Avita wins US defence contract

Avita Medical has won a $US1.8 million contract with the US army to apply its ReCell spray-on skin technology on wounded personnel.

The contract, awarded following a competitive tender process, is via the Department of Interior’s National Business Center in support of the Department of Defense. It is also part of the Office of Technology Transition (OTT) and Joint IED (Improvised Explosive Device) Defeat Organization’s “Limb Salvage and Regenerative Medicine Initiative.”

Part of the money will go towards funding an FDA clinical trial of ReCell on patients with scars as well as dyspigmentation, which relates to the irregular distribution if pigmentation in skin and hair. Earlier in the year Avita announced positive results from another US army trial which was conducted specifically on burns victims.

This grant is in addition to, and independent of, the US$1.9 million awarded to Avita by the US Armed Forces Institute of Regenerative Medicine (AFIRM) in May 2009 to support a US FDA study for treatment of burns currently under way.

"We are pleased to be selected as a participant in the very important Limb Salvage Program and are confident that ReCell will deliver improved outcomes and benefits to patients and clinicians,” said Avita Medical CEO Dr William Dolphin.

Aside from its many applications in treating scars, burns and other trauma related conditions, Avita said that that ReCell has several potential applications throughout the huge and lucrative cosmetic market. These include the treatment of existing scars created by burns, skin grafts, acne, acute wounds or surgery, and skin discolouration conditions including leucoderma and vitiligo.

“There is huge potential for this technology in the aesthetics and plastics applications for military and civilian populations," Dolphin said.

Shares in Avita rose a cent, or 9.5 percent today to close at $0.115 on volumes of 1 million.