Derma Sciences offers other products besides the honey wound treatment I first noticed. I'm not knowledgeable enough on the scientific qualities of their other products to evaluate their effectiveness. It's good to have patents, but I have questions. Do any of their anti-microbial applications cause allergic reactions? Is there enough supply of honey and other inputs to support projected sales growth? I admit that I don't have the answers at this time.
The share price has seen a dramatic run-up since the beginning of 2011. The high price is odd in light of their financial performance. They have experienced continuing annual net losses, although they announced record revenue for 2013. Their retained earnings likewise experience continued annual declines, indicating their bottom-line results are not adding value despite the rise in the share price since 2011. I like honey, especially the organic varieties found in San Francisco boutique markets, but I can't understand Derma Sciences' prospects well enough to include it in my portfolio.
Full disclosure: No position in Derma Sciences at this time.