Avita Medical announced Wednesday that it has won a contract with the Biomedical Advanced Research and Development Authority, a federal agency responsible for preparing the U.S. for public health emergencies.
The Northridge medical technology company said the contract is worth up to $53.9 million, which will be used toward late-stage clinical development of Avita’s ReCell Autologous Cell Harvesting Device, a tool that allows doctors to rapidly regenerate skin by using a small sample of the patient’s skin.
The five-year contract ensures $16.9 million in funding, which will go toward Avita’s effort for FDA Premarket Approval for the product and to produce 5,000 ReCell devices to help with mass burn disasters, such as the recent Taiwan water park explosion where ReCell was deployed and utilized.
The company has the potential to receive an additional $37 million for further post-market clinical testing and to expand the use of ReCell.
“Securing this contract from a U.S. federal agency is a momentous milestone,” Avita Chief Executive Officer Adam Kelliher said in a statement. “U.S. authorities have conducted a detailed evaluation of our technology and this contract further validates the opportunity afforded by our unique regenerative medicine.”
Avita shares closed up 25 cents or 23 percent to $1.34 on the over-the-counter market.