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.