Derma Sciences (DSCI)

Business description

Derma Sciences is a specialty medical device/pharmaceutical company. It focuses on developing and commercialising traditional and novel advanced wound care products, including MEDIHONEY and TCC-EZ.

Share price chart

Share chart

Stock data

Market cap.US$239.5m
Last closeUS$9.510
High / Low (52 weeks)US$15.2 / US$8.6
Stock market listingNASDAQ
Forecast net cash (US$m)81.5
Forecast gearing ratio (%)N/A
TeamHealthcare
SectorPharmaceutical & Healthcare

Price performance

%1m3m12m
Actual(12.5)(2.3)(32.1)
Relative *(13)(7.3)(41.8)

* % Relative to local index

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Y/E Dec Revenue (US$m) EBITDA (US$m) PBT (US$m) EPS (c) P/E (x) P/CF (x)
2012A 72.5 (8.9) (12.2) (78.4) N/A N/A
2013A 79.7 (14.9) (21.0) (123.8) N/A N/A
2014E 92.4 (22.5) (27.7) (107.7) N/A N/A
2015E 108.3 (16.4) (22.8) (86.0) N/A N/A

Last updated on 23/06/2014

Investment summary

Derma Sciences offers a compelling risk/reward profile with the DSC127 trial and advanced wound management franchise progressing well in a vastly underserved market. The recent $80m fund-raising affords the company higher R&D and sales force investments, which we expect to propel strong sales growth, and to deepen operating losses in 2014 and 2015. Derma Sciences expects its Phase III trials of DSC127 for diabetic foot ulcers to be fully enrolled in 2015 with top-line data available in 2016. We believe the current share price attributes no probability to DSC127 successfully reaching the market, which we rate as 65% likely. We value the stock at $15.6, based on DCF.

Last updated on 30/06/2014

Industry outlook

Derma Sciences operates in three segments of the wound care market: traditional (TWC), advanced (AWC) and pharmaceutical wound care (PWC). The slow-growing but cash-positive TWC unit provides the company with investment capital for the fast-growing AWC unit, which has seen a five-year CAGR of 53% and is expected to grow 25-35% in the next few years.

Last updated on 30/06/2014

Key management

Edward Quilty , CEO
John Yetter , CFO

Company address

214 Carnegie Center
Suite 300
Princeton
NJ 08540
United States
+1 800-445-7627
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