Covalon in contract to make proprietary advanced wound dressings

By E. Janene Geiss

Philadelphia, Jan. 12 - Covalon Technologies, Inc. announced Thursday that it has entered into a nonexclusive global distribution contract with a major arms-length distributor of wound dressings.

The distributor will sell a collagen-based sheet dressing and an antimicrobial silver ion releasing collagen-based sheet dressing. Both advanced dressings will be made by Covalon using its proprietary technology, according to a company news release.

"The contract is significant for Covalon as it sets a one year dollar volume in excess of $3.5 million before the distributor gains volume discounts. The company expects the new product line to generate significant revenue," Frank DiCosmo, president and chief executive officer, said in the release.

Covalon said it should start delivering product in April.

In the wound-dressings market, silver-dressings growth outperforms all others in the category, officials said.

"Many medical studies highlight the benefits of using antimicrobial silver ion releasing products to treat advanced wounds in patients such as diabetics and the elderly at increased risk for skin breakdown, slow healing and infection," DiCosmo said in the release.

Revenues for the advanced wound management products market will continue to grow at a compound annual rate of 26.9% and will reach an estimated $2.4 billion in 2006. That figure represents a substantial increase over the $455 million market in 1999, according to reports from Frost & Sullivan.

Covalon is a Mississauga, Ont., company with advanced medical products that has developed and patented advanced therapeutic biomaterials for wound care and surgical applications and coatings.

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