AVITA Medical (NasdaqCM:RCEL) FY Conference Transcript

Summary of AVITA Medical FY Conference Call (December 04, 2025) Company Overview - Company: AVITA Medical (NasdaqCM:RCEL) - Industry: Therapeutic acute wound care - Focus: Acute wounds such as burns, gunshot wounds, and road rashes, aiming to expedite patient recovery and hospital discharge [2][3] Core Products - RECELL: First-in-class spray-on skin cell product approved by the FDA in 2019, used in burn centers and trauma centers across the U.S. [4] - Cohelix: Collagen-based dermal matrix, bioengineered in partnership with Regenity, which reduces gross margin but increases operating margin [6] - PermeaDerm: Biosynthetic dressing that allows visibility of the wound without removal, facilitating air exchange [6] Key Data and Performance Metrics - RECELL Efficacy: Patients using RECELL can be discharged 36% faster, with a study of 6,300 burn patients showing a six-day earlier discharge compared to traditional methods [4][17] - Cost Discipline: Achieved $10 million in annual cost reductions, maintaining SG&A costs for growth [5] - Revenue Impact: Estimated revenue loss of $10-$12 million due to reimbursement issues, with a focus on regaining momentum in 2026 [11][13] Market Potential - Total Addressable Market (TAM): Estimated at $3.5 billion, with AVITA currently capturing about 5% of this market [17] - Market Share: Approximately 15%-20% market share in burn centers after five years of presence [17] Financial Performance - Revenue: Reported $17 million in revenue, down 13% year-over-year, primarily due to reimbursement challenges [19] - Gross Margin: RECELL products maintain a gross margin of 84%, though overall margins may decrease due to the mix of products sold [19][20] - Cost Management: Reduced expenses by 24% year-over-year, with a target of $23 million in expenses moving forward [20] Future Outlook - 2026 Guidance: Anticipated revenue guidance to be provided in early January, with expectations of returning to a growth rate of 29% [20][21] - International Expansion: RECELL GO approved in the EU and UK, with pending approval in Australia, utilizing third-party distributors for market entry [15] Additional Insights - Reimbursement Challenges: Ongoing issues with CMS and MACs have impacted product usage and demand, but resolution efforts are underway [12][13] - Patient-Centric Focus: Emphasis on improving patient outcomes and reducing healthcare costs associated with prolonged hospital stays [16] This summary encapsulates the key points from the AVITA Medical FY Conference Call, highlighting the company's focus on acute wound care, product efficacy, market potential, financial performance, and future outlook.