Healthcare Industry News:  durable medical equipment 

Devices Reimbursement

 News Release - November 14, 2007

Derma Sciences Receives Reimbursement Codes for their Novel MOBILITY1(TM) Intermittent Pneumatic Compression Therapy System

Reimbursement coverage paves the way for a market launch in Q1 2008

PRINCETON, N.J.--(HSMN NewsFeed)--Derma Sciences, Inc. (OTCBB: DSCI ), a manufacturer and marketer of advanced wound care products, today that the Statistical Analysis durable medical equipment Regional Carrier (SADMERC) – a contracted intermediary and carrier for the Centers for Medicare & Medicaid Services (CMS) – has notified the company of its decision regarding Healthcare Common Procedure Coding System (HCPCS) codes for billing purposes for the MOBILITY1TM Intermittent Pneumatic Compression Therapy System. The awarded codes are as follows:

E0673 Segmental gradient pressure pneumatic appliance, half leg (Items # MOB001M, MOB001L, MOB001XL) when used with HCPCS code E0650.

E0650 Pneumatic compressor, non-segmental home model (Item # MOB001COMP)

This will allow applicable customers to bill for the components within the MOBILITY1 system using these codes, including the Medicare’s Part B program, private insurance plans and the various Medicaid programs. Medicare Part B provides coverage for compression systems for patients at home between clinic or physician visits and when not receiving home health nursing services. It also provides compression systems for residents in Nursing Homes not under a Medicare Part A ‘skilled care’ benefit stay who have Part B coverage. The Medicaid programs (one for each state) provide compression systems for at home use by the beneficiary. Insurance plans often provide payment for compression systems in addition to the coverage of care in a Nursing Home and for systems used at home by the patient and in some cases when home health services are provided. This greatly enhances Derma Sciences’ ability to penetrate the long term care and home health markets.

Speaking of the HCPCS code award, Derma Sciences’ CEO Edward J. Quilty said, “We are very excited about the announcement of these codes. As part of our licensing agreement with C-Boot, our rights to the products in North America revert to exclusive rights upon the award of these codes. Additionally, the devices within the system are quite expensive, so market penetration could not be fully maximized without reimbursement coverage. Now that we have the codes in place, we will move forward with our commercialization plans and prepare to launch the products in Q1 of 2008.” Quilty continued, “Key opinion leaders in the fields of vascular surgery and compression therapy have consistently commented that this system will truly fill an unmet need. Now, the large number of ambulatory patients that do not receive efficacy from standard compression wraps and stockings will be able to have a treatment that provides optimal therapy while still maintaining their regular lifestyles. This is in significant contrast to current intermittent compression therapies, which require the patient to remain at home during treatment.”

About Derma Sciences:

Derma Sciences is a manufacturer and marketer of advanced wound care products, with operations based in the US and Canada, and sales worldwide. The company sources Active Manuka (Leptospermum scoparium) Honey from Comvita New Zealand, Ltd. Comvita controls over 70% of the flow of manuka honey, and owns several patents around the use of honey in wound dressings. The Company has also obtained FDA clearance to market and sell its MOBILITY-1™ boot and compressor device for the treatment of venous ulcers, lymphedema, and other conditions that require compression therapy. 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.


Source: Derma Sciences

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