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U.S. government extends contract with Cytori for burn treatment

Aug 19 (Reuters) - The U.S. government has extended a contract with Cytori Therapeutics to develop a cell-derived treatment for burns, the company said on Tuesday.

The government's Biomedical Advanced Research and Development Authority (BARDA) will provide up to $20.4 million to fund early development and costs associated with a clinical trial.

The contract is part of BARDA's national preparedness initiative to prepare in the event of mass casualties, including the involvement of burns.

Cytori said its autologous cell therapy has the potential to improve wound healing quality and speed, and could be deployed at hospitals for potential use by non-specialist personnel.

The funds are part of a contract won by Cytori in 2012 for work on products to treat burns and radiation. This portion of the funding takes the project into the clinical development phase.

The clinical trial must be approved by the Food and Drug Administration. If successful it would be the first clinical trial funded by BARDA that uses an autologous stem cell treatment, the company said.

(Reporting by Toni Clarke in Washington; Editing by Nick Zieminski)