AVITA Medical, Inc. (RCEL) stock prices were down by a marginal 0.98% as of the market closing on June 15th, 2021, bringing the price per share down to USD$19.19 at the end of the trading day. After-hours trading saw the stock surge by 15.16%, bringing it up to USD$22.10.
Improved Q4 2021 Guidance
The culmination of the fourth quarter of fiscal 2021, ending June 30th, 2021, will see RCEL report total revenue exceeding its previously reported guidance for the same time period. With previous guidance of USD$8.2 million, the end of fiscal 2021 is expected to see the company report USD$8.6 million in total revenues.
Details of the Revision
On the basis of the strength of both RECELL commercial revenue and revenue related to BARDA, the company is raising guidance for Q4 to be up in the range of USD$9.5 million to USD$9.7 million. Of this total, USD$6 million to USD$6.2 million will be from RECELL commercial revenue and USD$3.5 million from RECELL revenue associated with BARDA. RECELL commercial revenue guidance after its revision represents a 55% to 60% increase over the same time period over the prior fiscal year; and a 30% to 34% increase over reports from Q3 2021.
Recovery through Pandemic
After a turbulent past year owing to the onset of the global coronavirus pandemic, RCEL’s proprietary RECELL System is seeing a revival. With the slow return of normality to the economy and day-to-day lives of citizens from an extended period of remaining confined, reports of burn accidents have also been on the rise. Burn centers across the country are making use of the RECELL System to treat various degrees of burns in patients.
FDA Approval of RECELL System
Another major milestone was the recent announcement that the U.S Food and Drug Administration (FDA) had approved the expanded use of the company’s proprietary RECELL System. The treatment will be used in conjunction with meshed autografting for the treatment of all sizes of acute full-thickness thermal burn wounds, targeting both pediatric and adult patient demographics.
Expanded Scope of RECELL System
Following the expansion, RECELL is now a front-running treatment provider for full-thickness thermal burns in patients over the age of 1 month. Before this development, the treatment was only used to facilitate treatment in patients 18 years and older. Furthermore, the new indication allows for the use of the RECELL System to treat full-thickness thermal burns that cover more than 50% of the total body surface area.
Future Outlook for RCEL
Armed with the recently expanded scope of its RECELL System treatment and highly promising guidance for the upcoming end of the quarter, RCEL is poised to end the 2021 fiscal year with a bang and usher in a prosperous fiscal 2022. Current and potential investors are hopeful that management will continue to leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.
