Derma Sciences Awarded HCPCS Code for BIOGUARD(TM) Conforming Bandage

Code Allows Bandage to Be Reimbursed by Medicare and Most Private Health Insurance Companies

Jun 09, 2010, 08:17 ET from Derma Sciences, Inc.

PRINCETON, N.J., June 9 /PRNewswire-FirstCall/ -- Derma Sciences, Inc. (Nasdaq: DSCI), a medical device and pharmaceutical company focused on advanced wound care, has been awarded the Healthcare Common Procedural Coding System (HCPCS) code A6266 for its BIOGUARD™ Conforming Bandage. This code, which was awarded by the Centers for Medicare and Medicaid Services (CMS), is the same as that assigned for other antimicrobial large roll gauze dressings, and allows the Conforming Bandage to be reimbursable by Medicare.

The Conforming Bandage is Derma Sciences' newest product within the BIOGUARD™ range. The first Conforming Bandage with activity against microbes such as MRSA, it gives clinicians a very important new product for their infection protection programs. BIOGUARD™ Conforming Bandages will virtually eradicate pathogens within the dressing, helping not only to prevent wound infection, but also helping to reduce cross-contamination issues. The risk of cross-contamination is at its greatest during dressing changes, and traditional gauze dressings are known to be incubators of bacteria. Killing the bacteria in the dressing, which is facilitated by the patented active ingredient within BIOGUARD™ Conforming Bandages, helps minimize this risk.  

Derma Sciences' CEO Ed Quilty stated, "Securing this code is a significant step that will permit BIOGUARD™ Conforming Bandages to become a viable option for healthcare providers who are treating patients with serious wounds. With the ability to kill 99.999% of MRSA and other virulent pathogens, we believe that the Conforming Bandage—as with our other BIOGUARD™ dressings—will become an important everyday asset to those looking for more effective and efficient ways to help prevent infections as well as cross-contaminations."  

Quilty continued, "Advanced wound care and traditional wound care dressings alike are often held in place by conforming bandages.  As the first and only such bandage on the market to help prevent infections and cross-contamination, we are confident that clinicians will see the unique value offered by this latest BIOGUARD™ dressing."

HCPCS codes are used by Medicare and monitored by CMS. They are based on the Current Procedural Technology (CPT) codes developed by the American Medical Association. Wound dressings and other supplies cannot be reimbursed through Medicare without set HCPCS codes. Additionally, most private health insurance companies follow the lead of Medicare with these types of products. The Company estimates that the areas within healthcare that rely on HCPCS codes represent approximately one-half of the total market potential for BIOGUARD.™

About BIOGUARD™ Barrier Dressings

BIOGUARD™ Barrier Dressings provide a barrier to bacterial contamination while also providing > 5-log (99.999%) average reductions of common pathogens within the dressings. The active component of the dressings, a non-toxic high molecular weight cationic polymer - p-DADMAC - is patented for use in wound dressings and a variety of other fields by Quick-Med Technologies, Inc (QMDT.OB). Derma Sciences entered into an exclusive licensing agreement with Quick-Med for the use of the technology in gauze-based dressings in 2007. BIOGUARD™ dressings are distinct from other currently available antimicrobial dressings in that they continue to exhibit their high level of activity even in the presence of wound fluid and blood, and also in that the active component is non-leaching. Leaching antimicrobials can exit the base substrate dressing and potentially lead to interference in wound healing as well as to the creation of resistant strains of pathogens. Currently, the market for antimicrobial dressings is estimated to be greater than $200 million in the United States and is one of the fastest growing segments within the $4.1 Billion US market for advanced wound care products.

About Derma Sciences, Inc.

Derma Sciences is a global medical device and pharmaceutical company focused on wound care.  Its key product, MEDIHONEY®, 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 indications, and was the focus of a positive large-scale randomized controlled trial on leg ulcers.  Other key novel products introduced into the $14 billion global wound care market include XTRASORB™ for better management of wound exudates, and BIOGUARD™ for infection prevention.  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 expects to announce the key efficacy endpoint results from this study by the end of 2010.

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Derma Sciences, Inc.

Barry Wolfenson

Executive Vice President, Global Marketing and Business Development

(609) 514-4744

The Investor Relations Group


Jason Strominger (Investor Relations)

Janet Vasquez (Media Relations)

Enrique Briz (Media Relations)

SOURCE Derma Sciences, Inc.