A man lies in a hospital bed receiving an IV drip. Source: Adobe Stock
The Market Online - At The Bell

Join our daily newsletter At The Bell to receive exclusive market insights

Wound care and skin restoration developer AVITA Medical (ASX: AVH) provided an update on its anticipated revenue for Q1 2024 – and has downgraded its commercial revenue guidance for the quarter.

For CY Q1 ending on March 31, 2024, AVITA Medical now anticipates commercial revenue to be between US$11.0 million and US$11.3 million. This forecast is lower than the previously estimated range of US$14.8 million to US$15.6 million. The adjustment is attributed to a slower-than-expected conversion rate of new accounts for the expanded use of its products in treating full-thickness skin defects.

In saying that – despite the updated revision, AVITA Medical remains optimistic about its growth prospects. Since introducing its expanded label for full-thickness skin defects in June 2023, the company has acquired 73 new accounts, including 22 in the first quarter of 2024. Additionally, there are 71 submissions under evaluation by the value analysis committee (VAC) as of March 31, 2024.

“While our account conversion rate impacted our quarterly revenue, we remain optimistic for the full year,” Chief Executive Officer of AVITA Medical Jim Corbett said.

The company initially projected an approval rate of 15 new accounts per month, aiming for a total of 135 new accounts by March 31, 2024. However, the conversion rate has been slower due to the complexity of securing approvals for a product with multiple applications.

AVITA Medical plans to release its financial results for the first quarter of 2024 after the close of the U.S. financial markets on May 13, 2024. A conference call and webcast are scheduled the following day to provide further details on the results.

AVH has been trading at $3.96.

AVH by the numbers
More From The Market Online
RLF AgTech (ASX:RLF) - CEO and Managing Director, Ken Hancock

RLF Agtech falls on cap raise for LiquaForce acquisition

WA farming innovations company RLF Agtech Ltd (ASX:RLF) has seen its shares plunge nearly 6 per cent to 6.5 cents, after announcing...
The Market Online Video

ASX Market Update: Index falls to two week low as investors take profits | December 11, 2024

The ASX200 has been down 0.6% at 8,345 points, its lowest level in two weeks.
Invite to HotCopper Wrapped webinar on Wednesday, December 11

Don’t miss out! We’re about to reveal what stocks were hottest in 2024, and what’ll matter to investors in 2025

Don't miss our webinar where we reveal 2024's hottest stocks on Australia's biggest investor forum, HotCopper,…
Michele Bullock speaks at an RBA press conference.

Knuckle down folks: The RBA clearly has a battle plan no nagging will shake

All through yesterday, there was one claim louder than the rest as Australia