Investors back AVITA Medical after it reported full-year results

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Regenerative medicines company AVITA Medical (AVH:ASX) has reported a 46 per cent increase in revenue to $49.8 million for 2023.

The company said its gross profit margin was 84.5 per cent and that it held approximately $89.1 million in cash, cash equivalents, and marketable securities at the end of December 2023.

“We ended the year with yet another quarter of significant growth, marking a year of extraordinary progress,” said AVITA Medical CEO Jim Corbett.

“In 2023, we successfully executed a series of strategic initiatives to transform our business. These initiatives included expanding our RECELL indications and applications, doubling our commercial field organisation ahead of FDA approvals, successfully launching our expanded label for full-thickness skin defects, and establishing an international expansion plan. Looking ahead to 2024, we are eager to capitalize on this momentum, and remain committed to innovation and sustained growth.”

The company said it had expanded its field sales organization from 70 to 108 people in the first quarter of 2024 to capitalise on the expanded label of full-thickness skin defects.

It said it anticipates US FDA approval for RECELL GO with plans to commence a commercial launch at the end of May. It is renovating and expanding its Ventura warehouse facility and expects non-US sales following the launch in January 2024 of RECELL in Germany, Austria, and Switzerland.

In its financial guidance, AVITA expects revenue in the first quarter of 2024 to be $14.8 to $15.6 million, reflecting growth of 42 per cent to 50 per cent compared to the corresponding period last year. Commercial revenue for 2024 is expected to be $78.5 to $84.5 million.