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TheStreet Open House

10 Cheap Biotech Stocks That Could Soar

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Derma Sciences (DSCI)

Derma Sciences is developing a wound-healing drug for the treatment of diabetic foot ulcers. Data from a randomized, controlled phase II study showed that after 24 weeks, 73% of patients with diabetic foot ulcers treated with daily topical applications of DSC127 had complete wound healing compared to 46% of patients treated with a placebo or standard of care. The 27% improvement in wound healing favoring DSC127 over placebo at 24 weeks was more pronounced than was reported about the drug's wound-healing effect at 12 weeks.

Executives with Derma Sciences say they will meet with the U.S. Food and Drug Administration this fall to discuss the results from the phase II study of the wound-healing drug DSC127 and set the design for pivotal phase III studies which could begin in the first quarter of next year.

Shire (SHPGY) paid $750 million to acquire Advanced BioHealing, makers of an artificial skin used to heal diabetic foot ulcers. Derma Sciences' DSC127, if approved, has the potential to be more effective and easier to use than Dermagraft, the wound-healing product acquired by Shire in the Advanced BioHealing deal.

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