AVITA Medical (Nasdaq: RCEL, ASX: AVH), a leader in regenerative medicine with its proprietary RECELL technology, reported a substantial increase in revenue for the third quarter ended 30 September 2024. The company recorded commercial revenue of $19.5m, representing a 44% rise from $13.6m in Q3 2023. This is slightly above average market expectations. This growth was propelled by the adoption and performance of RECELL GO, AVITA’s next-generation device designed for treating skin defects.
RECELL technology leverages a patient’s own skin cells to create an autologous suspension, which can be sprayed onto wound sites to promote healing and repigmentation. An autologous suspension means that the cells used are sourced from the patient's own body, reducing the risk of rejection and enhancing compatibility. This approach minimises the need for extensive skin grafts and accelerates recovery, making it particularly effective for treating severe burns and full-thickness skin defects.
Alongside its revenue gains, AVITA faced a wider net loss of $16.2m, or $0.62 per share, compared to a net loss of $8.7m in the same quarter last year. This is below market expectations. The company’s operating expenses increased to $30.2m from $21.1m in Q3 2023, driven by higher investments in sales, marketing, and administrative activities aimed at supporting the expansion of the commercial team and product outreach.
The company has reaffirmed its 2024 full-year revenue guidance, projecting between $68m and $70m.
