SC 13D/A 1 d71934_13da.txt AMENDMENT NO. 11 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 -------------------------------------------------------------------------------- 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