The Avita Medical Inc (ASX: AVH) share price has climbed this morning, after the company reported a 57% increase in revenue in its preliminary fiscal second-quarter estimates.
At the time of writing, the Avita share price is up 2% to $4.95.
What did Avita announce?
In its second-quarter estimates for FY21 ending 31 December 2020, the company advised that total global revenues will be $5.1 million. This is the same as the previous quarter and 57% higher than the prior corresponding period in FY20.
The vast majority of the revenue came from the sales of its RECELL product in the United Sales, which accounted for $5 million during the quarter. That number is also the same as the previous quarter, but represents a $1.9 million or 62% increase over the same quarter of FY20.
The company’s balance sheet remains liquid, with cash in hand of approximately $59.8 million – a decrease of $6.0 million or 9% over the $65.8 million held at the end of the previous quarter.
On the commercial side, Avita signed up 7 new accounts in the second quarter, bringing its total client numbers to 93.
The company continues to make progress in its RECELL product, enrolling 9 additional patients to support its study in assessing the use of RECELL to treat stable vitiligo. Vitiligo is a skin condition that results in patches of skin losing pigment.
Quick recap of Avita’s RECELL flagship product
The company’s business revolves around the rollout of its RECELL technology product in the United States.
RECELL basically aims to replace the traditional skin graft procedure in patients with burns injury.
The device helps surgeons use a small sample of a patient’s own skin to produce a suspension of spray-on skin cells, which can then be applied to a patient’s burn site in as little as 30 minutes to regenerate a new outer layer of skin.
The procedure uses less than 5% of the size normally required in a graft, and has been clinically demonstrated to heal the burn site as effectively as a skin graft.
Avita is currently conducting clinical trials in its bid to expand the usage of RECELL to patients outside of the burn centres.
About the Avita share price
The Avita share price has lost about 63% over the last 12 months. The company is dual listed on the Nasdaq and commands a market cap of $330 million.
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Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Avita Medical Limited. The Motley Fool Australia has recommended Avita Medical Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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