Avita Medical (ASX:AVH) entered a 10-year agreement potentially worth up to $25.5 million with the Biomedical Advanced Research and Development Authority (BARDA), part of the US Department of Health and Human Services, to strengthen response capabilities for large-scale burn incidents under project BioShield, according to a Thursday statement from the company.

The agreement focuses on keeping ready-to-use inventory of the Recell wound care system to ensure emergency response capacity, and maintaining efficient logistics to support rapid emergency response readiness, the company said.

The contract provides about $4 million in expected revenue and includes purchase options that BARDA may exercise over the contract term.