Derma Sciences Reports Third Quarter 2012 Financial Results

Derma Sciences, Inc. (Nasdaq: DSCI), a medical device and pharmaceutical company focused on advanced wound care, today reported financial and operating results for the three and nine months ended September 30, 2012. Highlights of the third quarter of 2012 and recent weeks include:
  • Net sales were $19.6 million, up 24% over the prior-year third quarter and up 12% over the second quarter of 2012
  • Advanced wound care product sales were $6.8 million, up 67% over the prior-year third quarter and up 18% over the second quarter of 2012
  • Excluding $1.8 million of Total Contact Cast (TCC) direct sales resulting from the MedEfficiency acquisition, advanced wound care product sales were up 36% compared with the prior-year third quarter and up 15% over the second quarter of 2012
  • Advanced wound care products accounted for 35% of net sales, up from 26% of net sales a year ago
  • Traditional wound care product sales were $12.8 million, up 9% from the prior-year third quarter and up 9% over the second quarter of 2012
  • Gross margin was 35.2%, an increase of 5.2 percentage points over gross margin of 30.0% for the third quarter of 2011
  • Net loss was $3.1 million or $0.24 per share, compared with a net loss of $0.8 million or $0.08 per share in the prior-year third quarter, reflecting higher research and development expense and expenses related to advanced wound care growth
  • Held a positive and constructive End-of-Phase 2 meeting with the U.S. Food and Drug Administration (FDA)
  • Launched MEDIHONEY® HCS (Hydrogel Colloidal Sheet) in the U.S. and featured the product at a key medical conference
  • Reached the significant $10.0 million sales milestone for MEDIHONEY, triggering a $1.0 million payment to Comvita New Zealand Ltd.
  • Strengthened ownership of key brands with an exclusive global license to the NIMBUS® antimicrobial technology available in BIOGUARD® dressings

Management Commentary

“This was an outstanding quarter across our various business segments with our financial performance exceeding expectations,” said Edward J. Quilty, chief executive officer of Derma Sciences. “We are executing on our plan to make Derma Sciences into a leading provider of wound care solutions, especially for chronic conditions, and our revenue growth for the third quarter provides tangible evidence of the soundness of our plan and confirmation of our progress.

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