PRINCETON, N.J.— Derma Sciences Inc. and Comvita New Zealand completed an agreement to expand Derma Sciences’ licensing rights to Comvita’s MEDIHONEY® to a global level; Derma Sciences current holds North and South American rights, approximately one-third of the total market, effectively tripling the potential market for Derma Sciences’ MEDIHONEY products. Comvita controls approximately 75 percent of worldwide manuka honey, and owns key intellectual property related to the use of the ingredient. The agreement should be finalized by Feb. 1, 2010.
Under terms of the agreement, Derma Sciences will 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; Comvita will market MEDIHONEY products manufactured by Derma Sciences to OTC customers. The companies will also join forces on R&D, and Comvita’s CEO, Brett Hewlett, will join Derma Sciences’ board of directors. 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.
Neil Craig, Comvita chairman, said, “We are pleased to finalize the agreement which was delayed over a year due to the turmoil in the global financial markets. The agreement signals a major milestone for Comvita’s significant investments into the application of honey in medical applications. We have a great deal of confidence in Derma’s ability to exploit the considerable opportunity for MEDIHONEY in the professional medical market—they are, after all, specialists in the field.”
Added Edward J. Quilty, chairman and CEO of Derma Sciences: “MEDIHONEY has been a major success for our company ever since our product launch in 2007. … Now that Derma has secured a long-term agreement, we plan to significantly increase the size of our sales force in 2010. We will create a Managing Director position in Europe and are currently interviewing candidates. Derma Sciences plans to build its global strategy around the MEDIHONEY brand. We firmly believe that this agreement will enable our company to significantly expand its international footprint.”