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The Changing Landscape in Chronic Diabetic Foot Ulcers

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While the market of treating chronic diabetic foot ulcers is by no means glamorous, it can still be a very lucrative indication. Some estimates have put the chronic diabetic foot ulcer market at $2 billion annually by 2017. With so much money hanging in the balance, companies are taking notice and attempting to develop better treatments. 

One of the companies attempting to develop a better treatment for chronic diabetic foot ulcers is Osiris Therapeutics  (NASDAQ: OSIR  ) . Earlier this month, Osiris shares more than doubled as the company announced positive data for its CDFU drug Grafix. The study results were very impressive to say the least; the study was stopped early due to the overwhelming efficacy exhibited by the treatment. A main highlight is the fact that 62% of Grafix patients had their wound closed at 12 weeks, compared to only 21% of patients using conventional methods. Clearly, the efficacy in this endpoint was overwhelming. Grafix also achieved all of the secondary endpoints for the trial, and more importantly demonstrated a relatively benign safety record. 

Grafix has raised the bar on chronic diabetic foot ulcer treatment. Another company developing treatments for CDFU is Derma Sciences  (NASDAQ: DSCI  ) . Derma is developing a treatment called DSC 127, which is currently in phase 3 trials with results expected in 2015.

With this in mind, quickly comparing the data it appears as though Osiris may have just trumped Derma's treatment. In Derma's phase 2 study, it announced that 54% of patients in its intent to treat group experienced wound closure, compared to 33% in the control group at 12 weeks. Now, Derma's study was a 24-week study, and at week 24, 73.1% of patients using DSC 127 experienced complete wound closure, compared to 48.5% in the control group. Taking into account the data currently available, it appears as though Osiris may have the more effective treatment of the two. However, it will be interesting to see what happens when Derma ultimately comes out with its phase 3 data. 

The market for the treatment of chronic diabetic foot ulcers has been growing and larger companies have been taking notice. Many large pharmaceutical companies have their own treatments for chronic diabetic foot ulcers. The space has also caused some major acquisitions. In 2011, Shire  (NASDAQ: SHPG  ) acquired a drug called Dermagraft for the treatment of slow-healing diabetic foot ulcers, through its $750 million acquisition of Advanced BioHealing. Dermagraft has been a rather lucrative product for Shire, with $153.8 million in sales last year. As the market continues to grow, I would look for more partnerships with large pharmaceutical companies, and of course more research and development dollars being devoted toward the chronic diabetic foot ulcers indication.

There are, of course, many other treatments for chronic diabetic foot ulcers. The treatment options are progressing all of the time, and more companies are entering with the hopes of creating a bigger and better treatment for CDFU. It seems as though Osiris' Graft may be the temporary favorite for investors in this space right now. Whether it will remain that way, only time will tell. However, the recent data should be rather concerning for Derma, and investors will be watching carefully when Derma ultimately releases its clinical trial results.

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Read/Post Comments (5) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On August 27, 2013, at 3:12 PM, boardwalk97 wrote:

    How about MDXG?

  • Report this Comment On August 27, 2013, at 3:52 PM, rusticguy wrote:

    Cut down on eating CARBS to less than 100gms/day (or lower) and diabetic complications are minimized. Aim for A1C < 5.4 and they almost go away. Problem is diabetics are told A1C of 6.5 - 7 is great control. That's grossly incorrect, but still they are told so that food industry could push more carbs and then to cover those carbs the drug industry could push more pills/insulin (yes insulin to even T2)

    I am talking as a diabetic (NIDDM) and more as a diabetic who doesn't go by the "HIGH CARB LOW FAT" recommendations as mostly prescribed by professionals who go by ADA manuals. On the contrary, it's LOW CARB HIGH FAT diet that I live on. I haven't taken any prescription drug for controlling BGL in the last three years as a T2.

    BTW, eating fat doesn't cause obesity and eating fat doesn't cause CVD so LCHF really works. Ask any diabetic and they would vouch for it.

  • Report this Comment On February 12, 2015, at 1:53 AM, pmovsessian wrote:

    Bacteria hinder the healing of wounds by creating toxins and damage new cells that are involved in the repair process. Poor blood flow to the foot due to damage to the blood vessels as a result of diabetes plays a big role by not only preventing healing but also preventing white blood cells from reaching the site of the wound..Two pharmacological agents that should be explored for treating diabetic foot ulcers are taurolidine and mannose. Taurolidine is in use in Europe as a disinfectant and it is pretty potent but non-toxic and it is topical. Taurolidine appears to be effective against drug resistant bacteria.. Mannose also acts as an immunostimulant and could promote wound healing. Mannose is also pretty non-toxic and appears to block the binding of bacteria to human cells.

  • Report this Comment On February 12, 2015, at 1:57 AM, pmovsessian wrote:

    Another option for diabetic foot ulcers is hyperbaric oxygen therapy and this does help and it may be even more effective when used in a multi-drug cocktail. The oxygen not only kills the bacteria in the skin but it also promotes the proliferation of cells involved in healing.

    Patrick Movsessian

  • Report this Comment On May 19, 2015, at 3:38 AM, surgerydubai wrote:

    This is really nice because it well informative for me and hope for others also keep it continued so that we can get benefits.

    http://www.surgerydubai.com

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Alexander Maxwell
AMax101

I am currently a student at the George Washington University majoring in Finance and Business Economics and Public Policy. My investing philosophy: Biotechs, Biotechs, and more biotechs. Biotech is my favorite sector to write about and my favorite sector to invest in.

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