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Cytori Therapeutics, Inc. (CYTX) Awarded Government Contract Worth Up To $106 Million

Oct. 01, 2012 4:36 PM ETPSTV
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Cytori Therapeutics is a medical company developing cell therapies based on autologous adipose-derived regenerative cells (ADRCs) to treat cardiovascular disease and repair soft tissue defects. Scientific data suggests ADRCs improve blood flow, moderate the immune response, and keep tissue at risk of dying alive. This means ADRCs should be able to be applied across a number of "ischemic" conditions.

The company announced it has been awarded a contract that may be valued up to $106 million by the U.S. Department of Health and Human Service's Biomedical Advanced Research and Development Authority, if all contract options are executed. The contract is for preclinical and clinical development of Cytori's cell therapy for the treatment of thermal burns combined with radiation injury.

The base contract covers a two year period and is extendable up to five years with options. The total award will support all clinical, preclinical, regulatory, and technology development activities needed to complete the FDA approval process for use in thermal burn injury. The guaranteed base period is valued at $4.7 million and includes acceleration of Cytori's ongoing development of the Celution System to further improve cell processing. Successful achievement of specified milestones may qualify Cytori to receive up to another $101 million in funding.

The goal of the research is to evaluate and create a new countermeasure for thermal burns, which would be needed following a mass-casualty event such as a terrorist attack. Cytori's cell therapy is based on a patient's own adipose-derived stem and regenerative cells, processed by the company's own proprietary Celution System technology.

For additional information about Cytori Therapeutics and its Celution System, please visit the company's website at cytori.com

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