Derma Sciences, Inc. (Nasdaq: DSCI), a tissue regeneration company focused on advanced wound and burn care, announces the launch of new, MEDIHONEY® Hydrogel Sheet Dressings and the receipt of Healthcare Common Procedural Coding System (HCPCS) codes awarded on August 19, 2016 by the Centers for Medicare and Medicaid Services (CMS).

Stephen T. Wills, Executive Chairman and Interim Principal Executive Officer of Derma Sciences said, “Derma Sciences is committed to reestablishing access for honey-based wound care products for Medicare patients. MEDIHONEY® Hydrogel is the only medicinal honey-based dressing in the market offering Medicare Part B reimbursement. These dressings, which include four SKUs of MEDIHONEY® Hydrogel, are the first of three products we are reformulating to conform to HCPCS codes. We are looking forward to the launch of two more MEDIHONEY® products into the Medicare market by the end of the year, and believe that we will eventually be able to recapture a significant portion of the sales that were lost following the removal of reimbursable HCPCS codes on February 1, 2015.”

The MEDIHONEY® Hydrogel dressings, for treatment of dry to lightly exuding wounds, have been designed and manufactured to provide a reimbursable honey-based wound care dressing with clinical benefits. The existing MEDIHONEY® HCS dressings will continue to provide value and be available to patients and clinicians in the acute care and private markets.

“We are excited to be able to again offer MEDIHONEY® dressings with reliable Medicare reimbursement following the removal of reimbursable HCPCS codes last year,” said Russell Olsen, President of Derma Sciences’ Advanced Wound Care business. “We worked closely with clinicians as we redesigned the product to meet the requirements of the Local Coverage Determination for Surgical Dressings proposed in August 2015 by the Durable Medical Equipment Medicare Administrative Contractors and we are pleased that these new dressings perform well clinically. All of the honey used in our MEDIHONEY® dressing is made using 100% honey and we follow strict manufacturing controls to ensure its quality and consistency.”

HCPCS codes are used by Medicare and are monitored by CMS. They are based on the Current Procedural Technology (CPT) codes developed by the American Medical Association. Wound dressings and other supplies cannot be reimbursed through Medicare without set HCPCS codes. Additionally, most private health insurance companies follow the lead of Medicare with these types of products.

About Derma Sciences, Inc.

Derma Sciences is a tissue regeneration company focused on patent protected and proprietary advanced wound and burn care treatments. The Company’s lead products include TCC-EZ®, a gold-standard total contact casting system for diabetic foot ulcers and its MEDIHONEY® product line, the leading brand of honey-based dressings for the management of wounds and burns. It is also engaged in the development and commercialization of novel proprietary regenerative products derived from placental/birth tissues for use in a broad range of clinical applications including the treatment of complex chronic wounds, acute wounds and localized areas of injury or inflammation, in addition to filling soft tissue defects or voids. These products are used in orthopedic, spinal and ocular surgical procedures, among others. The Company also offers a full product line of traditional dressings. For more information, please visit www.dermasciences.com.

Forward-Looking Statements

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