Derma Sciences Engages Plexus Ventures to Explore Strategic Options for DSC127 Outside the U.S.

Derma Sciences Engages Plexus Ventures to Explore Strategic Options for DSC127 Outside the U.S.

Barry Wolfenson, 609-514-4744Group President, Advanced Wound Care & Drug DevelopmentorKim Sutton Golodetz, 212-838-3777orBruce Voss, 310-691-7100

Derma Sciences, Inc. (Nasdaq: DSCI), a medical device and pharmaceutical company focused on advanced wound care, announces that it has engaged Plexus Ventures, a leading strategic advisor to the pharmaceutical, biotechnology and drug delivery industries worldwide, to explore options for DSC127 outside the U.S. The process is expected to take nine to 15 months and to culminate with one or more agreements covering specific geographies or countries in Europe, Asia and emerging markets. DSC127 is Derma Science’s topical drug candidate currently in two Phase 3 trials in the U.S. for the treatment of diabetic foot ulcers.

"Plexus Ventures is a premier strategic advisory firm and we have engaged them with the goal of maximizing the value of DSC127 for our shareholders," said Edward J. Quilty, chairman and chief executive officer of Derma Sciences. "We will be looking at all options ranging from partnering, licensing or a sale of the asset. In the meantime we remain focused on completing our Phase 3 trials and submitting a New Drug Application to the U.S. Food and Drug Administration for approval to market DSC127 in the U.S."

"Given the paucity of treatment options for diabetic foot ulcers, we estimate that the potential global market for DSC127 in this indication is approximately $900 million annually, more than $300 million of which is in the U.S. Our intention, should DSC127 be approved by the FDA, is to market the drug via our advanced wound care direct selling organization in the U.S. Outside of the U.S., where we have minimal direct sales resources in place, we will be looking for a partnership or partnerships to commercialize the product," Mr. Quilty added.

"DSC127 is a highly innovative compound being developed to address an important medical need among diabetic patients," said Richard Brown, General Partner and Head, Tokyo Office, Plexus Ventures. "We are extremely excited to support Derma Sciences in securing strong partners who will develop and commercialize DSC127 in all markets outside of the U.S."

Plexus Ventures, founded in 1990, provides strategic advice, business development and alliance management services to clients in the pharmaceutical, biotechnology and drug delivery industries worldwide. Plexus Ventures assists its clients in the areas of in-licensing, out-licensing, acquisitions, divestitures and strategic partnerships. With offices in Basel, Indianapolis, London, Los Angeles, Milan, Oxford, Philadelphia, Sao Paulo and Tokyo, Plexus Ventures possesses the capabilities to effectively serve clients in North America, South America, Europe and Asia. Plexus Ventures is both well-known and well-respected by leading research-based pharmaceutical companies worldwide. In 2010, Plexus Ventures celebrated 20 successful years in business.

Derma Sciences is a medical technology company focused on three segments of the wound care marketplace: pharmaceutical wound care products; advanced wound care dressings to address chronic wounds including diabetic ulcers; and traditional dressings. The Company has begun Phase 3 clinical trials in diabetic foot ulcer healing with DSC127, based on excellent Phase 2 data. Its MEDIHONEY® product 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 involving 108 subjects with leg ulcers. 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 infection prevention.

For more information please visit .

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, 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 U.S. Securities and Exchange Commission.