The AVITA Medical Inc (ASX: AVH) share price is up more than 15% after giving a FY20 second quarter update.
Avita is a regenerative medicine company that is developing and commercialising a technology platform that enables point of care autologous skin restoration.
AVITA Q2 update
Avita said that in the second quarter ending 31 December 2020, its US based RECELL revenue is expected to be $5 million, compared to $5 million in the previous quarter. This was an increase of 62%, or $1.9 million, compared to the December quarter in 2019.
Total global revenue is expected to be $5.1 million in the second quarter, compared to $5.1 million in the previous quarter. Total global revenue increased by 57% over the same quarter in the prior year, this was an increase of $1.8 million in dollar terms.
Avita said that it enrolled nine additional patients into its study assessing the use of the RECELL system to treat stable vitiligo. The company added seven new accounts during this second quarter, bringing the overall total to 93 accounts. The estimated procedural volumes were 485 in the second quarter of 2021, compared to 496 in the previous quarter.
The company’s balance sheet finished the quarter with $59.8 million of cash, a decrease of $6 million from the end of the September 2020 quarter.
Management comments
Avita Medical Chief Executive Officer Dr Mike Perry said: “I’m pleased with our team’s commercial execution during these challenging times. We continue to make solid progress in our pipeline initiatives, and I look forward to updating you further during our quarterly earnings call.”
Time to buy Avita shares?
Avita does seem to have an impressive product which delivers good results. It also boasts of a total addressable market worth billions that it could tap into. I’m not a medical expert at all, so I’m not sure how successful Avita can be over the long term. For the patients’ sake, I hope Avita is able to help as many people as possible.
This ASX share could be an opportunity, considering how much it has fallen since early 2020, but I prefer to stick with investments I have a better understanding of. That’s one of the main reasons why I like Pushpay Holdings Ltd (ASX: PPH) shares, it also has big goals like Avita – but it’s demonstrating excellent economies of scale right now with its profit growth
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