AVITA lowers full-year earnings guidance

The news: Medtech company AVITA Medical has lowered its expected full-year 2023 commercial revenue.

The numbers: The company, which specialises in spray-on skin, dropped its guidance from a forecasted range of $51-$53 million to an updated range of $49.5-$50.5 million. The company blamed the lowered expectations on value analysis committee processes taking longer than anticipated, driven by the expanded label application of its newest indication, full-thickness skin defects.

The context: The expanded label for full-thickness skin defects opens an abundance of exciting applications, according to AVITA Medical CEO Jim Corbett. "With a wider range of potential uses, more clinicians within the hospital are engaged in the VAC process, leading to longer hospital approval times," he said. "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."