Avita Medical Ltd (RCEL)

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Avita Medical lands U.S. Government contract
Wednesday, September 30, 2015 by Proactive Investors

Avita Medical has been awarded a U.S. Government contract worth up to US$53.9 million for the supply of more than 5,000 ReCell burn treatment devices.
Avita Medical has been awarded a U.S. Government contract worth up to US$53.9 million for the supply of more than 5,000 ReCell burn treatment devices.
Avita Medical (ASX:AVH) has been awarded a U.S. Government contract worth up to US$53.9 million for the supply of more than 5,000 ReCell burn treatment devices.

The five-year contract from the Biomedical Advanced Research and Development Authority (BARDA) commits an initial US$16.9 million to support the company’s ongoing U.S. clinical regulatory program towards FDA Premarket Approval.

BARDA will also procure more than 5,000 ReCell devices to establish an inventory that can be deployed to help deal with a mass casualty scenario involving burn injuries.

Avita could receive a further US$37 million in contract options to support additional clinical trials potentially required by the FDA as part of post-market surveillance, or as needed to expand the use of ReCell to the paediatric population, and provide surge capacity for up to 20,000 ReCell devices.

BARDA is a federal agency assigned to ensure the U.S. is well prepared for public health emergencies.

One of its core aims is to develop medical countermeasures to mitigate the medical consequences from potential chemical, biological, radiation and nuclear threats.

ReCell first gained prominence as a treatment for burns victims following the 2002 bombing in Bali,
Indonesia, and was deployed in recent months in the Taiwan waterpark disaster.

The single-use device allows medical professionals to quickly make a Regenerative Epithelial Suspension that can be immediately applied to a burn.

This can improve short-term healing and provide superior long-term outcomes.

Year-over-year sales of ReCell increased 25% while total revenues for FY2015 were $2,750,176, up 2.5% over the previous year.

As at 30th June 2015, Avita had $2.97 million in cash.



http://www.proactiveinvestors.com.au/companies/news/64844/avita-medical-lands-us-government-contract-64844.html