Niet zo gek na een stijging van een whopping 712% in een jaar. Toch?
Avita Medical Ltd shares soared 712% from 8 cents in January 2019 to 65 cents at the end of the year. Avita Medical is a regenerative medicine company specialising in spray-on skin therapy. Sales of Avita’s lead product, the RECELL System, increased 60% in the September quarter.
The RECELL System is currently used to treat burn wounds but is also being assessed for use in the treatment of vitiligo, traumatic wounds, scar reconstruction, and for aesthetic indications. Following approval for use in the United States (US) in September 2018, sales of the RECELL system reached $4,583,000 in the September quarter. Total revenue in the September quarter was $7,900,000, an increase of 165% over the prior corresponding period.
More than 50% of US burn surgeons and burn centres have now been trained on the system and 56 of 132 US burns centres have placed orders. Avita estimates the US market to represent an opportunity valued at $2 billion. In 2020, Japanese regulatory approval for the use of the RECELL System is expected, while in the US, clinical studies will be undertaken using the system in paediatric care, soft-tissue repair, and the treatment of vitiligo. An announcement regarding a collaboration using the system for rejuvenation is expected in 1H20. Capturing just 5% of the skin rejuvenation market could represent a >$500 million opportunity.
In November, Avita raised $120 million in equity capital via a placement of 203,389,831 shares at 59 cents per share. Funds are earmarked for the pipeline development of new indications, including optimising support for clinical trials and development projects, as well as the company’s continued US growth. The company has confirmed that new generation products are planned that enhance ease of use and support the adoption of new indications. These generation 2 systems should support office-based procedures and target applications in cell and gene therapy.