MedEfficiency Acquired for $14.5 Million by Derma Sciences
Princeton, N.J.-based company Derma Sciences Inc. has signed an agreement to acquire Medefficiency for $14.5 million paid in cash. Derma Sciences is a medical device and pharmaceutical company focused on advanced wound care. MedEfficiency’s masthead product is the TCC-EZ, a total contact casting system that is supplemented by a proprietary boot for support. The employees of the Wheat Ridge, Colo.-based company will become employees of Derma Sciences upon the closure of the acquisition.
Derma Sciences has been selling MedEfficiency’s casting systems for three years, according to Edward J. Quilty, CEO of Derma Sciences. The company believes that the costs associated with the transition – approximated at $1.5 million – will be worth the revenue increase it will experience in 2013 following increased sales potential garnered by an outright ownership of MedEfficiency’s products.
TCCs are used to treat diabetic foot ulcers, and the proper removal of pressure (off-loading) from such wounds is important for the healing process. The goal of the TCC-EZ is to perfect the proper off-loading technique so that more diabetic ulcer patients can utilize the device. Currently, less than 2 percent of applicable patients use such devices due to the difficulties associated with off-loading.
The anticipated date of closure for this acquisition is April 30th.