AVITA Medical (ASX: AVH, OTCQX: AVMXY) today announced that results from a study validating the predicted outcomes and costs from an acute burns health economic model were presented at the International Society for Pharmacoeconomics and Outcomes Research (ISPOR) 23rd Annual International Meeting in Baltimore, Maryland. The landmark model is the first validated economic model available to assess the costs and clinical impact of new interventions versus standard of care for inpatient treatment of acute burns along the burn care continuum. The model demonstrates the ability to predict the cost-effectiveness, incremental costs and the budget impact of different care management approaches.
As presented last month at the American Burn Association (ABA) 50th Annual Meeting in Chicago, the health economic model demonstrated that the use of the RECELL® Device could reduce the cost of treatment by 44 percent or greater for patients with large burns. In addition, the budget impact component of the model determined that in a burn center with 200 patients, the use of the RECELL Device would reduce annual total treatment costs from $43.3 million to $30.3 million, saving 30 percent or $13.0 million.
The presentation at ISPOR, “Inpatient Cost of Acute Care for Severe Burn Patients: Validation of Economic Model for Adults and Children,” describes that unlike other therapy areas, the cost effectiveness of new interventions in burn care is rarely evaluated. Prior to the development of this health economic model, no validated economic model was available to assess the costs and clinical impact of new interventions versus standard of care for inpatient treatment of acute burns along the burn care continuum. To address this gap, a health economic model was developed by IQVIA™, AVITA Medical and the Biomedical Advanced Research and Development Authority (BARDA), under the Assistant Secretary for Preparedness and Response, within the U.S. Department of Health and Human Services. Funding provided by BARDA, under Contract No. HHSO100201500028C, to support the development of RECELL by AVITA Medical has included support of the health economic model.
“This first landmark economic model examines the continuum of definitive care in burns and can bring value to the burn community by estimating the likely economic impact of new treatments for burns,” said Pinar Bilir, IQVIA. “The model can also link key components of patient characteristics, burn injury particulars, healthcare resource utilization, treatment options and cost considerations in a flexible framework to support decision-making. We were excited to see that evaluating RECELL within this platform was able to translate clinical outcomes into projected cost impact.”
The RECELL Device is an investigational medical device in the U.S. that is designed to enable medical professionals to produce, at the point-of-care, a REGENERATIVE EPIDERMAL SUSPENSION™ (RES™) using a small sample of the patient’s own skin. The autologous suspension contains cells necessary to regenerate epidermis and provides a new way to achieve permanent closure in burns and other wounds while reducing the amount of skin harvested at the time of surgery. Reduction in donor-site skin requirements has important benefits from both clinical and health economic perspectives.
A U.S. PreMarket Approval (PMA) application for the treatment of burn injuries is currently under review by the U.S. Food and Drug Administration (FDA). The Company expects completion of the FDA review of the PMA during the third quarter of calendar 2018, followed by U.S. approval and market launch. Last month researchers from major burn centers throughout the U.S. made six presentations at the American Burn Association (ABA) 50th Annual Meeting in Chicago describing the clinical and cost-savings advantages of the RECELL Device in the treatment of severe burns.