Derma Sciences, Inc. (Nasdaq: DSCI), a medical device and pharmaceutical company focused on advanced wound care, and Quick-Med Technologies, Inc. (OTCQB: QMDT.PK), a life sciences company that is developing innovative technologies for the healthcare and consumer markets, announce the signing of an agreement whereby Quick-Med Technologies has granted Derma Sciences an exclusive global license to intellectual property related to the novel NIMBUS® antimicrobial technology, which is available in BIOGUARD® dressings.
“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”
Under the terms of the agreement, Derma Sciences will make a $1.3 million upfront payment to Quick-Med Technologies and future milestone payments based on sales of products incorporating the licensed technology. In addition, the royalty paid by Derma Sciences to Quick-Med Technologies 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 by Derma Sciences of products covered by this agreement were approximately $1.5 million in 2011, and are expected to grow between 30% and 40% annually, in line with expectations for the Company's advanced wound care product portfolio. This agreement provides Derma Sciences with exclusive global rights through the life of the patents, excluding India as well as the OTC market.