SC 13D/A 1 gal13da.txt AMEND. NO. 7 TO 13D UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON D.C. 20549 AMENDMENT NO. 7 TO SCHEDULE 13D UNDER THE SECURITIES EXCHANGE ACT OF 1934 DERMA SCIENCES, INC. -------------------- (Name of Issuer) COMMON STOCK, $.01 PAR VALUE PER SHARE -------------------------------------- (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 -------------------------------------------------------------------------------- (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) MAY 16, 2003 ------------------------------------------------------------------- (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 9 Pages Page 2 of 9 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 on January 23, 1998 and subsequently amended on September 18, 1998 by Amendment No. 1 and on August 24, 1999 by Amendment No.2, and on January 10, 2000 by Amendment No. 3 and on August 7, 2000 by Amendment No. 4, and on March 19, 2001 by Amendment No. 5, and on March 16, 2002 by Amendment No. 6, is hereby further amended to read in its entirety as follows: SCHEDULE 13D ---------------------------- ----------- --------------------------------- CUSIP NO. 249827106 PAGE 2 OF 9 PAGES ------------- --- --- ---------------------------- ----------- --------------------------------- ----- ------------------------------------------------------------------------ 1 NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. 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 WC ----- ------------------------------------------------------------------------ 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 NUMBER OF 4,702,920 (see Item 5(a)) SHARES ----- -------------------------------------------------- 8 SHARED VOTING POWER BENEFICIALLY 0 OWNED BY ----- -------------------------------------------------- 9 SOLE DISPOSITIVE POWER EACH 4,702,920 REPORTING ----- -------------------------------------------------- 10 SHARED DISPOSITIVE POWER PERSON WITH 0 ---------------------- ----- -------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 4,702,920 ----- ------------------------------------------------------------------------ 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES | | ----- ------------------------------------------------------------------------ 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 45.67% ----- ------------------------------------------------------------------------ 14 TYPE OF REPORTING PERSON PN ----- ------------------------------------------------------------------------ 2 Page 3 of 9 of the Schedule 13D, as amended, is hereby further amended to read in its entirety as follows: SCHEDULE 13D ---------------------------- ----------- --------------------------------- CUSIP NO. 249827106 PAGE 3 OF 9 PAGES ------------- --- --- ---------------------------- ----------- --------------------------------- ----- ------------------------------------------------------------------------ 1 NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. 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 WC ----- ------------------------------------------------------------------------ 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 NUMBER OF 426,043 (see Item 5(a)) SHARES ----- -------------------------------------------------- 8 SHARED VOTING POWER BENEFICIALLY 0 OWNED BY ----- -------------------------------------------------- 9 SOLE DISPOSITIVE POWER EACH 426,043 REPORTING ----- -------------------------------------------------- 10 SHARED DISPOSITIVE POWER PERSON WITH 0 ----- ------------------------------------------------------------------------ 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 426,043 ----- ------------------------------------------------------------------------ 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES | | ----- ------------------------------------------------------------------------ 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 4.14% ----- ------------------------------------------------------------------------ 14 TYPE OF REPORTING PERSON PN ----- ------------------------------------------------------------------------ 3 Page 4 of 9 of the Schedule 13D, as amended, is hereby further amended to read in its entirety as follows: SCHEDULE 13D ---------------------------- ----------- --------------------------------- CUSIP NO. 249827106 PAGE 4 OF 9 PAGES ------------- --- --- ---------------------------- ----------- --------------------------------- ----- ------------------------------------------------------------------------ 1 NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. 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 WC ----- ------------------------------------------------------------------------ 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 NUMBER OF 19,277 (see Item 5(a)) SHARES ----- -------------------------------------------------- 8 SHARED VOTING POWER BENEFICIALLY 0 OWNED BY ----- -------------------------------------------------- 9 SOLE DISPOSITIVE POWER EACH 19,277 REPORTING ----- -------------------------------------------------- 10 SHARED DISPOSITIVE POWER PERSON WITH 0 ----- ------------------------------------------------------------------------ 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 19,277 ----- ------------------------------------------------------------------------ 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES | | ----- ------------------------------------------------------------------------ 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0.18% ----- ------------------------------------------------------------------------ 14 TYPE OF REPORTING PERSON PN ----- ------------------------------------------------------------------------ 4 Page 5 of 9 of the Schedule 13D, as amended, is hereby further amended to read in its entirety as follows: SCHEDULE 13D ---------------------------- ----------- --------------------------------- CUSIP NO. 249827106 PAGE 5 OF 9 