Derma Sciences Announces Full Exercise of Over-Allotment Option and Closing of Public Equity Offering

PRINCETON, N.J., Feb. 23 /PRNewswire-FirstCall/ -- Derma Sciences, Inc. (Nasdaq: DSCI), a specialty medical device/pharmaceutical company focused on advanced wound care, today announced that the underwriter of its recent public offering has exercised its over-allotment option, resulting in the issuance of an additional 145,800 shares and warrants to purchase 48,600 shares.  Derma Sciences closed its previously announced follow-on equity offering, for a total of 1,117,800 common shares and warrants to purchase 372,600 shares.   Each share, together with a warrant to purchase one-third of a share, was priced at $5.00.  The exercise price of the warrants in the offering is $5.50.  The Company realized net proceeds of $4.7 million from this offering.

Proceeds of the offering will be used towards paying Comvita New Zealand for the perpetual worldwide licensing rights to MEDIHONEY®, Derma Sciences' market-leading Advanced Wound Care product.  The proceeds will also be used to retire term debt, pay off the outstanding debt balance of a recent wound care business acquisition, and to support our growth initiatives.

Edward J. Quilty, Chairman & CEO of Derma Sciences, said, "The capital raise allows us to accelerate growth and invest in the development of new Advanced Wound Care products.  We view the securing of the exclusive worldwide rights to MEDIHONEY® as vital to our near-term business strategy.  We intend to use a portion of the proceeds to double our sales force to twenty representatives, so that we can leverage the success of our advanced-wound care products and drive revenues substantially higher.  Additionally, we intend to hire a Managing Director for Europe to increase our international reach, and we have already begun our search efforts."

Quilty continued, "Derma Sciences will also focus on taking advantage of its recent NASDAQ listing to attract a broader investor base and improve liquidity."

Rodman & Renshaw, LLC, a subsidiary of Rodman & Renshaw Capital Group, Inc. (Nasdaq: RODM), acted as sole book-running manager for the offering.

About Derma Sciences, Inc.

Derma Sciences is a global manufacturer and marketer of advanced wound care products. Its key product, MEDIHONEY®, is sold throughout the world by Derma Sciences and Comvita New Zealand -- the licensor of the patented honey-based technology -- and is the leading brand of honey-based dressings for the management of wounds and burns. The product has been shown to be effective in a variety of wounds and burns, and was the focus of a positive large-scale randomized controlled trial on leg ulcers. Derma's recently FDA cleared BIOGUARD™ Barrier Dressing is the Company's latest new product entrant into the $14 billion global wound care market. Derma also has in development DSC127, a novel pharmaceutical for accelerated wound healing and scar reduction.  DSC127, an angiotensin analog, has shown positive healing results in multiple pre-clinical animal models.  One possible mode of action of the drug is the up-regulation of mesenchymal stem cells at the wound site.  Derma Science expects to announce the endpoint results from this study during Q3 of 2010.

Forward-Looking Statements

Statements contained in this release that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the generality of the foregoing, words such as "may," "will," "expect," "believe," "anticipate," "intend," "could," "estimate" or "continue" are intended to identify forward-looking statements. Readers are cautioned that certain important factors may affect the Company's actual results and could cause such results to differ materially from any forward-looking statements which may be made in this release or which are otherwise made by or on behalf of the Company. Factors which may affect the Company's results include, but are not limited to, product demand, market acceptance, impact of competitive products and prices, product development, completion of an acquisition, commercialization or technological difficulties, the success or failure of negotiations and trade, legal, social and economic risks. Additional factors that could cause or contribute to differences between the Company's actual results and forward-looking statements include but are not limited to, those discussed in the Company's filings with the Securities and Exchange Commission.

SOURCE Derma Sciences, Inc.