UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
---------------------
SCHEDULE 13G
Under the Securities Exchange Act of 1934
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Derma Sciences, Inc.
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(Name of Issuer)
Common Stock, par value $.01 per share
--------------------------------------
(Title of Class of Securities)
249 827 106
(CUSIP Number)
January 8, 1998
(Date of Event Which Requires Filing of the Statement)
Check the appropriate box to designate the rule pursuant to which
this Schedule is filed:
[ ] Rule 13d-1(b)
[X] Rule 13d-1(c)
[ ] Rule 13d-1(d)
*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter the
disclosures provided in a prior cover page.
The information required in 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 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
Page 1 of 9 pages
<PAGE>
SCHEDULE 13G
CUSIP No. 249 827 106 Page 2 of 9 Pages
- --------------------------------------------------------------------------------
1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Paramount Capital Asset Management, Inc.
- --------------------------------------------------------------------------------
2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
3) SEC USE ONLY
- --------------------------------------------------------------------------------
4) CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
5) SOLE VOTING POWER
0
NUMBER -------------------------------------------------
OF 6) SHARED VOTING POWER
SHARES 750,000
BENEFICIALLY -------------------------------------------------
OWNED BY 7) SOLE DISPOSITIVE POWER
EACH 0
REPORTING -------------------------------------------------
PERSON 8) SHARED DISPOSITIVE POWER
WITH 750,000
- --------------------------------------------------------------------------------
9) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
750,000
- --------------------------------------------------------------------------------
10) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
SHARES [ ]
- --------------------------------------------------------------------------------
11) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
14.10%
- --------------------------------------------------------------------------------
12) TYPE OF REPORTING PERSON
CO
- --------------------------------------------------------------------------------
Page 2 of 9 pages
<PAGE>
SCHEDULE 13G
CUSIP No. 249 827 106 Page 3 of 9 Pages
- --------------------------------------------------------------------------------
1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
The Aries Trust, a Cayman Islands trust
- --------------------------------------------------------------------------------
2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
3) SEC USE ONLY
- --------------------------------------------------------------------------------
4) CITIZENSHIP OR PLACE OF ORGANIZATION
Cayman Islands
- --------------------------------------------------------------------------------
5) SOLE VOTING POWER
0
NUMBER -------------------------------------------------
OF 6) SHARED VOTING POWER
SHARES 502,500
BENEFICIALLY -------------------------------------------------
OWNED BY 7) SOLE DISPOSITIVE POWER
EACH 0
REPORTING -------------------------------------------------
PERSON 8) SHARED DISPOSITIVE POWER
WITH 502,500
- --------------------------------------------------------------------------------
9) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
502,500
- --------------------------------------------------------------------------------
10) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
SHARES [ ]
- --------------------------------------------------------------------------------
11) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
9.91%
- --------------------------------------------------------------------------------
12) TYPE OF REPORTING PERSON
OO/1/
- --------------------------------------------------------------------------------
- -------------
/1/ The Aries Trust is a Cayman Islands Trust.
Page 3 of 9 pages
<PAGE>
SCHEDULE 13G
CUSIP No. 249 827 106 Page 4 of 9 Pages
- --------------------------------------------------------------------------------
1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Aries Domestic Fund, L.P.
- --------------------------------------------------------------------------------
2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
3) SEC USE ONLY
- --------------------------------------------------------------------------------
4) CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- --------------------------------------------------------------------------------
5) SOLE VOTING POWER
0
NUMBER -------------------------------------------------
OF 6) SHARED VOTING POWER
SHARES 247,500
BENEFICIALLY -------------------------------------------------
OWNED BY 7) SOLE DISPOSITIVE POWER
EACH 0
REPORTING -------------------------------------------------
PERSON 8) SHARED DISPOSITIVE POWER
WITH 247,500
- --------------------------------------------------------------------------------
9) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
247,500
- --------------------------------------------------------------------------------
10) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
SHARES [ ]
- --------------------------------------------------------------------------------
11) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
5.14%
- --------------------------------------------------------------------------------
12) TYPE OF REPORTING PERSON
PN
- --------------------------------------------------------------------------------
Page 4 of 9 pages
<PAGE>
SCHEDULE 13G
CUSIP No. 249 827 106 Page 5 of 9 Pages
- --------------------------------------------------------------------------------
1) NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Lindsay A. Rosenwald, M.D.
- --------------------------------------------------------------------------------
2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
3) SEC USE ONLY
- --------------------------------------------------------------------------------
4) CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- --------------------------------------------------------------------------------
5) SOLE VOTING POWER
0
NUMBER -------------------------------------------------
OF 6) SHARED VOTING POWER
SHARES 750,000
BENEFICIALLY -------------------------------------------------
OWNED BY 7) SOLE DISPOSITIVE POWER
EACH 0
REPORTING -------------------------------------------------
PERSON 8) SHARED DISPOSITIVE POWER
WITH 750,000
- --------------------------------------------------------------------------------
9) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
750,000
- --------------------------------------------------------------------------------
10) CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
SHARES [ ]
- --------------------------------------------------------------------------------
11) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
14.10%
- --------------------------------------------------------------------------------
12) TYPE OF REPORTING PERSON
IN
- --------------------------------------------------------------------------------
Page 5 of 9 pages
<PAGE>
Item 1.
