PRINCETON, N.J., Sept. 18 /PRNewswire-FirstCall/ -- Derma Sciences, Inc. said today that it knows of no fundamental reason behind the decline in its stock price. The Company is baffled by the current stock price, as they are generating over $50 million in sales, over $15 million in Gross Profits and at the end of second quarter they had over $4 million in cash. By October the Company will have introduced four new patented products led by MEDIHONEY(TM), which is receiving excellent reviews in the marketplace and its sales are increasing better then planned.
Chairman & CEO Ed Quilty said, “Derma Sciences is growing quickly, and currently running at a revenue rate of $53 million annually. We believe we will hit a run rate of $80 million next year. We are financed adequately to achieve that growth, and we have world-class manufacturing in China, Canada and Mexico.
“Most important, we have distinctive and effective new products, most notably the MEDIHONEY product line, a wound care product family that is being broadly adopted, and new customers are growing month over month. It may well be a much larger product than even we had originally hoped. Additionally, we are in the process of launching three new novel higher margin products: EZ-Cast(TM), XTRASORB(TM), and MOBILITY1(TM).
“To promote these new products, we have increased our sales force from 2 to 13, and believe the return on that extra expense will be strong. In addition, our First Aid business is adding success after success with buying groups, retailers and white-label buyers all over North America.”
Quilty added, “I am not a banker nor a broker, but I know that when the markets are as roiled and volatile as they are right now, that tends to create value opportunities for savvy buyers. We believe that Derma Sciences was clearly undervalued before the recent drop in price, and is grossly undervalued today at a market cap of a small fraction of current sales.”
Derma Sciences is also preparing to begin patient enrollment on the Phase 2 trial for its DSC127, a pharmaceutical for wound healing with the first indication for healing diabetic ulcers, a market greater than $10 billion in the US.
About Derma Sciences
Derma Sciences is a global manufacturer and marketer of advanced wound-care products. For more information about Derma Sciences, Inc., visit its home page on the Internet at http://www.dermasciences.com/.
Forward-looking Statements
Statements contained in this 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 which may be made in this release or which are otherwise made by or on behalf of the Company. Factors which 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 Securities and Exchange Commission.
CONTACT: Edward J. Quilty, Chairman and CEO of Derma Sciences, Inc.,
+1-609-514-4744, equilty@dermasciences.com; or US Investors , Rudy Barrio,
r.barrio@allencaron.com, or media, Brian Kennedy, +1-212-691-8087,
brian@allencaron.com, both of Allen & Caron Inc, for Derma Sciences, Inc.
Web site: http://www.dermasciences.com/
