An advanced wound care company has acquired a diabetic foot ulcer treatment firm in a $14.5 million deal.
Derma Sciences (NASDAQ:DSCI), a medical device and pharmaceutical company in Princeton, New Jersey, has been a distributor for Wheat Ridge, Colorado-based MedEfficiency’s medical device Total Contact Cast system since 2008, according to a statement from the company.
The acquisition reflects Derma Sciences’ strategy to acquire higher-margined companies with proprietary advanced wound care devices with growth potential and which can be leveraged by its global advanced wound care sales and marketing infrastructure, the statement said. When the acquisition closes April 30, the employees of MedEfficiency will join Derma Sciences.
The move will help bring in more revenue for the company, which increased losses in 2011 to $4.3 million compared with $2.4 million in 2010, according to its fourth-quarter earnings published today.
Earlier this month, Derma Sciences’ treatment for diabetic foot ulcers, DSC127, achieved positive phase 2 clinical trial results and received a green light to advance the treatment to phase 3 clinical trials.
Foot ulcers develop in up to one-quarter of people with diabetes and are estimated to affect 900,000 people annually in the United States. The condition, if untreated, can lead to amputations. Derma Sciences estimates the value of the diabetic foot ulcer treatment market at $3 billion.