Avita Medical trims guidance despite Q2 revenue lift
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The news: Medical technology company Avita has trimmed its full-year revenue guidance despite a lift in second quarter revenue as demand improved for its skin repair products but losses widened amid rising operating expenses.
The numbers: The company said second quarter net loss widened to USD15.4 million ($23.4 million) from USD10.4 million a year ago, on the back of operating expenses rising to USD28.7 million from USD21.2 million due to higher sales and marketing expenses.
Commercial revenues jumped 29.5% to USD15.1 million, while gross profit margin also widened to 86.2% compared to 81.2% a year earlier.
Avita shares were up 8% at $2.70 in early trading on the ASX.
The context: The Nasdaq and ASX-listed firm expects commercial revenue to climb further in the current September quarter but has again trimmed its full-year guidance. It now expects full-year commercial revenue to be USD68 million to USD70 million, down from the previous forecast of around USD78.5 million.
Avita previously downgraded its guidance on slower-than-expected conversion rate of new accounts for its expanded label of full-thickness skin defects. However, it has since received a nod from the US Food and Drug Administration (FDA) for its premarket approval (PMA) supplement for its Recell Go System.
What they said: “With positive new developments, including the launch of Recell Go and PermeaDerm, as well as the anticipated launch of our new dermal matrix, we intend to build on our second-quarter momentum and continue delivering strong results,” chief financial officer David O'Toole said.
The source: ASX announcement
