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Derma Sciences ( DSCI)

A true under-the-radar stock but perhaps for not much longer. Derma Sciences is developing a wound-healing drug for the treatment of diabetic foot ulcers. Data from a randomized, controlled phase II study demonstrated strong results, which Derma hopes to replicate in a soon-to-start phase III study program.

Year to date performance: +108%

Performance since June 30: -5%

Deerfield Capital Management and Hudson Bay Capital Management both added Derma to their biotech stock rosters in the second quarter, while RA Capital added 727,000 shares to what was a small starter position.

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