The Princeton, New Jersey firm posted a loss of $0.27 for the fourth quarter, down 17 percent year-over-year. However, it beat the Wall Street consensus of a $0.31 loss per share on this front.
Fourth quarter revenue closed up 22 percent at $20.1 million, topping analysts' estimates of $19.73 million.
Full-year loss per share nearly doubled at $0.97. Yet, the medical technology company's loss was lower than the expected $1.02 per share.
Total 2012 revenue climbed 16 percent to $72.65 million, edging expectations of $72.38 million.
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DSC127 Gains Strength
In February, Derma announced it had begun enrolling patients in the first of two phase three clinical trials with its investigational topical drug candidate DSC127. The trials are designed to assess the efficacy and safety of using the drug to heal chronic, non-healing diabetic foot ulcers and support the filing of a new drug application with the FDA.
Regarding the potential market for this drug, Peter P. Balingit, M.D., FACP, chief of the division of hospital medicine at Olive View-UCLA Medical Center in Los Angeles stated, “The simple truth is that the Western sedentary lifestyle and aging population are expected to result in continued rapid growth in this patient population, with 15% of a growing number of diabetics expected to develop a foot ulcer at some point.”
And, chairman and chief executive officer Edward J. Quilty stated, “We estimate that the global market for DSC127 for the treatment of diabetic foot ulcers is approximately $900 million annually, more than $300 million of which is in the U.S.”
In other words, if it is ultimately approved, DSC127 could provide a significant boost to Derma's bottom line.
Strengthening Market Presence
Derma announced Monday that it has signed an exclusive global rights agreement with Korea-based New Cast Industries Co. Ltd.
Under the deal, New Cast Industries will supply the casting element for the TCC-EZ® total casting system, which is used to treat diabetic foot ulcers, at a discount relative to prices for products sold into North America. The agreement is for five years, has no sales minimums and will renew automatically. Sales must begin by a certain date to maintain exclusivity in certain geographies
TCC-EZ has a sales run rate of $8.5 million in the US, according to Barry Wolfenson, Group President, Advanced Wound Care and Pharmaceutical Development. The company intends to begin selling the product throughout Europe, the Middle East, Asia and Latin America as early as summer, pending regulatory clearances.
Strong Stock Performance
Derma has held steady in the $12+ range for most of 2013 and continues to do so as April begins. The stock is up around 3.5 percent on Monday.
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