Investors loved yesterday’s June quarter update from dual-listed skin repair biotech Avita Medical .
The company raised its quarterly guidance due to the strength of orders for its flagship tech product, Recell.
The company told investors on Wednesday that June quarterly revenues were now expected to be between $US9.5 million and $US9.7 million, up from the previously forecast $US8.2 million to $US8.6 million.
That saw the shares jump more than 14% to $5.70 before easing to end the day up 11.7% at $5.60.
“As people begin to return to normal activities after the confines of the COVID-19 pandemic, we have seen an increase in burn accidents requiring treatment with the RECELL System in burn centres across the country,” CEO Mike Perry said in the update.
“RECELL commercial revenue as revised in the guidance reflects a 55% to 60% increase over the prior year period and 30% to 34% increase over the third quarter of 2021,” the company said.
The Nasdaq- and ASX-listed operator has experienced a challenging 12 months gaining access to hospitals due to COVID-19 shutdowns, but has said these disruptions are slowly fading.
Avita says RECELL is designed to be used acute thermal burns. “The RECELL System is used to prepare Spray-On SkinTM Cells using a small amount of a patient’s own skin, providing a new way to treat severe burns, while significantly reducing the amount of donor skin required.”
“The RECELL System is designed to be used at the point of care alone or in combination with autografts depending on the depth of the burn injury.”
