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- Shares in AVITA Medical (ASX:AVH) are up this morning after releasing preliminary financial highlights for the fourth quarter and full year 2023
- The company reported an expected 50 per cent increase in commercial revenue for Q4 compared to the same period last year
- For the full year, gross margin is expected to come in at 84.5 per cent
- AVITA also enters into an exclusive multi-year distribution agreement with Stedical Scientific to commercialise PermeaDerm Biosynthetic Wound Matrix in the US
- AVH shares are up 6.67 per cent, trading at $4.32 at 11:30 am AEDT
Shares in AVITA Medical (ASX:AVH) surged this morning after releasing preliminary financial highlights for the fourth quarter and full year 2023.
The commercial-stage regenerative medicine company reported an expected 50 per cent increase in commercial revenue for Q4 compared to the same period last year, reaching approximately $14.1 million.
For the full year, gross margin is expected to come in at 84.5 per cent.
As of year-end, Avita boasts a cash position of $89.1 million, including cash, cash equivalents, and marketable securities.
“This was a transformative year for AVITA Medical as we focused on accelerating our growth profile,” AVH CEO Jim Corbett said.
“We have made tremendous progress over the last four quarters, with consecutive commercial revenue growth rates of 40 per cent, 42 per cent, 51 per cent, and 50 per cent, respectively, over the same periods in 2022.”
Post-market study
In July 2023, the company launched TONE, a post-market study targeting patients with stable vitiligo, an autoimmune skin pigmentation disorder.
Designed to evaluate repigmentation and its impact on quality of life, the study successfully completed enrollment (109 patients) across the US ahead of schedule.
Patients will be monitored for a year, with the primary follow-up period occurring six months after treatment.
2024 outlook
Today’s announcement also included updates to the company’s 2024 financial guidance.
Commercial revenue for Q1 2024 is anticipated to fall within the range of $14.8 to $15.6 million, while the full-year 2024 projection is set at $78.5 million to $84.5 million.
Exclusive distribution agreement inked
AVITA has also entered into an exclusive multi-year distribution agreement with Stedical Scientific to commercialise PermeaDerm Biosynthetic Wound Matrix in the US.
PermeaDerm is cleared by the Food and Drug Administration (FDA) to treat a variety of wound types until healing is achieved.
Under the agreement, AVITA will hold the exclusive rights to market, sell, and distribute PermeaDerm products, including any future enhancements or modifications, within the country.
The agreement lasts an initial five years, with the option to renew for an additional five years, contingent on meeting certain minimums.
“Our partnership with Stedical Scientific is an important step in expanding our portfolio and addressing the unmet needs of our patients,” said Jim Corbett, Chief Executive Officer of AVITA Medical,” Mr Corbett said.
AVH shares were up 6.67 per cent, trading at $4.32 at 11:30 am AEDT.
