Watch CBS News

Derma Sciences CEO: 17 years to a new drug

Since 1996, Ed Quilty has been at the helm of Derma Sciences (DSCI), maker of the popular MEDIHONEY wound care products. Now, the company is in the final stages of a new wound-healing product. Recently, we spoke to Quilty about what it takes to get a drug like this through Federal Drug Administration (FDA) approval, and about his own path to success in the pharmaceutical industry.

CBS MoneyWatch: How would you describe Derma Sciences's place in the industry?

Ed Quilty: Derma Sciences is in a unique position in that we're a pharmaceutical company, a drug development company and a medical device and dressing company. The focus of all our products is on the generation of tissue, specifically around chronic nonhealing wounds.

MW: What challenges do you face in the pharmaceutical marketplace versus the medical device one?

EQ: They are similar: It costs a lot of money and time to develop products today. The regulatory path is very extensive and requires a great deal of care in recruiting patients and proving the efficacy of the products.

MW: Can you explain the product in development?

EQ: DSC127 is a topical gel derived from a peptide licensed from USC [the University of Southern California]. It will accelerate the regeneration of skin and the healing process.

MW: How much time and money will it take to get it FDA approved?

EQ: We licensed it for use in 2007 -- and those scientists had worked on it for several years before that. We estimate we will finish the trial, and it will get approved in 2017. The cost of the Phase 3 trial [to get through the FDA] is about $60 million. About $10 million has been spent [already]. So in total, $75 million and 17 years to bring to market. It's a lengthy process.

MW: How did you start out in this industry?

EQ: In college, I was recruited by Baxter Healthcare. I was an economics and business major. Early on they sent me back to get an MBA. If you want to work in development, a science background is good. And an MBA is also helpful whether you're on the scientific side or not.

I'd encourage people to spend the first part of their career in Big Pharma, and they can stay there or then go the entrepreneurial route. The Big Pharma experience is critical to teach you to have the discipline to run and build this type of business.

MW: Do you have a mantra?

EQ: You can't give up. There have been times as a little company over the last decade where we have been close to running out of money and going out of business, but I believed in our tech and people. We've persevered, and the results have been good.

View CBS News In
CBS News App Open
Chrome Safari Continue
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.