AVITA Medical, Inc. (NASDAQ: RCEL, ASX: AVH), a leader in regenerative medicine and wound care technology, posted robust Q3 financial results for 2024, buoyed by strong demand for its flagship product, RECELL GO, in the wound care market. The company’s revenue for Q3 reached $19.5 million, marking a 44% increase over the same period last year and a 29% jump from Q2—a record-setting performance that underscores the growing adoption of RECELL GO as a transformative treatment option.
AVITA's recent focus on deepening relationships within existing accounts and targeting new healthcare facilities has proven effective, with RECELL GO seeing strong uptake across various medical applications. The company’s gross profit margin remains impressive at 83.7%, slightly lower than last year’s 84.5% due to ongoing engineering work for RECELL GO’s cartridges, but still reflecting the product’s profitability.
In addition to robust sales growth, AVITA secured a multi-year distribution agreement with Regenity Biosciences, granting AVITA exclusive rights to Cohealyx™, a collagen-based dermal matrix that complements RECELL GO in the wound care market. Cohealyx™ is expected to receive FDA clearance by year-end, with a market launch scheduled for January 2025. This addition enables AVITA to provide a more comprehensive wound care solution, further strengthening its market position.
The company also anticipates FDA approval of the RECELL GO mini by December 31, 2024, which will allow AVITA to cater to a broader range of wound care needs, including smaller and more targeted applications.
With cash and marketable securities totalling $44.4 million at the end of Q3, AVITA remains well-capitalised to fund its growth initiatives. Notably, AVITA amended its credit agreement with OrbiMed, opting to forgo an additional $50 million in funding in exchange for waiving revenue covenants, providing financial flexibility without the pressure of near-term financial milestones.
While operating expenses rose to $30.2 million, primarily due to higher sales and marketing costs as well as an increase in R&D, the company’s investment in growth is targeted to support its expanding product range. The R&D team continues to advance key projects, including preparations for a post-market clinical study of Cohealyx™ in Q1 2025 to further validate its efficacy.
Looking ahead, AVITA expects commercial revenue to reach between $22.3 million and $24.3 million in Q4, representing a 58% to 72% increase over Q4 2023. For the full year, the company’s revenue forecast of $68 million to $70 million would represent annual growth of approximately 37% to 41%. AVITA is on track to reach cash flow break-even and achieve GAAP profitability by the end of Q3 2025.
With RECELL GO’s rising market share and the anticipated launch of Cohealyx™ and RECELL GO mini, AVITA is well-positioned to sustain its growth momentum. This strategic expansion reflects the company’s commitment to setting new standards in wound care and skin restoration, creating improved clinical outcomes for patients.
As AVITA prepares for multiple product launches and aims to broaden its impact across wound care, its Q3 performance highlights both the company’s operational strength and its potential for long-term growth in regenerative medicine.