DERMA SCIENCES INC Derma Sciences, Inc. (Nasdaq: DSCI), a tissue regeneration company focused on advanced wound and burn care, introduces financial guidance for the year ended December 31, 2015 and provides preliminary net sales for the year ended December 31, 2014.
Derma Sciences expects 2015 net sales to be approximately $88.1 million, representing growth of 5% compared with preliminary 2014 net sales of $83.7 million. Net sales of advanced wound care (AWC) products are expected to be a record $43.8 million for the year, representing growth of 15% compared, with preliminary 2014 AWC net sales of $38.1 million. Net sales of traditional wound care (TWC) products are expected to be $44.3 million, representing a decline of 3% compared with preliminary 2014 TWC net sales of $45.6 million. TWC sales reflect the loss of a significant customer in 2015 due to industry consolidation. Preliminary fourth quarter 2014 net sales were a record $22.9 million, of which $11.5 million were AWC, representing growth of 22% on a year-over-year and sequential basis and $11.4 million were TWC, representing a 1% increase on a year-over-year basis and 7% sequentially.
Net sales are expected to increase as the year progresses, but quarterly sales will be impacted by ordering patterns and delivery dates, particularly in the TWC business.
“We look forward to continued healthy sales growth in 2015 and to reporting record sales for the year,” said Edward J. Quilty, chairman and chief executive officer of Derma Sciences. “In particular AWC sales growth will be led by double-digit gains in our core TCC-EZ®, MEDIHONEY® and AMNIOEXCEL® brands. We look forward to discussing 2014 financial results and future plans during our fourth quarter and year-end conference call in mid-March.”
About Derma Sciences, Inc.
Derma Sciences is a tissue regeneration company focused on advanced wound and burn care. It offers a line of products with patented technologies to help better manage chronic and hard-to-heal wounds, many of which result from diabetes and poor vascular functioning. The company recently entered the $500 million market for skin substitute products with its licensing of AMNIOEXCEL® and AMNIOMATRIX® in the first quarter of 2014. AMNIOEXCEL has been launched to customers and the Veterans Administration recently has included the product in its Federal Supply Schedule. Derma Sciences’ MEDIHONEY® product is the leading brand of honey-based dressings for the management of wounds and burns. The product has been shown in clinical studies to be effective in a variety of indications. TCC-EZ® is its gold-standard total contact casting system for diabetic foot ulcers. Other novel products introduced into the $14 billion global wound care market include XTRASORB® for better management of wound exudate, and BIOGUARD® for barrier protection against microbes and other contaminants. Its pharmaceutical wound care products include DSC127, a patented active pharmaceutical ingredient (API) which is currently in Phase 3 clinical trials for the healing of diabetic foot ulcers. DSC127 is also in preclinical testing for scar prevention/reduction and is part of a BARDA grant program for the healing/prevention of tissue damage due to ionizing radiation exposure. The Company also offers a full product line of traditional dressings.
For more information please visit www.dermasciences.com.
Forward-Looking Statements
Statements contained in this news 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 that may be made in this news release or that are otherwise made by or on behalf of the Company. Factors that may affect the Company's results include, but are not limited to development and commercialization of DSC127, product demand, market acceptance, impact of competitive products and prices, product development, completion of an acquisition, 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 U.S. Securities and Exchange Commission.
