Derma Sciences, Inc. (Nasdaq: DSCI), a medical device and pharmaceutical company focused on advanced wound care, today announced that researchers who invented DSC127 have been awarded a $4.5 million, 16-month grant by the U.S. Department of Health and Human Services’ (HHS) Biomedical Advanced Research and Development Authority (BARDA) to investigate preclinically the use of DSC127 in the treatment of skin injuries associated with acute radiation exposure. This contract, which is part of the HHS radiological and nuclear threats preparedness strategy, could be extended for a total of five years and up to a total of $14 million. Derma Sciences recently announced positive Phase 2 data in the use of DSC127 in diabetic foot ulcer healing, in which 54% of wounds healed completely in 12 weeks, compared with only 33% of wounds in patients receiving placebo and best standard of care in the intent to treat populations.

“We are very excited that the U.S. Government has validated the potential of DSC127 by the award of this grant,” commented Edward J. Quilty, president and chief executive officer of Derma Sciences. “The size of this grant is significant and not only will we be provided with the opportunity to work towards an additional indication, it will also potentially afford us the ability to gain further knowledge about the mechanism of action of the compound in indications beyond diabetic foot ulcer healing. This will be helpful as we consider advancing DSC127 along the development pathway for additional indications, both in large patient populations such as the $1.2 billion U.S. market for scar reduction, and in orphan indications such as epidermolysis bullosa.”

About DSC127

DSC127, a novel angiotensin analog, has been shown to improve epithelialization, granulation, vascularization, and accelerate wound healing in a variety of normal and diabetic animal models. This finding suggests that DSC127 produces different actions at the wound site during various stages of healing. There were no safety concerns observed in the preclinical and human Phase 1 studies of DSC127.

About BARDA

BARDA, an agency within the Office of the Assistant Secretary for Preparedness and Response in the U.S. Department of Health and Human Services, provides a comprehensive integrated portfolio approach to the advanced research and development, innovation, acquisition and manufacturing infrastructure for medical countermeasures. Medical countermeasures include vaccines, drugs, therapeutics, diagnostic tools and non-pharmaceutical products for public health emergency threats including chemical, biological, radiological and nuclear threats, pandemic influenza and emerging infectious diseases. For more information, visit www.phe.gov or www.medicalcountermeasures.gov.

About Derma Sciences, Inc.

Derma Sciences is a medical technology company focused on three segments of the wound care marketplace, pharmaceutical wound care products, advanced wound care dressings and traditional dressings. Derma Sciences has successfully completed the treatment phase of a Phase 2 clinical trial in diabetic foot ulcer healing with DSC127, a novel pharmaceutical drug under development for accelerated wound healing and scar reduction. Its MEDIHONEY® product 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 indications, and was the focus of a positive large-scale, randomized controlled trial involving 108 subjects with leg ulcers. Other novel products introduced into the $14 billion global wound care market include XTRASORB® for better management of wound exudate, and BIOGUARD® for infection prevention. For more information please visit www.dermasciences.com.

Forward-Looking Statements

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