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AVITA Medical (ASX:AVH) to focus on burns division in 2020

Health Care
ASX:AVH      MCAP $162.5M
19 February 2020 12:30 (AEST)

Image sourced from CNBC Television

Regenerative medicine company AVITA Medical (AVH) has updated the market on its half-year report.

AVITA’s lead product, RECELL System, is used around the globe to treat a variety of skin defects.

The spray product allows healthcare professionals to produce a suspension of Spray-On Skin Cells using a small sample of the patient’s own skin.

This suspension contains the cells necessary to regenerate the outer layer of natural, healthy skin and is prepared and applied at the point-of-care in as little as 30 minutes.

RECELL’s revenue has doubled within the year to hit $13,530, compared to $6,929 this time last year.

AVITA said the U.S. RECELL System is off to a pleasing start in 2020. It made an appearance at the National Sales Meeting (NSM) this month and spend a significant time consulting the burns surgeons.

Burns

The company is focusing on the burns division throughout the 2020 calendar year.

“We continue to be pleased with early RECELL System utilization as we progress our “go deep” strategy within the in-patient burn setting,” CEO Mike Perry said.

“We are focused on driving incremental growth within existing accounts, together with broadening our commercial footprint via the addition of 25 burns centres throughout calendar 2020,” he added.

AVITA’s goal of expanding RECELL to 25 new burns centres is well underway as two new centres have already ordered the technology.

“Early 2020 sales performance has highlighted the commitment of burn specialists to the RECELL System, particularly among our group of super users,” Mike told the market.

In the U.S., AVITA says there is a $2 billion potential market opportunity.

Soft Tissue

It is also aiming to advance the trauma and soft tissue injuries where similar to burn market, surgeons graft skin to repair defects from accidents (e.g. degloving, lacerations, gunshots, etc).

In September 2019, the company secured an investigational device exemption (IDE) to pursue FDA approval for soft tissue reconstruction. This study will treat 65 trauma patients using RECELL.

AVITA is up 1.23 per cent on the market today, trading at 82.5¢ per share at 12:15 pm AEDT.

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