11/13/2013 11:29 EST | Updated 01/23/2014 06:56 EST

Company to develop new product for skin grafts for diabetic ulcers

HALIFAX - A Nova Scotia company is getting funding to help develop a new way to produce skin grafts for wounds.

DeCell Technologies Inc. says it will use $250,000 to complete the development and human testing of a product used to treat diabetic foot ulcers.

The money is an equity investment from Innovacorp, Nova Scotia's early-stage venture capital organization.

DeCell president Paul Gratzer says the focus is on treating foot ulcers, but the method can also be used for other chronic wounds, burns and surgical reconstructions.

The technology uses donated human skin to produce a biological dressing free of bacteria and viruses, and promotes tissue regeneration when applied to the wound.

The province says the company's early studies indicate that its first product improved healing with fewer complications and at a reduced cost compared to other products.