AVITA Medical (RCEL) Status update summary

Business performance and growth outlook

• Achieved $19.3 million in Q1 revenue, a 10% sequential increase and 4% year-over-year growth, driven by organic sales rather than bulk orders.

• Sequential quarterly revenue growth is expected to continue, with reaffirmed full-year guidance of $80–$85 million.

• Gross margin remains strong at 82%, with expectations to stay above 80% despite product mix changes.

• Operating expenses are stable at $24.5 million, with no significant headcount increases planned.

• Cash position at quarter-end was $14.3 million, with cash burn expected to decrease in Q2 due to improved collections and lower one-time costs.

Product and market developments

• BARDA contract provides $100,000 per quarter in guaranteed revenue and validates product importance in disaster planning.

• RECELL GO received regulatory clearance in Australia and New Zealand, supporting expansion in those markets.

• Interim data from the Cohealyx-I study shows readiness to grafting in 13 days versus 33 days for competitors, offering significant clinical and economic benefits.

• All seven Medicare Administrative Contractors (MACs) have published payment rates for RECELL, resolving previous reimbursement headwinds.

• Sales force optimization and improved hospital reimbursement have turned previous headwinds into tailwinds for growth.

Commercial strategy and customer engagement

• Focused on deepening penetration in burn centers and Level I trauma centers, with reps managing a small number of high-value accounts.

• Utilization and adoption are tracked at the physician and account level, with targeted education and data-driven sales strategies.

• Pricing power is supported by clinical and economic data, but balanced with market penetration goals.

• About half of 200 target centers for Cohealyx are either in or have completed the Value Analysis Committee process.