(a) Name of Issuer:
Derma Sciences, Inc. (the "Company")
(b) Address of Issuer's Principal Executive Offices:
214 Carnegie Center, Suite 100
Princeton, NJ 08540
Item 2.
(a) Name of Person Filing:
This statement is filed on behalf of Paramount Capital Asset
Management, Inc. ("Paramount Capital"), Aries Domestic Fund,
L.P. ("Aries Domestic"), The Aries Trust ("Aries Trust") and
Lindsay A. Rosenwald, M.D. ("Dr. Rosenwald" and
collectively, "Reporting Parties"). See attached Exhibit A
which is a copy of their agreement in writing to file this
statement on behalf of each of them. Dr. Rosenwald is an
investment banker, venture capitalist, fund manager and sole
shareholder of Paramount Capital, a Subchapter S corporation
incorporated in Delaware. Paramount Capital is the General
Partner of Aries Domestic, a limited partnership
incorporated in Delaware. Paramount Capital is the
Investment Manager to Aries Trust, a Cayman Islands Trust.
(b) Address of Principal Business Office or, if None, Residence:
Paramount Capital's, Aries Domestic's and Dr.
Rosenwald's business address is 787 Seventh Avenue,
48th Floor, New York, New York, 10019. The business
address for Aries Trust is c/o MeesPierson (Cayman)
Limited, P.O. Box 2003, British American Centre,
Phase 3, Dr. Roy's Drive, George Town, Grand Cayman.
(c) Citizen:
Dr. Rosenwald is a citizen of the United States.
(d) Title of Class of Securities:
Common Stock, $0.01 par value ("shares").
Page 6 of 9 pages
<PAGE>
(e) CUSIP#: 249 827 106
Item 3. Check the box if this statement is filed pursuant to
Rule 13d-1(c) [x]
Item 4. Ownership:
For information concerning the ownership of Common
Stock of the Company by the Reporting Persons, see
Items 5 through 9 and 11 of the cover pages to this
schedule 13G and footnotes thereto.
Item 5. Ownership of Five Percent or Less of a Class:
Not applicable.
Item 6. Ownership of More than Five Percent on Behalf of
Another Person:
Not applicable.
Item 7. Identification and Classification of the Subsidiary Which
Acquired the Security Being Reported On By the Parent
Holding Company:
Not applicable.
Item 8. Identification and Classification of Members of the Group:
Not applicable.
Item 9. Notice of Dissolution of Group:
Not applicable.
Item 10. Certification:
Not applicable.
Page 7 of 9 pages
<PAGE>
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
PARAMOUNT CAPITAL ASSET MANAGEMENT, INC.
Dated: May 4, 1998
New York, NY By: /s/ Lindsay A. Rosenwald, M.D.
-----------------------------------------
Lindsay A. Rosenwald, M.D.
President
ARIES DOMESTIC FUND, L.P.
By: Paramount Capital Asset Management, Inc.
General Partner
Dated: May 4, 1998
New York, NY By: /s/ Lindsay A. Rosenwald, M.D.
-----------------------------------------
Lindsay A. Rosenwald, M.D.
President
THE ARIES TRUST
By: Paramount Capital Asset Management, Inc.
Investment Manager
Dated: May 4, 1998
New York, NY By: /s/ Lindsay A. Rosenwald, M.D.
-----------------------------------------
Lindsay A. Rosenwald, M.D.
President
Dated: May 4, 1998
New York, NY By: /s/ Lindsay A. Rosenwald, M.D.
-----------------------------------------
Lindsay A. Rosenwald, M.D.
President
Page 8 of 9 pages
<PAGE>
EXHIBIT A
AGREEMENT
JOINT FILING OF SCHEDULE 13G
The undersigned hereby agrees to jointly prepare and file with
regulatory authorities a Schedule 13G and any future amendments thereto
reporting each of the undersigned's ownership of securities of Derma Sciences,
Inc., and hereby affirm that such Schedule 13G is being filed on behalf of each
of the undersigned.
PARAMOUNT CAPITAL ASSET MANAGEMENT, INC.
Dated: May 4, 1998
New York, NY By: /s/ Lindsay A. Rosenwald, M.D.
-----------------------------------------
Lindsay A. Rosenwald, M.D.
President
ARIES DOMESTIC FUND, L.P.
By: Paramount Capital Asset Management, Inc.
General Partner
Dated: May 4, 1998
New York, NY By: /s/ Lindsay A. Rosenwald, M.D.
-----------------------------------------
Lindsay A. Rosenwald, M.D.
President
THE ARIES TRUST
By: Paramount Capital Asset Management, Inc.
Investment Manager
Dated: May 4, 1998
New York, NY By: /s/ Lindsay A. Rosenwald, M.D.
-----------------------------------------
Lindsay A. Rosenwald, M.D.
President
Dated: May 4, 1998
New York, NY By: /s/ Lindsay A. Rosenwald, M.D.
-----------------------------------------
Lindsay A. Rosenwald, M.D.
President
Page 9 of 9 pages
