DUSA Pharmaceuticals Inc., developer and marketer of Levulan photodynamic therapy (PDT) for the treatment of dermatological conditions such as actinic keratoses, acne and photodamage has signed a definitive merger agreement to acquire all of the common stock of Sirius Laboratories Inc. for $30 million.

Sirius is a privately held dermatology specialty pharmaceuticals company founded in 2000 with a primary focus on the treatment of acne vulgaris and acne rosacea. Closing of the transaction is expected in Q1, 2006, subject to the terms and conditions in the merger agreement, states a company release.

Dr. Geoffrey Shulman, DUSA chairman and CEO, stated, "We are very pleased to be able to announce the signing of this agreement, as we believe there is an excellent synergy between our products and companies. Upon closing of the transaction, we will be offering an expanded line of innovative products to dermatologists, while also enhancing our near-term development pipeline. The combination of Sirius and DUSA is a major step forward in DUSA's plan to become a leading provider of dermatological pharmaceuticals."

Sirius chairman, Dr. Stephen Mandy, added, "We are excited to be joining forces with DUSA, and we look forward to bringing our products to more dermatologists enabling the combined enterprise to be stronger than either company prior to the merger."

Of the up to $30 million, $8 million less certain expenses will be paid in cash upon closing, $17 million will be paid in shares of DUSA's common stock also upon closing in a private placement, and up to $5 million in cash or common stock, as DUSA determines, may be paid based on a combination of new product approvals or launches, and achievement of certain pre-determined total cumulative sales milestones for Sirius products.