Derma Sciences Finalizes License Deal for Medihoney® Rights with Comvita New Zealand

Medical device maker and drug developer Derma Sciences Inc. said Thursday it finalized a deal to license worldwide rights to Medihoney wound and skin care products from Comvita New Zealand Ltd.

The company announced the deal Dec. 22.

Under the deal, Derma will pay Comvita $2.25 million, issue Comvita 400,000 shares of its common stock, issue Comvita 133,333 warrants to purchase its common stock at an exercise price of $5.50 per share, and issue to Comvita 100,000 warrants to purchase its common stock at a price of $6.25 per share.

Also, Derma will pay royalties on sales.

Derma already had rights to Medihoney products in North America and South America. It previously said the deal "effectively triples" the potential market for Medihoney.

Also, Comvita CEO Brett Hewlett joined Derma Science's board of directors.

Medihoney products are made from a seaweed-based material, saturated with manuka honey, a particularly potent type that experts say kills germs and speeds healing.

Shares of Derma Sciences rose 5 cents to $5.15 in midday trading.

Source: Washington Examiner