Up to $197M BARDA Contract Awarded to Vericel for MediWound's NexoBrid
Summary
Vericel Corporation, MediWound's exclusive North American distributor, has been awarded a ten-year contract valued at up to $197 million by the U.S. Biomedical Advanced Research and Development Authority (BARDA) for NexoBrid. The base period of the contract is $35 million, including approximately $10 million over the next 12 months for initial procurement for the U.S. Strategic National Stockpile and establishment of a Vendor Managed Inventory system. This is a highly significant development for MediWound, as the potential contract value is nearly equivalent to its current market capitalization, providing a substantial long-term revenue stream and strong validation for its key product. The contract also includes funding for the design and validation of a U.S.-based manufacturing facility and development of a next-generation formulation and additional indications for NexoBrid. Investors will be watching for further details on the exercise of contract options and progress on the development and manufacturing initiatives.
At the time of this announcement, MDWD was trading at $16.92 on NASDAQ in the Life Sciences sector, with a market capitalization of approximately $217.3M. The 52-week trading range was $14.14 to $22.51. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: GlobeNewswire.