Healthcare Industry News:  mesenchymal stem cells 

Devices Wound Care Distribution

 News Release - February 18, 2010

Derma Sciences Signs Contract With Leading Wound Care Company for Exclusive Distribution of BIOGUARD(TM) Barrier Dressings

Medline Industries gains exclusivity on sales of BIOGUARD into Acute Care

PRINCETON, N.J., Feb. 18 (Healthcare Sales & Marketing Network) -- Derma Sciences, Inc. (Nasdaq:DSCI ), a specialty medical device and pharmaceutical company focused on advanced wound care, today announced that it has signed an exclusive distribution agreement with Medline Industries for sales of one of its key products BIOGUARD Barrier Dressing into the acute care market. Medline is the 2nd leading provider of traditional wound care products into Acute Care facilities, with over 800 sales representatives. Sales will begin this month.

Commenting on this new contract, Derma Sciences' CEO Ed Quilty stated, "This is a key milestone for us as we continue to build our proprietary wound care franchise. While we will double our direct sales force in 2010 from 10 to 20 sales representatives, our sales efforts are focused on areas outside of acute care. With almost 6,000 hospitals in the US, a very large specialty sales force is necessary for optimal penetration into this market. Medline is a proven leader in acute care, both in traditional and advanced wound care. The company is a perfect partner to help Derma Sciences maximize BIOGUARD sales."

Along with over 800 sales representatives, this contract will allow Medline to place BIOGUARD products on its current traditional wound care Group Purchasing Organization agreements.
   It will be a key new product introduction in 2010 for Medline, adding to the company's list of proprietary wound care products in the United States.

Jack Bowser, President of the division within Medline that is responsible for sales of its gauze-based line of products into acute care, stated, "We view the antimicrobial gauze market as an enormous potential for us, and are excited to have negotiated for the rights to BIOGUARD in acute care. After 2008, hospitals are no longer reimbursed for costs associated with treating many infections that are acquired within their facilities. As such, there is a much greater focus on prevention. BIOGUARD, due to the nature of the product, is an ideal gauze-based line of products which can be used throughout hospital systems as a part of their infection control programs."


Derma Sciences, Inc., a Princeton, New Jersey-based Company that develops, manufactures, and markets innovative wound care products, has recently introduced BIOGUARD Barrier Dressings. This exciting line of wound care products - developed by Time Magazine "innovator" Dr. Greg Schultz - provides a barrier to bacterial contamination while also providing 99.9999% average reductions of common pathogens including MRSA within the dressings. The active component of BIOGUARD dressings, a non-toxic high molecular weight cationic polymer called p-DADMAC, makes the dressings distinct from other currently available antimicrobial dressings in that they do not leach from the dressings, negating the issue of creating resistant strains, and they are also non-toxic, allowing them to be used safely on all wounds. Derma Sciences licensed BIOGUARD from Quick-Med Technologies, Inc. (QMDT.OB) in 2007.

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. Derma also has in development DSC127, a novel pharmaceutical for accelerated wound healing and scar reduction. DSC127, an angiotensin analog, has shown positive healing results in multiple pre-clinical animal models. One possible mode of action of the drug is the up-regulation of mesenchymal stem cells at the wound site. Derma Science expects to announce the endpoint results from this study during Q3 of 2010.

About Medline Industries, Inc.

Medline, the nation's largest privately held manufacturer and distributor of healthcare products, manufactures and distributes more than 100,000 products to hospitals, extended care facilities, surgery centers, home care dealers and agencies and other markets. Headquartered in Mundelein, IL, Medline has more than 800 dedicated sales representatives nationwide to support its broad product line and cost management services.

Over the past five years, Medline has been the fastest growing distributor of medical and surgical supplies in the U.S., serving as the primary distributor to over 250 major hospitals and health care systems. As a leading distributor, Medline offers a comprehensive array of consulting and management services encompassing the supply chain and logistics, utilization and standardization, business tools and enhanced reporting capabilities, and on-staff clinicians.

Medline has a growing network of 34 distribution centers around the country, as well as an expanding, dedicated transportation fleet with over 180 vehicles in a variety of sizes to fit customers' specific delivery needs. The fleet is equipped with the latest navigation devices for enhanced order tracking and communication.

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 fillings with the Securities and Exchange Commission.

Source: Derma Sciences

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