Thanks to a renewed collaboration between Cytori Theraputics Inc and Biomedical Advanced Research and Development Authority (BARDA), there has been an increase in the funding of the development of Cytori Cell Therapy, for use in thermal burn cases.
The new contract is valued at $16.6 million, which represents an increase of more about $2.5 million. Once Cytori receivesd Investigational Device Exemption approval from the Food and Drug Administration, it will request additional funding from BARDA to cover the additional costs for a pilot clinical trial. Stock for Cytori increased 3.48% on September 19, and about 53,102 stocks were traded.
The contract includes clauses worth up to $68 million, granting BARDA discretionary rights to fund a variety of the future activities at Cytori. This includes the funding of pilot clinical trials, later-stage pivotal clinical trials, and other research involving radiation-exposed thermal burns.
Thermal burn injuries occur when there is exposure or contact to steam, flames, or other hot surfaces with temperatures of 115 degrees. Biotechnology firm Cytori Theraputics is now focusing on a product for patients with scleroderma hand dysfunction, orthopedic disorders, cardiovascular disease or urinary incontinence, in addition to thermal burns.
The findings and developments at Cytori would be groundbreaking — more than 450,000 burn injuries are reported in the U.S. every year (40,000 require hospitalization), and the system of skin grafting, dressings, and skin substitutes are often found to be overly expensive and inadequate. Some of the adverse side effects include long-term pain, scar marks, contraction, and diminished motion.
Dr. Marc Hedrick, CEO of Cytori, said, “Additional funding allows Cytori to complete activities necessary for conducting a pilot trial with the objective of getting Cytori Cell Therapy into the clinic for thermal burn in 2017.”