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Derma Sciences Considering sale after Canceling drug program

Derma Science Inc announced today it was looking into a possible sale of the company after stopping development of its only drug. Shares for the firm dropped 31% on Thursday. The company had a market value of $145 million on Wednesday’s close. The firm abandoned the drug, aclerstide, after an independent firm assessed that the drug was unlikely to succeed in healing foot ulcers caused by diabetes.

The company also announced it would stop developing aclerastide as a treatment to reduce scars and treat dermatitis caused by radiation. Derma invested $5 million in the quarter on research and development for aclerastide and it will cost another $2 million to finally terminate the drug program, which is expected to close by the end of the year.