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Derma Sciences Announces First Commercial Sales of BIOGUARD(TM) Barrier Dressings

PRINCETON, N.J., June 23 /PRNewswire-FirstCall/ -- Derma Sciences, Inc. (OTC Bulletin Board: DSCI), a provider of advanced wound care products, announced today that it has begun shipping BIOGUARD(TM) Barrier Dressings to customers. Separately, the company announced that it has been awarded reimbursement codes for the dressings, allowing the products to be reimbursable by Medicare. BIOGUARD will offer surgeons, wound care clinicians, infection control experts and primary care doctors a new weapon against the transmission of such virulent bacteria as Methicillin-resistant Staphylococcus aureus (MRSA).

Speaking about the commencement of product sales, Derma Sciences' CEO Ed Quilty stated, "We are very excited about the sales potential for this product, and are highly encouraged by both the initial orders and positive feedback we have received from customers. We expect BIOGUARD to quickly become one of our most successful new brands in the $14 Billion global wound care market." Quilty continued, "With the ability to kill 99.999% of MRSA and other virulent pathogens, we believe these gauze-based dressings will become an important everyday asset to healthcare providers as they look for more effective and efficient ways to help prevent infections as well as cross-contaminations."

BIOGUARD Barrier Dressings were in vitro tested with the AATCC 100 antimicrobial assay, and the following results were achieved against a broad spectrum of species:

    Test                                                    Log
    Species                                                 Reduction

    Methicillin-resistant staphylococcus aureus: MRSA    6.06 (>99.9999%)
    Staphylococcus aureus                               7.10 (>99.99999%)
    Escherichia coliform                                7.10 (>99.99999%)
    Pseudomonas aeruginosa                              7.22 (>99.99999%)
    Corynebacterium xerosis                               5.68 (>99.999%)
    Micrococcus luteus                                   6.02 (>99.9999%)
    Proteus vulgaris                                    7.53 (>99.99999%)
    Streptococcus pyogenes                                5.81 (>99.999%)
    Enterococcus faecalis                                6.26 (>99.9999%)
    Enterobacter  (Aerobacter) aerogenes                  5.88 (>99.999%)
    Staphylococcus epidermidis                          7.44 (>99.99999%)
    Listeria monocytogenes                               6.97 (>99.9999%)
    Vancomycin-Resistant Enterococcus faecium: VRE        5.20 (>99.999%)
    Serratia marescens                                   6.21 (>99.9999%)
    Klebsiella pneumoniae                               7.35 (>99.99999%)

Healthcare Common Procedure Coding System (HCPCS) numbers are the codes used by Medicare and monitored by CMS, the Centers for Medicare and Medicaid Services. They are based on the CPT Codes (Current Procedural Technology codes) developed by the American Medical Association. Wound dressings and other supplies are not able to be reimbursed through Medicare without set HCPCS codes. Additionally, most private health insurance companies follow the lead of Medicare with these types of products. The company estimates that the areas within healthcare that rely on HCPCS codes represent approximately one-half of the total market potential for BIOGUARD.

Speaking with regard to the reimbursement codes, VP of Marketing & Business Development, Barry Wolfenson, commented, "Gaining reimbursement codes prior to the launch of our MEDIHONEY(R) dressings proved to be a critical part of our success with that line. It allowed us to immediately sell into the many reimbursement-constrained areas of healthcare. These early sales enabled us to quickly initiate our evidence generation program, which further helped to drive sales into areas of healthcare not constrained by HCPCS codes, such as hospitals. Having codes for BIOGUARD in place so soon, along with the rapid sales traction we have gained with this new product, points to another very successful product launch for Derma."

ABOUT BIOGUARD(TM) Barrier Dressings

BIOGUARD(TM) Barrier Dressings provide a barrier to bacterial contamination while also providing > 5-log (99.999%) average reductions of common pathogens within the dressings. The active component of the dressings, a non-toxic high molecular weight cationic polymer - p-DADMAC - is patented for use in wound dressings and a variety of other fields by Quick-Med Technologies, Inc (QMDT.OB). Derma Sciences entered into an exclusive licensing agreement with Quick-Med for the use of the technology in gauze-based dressings in 2007. BIOGUARD dressings are distinct from other currently available antimicrobial dressings in that they continue to exhibit their high level of activity even in the presence of wound fluid and blood, and also in that the active component is non-leaching. Leaching antimicrobials can exit the base substrate dressing and potentially lead to interference in wound healing as well as to the creation of resistant strains of pathogens. Currently, the market for antimicrobial dressings is estimated to be greater than $200 million in the United States and is one of the fastest growing segments within the $4.1 Billion US market for advanced wound care products.

About Derma Sciences

Derma Sciences is a global manufacturer and marketer of advanced wound care products. Its key product, MEDIHONEY(R), is sold throughout the world by Derma Sciences and Comvita New Zealand -- the licensor of the patented honey-based technology -- and 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 wounds and burns, and was the focus of a positive large-scale randomized controlled trial on leg ulcers. Derma's recently FDA cleared BIOGUARD(TM) Barrier Dressing is the Company's latest new product entrant into the $14 billion global wound care market. The barrier technology was licensed from Quick-Med Technologies, Inc. in Q1 of 2007. Derma also has in development DSC127, a novel angiotensin analog for accelerated wound healing and scar reduction. DSC127 was licensed from the University of Southern California in Q4 of 2007. Patient enrollment for a Phase II study began in Q4 of 2008. Results from this study are expected to be submitted to the FDA in Q2 of 2010.

For more information about Derma Sciences, Inc., visit


    Derma Sciences, Inc.
    Edward J. Quilty
    Chairman and CEO
    (609) 514-4744

    Allen & Caron Inc
    Rudy Barrio (US Investors)
    (212) 691-8087

    Brian Kennedy (Media)
    (212) 691-8087

SOURCE Derma Sciences, Inc.
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