AVITA Medical (RCEL) investor relations material

Key product innovations and clinical outcomes

• RECELL platform enables spray-on skin grafts, reducing required donor skin by 97% and accelerating healing with less scarring, leading to faster patient recovery and discharge.

• Recent study of 6,300 RECELL patients showed a 36% reduction in hospital length of stay for burns under 30% total body surface area, equating to about six days saved per patient and significant cost savings.

• Cohealyx and PermeaDerm complement RECELL, enabling a full acute wound care solution with unique features like translucent dressings and biosynthetic matrices for improved healing and workflow.

• RECELL GO mini addresses smaller wounds and outpatient needs, gaining positive feedback for protocol-driven adoption.

• Cohealyx is seeing strong commercial momentum, with nearly half of burn centers in the value analysis process and significant repeat orders.

Commercial strategy and market expansion

• Shifted from a clinical specialist-heavy salesforce to a leaner, more productive commercial team, increasing efficiency and coverage without raising SG&A.

• Portfolio approach allows multiple selling opportunities per patient and procedure, increasing revenue per account.

• U.S. total addressable market is $3.5 billion across burns, trauma, and surgery, with burns as the current focus for credibility and expansion.

• International expansion targets the EU, UK, Japan, and Australia using local distribution partners to leverage reimbursement and market expertise.

• Adjacent product development includes antimicrobial and reduced scarring solutions to further address acute wound care needs.

Financial performance and outlook

• Q1 and Q2 revenue missed expectations due to reimbursement transition issues with a new CPT code, causing $10 million in lost revenue and delayed claims.

• Resolution of reimbursement issues is underway, with profitability expected in Q2 or Q3 of next year and a cash runway sufficient to reach break-even by mid-2026.

• Gross margin compression is due to product mix, but overall gross profit dollars are expected to rise as portfolio sales increase.

• No increase in SG&A is planned for the next two years, supporting operating leverage as revenue grows.

• Confident in ability to pay off debt by 2027, with plans to accumulate cash in the second half of next year.