Medline Industries signs exclusive distribution agreement with Derma Sciences for BIOGUARD Barrier Dressings

Feb 18 2010

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."