Spectral MD Awarded BARDA Project BioShield Contract Valued at $149 Million for AI-Driven DeepView Burn Wound Imaging Technology

DALLAS, Sept. 28, 2023 (GLOBE NEWSWIRE) -- Spectral MD, Inc. (“SMD”), a subsidiary of Spectral AI, Inc. (Nasdaq: MDAI; MDAIW) (“Spectral AI” or the “Company”), an artificial intelligence (AI) company focused on medical diagnostics for faster and more accurate treatment decisions in wound care, today announced it has been awarded a new contract valued at up to $149 million by the Biomedical Advanced Research and Development Authority (BARDA), part of the Administration for Strategic Preparedness and Response (ASPR) within the U.S. Department of Health and Human Services. The contract is for the advanced development of the DeepView System, the Company’s AI-driven burn wound imaging technology, to be used at emergency departments, trauma centers and burn centers, for both routine burn care and as a medical countermeasure for use in burn mass casualty incidents (BMCI).

This multi-year contract includes an initial award of nearly $55 million to support the clinical validation and FDA clearance of DeepView for commercial marketing and distribution purposes, a major milestone that enables the technology to become a key component of the U.S. government’s BMCI preparedness efforts. The initial award places up to 30 DeepView devices at various burn centers and emergency rooms to support the clinical validation study and will transition to being used in routine care upon FDA clearance. The contract also includes options with an additional total value of approximately $95 million and can be exercised for additional product development, procurement, and deployment of DeepView at U.S. emergency departments, trauma centers and burn centers in a phased approach. These deployments will enable SMD to conduct health economic and outcome research to support broader clinical adoption of the DeepView System.

Previously in 2013 and 2019, SMD was awarded BARDA contracts totaling $123 million, of which $101 million has been committed to date. Together with this new contract, it brings the total potential support from BARDA to nearly $251 million. This new contract represents the largest contract ever awarded to SMD.

“We appreciate that our DeepView platform has been selected to address a critical need in preparing our country for possible BMCI events,” said Wensheng Fan, the Company’s CEO. “This is a significant contract award that enables us to accelerate the late-stage clinical development and commercialization of our DeepView System. We are most grateful to BARDA for enabling us to help physicians and their burn patients who will benefit from the use of DeepView. For the first time, there will be an accurate and objective solution in burn wound healing assessment to guide treatment. Spectral MD is committed to the development of impactful medical technologies, and we will aim to bring DeepView to market as quickly as possible.”