The AVITA Medical Inc (ASX: AVH) share price is falling on the back of the company's financial results.
The medical technology company's share price is currently $1.895, a 16.5% fall. For perspective, the S&P/ASX 200 Index (ASX: XJO) is down 0.6% today.
Let's take a look at what Avita reported to the market today.
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Avita reports a higher net loss
Avita reported both quarterly and half-year results for the 2022 calendar year.
In the first six months of 2022, Avita reported:
- Net loss jumped by 47% to $15.7 million, compared to $10.7 million loss in prior corresponding period (pcp)
- Gross profit margin increased by 2% to 80% compared to pcp
- Adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) loss jumped 46% to $11.1 million on pcp
- Commercial revenue excluding Biomedical Advance Research Development Authority (BARDA) revenue jumped 39% to $4.4 million
- Total revenue including BARDA revenue of $15.9 million, down from $19.1 million in pcp
Second-quarter results included:
- Net loss up 33% to $6.3 million
- Adjusted EBITDA loss leapt 51% to $4.7 million
- Gross profit margin jumped by 3% to 83% on pcp
- Commercial revenue excluding BARDA revenue leapt 23% to $8.2 million
- Total revenue including BARDA revenue of $8.3 million, down from $10.3 million on pcp
What else did the company report?
Operating expenses surged 12% on the pcp to $29.9 million in the first six months of the year. This was largely due to greater compensation costs and professional fees.
Lower clinical trial expenses partly offset these higher costs. Research and development costs were also lower compared to the pcp.
Avita highlighted the commercial revenue growth was due to more customers and order sizes increasing.
Avita has $91.1 million of cash, cash equivalents and marketable securities available as of 30 June and no debt.
The company is providing a calendar year 2022 revenue guidance of $30 million, excluding BARDA revenues. BARDA revenues are expected to be $0.3 million in 2022 compared to $7.9 million in 2021.
What did management say?
Commenting on the results, chief executive officer Dr Mike Perry said:
Our commercial team continued to drive further RECELL utilisation and penetration within burn centres, and our clinical team advanced our soft tissue reconstruction and vitiligo trial.
We look forward to topline data from our vitiligo clinical trial in the second half of this year.
Topline results from pivotal trial
Avita also reported topline results from a trial looking into the company's RECELL system to heal soft tissue reconstruction with reduced donor skin.
The results showed "statistically superior donor sparing" and "comparable healing rates" in the treatment of soft tissue injuries.
Further commenting on the trial, Dr Perry said:
The RECELL system has been used to effectively treat serious burn injuries and we anticipate that the RECELL system will be well-positioned to treat patients with soft-tissue injuries, pending FDA review and approval.
Avita share price snapshot
The Avita share price has dived 45% in the year to date. However, it has gained 14% in the past month.
For perspective, the benchmark ASX 200 index has lost more than 5% in the year to date but climbed nearly 7% in a month.
