UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
AMENDMENT NO. 1 TO
SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
DERMA SCIENCES, INC.
--------------------
(Name of Issuer)
COMMON STOCK, $.01 PAR VALUE PER SHARE
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(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
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(Name, Address and Telephone Number of
Person Authorized to Receive Notices and Communications)
September 9, 1998
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(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 10 Pages
<PAGE>
Page 2 of 10 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 of January 23, 1998 (the
"Initial Schedule 13D"), is hereby amended to read in its
entirety as follows:
SCHEDULE 13D
--------------------------- -------------------------
CUSIP No. 249827106 Page 2 of 10 Pages
------------ --- ----
--------------------------- -------------------------
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1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Galen Partners III, L.P.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS
WC
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(E) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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NUMBER OF 7 SOLE VOTING POWER
SHARES 4,692,055 (see Item 5(a))
----------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 0
----------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 4,692,055
----------------------------------------------------
PERSON 10 SHARED DISPOSITIVE POWER
WITH 0
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,692,055
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
51.87%
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14 TYPE OF REPORTING PERSON
PN
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<PAGE>
Page 3 of 10 of the Initial Schedule 13D is hereby amended
to read in its entirety as follows:
SCHEDULE 13D
-------------------------- -------------------------
CUSIP No. 249827106 PAGE 3 OF 10 PAGES
------------ --- ----
-------------------------- -------------------------
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1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Galen Partners International III, L.P.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS
WC
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(E) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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NUMBER OF 7 SOLE VOTING POWER
SHARES 454,071 (see Item 5(a))
---------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 0
---------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 454,071
---------------------------------------------------
PERSON 10 SHARED DISPOSITIVE POWER
WITH 0
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
454,071
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
9.06%
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14 TYPE OF REPORTING PERSON
PN
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<PAGE>
Page 4 of 10 of the initial Schedule 13D is hereby amended
to read in its entirety as follows:
SCHEDULE 13D
------------------------- --------------------------
CUSIP No. 249827106 Page 4 of 10 Pages
------------ --- ----
------------------------- --------------------------
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1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Galen Employee Fund III, L.P.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [X]
-----------------------------------------------------------------
3 SEC USE ONLY
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4 SOURCE OF FUNDS
WC
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(E) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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7 SOLE VOTING POWER
9,774 (see Item 5(a))
-------------------------------------------------
8 SHARED VOTING POWER
0
-------------------------------------------------
9 SOLE DISPOSITIVE POWER
9,774
-------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
9,774
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.45%
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14 TYPE OF REPORTING PERSON
PN
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<PAGE>
The first paragraph of Item 1 of the Initial Schedule 13D is
hereby amended to read in its entirety as follows:
"This statement covers a total of 5,166,668 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) 625,000 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 625,000 shares
of Common Stock, (ii) 2,083,334 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 2,083,334
shares of Common Stock, and (iii) warrants for the purchase
of 2,458,334 shares of Common Stock (the "Warrants"), which
as of the date hereof may be exercised for an aggregate of
2,458,334 shares of Common Stock. The Common Shares, Series
A Preferred Shares, Series B Preferred Shares and Warrants
are referred to herein, collectively, as the "Securities"."
The second paragraph of Item 3 of the Initial Schedule 13D
is hereby amended to read in its entirety as follows:
"375,000 of the Series A Preferred Shares and the 375,000 of
the Warrants were acquired by the Reporting Persons through
the conversion, effected on or about January 23, 1998, of
certain Convertible Debentures due 1998 of the Issuer ("The
Series A Debentures"). The Reporting Persons acquired
Series A Debentures in an aggregate principal amount of
$300,000 for $300,000 in cash. The remaining 250,000 shares
of the Series A Preferred Shares were acquired through
converting 250,000 shares of Common Stock, which were
previously acquired by the Reporting Persons at a purchase
price of $1.00 per share for an aggregate amount of $250,000
in cash, into an equal number of shares of Series A
Preferred Stock. The Series B Preferred Shares and
2,083,334 of the Warrants were acquired by the Reporting
Persons through the conversion, effected on or about
September 9, 1998, of certain Convertible Debentures due
1998 of the Issuer ("The Series B Debentures"). The
Reporting Persons acquired Series B Debentures in an
aggregate principal amount of $2,500,000 for $2,500,000 in
cash. Each Reporting Person paid its pro rata share of the
acquisition price of the Securities based upon the number of
-5-
<PAGE>
Common Shares, Series A Preferred Shares, Series B Preferred
Shares and Warrants it received."
