Derma Sciences has global license for NIMBUS antimicrobial technology

PRINCETON, NJ and GAINSVILLE, FL – Derma Sciences, Inc. and Quick-Med Technologies, Inc. have announced an agreement to give Derma Sciences an exclusive global license to intellectual property related to Quick-Med’s novel NIMBUS antimicrobial technology, which is available in "BIOGUARD" dressings.

NIMBUS is the only non-leaching antimicrobial technology cleared by the U.S. Food and Drug Administration for wound care, compared to other antimicrobial dressings that rely on the release of chemicals to the wound bed, which may impede the healing process. It is non-toxic, long lasting, and not blocked by organics such as blood, exudates, urine and perspiration. Its design also poses no risk of bacteria developing resistance

The terms of the agreement state that Derma Sciences will make a $1.3 million upfront payment to Quick-Med Technologies (QMDT) and future milestone payments based on sales of products incorporating the licensed technology. The agreement also provides Derma Sciences with exclusive global rights through the life of the patents, excluding India as well as the OTC market.

The royalty paid by Derma Sciences to QMDT 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 of Derma Sciences products covered by this agreement were approximately $1.5 million in 2011, and are expected to grow between 30% and 40% annually.

"This exclusive global license strengthens Derma Sciences' ownership of our proprietary advanced wound care products, and will positively impact our BIOGUARD gross margin through a significantly lowered royalty rate," said Edward J. Quilty, chief executive officer of Derma Sciences.

“With regard to the expanded opportunity afforded to us through the global nature of our new license, given the prevalence of gauze used around the world, we believe the demand outside of the U.S. will be very strong for these predominantly gauze-based, highly effective, yet inexpensive antimicrobial dressings. In addition, this new long-term agreement will allow us to use our recently expanded sales force in the U.S. to increase revenues, and to accelerate plans for product launch in Europe and the rest of the world," Mr. Quilty concluded.

According to Ladd Greeno, CEO of Quick-Med Technologies, "Derma Sciences has established a strong presence in the U.S. wound-care market and we look forward to having them serve as our long-term partner to maximize BIOGUARD product potential. We have spent considerable time and money building strong intellectual property for our NIMBUS technology worldwide, and this patent protection will allow Derma Sciences to levZoom Lebron Soldiers IX 9