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  • AVITA Medical (RCEL) Shares Jump In Extended Session After Earnings Update

    AVITA Medical (RCEL) Shares Jump In Extended Session After Earnings Update

    The stock price of AVITA Medical, Inc. (NASDAQ: RCEL) rose significantly when the company’s financial data were made public. Shares of RCEL rose 7.18% after the market closed on Thursday, hitting $9.41 in after-hours trading. Investor trust in the company’s most recent performance and strategic advancements is reflected in the strong market reaction.

    Expansion in Wound Care Portfolio

    Significant improvements in wound care solutions were reported by AVITA Medical during the fourth quarter and the entire year ending December 31, 2024. The company’s position in therapeutic acute wound care has been strengthened by the December approval of RECELL GO Mini and Cohealyx.

    Through portfolio expansion, AVITA Medical currently offers physicians a wide array of state-of-the-art technology intended to speed wound healing and enhance patient recovery periods. It is anticipated that the expansion would promote long-term, sustainable growth.

    Cost Effectiveness and Financial Performance

    Compared to $14.1 million during the same period last year, the company’s fourth-quarter commercial revenue of $18.4 million represented a 30% rise. The switch to RECELL GO, which gained more momentum among trauma center accounts treating full-thickness skin abnormalities, was the main driver of this rise.

    Furthermore, as a result of improved operational efficiencies, AVITA Medical was able to reduce operating expenditures by $4.1 million from the third quarter. Cash utilization decreased as a result of the company’s emphasis on cost containment, and this trend is anticipated to continue for the following three quarters. AVITA Medical aims to generate free cash flow in the latter half of 2025 and achieve GAAP profitability by the fourth quarter of the same year.

    Strategic Developments and Future Plans

    In a strategic move, AVITA Medical successfully amended its credit agreement with OrbiMed, modifying the revenue covenants for upcoming quarters through March 31, 2026. However, the $115 million revenue covenant for all subsequent quarters remains unchanged through the debt maturity date.

    Looking ahead, the company plans to introduce RECELL GO Mini into burn and trauma centers handling smaller wounds in the first quarter of 2025. Concurrently, AVITA Medical is preparing clinical studies for Cohealyx to build on preclinical success. The Cohealyx I post-market study will evaluate real-world efficacy and cost benefits, paving the way for a full commercial launch by April 1, 2025.

  • AVITA Medical (RCEL) Stock Propelled In Extended Session

    AVITA Medical (RCEL) Stock Propelled In Extended Session

    AVITA Medical, Inc. (NASDAQ: RCEL) witnessed a notable upswing of 22.47%, reaching $12.10 during the afterhours session on Thursday. This positive trajectory followed a 4.45% decline in AVITA Medical stock during the regular session, culminating at $9.88. The surge in RCEL stock can be attributed to the establishment of a consequential strategic distribution agreement.

    AVITA Medical (RCEL) has formalized a distribution accord with PolyMedics Innovations GmbH, strategically broadening its global footprint into Europe. Per the stipulations of the agreement, PolyMedics Innovations assumes the exclusive distributor role for RECELL in Germany, Austria, and Switzerland, with potential expansion into additional European markets in the future.

    PolyMedics Innovations, a privately-owned enterprise specializing in the commercialization of cutting-edge biomaterials and wound treatment systems, boasts an extensive distribution network spanning over 40 global markets. AVITA Medical (RCEL) aims to capitalize on PolyMedics’ profound expertise, well-established infrastructure, and extensive market knowledge to effectively amplify its market presence.

    This collaboration with PolyMedics Innovations marks the inaugural phase of AVITA Medical’s strategic global expansion. The track record and proficiency of PolyMedics in globally distributing innovative wound treatments position them as an ideal partner for this venture. PolyMedics Innovations’ specialized sales team, with a profound focus on burns and trauma, seamlessly aligns with the targeted applications for RECELL.

    In a recent development, RCEL successfully secured a debt financing facility of up to $90 million with OrbiMed, a prominent healthcare investment firm. Pursuant to the Credit Agreement, AVITA Medical accessed $40 million at the time of closing, with an additional $50 million available in two tranches at RCEL’s discretion, contingent upon achieving specific revenue thresholds.

    The Credit Agreement spans five years, maturing in October 2028. As part of the agreement, AVITA Medical issued OrbiMed a warrant to acquire 409,661 shares of the Company’s common stock at an exercise price of $10.9847.

  • AVITA Medical, Inc (RCEL) Stock Surges During After Hours Trading Following Expanded Scope of RECELL System

    AVITA Medical, Inc (RCEL) Stock Surges During After Hours Trading Following Expanded Scope of RECELL System

    AVITA Medical, Inc. (RCEL) stock prices were down by a marginal 0.98% as of the market closing on June 15th, 2021, bringing the price per share down to USD$19.19 at the end of the trading day. After-hours trading saw the stock surge by 15.16%, bringing it up to USD$22.10.

    Improved Q4 2021 Guidance

    The culmination of the fourth quarter of fiscal 2021, ending June 30th, 2021, will see RCEL report total revenue exceeding its previously reported guidance for the same time period. With previous guidance of USD$8.2 million, the end of fiscal 2021 is expected to see the company report USD$8.6 million in total revenues.

    Details of the Revision

    On the basis of the strength of both RECELL commercial revenue and revenue related to BARDA, the company is raising guidance for Q4 to be up in the range of USD$9.5 million to USD$9.7 million.  Of this total, USD$6 million to USD$6.2 million will be from RECELL commercial revenue and USD$3.5 million from RECELL revenue associated with BARDA. RECELL commercial revenue guidance after its revision represents a 55% to 60% increase over the same time period over the prior fiscal year; and a 30% to 34% increase over reports from Q3 2021.

    Recovery through Pandemic

    After a turbulent past year owing to the onset of the global coronavirus pandemic, RCEL’s proprietary RECELL System is seeing a revival. With the slow return of normality to the economy and day-to-day lives of citizens from an extended period of remaining confined, reports of burn accidents have also been on the rise. Burn centers across the country are making use of the RECELL System to treat various degrees of burns in patients.

    FDA Approval of RECELL System

    Another major milestone was the recent announcement that the U.S Food and Drug Administration (FDA) had approved the expanded use of the company’s proprietary RECELL System. The treatment will be used in conjunction with meshed autografting for the treatment of all sizes of acute full-thickness thermal burn wounds, targeting both pediatric and adult patient demographics.

    Expanded Scope of RECELL System

    Following the expansion, RECELL is now a front-running treatment provider for full-thickness thermal burns in patients over the age of 1 month. Before this development, the treatment was only used to facilitate treatment in patients 18 years and older. Furthermore, the new indication allows for the use of the RECELL System to treat full-thickness thermal burns that cover more than 50% of the total body surface area.

    Future Outlook for RCEL

    Armed with the recently expanded scope of its RECELL System treatment and highly promising guidance for the upcoming end of the quarter, RCEL is poised to end the 2021 fiscal year with a bang and usher in a prosperous fiscal 2022. Current and potential investors are hopeful that management will continue to leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.