UPDATE 1-DUSA to end skin drug deal with Stiefel Laboratories

Wed Oct 6, 2010 8:02am EDT

* Says to get $101,000 deferred rev, $490,000 milestone pay

* Says rev from agreement was 1 pct of overall revenue

Oct 6 (Reuters) - DUSA Pharmaceuticals Inc DUSA.O sought to terminate an agreement with a unit of GlaxoSmithKline PLC (GSK.L) to market and distribute its drug to treat scaly patches on the skin, in Latin America.

In 2006, DUSA gave Stiefel Laboratories Inc the rights to distribute, promote and sell its drug Levulan Kerastick in Latin America for ten years.

With the termination, DUSA will receive deferred revenue for drug shipments of $101,000 and remaining milestone payments of $490,000 as of June 30.

The revenue from the agreement in Latin America had been 1 percent of its overall revenue for the first half of 2010, DUSA said in a regulatory filing.

DUSA's shares, which have gained 2 percent since reporting better-than-expected quarterly results in August, closed at $2.51 Tuesday on Nasdaq. (Reporting by Shravya Jain in Bangalore; Editing by Don Sebastian)

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