Vericel Corporation (NASDAQ: VCEL) received a ten-year contract valued at up to $197 million from the U.S. Biomedical Advanced Research and Development Authority for procurement and development of NexoBrid, a treatment for severe burns.

The contract, effective April 1, includes a base period of $35 million with approximately $10 million allocated over the next 12 months for initial NexoBrid procurement for the U.S. Strategic National Stockpile and establishment of a Vendor Managed Inventory system.

BARDA, part of the Administration for Strategic Preparedness and Response within the Department of Health and Human Services, awarded the contract for multiple purposes including VMI-related services and initial development activities for a potential expanded NexoBrid indication for blast trauma injuries.

Optional contract components include additional NexoBrid procurement to expand the Strategic National Stockpile, further clinical development for blast trauma indication, design and validation of a potential U.S.-based manufacturing facility, and development and procurement of a room temperature stable formulation of NexoBrid.

"We are very pleased to partner with BARDA to support U.S. national preparedness for potential mass casualty events involving severe thermal burns and blast trauma injuries," said Nick Colangelo, President and CEO of Vericel.

NexoBrid is a biological product containing proteolytic enzymes indicated for eschar removal in adults and pediatric patients with deep partial-thickness and full-thickness thermal burns. Vericel holds an exclusive license for North American rights to the product.

The Cambridge, Massachusetts-based company develops advanced therapies for sports medicine and severe burn care markets. Its other products include MACI for cartilage defects and Epicel for severe burns covering at least 30% of total body surface area.