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Wall Street Transcript Interview with Edward J. Quilty, CEO of Derma Sciences (DSCI)

67 WALL STREET, New York - August 15, 2012 - The Wall Street Transcript has just published its Medical Devices Report offering a timely review of the sector to serious investors and industry executives. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Innovation Counters Pricing Pressure - Orthopedics and Cardiovascular Medical Devices

Companies include: Derma Sciences (DSCI), and many others.

In the following excerpt from the Medical Devices Report, the CEO of Derma Sciences discusses the outlook for his company:

TWST: Let's begin with a quick overview and introduction to Derma Sciences.

Mr. Quilty: Sure. Derma Sciences is a technology company focusing on developing and marketing products in the advanced wound-care space. We're working in three areas; the first area is pharmaceutical with our drug DSC127 in the treatment of diabetic foot ulcers. In the early part of 2011 we announced some very positive Phase II data - in the intent-to-treat population, 54% of the diabetic wounds treated with the high dose of DSC127 achieved 100% closure in 12 weeks or less, compared with 33% of patients receiving placebo control. Since that time we have been moving the drug forward as it relates to both clinical and manufacturing, and we expect to begin conducting pivotal Phase III trials at the end of the year.

We also have our advanced wound-care products business, which is the focus of the majority of our sales and marketing efforts, where we now have 53 people in the field selling and supporting those products. These are five product lines led by our MEDIHONEY and TCC-EZ products.

Then we have our other three products, XTRASORB, BIOGUARD, and our silver alginate ALGICELL Ag. This business has been growing steadily since we started in 2007. We've said publicly to the investment community that we expect this business to grow 30% to 40% a year for the next several years. Last year we did sales of approximately $16 million in these products, and we would hope to grow that, as we said by 30% to 40%, which excludes our acquisition of our total contact casting line a few months ago.

Finally, our traditional wound-care business is comprised of commodity dressings that we manufacture and sell both under the Derma Sciences brand and under the very robust private label manufacturing business as well. That business does approximately $50 million annually, and it has generated some very nice cash flow to support our development and marketing efforts. So that's a little bit about our business.

TWST: Please give us an understanding of what some of the trends and issues are in the wound care space. What are those trends and how will they have an impact on what you do as you look forward?

For more from this interview and many others, this special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.