March 29, 2012 / 11:55 AM / 7 years ago

UPDATE 1-Derma Sciences to buy MedEfficiency for $14.5 mln

March 29 (Reuters) - Derma Sciences Inc said it will buy privately held MedEfficiency Inc for $14.5 million to gain access to its device that will help support Derma’s treatment of diabetes-induced foot ulcers.

Derma expects to start a late-stage trial of its foot ulcer treatment, DSC127, in the second half of this year.

MedEfficiency’s TCC-EZ Total Contact Cast is a pressure reducing device that rolls onto a patient’s leg to provide additional support for the treatment of diabetic foot wounds.

“This acquisition also gives us global rights to products, further increasing our product portfolio to our expansion markets of Europe, the Middle East and Asia,” Derma’s Chief Executive Edward Quilty said in a statement.

Derma, which specializes in products that treat wounds, from common burns to deep skin gashes, said it expects to complete the transaction by April 30.

It expects to incur costs of about $1.5 million associated with the deal.

Piper Jaffray & Co served as financial adviser to Derma.

Princeton, New Jersey-based Derma also posted a wider fourth-quarter loss, hurt by costs related to sales force expansion and research and development.

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