AVITA Therapeutics share price climbs 4% on BARDA update

The AVITA Therapeutics Inc (ASX:AVH) share price is surging higher on Monday after the release of a positive update on its U.S. operations…

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The AVITA Therapeutics Inc (ASX: AVH) share price has started the week on a high.

At the time of writing the regenerative medicine company's shares are up 4% to $8.19.

Why is the AVITA Therapeutics share price storming higher?

This morning AVITA announced that the Biomedical Advanced Research and Development Authority (BARDA) will procure its RECELL System as part of the U.S. Department of Health and Human Services (HSS) mission to build preparedness for public health emergencies.

According to the release, BARDA has agreed to the purchase, storage, and delivery of RECELL Systems utilising a vendor-managed inventory plan valued at US$7.6 million.

In addition to this, BARDA has expanded its awarded contract to provide supplemental funding of US$1.6 million to support emergency deployment of RECELL Systems for use in mass casualty or other emergency situations.

Delivery of the RECELL Systems under the vendor-managed inventory plan is expected to commence later this calendar year.

Dr. Mike Perry, AVITA Therapeutics Chief Executive Officer, commented: "We are very pleased to continue collaborating with BARDA to ensure healthcare providers have access to the RECELL System to help patients in large-scale emergencies. The ongoing preparation from BARDA underscores the importance of public-private partnerships in advancing biomedical innovation to address unmet medical needs."

What is the RECELL System?

The RECELL System is indicated for use in the treatment of acute thermal burns in patients 18 years and older.

It is used to prepare Spray-On Skin Cells using a small amount of a patient's own skin, which provides a new way to treat severe burns. It also significantly reduces the amount of donor skin required. The system is designed to be used at the point of care alone or in combination with autografts depending on the depth of the burn injury.

BARDA Acting Director, Gary Disbrow, Ph.D, commented: "BARDA's mission is to secure medical countermeasures needed to save lives in public health emergencies which means we continually work to prepare for any potential threats, whether natural or intentional, that could result in mass injuries. Our nation has to be prepared to treat as many people as possible quickly and effectively."

"We look forward to continuing to work with AVITA Therapeutics to ensure this technology will be available to medical professionals in an emergency or mass casualty incident," he added.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Avita Medical Limited. The Motley Fool Australia has recommended Avita Medical Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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