UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
AMENDMENT NO. 11 TO
S C H E D U L E 13D
Under the Securities Exchange Act of 1934
DERMA SCIENCES, INC.
(Name of Issuer)
COMMON STOCK, $0.01 PAR VALUE
(Title of Class of Securities)
249827106
(CUSIP Number)
Bruce F. Wesson
Claudius, L.L.C.
680 Washington Boulevard
11th Floor
Stamford, CT 06901
Telephone (203) 653-6400
With a copy to:
Peter K. Anglum, Esq.
Morrison Cohen LLP
909 Third Avenue
New York, New York 10022
Telephone (212) 735-8600
(Name, Address and Telephone Number of Persons
Authorized to Receive Notices and Communications)
April 15, 2007
(Date of Event which Requires Filing this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition that 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 of the schedule, including all exhibits. See Rule 13d-7(b) for other
parties to whom copies are to be sent.
(Continued on following page(s))
Page 1 of 9
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1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON
Galen Partners III, L.P.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) |_|
(b) |X|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
--------------------------------------------------------------------------------
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
3,510,547 shares
-----------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 0 shares
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 3,510,547 shares
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0 shares
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,510,547 shares
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
12.56%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
--------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 2 of 9
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON
Galen Partners International III, L.P.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) |_|
(b) |X|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
--------------------------------------------------------------------------------
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
321,168 shares
-----------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 0 shares
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 321,168 shares
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0 shares
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
321,168 shares
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.15%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
--------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 3 of 9
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON
Galen Employee Fund III, L.P.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) |_|
(b) |X|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
--------------------------------------------------------------------------------
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
14,613 shares
-----------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 0 shares
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 14,613 shares
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0 shares
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
14,613 shares
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.05%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
--------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 4 of 9
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NOS. OF ABOVE PERSON
Galen Associates
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) |_|
(b) |X|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
--------------------------------------------------------------------------------
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
452,000 shares
-----------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 0 shares
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 452,000 shares
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0 shares
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
452,000 shares
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.62%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
--------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
Page 5 of 9
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 4,298,328 fully diluted shares of
Common Stock"), of Derma Sciences, Inc., a Pennsylvania corporation
(the "Issuer"). The Reporting Personas (as defined in Item 2 hereof)
as of the date hereof hold an aggregate of (i) 1,614,175 shares of
Common Stock, (ii) 125,003 shares of Series A Convertible Preferred
Stock, $.01 par value per share, of the Issuer (the "Series A
Preferred Shares"), which as of the date hereof are convertible into
an aggregate of 125,003 shares of Common Stock, (iii) 416,669 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 416,669 shares of Common
Stock, (iv) 619,055 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 619,055 shares of Common Stock, (v) 1,071,426 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 1,071,426 shares of
Common Stock, and (vi) 452,000 options (the "Options"), which as of
the date hereof may be exercised for an aggregate of 452,000 shares
of Common Stock. The Common Stock, Series A Preferred Shares, Series
B Preferred Shares, Series C Preferred Shares, Series D Preferred
Shares and Options are referred to herein, collectively, as the
"Securities".
Item 3 of the Initial Schedule 13D is hereby amended to add a paragraph at
the end thereof to read in its entirety as follows:
"On January 4, 2007, Galen Partners III, L.P., Galen Partners
International III, L.P. and Galen Employee Fund III, L.P. exercised
an aggregate of 1,309,441 warrants pursuant to a cashless exercise
feature in such warrants, resulting in the issuance of an aggregate
of 352,175 shares of Common Stock. On April 15, 2007, William R.
Grant, a Reporting Person, passed away and, as a result, under the
terms of the relevant operating agreements was deemed to have
withdrawn from, and is no longer an affiliate of, the Galen
Partnerships as of that date."
Item 5, subpart (a) of the Initial Schedule 13D is hereby amended to read
in its entirety as follows:
Page 6 of 9
(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)
----------------------------------------------------------------------------------------------------------------------
Number of Shares
of Common Stock Number of Shares
into which Series of Common Stock
A, Series B, which may be Percentage of
Series C and acquired Outstanding
Series D pursuant to Shares of Common
Number of Shares Preferred Stock exercise of Total of Columns Stock (see Note
Reporting Person of Common Stock is Convertible options (2), (3) and (4) below)
----------------------------------------------------------------------------------------------------------------------
Galen 1,474,345 2,036,202 0 3,510,547 12.56%
----------------------------------------------------------------------------------------------------------------------
Galen Intl 133,777 187,391 0 321,168 1.15%
----------------------------------------------------------------------------------------------------------------------
GEF 6,053 8,560 0 14,613 0.05%
----------------------------------------------------------------------------------------------------------------------
Galen Associates 0 0 452,000 452,000 1.62%
----------------------------------------------------------------------------------------------------------------------
Total 1,614,175 2,232,153 452,000 4,298,328 15.38%
----------------------------------------------------------------------------------------------------------------------
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 25,258,335, the number of shares of Common Stock outstanding as of
February 27, 2007, as set forth in the Issuer's Annual Report on Form 10-KSB for
the year ended December 31, 2006, (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.
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.
Page 7 of 9
Date: May 9, 2007 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
CLAUDIUS, L.L.C.
By: /s/ Bruce F. Wesson
---------------------------
Managing Member
WESSON ENTERPRISES, INC.
By: /s/ Bruce F. Wesson
---------------------------
President
Page 8 of 9
GALEN ASSOCIATES
By: Wesson Enterprises, Inc.
By: /s/ Bruce F. Wesson
------------------------------------------
President
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
ZUBEEN SHROFF
By: /s/ Bruce F. Wesson
------------------------------------------
Bruce F. Wesson, Attorney-In-Fact
Page 9 of 9