MediWound says Vericel awarded ten-year contract valued at up to $197M

MediWound (MDWD) announced that Vericel (VCEL), its exclusive distributor of NexoBrid in North America, has been awarded a ten-year contract valued at up to $197M by the U.S. Biomedical Advanced Research and Development Authority, part of the Administration for Strategic Preparedness and Response within the U.S. Department of Health and Human Services. Vericel reported that the contract is for the procurement of NexoBrid, establishment and maintenance of a Vendor Managed Inventory system, design and validation of a U.S.-based manufacturing facility, and the development of a next generation formulation and additional indication for NexoBrid. Vericel further reported that the base period contract of $35M includes approximately $10M over the next 12 months for the initial procurement of NexoBrid for the U.S. Strategic National Stockpile and VMI establishment, funding for VMI-related services and initial development activities for a potential expanded NexoBrid indication for the treatment of blast trauma injuries. According to Vericel, the ten-year contract, effective as of April 1, also includes optional awards for additional NexoBrid procurement to expand the Strategic National Stockpile, further clinical development for a potential blast trauma indication, design and validation of a potential U.S.-based manufacturing facility and the development and procurement of a room temperature stable formulation of NexoBrid.