Avita signs $30m contract expansion

21/09/2017 - 15:09

Health technology company Avita Medical has signed a $US24.3 million ($A30.5 million) expansion to its contract with a US government research agency, for further funding of its ReCell device trials.

Health technology company Avita Medical has signed a $US24.3 million ($A30.5 million) expansion to its contract with a US government research agency, for further funding of its ReCell device trials.

Perth-founded Avita said the execution of the expanded contract option established funding for key clinical and health economics research in US pediatric burn care, and also extended the company’s contract with the Biomedical Advanced Research and Development Authority – a division of the US Department of Health – by two years, to 2022.

BARDA made an initial $US16.9 million investment to Avita when the base contract was awarded in September 2015, with Avita to produce an initial 5,000 units of its ReCell autologous cell harvesting devices.

The total value of the agreement was estimated at $US53.9 million if all contract extension options were to be exercised; however that cap was increased by $US7.9 million last year when BARDA provided further operational support to Avita.

Avita is also anticipating the receipt of a $US7.5 million procurement order for the purchase of ReCell devises by BARDA in the coming months.

Under the entire $US61.9 million contract, Avita expects to produce about 25,000 ReCell devices.

“Continued development of the foundation of evidence supporting the use of ReCell is essential for elevating the standard of care in pediatric burns,” Avita senior vice president of clinical development Andrew Quick said.

“These studies will contribute substantially toward rounding out the story and enabling changes to burn care in every day clinical practice”

Avita shares closed 5 per cent higher to 6.3 cents.

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