MediWound wins $112m US burns treatment deal

biomed

The US Biomedical Advanced R&D Authority contract is for NexoBrid, for removing dead tissue from burns.

Clal Biotechnology Industries Ltd. (TASE: CBI) reported to the Tel Aviv Stock Exchange this morning that its wound and burn care solutions unit MediWound Ltd. (Nasdaq:MDWD) has been awarded a $112 million contract by the US Biomedical Advanced Research & Development Authority (BARDA). The five-year deal is for MediWound's NexoBrid, which removes dead tissues from medium to severe burns, and will be used by the US authorities following incidents with many injured.

Clal Biotechnology, which has a 45% stake in MediWound, saw its share price rise 15% on the TASE today.

The deal includes a $24 million payment by BARDA towards the development required in order to win US Food and Drug Administration (FDA) approval for NexoBrid. In addition, BARDA is committing to buying $16 million worth of NextoBrid subject to FDA approval and using it in emergency situations (Emergency Use Authorization). The deal also includes an option for $22 million in financing expanded use of NexoBrid in other approved indications, and up to $50 million in additional purchases of the burns treatment.

BARDA, within the Office of the Assistant Secretary for Preparedness and Response in the US Department of Health and Human Services, provides an integrated, systematic approach to the development and purchase of the necessary vaccines, drugs, therapies, and diagnostic tools for public health medical emergencies.

The Emergency Use Authorization (EUA) authority allows FDA to help strengthen the nation’s public health protections against CBRN threats by facilitating the availability and use of MCMs needed during public health emergencies.

Following this US federal funding, some of the $70 million raised on Nasdaq by MediWound in March 2014, can now be used for the development of other products.

Published by Globes [online], Israel business news - www.globes-online.com - on September 30, 2015

© Copyright of Globes Publisher Itonut (1983) Ltd. 2015

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