Search ASX code:
Generic filters

Search ASX code:
Generic filters

Search ASX code:
Generic filters

Search ASX code:
Generic filters

Avita (ASX:AVH) gives FY20 trading update

The Avita (ASX: AVH) share price is down more than 1% after providing an update for FY20.

What is Avita?

Avita is a regenerative medicine company. It aims to address unmet medical needs in burns, chronic wounds and aesthetics indications. Its treatment solutions are derived from the regenerative properties of a patient’s own skin. It works by preparing an autologous suspension of skin cells which are necessary to regenerate natural healthy epidermis. This is then sprayed onto areas of the patient requiring treatment. The first US product, the RECELL system was approved by the FDA in September 2018.

Avita’s FY20 update

With the company’s recent listing in the US, it has decided to change its reporting to US dollars.

In the fourth quarter of FY20, Avita saw US RECELL System sales of US$3.79 million, an increase of 0.2% from the FY20 quarter.

Total global net revenue for the fourth quarter was US$3.88 million. A decrease of 1.6% compared to the third quarter of FY20. However, in Australian dollar terms there was an increase of 2% to AU$6.08 million in the last quarter.

Procedural volumes fell by 4% compared to the last quarter. That shouldn’t be surprising given the COVID-19 pandemic.

Avita balance sheet

At the end of June 2020 the company had cash of US$73.8 million, a decrease of almost US$6 million from the last quarter.

Management comments

Avita CEO Mike Perry said: “Like many others, this quarter we witness the most challenging commercial conditions since the RECELL System was launched in the US in early 2019. While burns are not considered elective procedures, the incidence of burns was not immune to the impact of COVID-19 as nationwide executive orders drove a reduction in accidents resulting in burn injuries.”

Summary

This didn’t seem like a terrible update considering all of the COVID-19 impacts. I’m not sure what a fair share price is for Avita with the potential global growth plans, so I’m happy to just watch from the sidelines.

Are you stuck wondering where to invest right now? Have you got cash 'sitting on the sidelines'? Are you looking for dividend income AND growth but don't know where to start? Rask's expert ASX analyst team has just released a full report, detailing where we'd invest $10,000 right now.

Not only are we offering these 11 investment ideas completely FREE, we've also released an in-depth podcast to go with the report!

So, whether you have $2,000 or $50,000, our brand new analyst report could help transform your watchlist. Right now, you can get the full analyst report emailed to you for FREE by CLICKING HERE NOW or simply entering your email below.

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Are you stuck wondering where to invest right now? Have you got cash 'sitting on the sidelines'? Are you looking for dividend income AND growth but don't know where to start? Rask's expert ASX analyst team has just released a full report, detailing where we'd invest $10,000 right now.

Not only are we offering these 11 investment ideas completely FREE, we've also released an in-depth podcast to go with the report!

So, whether you have $2,000 or $50,000, our brand new analyst report could help transform your watchlist. Right now, you can get the full analyst report emailed to you for FREE by CLICKING HERE NOW.

At the time of publishing, Jaz does not have a financial or commercial interest in any of the companies mentioned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

LIVE ASX Chat - Join in!

Play Video

Keep reading:

Rask Analyst’s $10,000 Hypothetical Portfolio 

Rask Australia’s expert analysts have just released 11 stock & ETF positions they’d buy right now as part of a $10,000 hypothetical portfolio. 

Completely free, this report comes with the exact ticker codes, how much the analysts would invest and a detailed over the company and why we like it. Plus a 60-min podcast! 

Simply enter your email address and we’ll send you the report.

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.