Derma Sciences to Enter Phase II Development of Wound Healing Product That May Use Body's Own Naturally Occurring ...( Appoints U.S. Biote...),Health

Appoints U.S. Biotest to Oversee Trials

PRINCETON, N.J., Jan. 24 /PRNewswire-FirstCall/ -- Derma Sciences, Inc. (OTC Bulletin Board: DSCI), a provider of advanced wound care products, announced today that it has signed a clinical services agreement with San Luis Obispo-based, privately held U.S. Biotest, Inc. and will enter Phase II clinical development of DSC127, a novel and rapid wound-healing and scar-reduction product that has a unique mechanism of action potentially linked to the body's own, naturally occurring stem cells. The product has shown promising activity in pre-clinical animal models and has already been tested for safety in a Phase I study in humans.

Through DSC127, Derma Sciences will be able to position itself as a key player in the very large diabetic foot ulcer and scar reduction markets, two rapidly growing and global segments of the wound care market. In the U.S. there are an estimated 2.4 million diabetic foot ulcers and 60,000 diabetes-related amputations each year, which cost healthcare payers more than $10 billion. The market for an FDA-approved scar reduction treatment could reach as high as $4 billion annually in the U.S. alone.

The Phase II study for DSC127, which will be focused on diabetic foot ulcers, is scheduled to begin enrollment in the third quarter of 2008.

"The development of DSC127 is an important milestone for Derma Sciences because it represents an opportunity for us to enter two of the largest and fastest-growing wound care markets in the world today," said Ed Quilty, CEO of Derma Sciences. "Diabetes is a chronic medical issue around the globe and scar reduction, due in large part to the very rapid growth of cosmetic surgeries, is a significant new market for the wound care industry. These are the markets wound care needs to be focused on in the coming months and years and we believe DSC127, particularly due to its potential link to healing through the activation of stem cells
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