Why the AVITA Medical share price is storming 7% higher today

The AVITA Medical Ltd (ASX:AVH) share price is storming higher on Thursday after releasing an update on a study for its RECELL System…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

In morning trade the AVITA Medical Ltd (ASX: AVH) share price has been storming higher.

At the time of writing the regenerative medicine company's shares are up 7% to 66.5 cents.

Why is the AVITA Medical share price storming higher?

As well as getting a lift from a market rebound this morning, investors have been buying the company's shares following an update on another pivotal study. This follows an update earlier this week on a pivotal study evaluating the company's RECELL System for soft tissue reconstruction

Today's update relates to the evaluation of the RECELL System for paediatric scald injuries.

According to the release, AVITA has initiated the pivotal trial for the treatment of paediatric scald injuries with the enrolment of the first patient at the Arizona Burn Center in Phoenix, United States.

This study is seeking to demonstrate that treatment with the RECELL System of partial-thickness burn injuries within 72-hours can safely and effectively increase the incidence of healing at day 10 when compared to a standard wound dressing.

The company's chief executive officer, Dr. Mike Perry, said: "The immediate treatment of scald injuries in paediatric patients represents a shift in thinking as surgeons currently favour a delayed approach to avoid the additional trauma associated with conventional skin grafting. With the commencement of this pivotal trial, we intend to demonstrate that treatment with the RECELL System within the first three days of a paediatric burn improves healing and decreases the need for autografting."

Trial goals.

The company is aiming to enrol 160 paediatric patients, ages one to 16 years old.

After which, the primary endpoint of its prospective multi-centre trial is to demonstrate that treatment of partial-thickness burn injuries with the RECELL System increases the incidence of healing at day 10 compared with a standardised wound dressing.

In addition to this, it will investigate the effects of both treatments on time to healing, the incidence of conventional autografting, pain, itching, scarring, health-related quality of life and resource utilisation. Healing will be evaluated by a clinician blinded to the treatment allocation.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Avita Medical Limited. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Animation of a man measuring a percentage sign, symbolising rising interest rates.
Share Market News

Here's when Westpac says the RBA will now cut interest rates

Will borrowers need to wait until the middle of next year for relief? Let's find out.

Read more »

Boys making faces and flexing.
Opinions

3 ASX 300 shares to buy and hold for the long run

I believe these stocks have loads of growth potential.

Read more »

Young girl drinking milk showing off muscles.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a great end to the trading week for ASX investors today.

Read more »

Hands reaching high for a trophy with a sunset in the background.
Record Highs

The ASX 200 Index is on its way to another all-time high today. Here's why

These blue chip stocks are driving the index towards a new record today...

Read more »

Group of friends trading stocks on their phones. symbolising the 3 most traded ASX 200 shares today
Share Market News

3 ASX mining stocks topping the most-traded list in October

Chinese stimulus news and company announcements likely contributed to the higher trading activity.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Share Gainers

3 ASX 200 stocks smashing the benchmark this week

These three ASX 200 stocks are leading the charge this week. Here’s how.

Read more »

Two people tired and resting after sports race.
Broker Notes

Fundie rates 2 ASX 200 stocks in short-term pain but with long-term gain potential

Blackwattle Investment Partners sees these 2 ASX 200 stocks as worthy of a buy and hold strategy.

Read more »

A young woman holding her phone smiles broadly and looks excited, after receiving good news.
Share Gainers

Why A2 Milk, EOS, GQG, and Mineral Resources shares are racing higher today

These shares are ending the week strongly. But why?

Read more »