ReCell proposal rated highly in the US

Avita Medical’s (ASX:AVH) cell suspension preparation device, ReCell, was this week the subject of two pieces of news: a patent validation in 11 European countries and a proposal to utilise the technology in a US disaster preparedness program. ReCell enables a clinician to rapidly create Regenerative Epithelial Suspension (RES) — an autologous suspension comprising the cells and wound-healing factors necessary to regenerate natural, healthy skin.

Avita announced today that Patent EP 2 343 079, covering a device for preparing a suspension of cells using a tissue sample obtained from a donor site, has been validated in Austria, Belgium, France, Germany, Great Britain, Italy, the Netherlands, Portugal, Spain, Sweden and Turkey. The company’s CEO, Adam Kelliher, said the patent “further strengthens Avita’s position as a leader in skin repair technology”.

On Monday, the company revealed the feedback it had received from the Biomedical Advanced Research and Development Authority (BARDA), a US federal agency assigned to ensure the United States is well prepared for public health emergencies. Avita had responded to a public solicitation indicating that BARDA is seeking to fund late-stage development and procurement of autograft-sparing products that can enhance the capacity to provide definitive care for thermal burn injuries.

BARDA, along with the Office of Acquisition Management, Contracts & Grants (AMCG), informed Avita that its proposal is ‘within the Competitive Range’, which is a determination reserved for the most highly rated proposals. This moves the company into formal negotiations with BARDA on a range of technical and commercial issues.

“We welcome this response from BARDA and AMCG, and will now engage with BARDA to address their requests for further specific information,” said Kelliher.

Avita Medical (ASX:AVH) shares closed 6.94% higher on Monday at $0.77, before dipping to $0.075 as of around 3 pm on Wednesday.