The AVITA Medical Inc (ASX: AVH) share price is soaring today, up 9%, after upgrading its FY21 fourth quarter expectations.
AVITA is a regenerative medicine company that is developing and commercialising a technology platform that enables point of care autologous skin restoration for multiple unmet needs.
The company announced its unaudited FY21 fourth quarter numbers today.
AVITA Q4 success
In the FY21 fourth quarter, AVITA Medical has to date seen total revenue in excess of its guidance range of $8.2 million to $8.6 million.
Based on the strength of both RECELL commercial revenue and BARDA related revenue, the company is raising its fourth quarter guidance to be in the range of $9.5 million to $9.7 million, consisting of $6 million to $6.2 million of RECELL commercial revenue and $3.5 million of RECELL revenue associated BARDA.
BARDA is the US Department of Health and Human Services’ Biomedical Advanced Research and Development Authority within the Office of the Assistance Secretary for Preparedness and Response.
The revised RECELL commercial revenue guidance reflects a 55% to 60% increase over the prior comparable period, and a 30% to 34% increase compared to the third quarter of FY21.
Management comments
AVITA Medical CEO Dr Mike Perry said: “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.”
Things are looking up for the AVITA share price
The AVITA share price had gone up more than 10% since the release of the news that the US Food and Drug Administration (FDA) has approved expanded use of the RECELL System in combination with meshed autografting for the treatment of all sizes and acute full-thickness thermal burn wounds for both pediatric and adult patients.
RECELL is now indicated to treat full-thickness thermal burns in patients 1-month of age and older. This has removed the prior limitation of use in patients younger than 18 years of age. In addition, the indication now includes treatment for full-thickness thermal burns that extend beyond 50% total body surface area (TBSA).
Combined with this improved guidance, it looks like June 2021 is going to be a month of good news.