PAGES ------------- --- --- ---------------------------- ----------- --------------------------------- ----- ------------------------------------------------------------------------ 1 NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON William R. Grant ----- ------------------------------------------------------------------------ 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) | | (b) |X| ----- ------------------------------------------------------------------------ 3 SEC USE ONLY ----- ------------------------------------------------------------------------ 4 SOURCE OF FUNDS PF ----- ------------------------------------------------------------------------ 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(E) | | ----- ------------------------------------------------------------------------ 6 CITIZENSHIP OR PLACE OF ORGANIZATION ----- ------------------------------------------------------------------------ 7 SOLE VOTING POWER NUMBER OF 574,500 (see Item 5(a)) SHARES ----- -------------------------------------------------- 8 SHARED VOTING POWER BENEFICIALLY 0 OWNED BY ----- -------------------------------------------------- 9 SOLE DISPOSITIVE POWER EACH 574,500 REPORTING ----- -------------------------------------------------- 10 SHARED DISPOSITIVE POWER PERSON WITH 0 ----- ------------------------------------------------------------------------ 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 574,500 ----- ------------------------------------------------------------------------ 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES | | ----- ------------------------------------------------------------------------ 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 5.57% ----- ------------------------------------------------------------------------ 14 TYPE OF REPORTING PERSON IN ----- ------------------------------------------------------------------------ 5 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 5,722,740 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) 1,631,500 shares of Common Stock, (ii) 543,267 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 543,267 shares of Common Stock, (iii) 617,184 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 617,184 shares of Common Stock, (iv) 1,071,345 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 1,071,345 shares of Common Stock, and (v) 1,859,444 warrants (the "Warrants"), which as of the date hereof may be exercised for an aggregate of 1,859,444 shares of Common Stock. The Common Stock, Series B Preferred Shares, Series C Preferred Shares, Series D Preferred Shares and Warrants are referred to herein, collectively, as the "Securities". A new paragraph is hereby added immediately following the second paragraph of Item 3 of the Initial Schedule 13D; such new paragraph to read in its entirety as follows: "The Reporting Persons acquired an aggregate of 1,574,500 shares of Common Stock in private transactions with the Issuer at a purchase price of $0.50 per share for an aggregate amount of $787,250 in cash. Each Reporting Person paid its pro rata share of the acquisition price of the shares of Common Stock based upon the number of shares it received." 6 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) (6) ------------- ------------- ---------------- -------------- ------------- --------------- Number of Shares of Common Stock into which Number of Series A, Shares of Series B, Common Stock Percentage of Series C and which may be Outstanding Series D acquired Total of Shares of Number of Preferred pursuant to Columns Common Stock Reporting Shares of Stock is exercise of (2), (3) (see Note Person Common Stock Convertible Warrants and (4) below) ============= ============= ================ ============== ============= =============== Galen 965,330 2,038,869 1,698,721 4,702,920 45.67% ------------- ------------- ---------------- -------------- ------------- --------------- Galen Intl 87,702 184,577 153,764 426,043 4.14% ------------- ------------- ---------------- -------------- ------------- --------------- GEF 3,968 8,350 6,959 19,277 0.18% ------------- ------------- ---------------- -------------- ------------- --------------- Grant 574,500 0 0 574,500 5.57% ------------- ------------- ---------------- -------------- ------------- --------------- Total 1,631,500 2,231,796 1,859,444 5,722,740 55.57% ============= ============= ================ ============== ============= =============== Note: The percentages shown in each row of column (6) were calculated, for each respective row, by (i) adding the total in the bottom row of column (5) (less 57,000 shares of Common Stock issued and outstanding) to 4,631,276 (the number of shares of Common Stock outstanding as of March 31, 2003, as set forth in the Issuer's Quarterly Report on Form 10-QSB for the quarter then ended (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.

7 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: May 27, 2003 GALEN PARTNERS III, L.P. By: Claudius, L.L.C. By: ----------------------------------- Managing Member GALEN PARTNERS INTERNATIONAL III, L.P. By: Claudius, L.L.C By: ----------------------------------- Managing Member GALEN EMPLOYEE FUND III, L.P. By: Wesson Enterprises, Inc By: ----------------------------------- President [Signatures continued on next page.] 8 CLAUDIUS, L.L.C. By: ----------------------------------- Managing Member WESSON ENTERPRISES, INC. By: ----------------------------------- President WILLIAM R. GRANT By: ----------------------------------- Bruce F. Wesson, Attorney-In-Fact BRUCE F. WESSON -------------------------------------- Bruce F. Wesson L. JOHN WILKERSON By: ----------------------------------- Bruce F. Wesson, Attorney-In-Fact DAVID JAHNS By: ----------------------------------- Bruce F. Wesson, Attorney-In-Fact SRINI CONJEEVARAM By: ----------------------------------- Bruce F. Wesson, Attorney-In-Fact ZUBEEN SHROFF By: ----------------------------------- Bruce F. Wesson, Attorney-In-Fact 9