Derma Sciences announces $29 million financing

Jun 27 2011

Derma Sciences, Inc. ("Derma Sciences" or "the Company") (Nasdaq:DSCI), a medical device and pharmaceutical company focused on advanced wound care, today announced it has closed its previously announced private placement. The financing was led by leading institutional healthcare investors Jennison Associates LLC, RA Capital Management and Deerfield Management. In the offering, the Company raised $29,075,000 by issuing 3,524,239 shares of common stock and 1,762,118 warrants at an aggregate purchase price of $8.25 per share. The warrants have a five year life and are exercisable at a price of $9.90 per share. Net proceeds from this financing will be used to advance the Company's pharmaceutical product DSC127 into Phase 3 trials for the treatment of diabetic foot ulcers, to hire additional salespeople for the Company's advanced wound care products, to repay debt and for general corporate purposes.

"We are pleased with the support of Jennison, RA and Deerfield as well as a number of other well-respected investors, including several existing investors," said Edward J. Quilty, chairman and chief executive officer of Derma Sciences. "These firms represent the thought leaders in the healthcare investing community and we welcome their participation in our growth. We believe that Derma Sciences is poised for exceptional growth and new opportunities in the years ahead and we look forward to advancing DSC 127 into pivotal trials in the first half of 2012. In addition, this capital will allow us to increase our sales and marketing for our Advanced Wound Care proprietary dressing business, including our MEDIHONEY®, BIOGUARD® and XTRASORB® brands, which have experienced significant growth in recent years," Mr. Quilty added.