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Avita Medical (ASX:AVH) bolsters revenue guidance, reduces quarterly net loss

ASX News, Health Care
ASX:AVH      MCAP $166.6M
11 November 2022 14:40 (AEST)

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Regenerative medicine specialist Avita Medical (AVH) has reported a 30-per-cent bump to year-on-year revenue over the September quarter of this year.

The company posted $9 million in quarterly commercial revenue for the three-month period compared to $6.9 million over the same time last year. This does not include the revenue from Avita’s partnership with the US Biomedical Advanced Research and Development Authority (BARDA).

Nevertheless, with increased operating expenses, Avita only reduced its quarterly net loss by a slim margin: the company posted a net loss of $5.6 million over the September quarter this year compared to $5.95 million last year.

Nevertheless, with planned submissions to the US Food and Drug Administration (FDA) for its soft tissue repair and vitiligo indications before the end of 2022, Avita Chief Medical Officer Jim Corbett said the company expected growth over the next three years to be driven by the burns and soft tissue repair markets.

“Soft tissue repair will expand our hospital and treating physician call points by nearly three times,” Mr Corbett said.

“We are prepared to make the necessary investment in our commercial organisation to support this expansion. This market opportunity expansion and the related revenue growth is the number one priority of AVITA Medical.”

Looking ahead, Avita today upgraded its 2022 full-year revenue guidance to between $33 million and $34 million from its prior guidance of $30 million.

Over the September quarter, Avita reported topline results from a randomised controlled trial of its RECELL System for repairing soft tissue with reduced donor skin. The company said the product met its co-primary endpoints.

The company also reported results from a RECELL trial for repigmentation for stable vitiligo, with “super superiority” established for the primary endpoint.

Avita had $88.2 million in available funds and no debt at the end of September.

Shares in Avita Medical were up 0.27 per cent to $1.88 at 2:38 pm AEDT.

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