PRINCETON, N.J.--(BUSINESS WIRE)--Sep. 1, 2016--
Derma Sciences, Inc. (Nasdaq:DSCI), a tissue regeneration company
focused on advanced wound and burn care, announces the completion of the
sale of its First Aid Division (FAD) to Dukal Corporation for $12.4
million, including inventory. The proposed sale was first announced on
July 27, 2016.
Derma Sciences received approximately $9.7 million in cash at closing
and holds a note payable of $2.7 million, with principal and interest
being amortized over 36 months. Dukal has assumed third-party supply
agreements, the lease obligation at Derma Sciences’ warehouse in Houston
and related personnel expenses, effective as of today.
“With our FAD now in the capable hands of Dukal, Derma Sciences has
added a significant amount of cash and a secured note receivable to an
already strong balance sheet. In addition, we are able to increase our
focus on our advanced wound care business,” said Stephen T. Wills,
Executive Chairman and Interim Principal Executive Officer. “Recent
positive developments including the acquisition of BioD, the launch of
new MEDIHONEY® Hydrogel Sheet Dressings and the receipt of
HCPCS codes from CMS, as well as the addition of our AMNIOEXCEL®
Amniotic Allograft Membrane for reimbursement by MAC contractor National
Government Services all support our forward momentum.”
Dukal is a privately-held supplier of a broad range of best-in-class
disposable medical products and patient-care items for all medical
markets, with headquarters in Ronkonkoma, N.Y.
About Derma Sciences, Inc.
Derma Sciences is a tissue regeneration company focused on
patent-protected and proprietary advanced wound and burn care
treatments. The Company’s lead products include TCC-EZ®, a gold-standard
total contact casting system for diabetic foot ulcers, and its
MEDIHONEY® product line, the leading brand of honey-based dressings for
the management of wounds and burns. It is also engaged in the
development and commercialization of novel proprietary regenerative
products derived from placental/birth tissues for use in a broad range
of clinical applications including the treatment of complex chronic
wounds, acute wounds and localized areas of injury or inflammation, in
addition to filling soft tissue defects or voids. These products are
used in orthopedic, spinal and ocular surgical procedures, among others.
The Company also offers a full product line of traditional dressings.
For more information, please visit www.dermasciences.com.
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, 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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160901006377/en/
Source: Derma Sciences, Inc.
Derma Sciences, Inc.
Executive Chairman and Interim Principal
Sutton Golodetz, 212-838-3777