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THIS IS AN ELECTRONIC CONFIRMING COPY OF A DOCUMENT FILED ON MAY 17, 1996.
FORM 8-K
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 16, 1996
DUSA PHARMACEUTICALS, INC.
(Exact name of registrant as specified in its charter)
NEW JERSEY 0-19777 22-3103129
(State or other (IRS Employer
jurisdiction of (Commission Identification
incorporation) File Number) Number)
6870 GOREWAY DRIVE
MISSISSAUGA, ONTARIO L4V 1P1 CANADA
(Address of principal executive offices, including ZIP code)
(905) 677-4554
(Registrant's telephone number, including area code)
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ITEM 5. OTHER EVENTS.
The Company reported that Lipomelanin(TM)-LQ (patent pending), a
synthetic melanin specifically designed for use as a black hair coloring agent,
was launched for the first time at an industry trade show in New Jersey on May
15, 1996. MeL-Co, an independent firm located in Orland, California, is
producing Lipomelanin(TM)-LQ, and marketing it to cosmetic and hair care
companies for use in semi-permanent hair dyes, coloring shampoos, and coloring
creme rinses. The product is currently undergoing testing by a major European
company.
Black hair dye products are widely used around the world. However,
there has been controversy over the use of certain coal tar derived black hair
dye ingredients, which have been found to cause cancer in laboratory animals.
Lipomelanin(TM)-LQ, which is not derived from coal tar, may provide an
alternative to these ingredients.
Lipomelanin(TM)-LQ is the first product of a collaboration between the
Company and MeL-Co to develop a series of Lipomelanin compounds for use in
over-the-counter and/or cosmetic products, with potential applications such as
skin or hair coloring ingredients, antioxidants, and UVA sunscreen agents.
The rights to these compounds were licensed by the Company from
inventors at the University of Toronto. Pursuant to the terms of the license
agreement, the Company paid an execution fee of Cdn. $20,000 and has agreed to
pay Cdn. $25,000 upon allowance of patents in the United States and Cdn. $25,000
upon the issuance of a Notice of Compliance in Canada or a New Drug Approval in
the United States or upon launching of such drug products for commercial sale in
North America, whichever occurs first. In countries where patent rights exist,
the Company has agreed to pay royalties of 4% on its net sales of prescription
products and 2% on over the counter products. In countries where patent rights
do not exist, the Company has agreed to pay 2% and 1%, respectively.
Development work by MeL-Co was performed under a consulting agreement
dated June 6, 1994, and renewed on January 23, 1996. Pursuant to the terms of
the consulting agreement, MeL-Co receives consulting fees of $2,000 per month
until December 31, 1996. In light of these recent developments, the Company and
MeL-Co are negotiating a definitive business agreement with respect to the
marketing of all Lipomelanin products.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.
DUSA PHARMACEUTICALS, INC.
By: D. Geoffrey Shulman
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D. Geoffrey Shulman, MD, FRCPC
President and Chief Executive Officer
Dated: May 16, 1996
