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Osiris Therapeutics, Inc. (OSIR), Derma Sciences Inc (DSCI): The Changing Landscape in Chronic Diabetic Foot Ulcers

The market for the treatment of chronic diabetic foot ulcers has been growing and larger companies have been taking notice. Many large pharmaceutical companies have their own treatments for chronic diabetic foot ulcers. The space has also caused some major acquisitions. In 2011, Shire PLC (ADR) (NASDAQ:SHPG) acquired a drug called Dermagraft for the treatment of slow-healing diabetic foot ulcers, through its $750 million acquisition of Advanced BioHealing. Dermagraft has been a rather lucrative product for Shire PLC (ADR) (NASDAQ:SHPG), with $153.8 million in sales last year. As the market continues to grow, I would look for more partnerships with large pharmaceutical companies, and of course more research and development dollars being devoted toward the chronic diabetic foot ulcers indication.

There are, of course, many other treatments for chronic diabetic foot ulcers. The treatment options are progressing all of the time, and more companies are entering with the hopes of creating a bigger and better treatment for CDFU. It seems as though Osiris’ Graft may be the temporary favorite for investors in this space right now. Whether it will remain that way, only time will tell. However, the recent data should be rather concerning for Derma Sciences Inc (NASDAQ:DSCI), and investors will be watching carefully when Derma ultimately releases its clinical trial results.

The article The Changing Landscape in Chronic Diabetic Foot Ulcers originally appeared on Fool.com and is written by Alexander Maxwell.

Alexander Maxwell has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 

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