Derma Sciences (DSCI) Says AMNIOEXCEL Will be Considered for Coverage by NGS

August 24, 2016 4:09 PM EDT

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Derma Sciences, Inc. (Nasdaq: DSCI) announces that National Government Services (NGS), a Medicare Administrative Contractor (MAC) for Part B serving States primarily in the Northeast and Midwest, and National MAC for Jurisdiction 6, has retired its local coverage determination (LCD) for cellular or tissue-based products (CTPs) effective September 1, 2016. As a result, the Company’s AMNIOEXCEL Amniotic Allograft Membrane (AMNIOEXCEL) will be considered for coverage with appropriate documentation of medical necessity as a second-line therapy following standard wound care treatment.

NGS serves approximately 24 million Medicare Part B beneficiaries primarily in Connecticut, Illinois, Maine, Massachusetts, Minnesota, New Hampshire, New York, Rhode Island, Vermont, and Wisconsin, and is one of eight MACs responsible for processing Medicare Part B claims. NGS also serves as the J6 MAC for Medicare Part A. In addition to processing claims, each MAC is also responsible for issuing LCDs that specify which healthcare products and services are reimbursable through the Medicare Fee-for-Service program in the regions under its jurisdiction. With this change AMNIOEXCEL® is eligible for Medicare reimbursement in 47 states and the District of Columbia, covering 93% of Medicare beneficiaries.

“We are very pleased with NGS’ decision to retire its LCD for CTPs, commented Stephen T. Wills, Executive Chairman and Interim Principal Executive Officer of Derma Sciences. “NGS’ jurisdiction includes several major metropolitan areas – such as New York, Boston and Chicago, which not only increases our market for AMNIOEXCEL®, but permits much more efficient sales rep coverage. While we now have coverage over the bulk of the country, we continue to pursue an LCD from the remaining MAC for AMNIOEXCEL® in order to ensure complete nationwide access to those who suffer from diabetic ulcers and other chronic wounds. Of note, AMNIOEXCEL® is one of the only amniotic allografts with level I Randomized Control Trial evidence in diabetic foot ulcers, and we expect this data to continue to support our sales efforts.”

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