Obtains worldwide licensing rights to Medihoney

Derma Sciences has completed an agreement with Comvita New Zealand (Comvita) of Paengaroa, New Zealand, covering the worldwide licensing rights for Medihoney professional wound care and skin care products.

The agreement effectively triples the potential market for Derma Sciences’ Medihoney products. The company currently has North and South America rights only, representing about one-third of the total market, and the deal would give Derma Sciences rights to the remaining 67%.

Comvita controls approximately 75% of worldwide Leptospermum (manuka) honey production and are the owner of key intellectual property and patents concerning the use of honey in medical dressings.

The heads of agreement include the following: Derma Sciences to have exclusive worldwide rights to manufacture and sell the full range of Medihoney wound care and skin care products to the professional and medical market worldwide; to manufacture the range of Medihoney products for Comvita to sell to OTC customers; Comvita to supply medical-grade manuka honey to Derma Sciences; Derma Sciences to have all IP rights toMedihoney, including patents involving dressings composed of more than 50% manuka honey; a joint Research and Development cooperation agreement between Derma Sciences and Comvita.

The transaction is subject to certain financing contingencies and Derma Sciences’ listing on NASDAQ. License payment details were not disclosed, but the transaction will be in cash and Derma Sciences common shares, as well as customary royalty and milestone payments. Comvita currently holds a 10.1% stake in Derma Sciences.