MAJOR NEWS COMING WITHIN 2 WEEKS .MARKET CAP OF 46 MILLION IS A BIG JOKE .
What's Making News At Derma Sciences?
1/26/2011 5:47 AM ET
(RTTNews) - Shares of Derma Sciences Inc. (DSCI: News ), a medical device / pharmaceutical company focused on wound care, have gained over 50 percent in the last five days as investors eye a couple of near-term catalysts.
The company is developing a drug for wound healing and scar reduction - DSC127, which is under a phase II study on diabetic foot ulcer healing. The phase 1 trial with DSC127 was successfully completed in 2007, and the initial key efficacy results from the phase II trial are expected by the end of this month.
In animal studies, DSC127 has shown to be significantly more effective than Johnson & Johnson's Regranex, the only FDA-approved drug for wound healing.
The total market for accelerated healing and scar reduction drug is estimated at $30 billion and DSC127 has blockbuster potential, according to Derma Sciences. Regranex, which bears a black box warning as it is linked to an increased risk of cancer death, has annual sales of $100 million.
The company will be evaluating future development and partnering opportunities for DSC127 after reporting the top line phase II results. Derma Sciences was also awarded $244,479 from the U.S. government under the Patient Protection and Affordable Care Act related to the development of DSC127.
Derma Sciences, which is focused on wound care products, has three primary business segments - Advanced Wound Care, Basic Wound Care and Drug Development.
The Advanced Wound Care segment includes proprietary dressings like MEDIHONEY, BIOGUARD, XTRASORB, MedEfficiency and ALGICELL. This is a high-growth, high-margins segment. Last July, the company submitted a 510(k) application to the FDA for MEDIHONEY Gel wound & burn dressing and is awaiting the regulatory agency's decision.
The Basic Wound Care segment is the company's core business, generating over 80 percent of current total revenue. This segment includes both branded and private-label/OEM bandages, gauze-based dressings, wound closure strips, and first aid products.
For the nine months ended September 30, 2010 net sales were up 18 percent to $41.17 million. Net loss for the period widened to $1.97 million or $0.31 per share from $1.18 million or $0.23 per share in 2009. At September 30, 2010, the company had cash and cash equivalents of $409,505 compared to $243,524 in December 31, 2009.
DSCI underwent a 1-for-8 reverse split, which became effective on February 1, 2010. The stock, which has thus far hit a 52-week low of $0.73 and a 52-week high of $9.00, closed Tuesday's trading at $6.98, up 5.28 percent.
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