PRINCETON, N.J.--(BUSINESS WIRE)-- Derma Sciences, Inc. (DSCI), a medical device and pharmaceutical company focused on advanced wound care, announced today that it has signed a long-term exclusive global rights agreement with New Cast Industries Co. Ltd. of Korea for the casting element within the TCC-EZ® total contact casting system. Derma Sciences plans to begin sales of the system in markets throughout Europe, the Middle East, Asia and Latin America as soon as regional regulatory clearances allow, potentially as early as this summer in some instances.
The five-year agreement has automatic renewals and no sales minimums. Sales must commence by certain dates in certain geographies to maintain exclusivity in those geographies. Product will be supplied to Derma Sciences by New Cast at a discounted rate relative to prices for products sold into North America to account for pricing pressures known to exist in certain markets around the world. Further terms of the agreement were not disclosed.
This new agreement expands the Company’s existing agreement with New Cast Industries that covers sales in North America.
“Since our April 2012 acquisition of MedEfficiency, TCC-EZ has become an anchor product in our advanced wound care product portfolio with a current sales run rate of $8.5 million in the U.S. alone,” said Barry Wolfenson, Group President, Advanced Wound Care and Pharmaceutical Development at Derma Sciences. “We are very pleased with the pace of domestic sales growth, and expect that TCC-EZ will be embraced by patients and practitioners around the world in treating diabetic foot ulcers. We look forward to our global sales infrastructure leveraging this innovative product as successfully as our domestic sales representatives have done.
“Acquiring the long-term global rights to this important product further demonstrates our desire and commitment to becoming a world-class advanced wound care organization,” Wolfenson continued. “Pending regional regulatory clearances, we now can sell all our key advanced wound care brands including TCC-EZ, MEDIHONEY®, XTRASORB®, BIOGUARD® and ALGICELL® Ag through all our distributors around the globe. We believe, as we have demonstrated in the U.S., that this comprehensive line of novel products will provide our international sales organizations and distributors with a strong opportunity to take market share from our much larger competitors, helping to continue our sales growth trajectory.”
Proper off-loading, or removal of pressure, is essential for the complete healing of diabetic foot ulcers. Supported by several studies showing an 89.5% heal rate, total contact casts are considered the gold standard for off-loading. However, traditional total contact casts, which are made of fiberglass rolls and an assortment of other casting elements, are time-consuming and difficult to apply. This has led to chronic underutilization of this type of device, involving less than 2% of applicable patients. TCC-EZ, on the other hand, is a patented next generation total contact casting system that employs a single casting unit, greatly reducing the time and complexity of application.
About Derma Sciences, Inc.
Derma Sciences is a medical technology company focused on three segments of the wound care marketplace: pharmaceutical wound care products, advanced wound care dressings to address chronic wounds, including diabetic ulcers and traditional dressings. The Company has begun Phase 3 clinical trials in diabetic foot ulcer healing with DSC127, based on excellent Phase 2 data. Its MEDIHONEY® product is the leading brand of honey-based dressings for the management of wounds and burns. The product has been shown to be effective in a variety of indications, and was the focus of a positive large-scale, randomized controlled trial involving 108 subjects with leg ulcers. TCC-EZ® is its gold-standard total contact casting system for diabetic foot ulcers. Other novel products introduced into the $14 billion global wound care market include XTRASORB® for better management of wound exudate, and BIOGUARD® for infection prevention.
For more information please visit www.dermasciences.com.
Forward-Looking Statements
Statements contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the generality of the foregoing, words such as “may,” “will,” “expect,” “believe,” “anticipate,” “intend,” “could,” “estimate” or “continue” are intended to identify forward-looking statements. Readers are cautioned that certain important factors may affect the Company’s actual results and could cause such results to differ materially from any forward-looking statements that may be made in this news release or that are otherwise made by or on behalf of the Company. Factors that may affect the Company’s results include, but are not limited to, product demand, market acceptance, impact of competitive products and prices, product development, completion of an acquisition, commercialization or technological difficulties, the success or failure of negotiations and trade, legal, social and economic risks. Additional factors that could cause or contribute to differences between the Company’s actual results and forward-looking statements include but are not limited to, those discussed in the Company’s filings with the U.S. Securities and Exchange Commission.
Contact:
Derma Sciences, Inc.
Barry Wolfenson, 609-514-4744
Group President, Advanced Wound Care and Pharmaceutical Development
bwolfenson@dermasciences.com
or
LHA, Inc.
Investors
Kim Sutton Golodetz, 212-838-3777
kgolodetz@lhai.com
or
Bruce Voss, 310-691-7100
bvoss@lhai.com
@LHA_IR_PR
