(By Balaseshan) Derma Sciences Inc. (NASDAQ:DSCI), a specialty medical device/pharmaceutical company, said it has received the global long-term exclusive rights to the NIMBUS antimicrobial technology from Quick-Med Technologies Inc.(PINK:QMDT).
NIMBUS, which is available in BIOGUARD dressings, is the only non-leaching antimicrobial technology cleared by the U.S. Food and Drug Administration (FDA) for wound care; other antimicrobial dressings rely on the release of chemicals to the wound bed that can impede the wound healing process.
NIMBUS is non-toxic, long-lasting and not blocked by organics such as blood, exudates, urine and perspiration. By design, the technology poses no risk of bacteria developing resistance.
Derma's Chief Executive Edward Quilty said this exclusive global license strengthens Derma Sciences' ownership of its proprietary advanced wound care products, and will positively impact its BIOGUARD gross margin through a significantly lowered royalty rate.
Under the terms of the agreement, Derma Sciences will make a $1.3 million upfront payment to Quick-Med and future milestone payments based on sales of products incorporating the licensed technology.
In addition, the royalty paid by Derma to Quick-Med on such products will be lowered from 20% currently, to a sliding scale starting at 8.5% and declining as sales milestones are achieved.
Sales by Derma of products covered by this deal were about $1.5 million in 2011, and are expected to grow 30% to 40% annually, in line with expectations for the company's advanced wound care product portfolio. This agreement provides Derma with exclusive global rights through the life of the patents, excluding India as well as the OTC market.
DSCI ended Thursday's regular session at $10.08, while QMDT closed $0.08.