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)
Number of
Shares of
Common Number of
Stock into Shares of
which Owned Common
Series A Stock which Percentage
Preferred may be of
Stock and acquired Outstanding
Series B pursuant to Total of Shares of
Preferred exercise of Columns Common
Reporting Stock is Owned (2), (3) Stock (see
Person Convertible Warrants and (4) Note below)
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Galen 2,459,545 2,232,510 4,692,055 51.87%
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Galen Intl 238,021 216,050 454,071 9.06%
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GEF 10,768 9,774 20,542 0.45%
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Total 2,708,334 2,458,334 5,166,668 54.40%
=====================================================================
Note: The percentages shown in each row of column (5)
were calculated, for each respective row, by (i) adding the
totals in the bottom row of columns (2) and (3) to 4,580,132 (the
number of shares of Common Stock outstanding as of August 3,
1998, as set forth in the Issuer's Definitive Proxy on
Schedule 14A filed in connection with the Issuer's Shareholder
meeting held September 9, 1998) (the "Total Adjusted Outstanding
Shares"), then (ii) dividing the amount in column (4) by the
Total Adjusted Outstanding Shares, and then (iii) expressing such
quotient in terms of a percentage.
Item 7 of the Initial Schedule 13D is hereby amended to
add the following Exhibit 2:
2. Joint Filing Agreement and Power of Attorney, dated
September 16, 1998, by the Reporting Persons and the Related
Persons.
-6-
<PAGE>
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: September 17, 1998 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
[Signatures continued on next page.]
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<PAGE>
CLAUDIUS, L.L.C.
By: /s/ Bruce F. Wesson
--------------------------------
Managing Member
WESSON ENTERPRISES, INC.
By: /s/ Bruce F. Wesson
--------------------------------
President
WILLIAM R. GRANT
/s/ William R. Grant
-----------------------------------
BRUCE F. WESSON
/s/ Bruce F. Wesson
-----------------------------------
L. JOHN WILKERSON
/s/ L. John Wilkerson
-----------------------------------
DAVID JAHNS
/s/ David Jahns
-----------------------------------
SRINI CONJEEVARAM
/s/ Srini Conjeevaram
-----------------------------------
ZUBEEN SHROFF
/s/ Zubeen Shroff
-----------------------------------
-8-
<PAGE>
EXHIBIT INDEX
Exhibit Description
------- -----------
2. Joint Filing Agreement and Power of Attorney,
dated September 16, 1998, by the Reporting Persons
and the Related Persons.
Exhibit 2
JOINT FILING AGREEMENT
----------------------
AND
POWER OF ATTORNEY
-----------------
In accordance with Rule 13d-1(f) under the Securities
Exchange Act of 1934, the persons named below agree to the joint
filing on behalf of each of them of an Amendment to a Statement
on Schedule 13D (including exhibits thereto) with respect to the
acquisition of, or the right to acquire, the Common Stock of
Derma Sciences, Inc., a Pennsylvania corporation. This Agreement
shall be included as an Exhibit to such joint filing. In
evidence thereof, each of the undersigned, being duly authorized,
hereby executes this Agreement this 16th day of September, 1998.
Each person whose signature appears below hereby constitutes
and appoints Bruce F. Wesson as his or its true and lawful
attorney-in-fact and agent, with full power and authority,
including power of substitution and resubstitution, and in his or
its name, place and stead in any and all capacities, to execute
in the name of each such person, and to file, with all exhibits
thereto and other documents in connection therewith, with the
Securities and Exchange Commission, any and all amendments to
this Amendment No. 1 to Statement on Schedule 13D as such
attorney-in-fact and agent, or its substitutes, executing such
amendments deem necessary or advisable to enable each person
whose signature appears below to comply with the Securities
Exchange Act of 1934 and any rules, regulations and requirements
of the Securities and Exchange Commission in respect thereof,
granting to said attorney-in-fact, agents and substitutes full
power and authority to do and perform each and every act and
thing requisite and necessary to be done in and about the
premises, as fully to all intents and purposes as they might or
could do in person, and does hereby ratify and confirm all that
such attorney-in-fact, agents or substitutes, or any of them
separately, may lawfully do or cause to be done by virtue
thereof.
GALEN PARTNERS III, L.P.
By: Claudius, L.L.C.
By: /s/ Bruce F. Wesson
--------------------------------
Managing Member
<PAGE>
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
WILLIAM R. GRANT
/s/ William R. Grant
-----------------------------------
BRUCE F. WESSON
/s/ Bruce F. Wesson
-----------------------------------
L. JOHN WILKERSON
/s/ L. John Wilkerson
-----------------------------------
[Signatures continued on next page.]
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<PAGE>
DAVID JAHNS
/s/ David Jahns
-----------------------------------
SRINI CONJEEVARAM
/s/ Srini Conjeevaram
-----------------------------------
ZUBEEN SHROFF
/s/ Zubeen Shroff
-----------------------------------
