Join        Login             Stock Quote

Derma Sciences (DSCI) Gets NIMBUS Antimicrobial Rights From Quick-Med

 July 13, 2012 09:07 AM

(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.

[Related -Derma Sciences (DSCI) Gets CE Mark For Hydrogel Colloidal Sheet Dressings]

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.

[Related -Derma Sciences (DSCI) PT Cut To $19 By Oppenheimer, 'Outperform' Reiterated]

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.



Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageHas Warren Buffett Found The Best Investment In Oil?

Shares of oil stocks plunged again as the price of West Texas Intermediate wiped out nearly half of its read on...

article imageDemand For Safe-Haven Bonds Surged Last Week

The crowd piled into investment-grade bonds last week as economic worries triggered an exodus out of risky read on...

article imageThoughts on MetLife and AIG

In some ways, this is a boring time in insurance investing.  A lot of companies seem cheap on a book and/or read on...

article imageA 2016 Recession Would Be Different

If the US or the Eurozone entered a recession this year, a few macroeconomic variables would look very read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.