At time of writing, the share price of Avita Medical Ltd [ASX:AVH] is up 13.1%, trading at 47.5 cents.
It has been a meteoric rise for the Avita share price over the past month and a half:
The latest news out of the company is that yesterday it had the interim trial results of its product presented to the American Burn Association (ABA) on the use of its RECELL® system to treat third-degree burns in paediatric patients.
In a brand-new report titled: ‘How to Invest in Biotech Stocks’, you’ll learn how to break into one of the most lucrative investing markets in the world.
Innovative burn treatment
Avita is pushing to have its innovative RECELL® system used in paediatric cases, as it has already received FDA approval in September 2018 for the use of its product for those patients that are 18 years and older.
Furthering this aim, Dr Jeffrey Carter conducted a presentation to the ABA entitled ‘Evaluation of a Pediatric Population Treated for Burn Injuries Using an Autologous Skin Cell Suspension: Interim Analysis’.
The data that Dr Carter presented showed that 98% of mixed-depth/full-thickness burn injuries in paediatric patients treated using Spray-On Skin Cells in combination with widely spaced meshed autografts were healed within four weeks of treatment. 23 patients ranging from 8–16 years old were treated under FDA-IDE approved Compassionate Use and Continued Access programs.
They noted that as 1/3 of burn injuries occur in children, it would be a major breakthrough for Avita to receive FDA approval for its product for those under 18.
Finding donor skin for traditional methods of treating children with burns is currently a difficult process.
The RECELL System uses a small amount of a patient’s own skin to prepare Spray-On Skin Cells — a new way to treat burn patients.
Burns are a particularly nasty and difficult to treat dermatological problem, frequently leaving scarring behind.
You can see below how the treatment works:
Source: Avita Medical
The advantage of RECELL is that it has the potential to reduce scarring as shown below:
Source: Avita Medical
Aesthetics are important to people, and it appears Avita has an impressive solution to the after-effects of a burn.
Prospects for the Avita share price
The share price has now broken sharply above its 20, 50 and 100-day averages.
It is also worth noting that the company is growing its revenue at a decent clip.
As per its most recent half–year results, its total revenue is up almost 53% to $6.8 million.
Despite this, it posted a total loss of $14.2 million.
Although the loss may be considerable, it has upwards of $30 million in cash and cash equivalents, so it has a sizeable war chest to fund its expansion.
It has an addressable market of around 486,000 burn patients annually in the US and is targeting within this group the annual 14,000 total burn surface area (TBSA) patients.
Money Morning is intrigued by Avita’s growth prospects and what’s more, it has a product that dramatically improves the lives of burn patients.
For Money Morning