UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
AMENDMENT NO. 10 TO
SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
DERMA SCIENCES, INC.
--------------------
(Name of Issuer)
COMMON STOCK, $.01 PAR VALUE PER SHARE
--------------------------------------
(Title of Class of Securities)
249827106
--------------------
(CUSIP Number)
Bruce F. Wesson
Senior Managing Member
Claudius, L.L.C.
610 Fifth Avenue, 5th Floor
New York, NY 10020
(212) 218-4990
--------------------------------------------------------------------------------
(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications)
FEBRUARY 7, 2005
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(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
Schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the following
box: |_|
Note: Schedules filed in paper format shall include a signed original and five
copies with the schedule, including all exhibits. See Rule 13d-7(b) for other
parties to whom copies are to be sent.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934, as amended (the "Act") or otherwise subject to the liabilities of that
section of the Act but shall be subject to all provisions of the Act (however,
see the Notes).
Page 1 of 9 Pages
Page 2 of 9 of the initial Schedule 13D pertaining to the Common
Shares of Derma Sciences, Inc., a Pennsylvania corporation, filed with the
Securities and Exchange Commission ("SEC") on February 6, 1998 for an event on
January 23, 1998, and subsequently amended on September 18, 1998 by Amendment
No. 1, and on August 24, 1999 by Amendment No.2, and on January 10, 2000 by
Amendment No. 3, and on August 7, 2000 by Amendment No. 4, and on March 19, 2001
by Amendment No. 5, and on March 16, 2002 by Amendment No. 6, and on May 16,
2003 by Amendment No. 7, and on June 23, 2003 by Amendment No. 8, and on
February 2, 2005 by Amendment No. 9, is hereby further amended to read as
follows:
SCHEDULE 13D
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CUSIP NO. 249827106 PAGE 2 OF 9 PAGES
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Galen Partners III, L.P.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |_|
(b) |X|
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3 SEC USE ONLY
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4 SOURCE OF FUNDS
WC
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEMS 2(D) or 2(E) |_|
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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7 SOLE VOTING POWER
NUMBER OF 4,890,201 (see Item 5(a))
SHARES ----------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 0
EACH ----------------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON WITH 4,890,201
----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY THE REPORTING PERSON
4,890,201
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGREGATE AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
35.14%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
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2
Page 3 of 9 of the Schedule 13D, as amended, is hereby further amended
to read in its entirety as follows:
SCHEDULE 13D
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CUSIP NO. 249827106 PAGE 3 OF 9 PAGES
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Galen Partners International III, L.P.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |_|
(b) |X|
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3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS
WC
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEMS 2(D) or 2(E) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 442,995 (see Item 5(a))
SHARES ----------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 0
EACH ----------------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON WITH 442,995
----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY THE REPORTING PERSON
442,995
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGREGATE AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.18%
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14 TYPE OF REPORTING PERSON
PN
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3
Page 4 of 9 of the Schedule 13D, as amended, is hereby further amended
to read in its entirety as follows:
SCHEDULE 13D
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CUSIP NO. 249827106 PAGE 4 OF 9 PAGES
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Galen Employee Fund III, L.P.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |_|
(b) |X|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS
WC
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEMS 2(D) or 2(E) |_|
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF 20,044 (see Item 5(a))
SHARES ----------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 0
EACH ----------------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON WITH 20,044
----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY THE REPORTING PERSON
20,044
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGREGATE AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.14%
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14 TYPE OF REPORTING PERSON
PN
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4
Page 5 of 9 of the Schedule 13D, as amended, is hereby further amended
to read in its entirety as follows:
SCHEDULE 13D
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CUSIP NO. 249827106 PAGE 5 OF 9 PAGES
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1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
William R. Grant
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |_|
(b) |X|
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3 SEC USE ONLY
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4 SOURCE OF FUNDS
PF
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEMS 2(D) or 2(E) |_|
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
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7 SOLE VOTING POWER
NUMBER OF 974,500 (see Item 5(a))
SHARES ----------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 0
EACH ----------------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON WITH 974,500
----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY THE REPORTING PERSON
974,500
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGREGATE AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.0%
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14 TYPE OF REPORTING PERSON
IN
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5
The first paragraph of Item 1 of the Schedule 13D is hereby amended to
read in its entirety as follows:
"This statement covers a total of 6,327,740 fully diluted
shares of Common Stock, $.01 par value per share (the
"Common Stock"), of Derma Sciences, Inc., a Pennsylvania
corporation (the "Issuer"). The Reporting Persons (as
defined in Item 2 hereof) as of the date hereof hold an
aggregate of (i) 2,036,500 shares of Common Stock, (ii)
543,267 shares of Series B Convertible Preferred Stock, $.01
par value per share, of the Issuer (the "Series B Preferred
Shares"), which as of the date hereof are convertible into
an aggregate of 543,267 shares of Common Stock, (iii)
617,184 shares of Series C Convertible Preferred Stock, $.01
par value per share, of the Issuer (the "Series C Preferred
Shares"), which as of the date hereof are convertible into
an aggregate of 617,184 shares of Common Stock, (iv)
1,071,345 shares of Series D Convertible Preferred Stock,
$.01 par value per share, of the Issuer (the "Series D
Preferred Shares"), which as of the date hereof are
convertible into an aggregate of 1,071,345 shares of Common
Stock, and (v) 2,059,444 warrants (the "Warrants"), which as
of the date hereof may be exercised for an aggregate of
2,059,444 shares of Common Stock. The Common Stock, Series B
Preferred Shares, Series C Preferred Shares, Series D
Preferred Shares and Warrants are referred to herein,
collectively, as the "Securities".
