Avita to raise $13M for regenerative burn treatment
Avita Medical is looking to raise AU$16.9 million ($13.2 million) to carry its cell-harvesting device—which allows healthcare providers to quickly regenerate skin for burn treatment—through FDA submission and a U.S. launch.
The company, which maintains officers in Perth, Australia, London and Valencia, California, has already secured AU$4.5 million ($3.5 million) in a private placement, according to a statement.
“We sincerely appreciate the support received from investors under the Private Placement, indicating confidence in Avita’s pursuit of its future milestones, including PMA approval in 2018 followed by a successful commercial launch of ReCell in the US burns market,” said Avita CEO Mike Perry, in the statement.
“This fund raising is expected to underpin Avita through key milestones including, initial BARDA product procurement, U.S. FDA approval, and the launch of ReCell in the US burns market,” Perry added.
The ReCell Autologous Cell Harvesting device is a single-use device that enables a medical professional to collect cells from a sample of the patient’s skin. The cells are then used to create a suspension that can be used in wound and burn treatment.
Avita scored $16.9 million up front from the U.S. Biomedical Advanced Research and Development Authority (BARDA) in October 2015, to back the PMA approval trial of the burn treatment, dubbed ReCell. As part of the deal, Avita stood to win an additional $37 million in contract options. In September, the pair executed (PDF) a $23.4 million option and extended their contract through September 2022.
Burns are typically treated with skin grafts, but these can be unsuitable for large burns that need substantial coverage. A regenerative approach could plug this gap. Salt Lake City-based PolarityTE recently launched SkinTE, its platform that regenerates full-thickness skin.