Avita Medical Limited (RCEL) Lowers FY23 Revenue Guidance

November 20, 2023 4:17 PM EST

AVITA Medical, Inc. (NASDAQ: RCEL), a regenerative medicine company leading the development and commercialization of first-in-class devices and autologous cellular therapies for skin restoration, today announced an update to its full year 2023 guidance. This update is a result of slower-than-anticipated progression through the customer’s Value Analysis Committee (VAC) processes, driven by the expanded label applications of its newest indication, full-thickness skin defects.

“Our expanded label for full-thickness skin defects opens up an abundance of exciting applications,” Jim Corbett, Chief Executive Officer of AVITA Medical. “With a wider range of potential uses, more clinicians within the hospital are engaged in the VAC process, leading to longer hospital approval timelines. Although the VAC processes are taking longer than anticipated, we expect that once completed, the process will yield positive approvals and an expanded market opportunity. The broader clinical involvement validates the substantial market opportunity this expanded label represents, which is greater than 10 times the size of the burn market.”

As a result of these dynamics, the Company is revising its expected full year 2023 commercial revenue from the previously disclosed range of $51 million to $53 million to a range of approximately $49.5 million to $50.5 million, with lower and upper bounds reflecting growth rates of approximately 45% and 48%, respectively, over the same period in 2022.

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