary to be done in connection
    with the above premises, as fully to all intents and purposes as
he/she
might
    or could do in person, hereby ratifying and confirming all that
    said attorney-in-fact and agent or
his/her
substitute or substitutes, may lawfully do or cause to be done
    by virtue thereof.
Pursuant to the requirements of the Securities Act of 1933, as
    amended, this Registration Statement on
Form S-8
has been signed by the following persons in the capacities and
    on the dates indicated:
/s/  Alfred
    Altomari
Alfred
    Altomari
Director
August 2, 2011
Date
/s/  David
    M. Bartash
David
    M. Bartash
Vice Chairman of the
Board of Directors and Lead Director
August 2, 2011
Date
/s/  Alexander
    W. Casdin
Alexander
    W. Casdin
Director
August 2, 2011
Date
/s/  Richard
    C. Christopher
Richard
    C. Christopher
Vice President, Finance and Chief
Financial Officer (principal financial
officer and principal accounting officer)
August 2, 2011
Date
/s/  Robert
    F. Doman
Robert
    F. Doman
Director, President and Chief Executive Officer (principal
    executive officer)
August 2, 2011
Date
/s/  Jay
    M. Haft, Esq.
Jay
    M. Haft, Esq.
Chairman of the
Board of Directors and Director
August 2, 2011
Date
II-5
Table of Contents
/s/  Paul
    J. Hondros
Paul
    J. Hondros
Director
August 2, 2011
Date
/s/  Magnus
    Moliteus
Magnus
    Moliteus
Director
August 2, 2011
Date
/s/  David
    M. Wurzer
David
    M. Wurzer
Director
August 2, 2011
Date
II-6
Table of Contents
EXHIBIT INDEX
Exhibit
No.
Description of Exhibit
4
.1
Common Stock specimen, filed as Exhibit 4(a) to the
    Registrant's Form 10-K for the fiscal year ended December
    31, 2002, and is incorporated herein by reference.
4
.2
Rights Agreement, dated as of September 27, 2002, between the
    Registrant and American Stock Transfer and Trust Company filed
    as Exhibit 4.0 to Registrant's Current Report on Form 8-K
    filed October 11, 2002, and is incorporated herein by reference.
4
.3
Rights Certificate relating to the rights granted to holders of
    Common Stock under the Rights Agreement filed as Exhibit 4.0 to
    Registrant's Current Report on Form 8-K, filed on October
    11, 2002, and is incorporated herein by reference.
5
.1
Opinion of Reed Smith LLP.
10
.1
DUSA Pharmaceuticals, Inc. Amended and Restated 2011 Equity
    Compensation Plan (incorporated by reference to Appendix A to
    the Company's Definitive Proxy Statement filed with the
    Securities and Exchange Commission on April 19, 2011).
23
.1
Consent of independent registered public accounting firm.
23
.2
Consent of Reed Smith LLP (included in Exhibit 5.1).
24
.1
Power of Attorney (contained on Signature Page).
99
.1
Form of Nonqualified Stock Option Grant Agreement filed as
    Exhibit 99.1 to the Registrant's registration statement on
    Form S-8 (file no. 333-141615) filed on March 28, 2007, and is
    incorporated herein by reference.
99
.2
Form of Incentive Stock Option Grant Agreement filed as Exhibit
    99.2 to the Registrant's registration statement on Form S-8
    (file no. 333-141615) filed on March 28, 2007, and is
    incorporated herein by reference.
99
.3
Form of Stock Award Grant Agreement filed as Exhibit 99.3 to the
    Registrant's registration statement on Form S-8 (file no.
    333-141615) filed on March 28, 2007, and is incorporated herein
    by reference.