UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
AMENDMENT NO. 7 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)
MAY 16, 2003
-------------------------------------------------------------------
(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, is hereby further amended to
read in its entirety as follows:
SCHEDULE 13D
---------------------------- ----------- ---------------------------------
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|
----- ------------------------------------------------------------------------
3 SEC USE ONLY
----- ------------------------------------------------------------------------
4 SOURCE OF FUNDS
WC
----- ------------------------------------------------------------------------
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
4,702,920 (see Item 5(a))
SHARES ----- --------------------------------------------------
8 SHARED VOTING POWER
BENEFICIALLY
0
OWNED BY ----- --------------------------------------------------
9 SOLE DISPOSITIVE POWER
EACH
4,702,920
REPORTING ----- --------------------------------------------------
10 SHARED DISPOSITIVE POWER
PERSON WITH
0
---------------------- ----- --------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,702,920
----- ------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
| |
----- ------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
45.67%
----- ------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
----- ------------------------------------------------------------------------
2
Page 3 of 9 of the Schedule 13D, as amended, is hereby further amended to
read in its entirety as follows:
SCHEDULE 13D
---------------------------- ----------- ---------------------------------
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.
----- ------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) | |
(b) |X|
----- ------------------------------------------------------------------------
3 SEC USE ONLY
----- ------------------------------------------------------------------------
4 SOURCE OF FUNDS
WC
----- ------------------------------------------------------------------------
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
426,043 (see Item 5(a))
SHARES ----- --------------------------------------------------
8 SHARED VOTING POWER
BENEFICIALLY
0
OWNED BY ----- --------------------------------------------------
9 SOLE DISPOSITIVE POWER
EACH
426,043
REPORTING ----- --------------------------------------------------
10 SHARED DISPOSITIVE POWER
PERSON WITH
0
----- ------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
426,043
----- ------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
| |
----- ------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.14%
----- ------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
----- ------------------------------------------------------------------------
3
Page 4 of 9 of the Schedule 13D, as amended, is hereby further amended to
read in its entirety as follows:
SCHEDULE 13D
---------------------------- ----------- ---------------------------------
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.
----- ------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) | |
(b) |X|
----- ------------------------------------------------------------------------
3 SEC USE ONLY
----- ------------------------------------------------------------------------
4 SOURCE OF FUNDS
WC
----- ------------------------------------------------------------------------
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
19,277 (see Item 5(a))
SHARES ----- --------------------------------------------------
8 SHARED VOTING POWER
BENEFICIALLY
0
OWNED BY ----- --------------------------------------------------
9 SOLE DISPOSITIVE POWER
EACH
19,277
REPORTING ----- --------------------------------------------------
10 SHARED DISPOSITIVE POWER
PERSON WITH
0
----- ------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
19,277
----- ------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
| |
----- ------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.18%
----- ------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
----- ------------------------------------------------------------------------
4
Page 5 of 9 of the Schedule 13D, as amended, is hereby further amended to
read in its entirety as follows:
SCHEDULE 13D
---------------------------- ----------- ---------------------------------
CUSIP NO. 249827106 PAGE 5 OF 9 PAGES
------------- --- ---
---------------------------- ----------- ---------------------------------
----- ------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
William R. Grant
----- ------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) | |
(b) |X|
----- ------------------------------------------------------------------------
3 SEC USE ONLY
----- ------------------------------------------------------------------------
4 SOURCE OF FUNDS
PF
----- ------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(E) | |
----- ------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
----- ------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
574,500 (see Item 5(a))
SHARES ----- --------------------------------------------------
8 SHARED VOTING POWER
BENEFICIALLY
0
OWNED BY ----- --------------------------------------------------
9 SOLE DISPOSITIVE POWER
EACH
574,500
REPORTING ----- --------------------------------------------------
10 SHARED DISPOSITIVE POWER
PERSON WITH
0
----- ------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
574,500
----- ------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
| |
----- ------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.57%
----- ------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
IN
----- ------------------------------------------------------------------------
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 5,722,740 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) 1,631,500 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) 1,859,444 warrants (the "Warrants"), which as of the
date hereof may be exercised for an aggregate of 1,859,444 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".
A new paragraph is hereby added immediately following the second paragraph
of Item 3 of the Initial Schedule 13D; such new paragraph to read in its
entirety as follows:
"The Reporting Persons acquired an aggregate of 1,574,500 shares of
Common Stock in private transactions with the Issuer at a purchase
price of $0.50 per share for an aggregate amount of $787,250 in cash.
Each Reporting Person paid its pro rata share of the acquisition price
of the shares of Common Stock based upon the number of shares it
received."
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)
------------- ------------- ---------------- -------------- ------------- ---------------
Number of
Shares of
Common Stock
into which Number of
Series A, Shares of
Series B, Common Stock Percentage of
Series C and which may be Outstanding
Series D acquired Total of Shares of
Number of Preferred pursuant to Columns Common Stock
Reporting Shares of Stock is exercise of (2), (3) (see Note
Person Common Stock Convertible Warrants and (4) below)
============= ============= ================ ============== ============= ===============
Galen 965,330 2,038,869 1,698,721 4,702,920 45.67%
------------- ------------- ---------------- -------------- ------------- ---------------
Galen Intl 87,702 184,577 153,764 426,043 4.14%
------------- ------------- ---------------- -------------- ------------- ---------------
GEF 3,968 8,350 6,959 19,277 0.18%
------------- ------------- ---------------- -------------- ------------- ---------------
Grant 574,500 0 0 574,500 5.57%
------------- ------------- ---------------- -------------- ------------- ---------------
Total 1,631,500 2,231,796 1,859,444 5,722,740 55.57%
============= ============= ================ ============== ============= ===============
Note: The percentages shown in each row of column (6) were calculated, for
each respective row, by (i) adding the total in the bottom row of column (5)
(less 57,000 shares of Common Stock issued and outstanding) to 4,631,276 (the
number of shares of Common Stock outstanding as of March 31, 2003, as set forth
in the Issuer's Quarterly Report on Form 10-QSB for the quarter then ended (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: May 27, 2003 GALEN PARTNERS III, L.P.
By: Claudius, L.L.C.
By:
-----------------------------------
Managing Member
GALEN PARTNERS
INTERNATIONAL III, L.P.
By: Claudius, L.L.C
By:
-----------------------------------
Managing Member
GALEN EMPLOYEE FUND III, L.P.
By: Wesson Enterprises, Inc
By:
-----------------------------------
President
[Signatures continued on next page.]
8
CLAUDIUS, L.L.C.
By:
-----------------------------------
Managing Member
WESSON ENTERPRISES, INC.
By:
-----------------------------------
President
WILLIAM R. GRANT
By:
-----------------------------------
Bruce F. Wesson,
Attorney-In-Fact
BRUCE F. WESSON
--------------------------------------
Bruce F. Wesson
L. JOHN WILKERSON
By:
-----------------------------------
Bruce F. Wesson,
Attorney-In-Fact
DAVID JAHNS
By:
-----------------------------------
Bruce F. Wesson,
Attorney-In-Fact
SRINI CONJEEVARAM
By:
-----------------------------------
Bruce F. Wesson,
Attorney-In-Fact
ZUBEEN SHROFF
By:
-----------------------------------
Bruce F. Wesson,
Attorney-In-Fact
9