Exhibit 99.01
News Release
FOR IMMEDIATE RELEASE
Contact: Derma Sciences, Inc. Cameron Associates
Edward J. Quilty John McNamara
President & CEO John@cameronassoc.com
equilty@dermasciences.com 212-554-5485
609-514-4744
Derma Sciences Announces Licensing Deal with Comvita
Natural Health Products Company to make Equity Investment in Derma Sciences
PRINCETON, NJ, February 14, 2006-- Derma Sciences, Inc. (OTCBB: DSCI), a
manufacturer and full line supplier of wound and skin care products, today
announced that the company has entered into a long-term exclusive licensing deal
with Comvita Limited, a New Zealand based natural health products company. The
licensing deal, which includes patents and other intellectual property, covers
the use of Comvita's Medical Manuka honey based products for the management of
chronic wounds, skin tears, post operative wounds and burns.
Under the agreement, Derma Sciences will receive the exclusive manufacturing and
marketing rights to the products throughout the Americas (North, Central and
South). In addition, subject only to due diligence and final documentation,
Comvita has agreed to purchase 666,666 shares of Derma Sciences common stock at
$0.75 per share upon Derma Sciences' receipt of FDA 510K approval for the manuka
honey based products. The funds from the purchase of Derma Sciences shares will
be used to help launch the manuka honey products in the Americas. Comvita will
also have the option to purchase an additional 666,666 shares at $0.75 per share
for one year from the signing of the license and an additional option to
purchase two million shares at $3.00 per share for three years from the signing
of the agreement.
Edward J. Quilty, President and CEO of Derma Sciences said, "We are delighted to
enter into this exclusive agreement with Comvita. Comvita has a strong
reputation for utilizing raw materials from natural sources and is highly
regarded in the natural health products industry. Honey has been used for its
healing properties for thousands of years, and the unique qualities found in
manuka honey have been shown in clinical studies to be effective in the
management of leg ulcers, pressure sores and post-operative conditions. It's
capable of treating some of the more antibiotic resistant strains of bacteria, a
significant and growing problem for hospitals."
"Access to Comvita's patented products," continued Quilty "is a significant
milestone in our strategy of building a presence in Advanced Wound Care, a $900
million market. Comvita's additional planned commitment to a significant
investment in Derma Sciences shares, at above current market prices, is a
powerful vote of confidence in our future."
Comvita's Chief Executive Officer Brett Hewlett said, "Derma Sciences' heritage
in topical nutritional wound healing fits well with our own philosophy of
promoting natural products for healthcare purposes. We believe Derma Sciences,
with its manufacturing capabilities, brand name and established distribution
network is the perfect partner for our entry into the large and growing US
professional medical market. We have the utmost confidence that Derma Sciences
is ideally positioned to maximize the commercialization potential of Comvita's
range of patented products"
Barry Wolfenson, Director of Marketing for Derma Sciences, said, "Exclusive
access to these products greatly enhances our product portfolio, as they will
fill an unmet need for combination wound healing/antimicrobial products for use
in all phases of wound healing. 50% of all non-traumatic leg amputations in the
United States are due to infected diabetic ulcers, with a 5-year mortality rate
ranging from 39% - 68%. With other wounds and burns there are growing concerns
over antibiotic resistant super-bugs such as MRSA, and a significant percentage
of these infections also prove fatal. Active manuka honey products will provide
clinicians with additional resources to help reduce the risk of infection while
providing optimal environments for wound healing, from the onset of the wound
through to closure."
About Derma Sciences, Inc.
Derma Sciences, Inc. provides a full range of skin care; wound management and
specialty securement devices that are used primarily in the professional
markets, specifically hospitals, nursing homes and home care settings. For more
information about Derma Sciences, Inc., visit its home page on the Internet at
http://www.dermasciences.com.
About Comvita Ltd.
Comvita Limited is a New Zealand based publicly listed (NZX : CVT) natural
health products company that produces and sells a wide range of largely bee
based nonprescription health products to the international marketplace. For more
information about Comvita Limited visit its home page on the Internet at
www.comvita.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.