The third paragraph of Item 3 of the Initial Schedule 13D is hereby
amended to read in its entirety as follows:
"William R. Grant, a Reporting Person, acquired in a private
transaction with the Issuer on February 7, 2005, 100,000
units at a purchase price of $0.50 per unit for an aggregate
amount of $50,000 in cash. The units consist of 100,000
shares of Common Stock and warrants to purchase an
additional 100,000 shares of Common Stock."
6
Item 5, subpart (a) of the Initial Schedule 13D is hereby amended to
read in its entirety as follows:
(a) Each Reporting Person owns or has the right to acquire the number
of securities shown opposite its name:
===================================================================================================
(1) (2) (3) (4) (5) (6)
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Number of
Number of Shares of
Shares of Common
Common Stock Stock which Percentage of
into which may be Outstanding
Series B, Series acquired Shares of
Number of C and Series D pursuant to Total of Common
Reporting Shares of Preferred Stock exercise of Columns (2), Stock (see
Person Common Stock is Convertible Warrants (3) and (4) Note below)
===================================================================================================
Galen 1,152,611 2,038,869 1,698,721 4,890,201 35.14%
---------------------------------------------------------------------------------------------------
Galen Intl 104,654 184,577 153,764 442,995 3.18%
---------------------------------------------------------------------------------------------------
GEF 4,735 8,350 6,959 20,044 0.14%
---------------------------------------------------------------------------------------------------
Grant 774,500 0 200,000 974,500 7.0%
---------------------------------------------------------------------------------------------------
Total 2,036,500 2,231,796 2,059,444 6,327,740 45.46%
===================================================================================================
Note: The percentages shown in each row of column (6) were calculated,
for each respective row, by (i) adding the total in the bottom rows of columns
(3) and (4) to 9,724,007 (the number of shares of Common Stock outstanding as of
September 30, 2004, as set forth in the Issuer's Quarterly Report on Form 10-QSB
for the quarter then ended, plus the 100,000 shares of Common Stock acquired by
William R. Grant as reported in Amendment No. 9 to Schedule 13D for an event on
January 31, 2005, plus the 100,000 shares of Common Stock acquired by William R.
Grant as reported herein (the "Total Adjusted Outstanding Shares"), then (ii)
dividing the amount in column (5) by the Total Adjusted Outstanding Shares, and
then (iii) expressing such quotient in terms of a percentage.
7
SIGNATURE
---------
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in the statement is true, complete and
correct.
Date: February 7, 2005 GALEN PARTNERS III, L.P.
By: Claudius, L.L.C.
By: /s/ Bruce F. Wesson
-----------------------------------
Managing Member
GALEN PARTNERS
INTERNATIONAL III, L.P.
By: Claudius, L.L.C
By: /s/ Bruce F. Wesson
-----------------------------------
Managing Member
GALEN EMPLOYEE FUND III, L.P.
By: Wesson Enterprises, Inc
By: /s/ Bruce F. Wesson
-----------------------------------
President
[Signatures continued on next page.]
8
CLAUDIUS, L.L.C.
By: /s/ Bruce F. Wesson
-----------------------------------
Managing Member
WESSON ENTERPRISES, INC.
By: /s/ Bruce F. Wesson
-----------------------------------
President
WILLIAM R. GRANT
By: /s/ Bruce F. Wesson
-----------------------------------
Bruce F. Wesson, Attorney-In-Fact
BRUCE F. WESSON
By: /s/ Bruce F. Wesson
-----------------------------------
Bruce F. Wesson
L. JOHN WILKERSON
By: /s/ Bruce F. Wesson
-----------------------------------
Bruce F. Wesson, Attorney-In-Fact
DAVID JAHNS
By: /s/ Bruce F. Wesson
-----------------------------------
Bruce F. Wesson, Attorney-In-Fact
SRINI CONJEEVARAM
By: /s/ Bruce F. Wesson
-----------------------------------
Bruce F. Wesson, Attorney-In-Fact
ZUBEEN SHROFF
By: /s/ Bruce F. Wesson
-----------------------------------
Bruce F. Wesson, Attorney-In-Fact
9