AVITA Medical Inc. (NASDAQ: RCEL) announced it entered into a 10-year agreement with the Biomedical Advanced Research and Development Authority valued at up to $25.5 million to strengthen national preparedness for burn mass casualty incidents.

The agreement, awarded under Project BioShield, provides BARDA access to 3,000 units of AVITA's RECELL products for emergency deployment during burn mass casualty incidents. BARDA is part of the Administration for Strategic Preparedness and Response within the U.S. Department of Health and Human Services.

Under the contract, AVITA Medical will maintain an inventory of RECELL products available for immediate deployment and support surge procurement of additional products. The company will also provide logistics, quality assurance, and deployment readiness services.

The total contract value includes approximately $3.97 million in expected revenue to AVITA Medical over 10 years through annual access-maintenance fees and readiness support payments. The remaining balance represents procurement options that BARDA may exercise during the contract term.

"Through this agreement, AVITA is supporting national preparedness by helping expand access to RECELL during mass casualty incidents," said Cary Vance, interim chief executive officer of AVITA Medical.

RECELL is approved by the FDA for treating thermal burns and trauma wounds. The technology uses a patient's own skin to create what the company calls Spray-On Skin for wound treatment.

The project is funded with federal funds from the U.S. Department of Health and Human Services under contract number 75A50125C00012.