Full Press Release Details
AVITA Therapeutics Provides Company Update and Preliminary Unaudited
Results for the Fourth Quarter and Fiscal Year 2020
Valencia, Calif., USA, and Melbourne, Australia,
July 9, 2020 AVITA Therapeutics, Inc. (NASDAQ: RCEL, ASX:AVH), a regenerative medicine company that is developing and commercializing a technology platform that enables point-of-care autologous skin restoration for multiple unmet needs, announced today preliminary unaudited results for the fourth quarter and full year ended June 30, 2020, together with a company update.
Preliminary Unaudited Results for Three Month Period Ended June 30, 2020
With effect from July 1, 2020, the Company is reporting financial results in United States dollars (US$), and prepared in accordance with U.S. Generally
Accepted Accounting Principles (U.S. GAAP).
We are pleased with our fourth quarter results given the challenges and limited patient and facility access that we have experienced with the onset of
the COVID-19 pandemic, said Dr. Mike Perry, AVITA Therapeutics Chief Executive Officer. Like many others, this quarter we witnessed the most challenging commercial conditions since the RECELL System was launched in the U.S. in
early 2019. While burns are not considered elective procedures, the incidence of burns was not immune to the impact of COVID-19 as nationwide protective (executive) orders drove a reduction in accidents resulting in burn injuries. Despite the tough
macro environment, the clear benefits of the RECELL System including shortened length of hospital stays, together with less invasive and fewer surgeries, continues to resonate with hospitals, physicians, and patients, which is reflected in our
results this quarter.
Preliminary Unaudited Results for the Full Year Ended June 30, 2020
Quarter Ended June 30, 2020
the fourth quarter we witnessed a wide degree of variability with both revenue and procedural volumes, together with an environment where our customers mandated highly restrictive access practices for our field force given the COVID-19 pandemic. Face-to-face interaction with our burn caregivers continues to be exclusively at physician request for case support within the operating theater only, and does not
permit participation in the aftercare setting or otherwise enable clinical and business development, for example, to expand utilization of the RECELL System across different burns and users. Given the current state of affairs, we have no reason to
believe that these measures, and our limited access, will change in the short term.
As previously stated, burn procedures are neither elective nor
deferrable, however the rate of occurrence of these events is very dependent on broader economic activity and people movement . As such, we saw many of our customers initially experience reduced burn volumes due to the social distancing
and shelter-in-place restrictions that have been implemented across the nation.
The reprioritization of hospital resources to support COVID-19 readiness meant that our April results were
the lowest monthly revenue and procedural volumes seen this calendar year. Fortunately, as the quarter developed, the benefits of the RECELL System providing reduced hospital stays, and fewer and smaller surgeries, together with both a gradual
uptick in burn incidence and hospitals (partially) reverting back from a COVID-19 centric focus, enabled a recovery of both revenue and procedural volume growth through May and June. As with many companies in the current pandemic environment, it is
difficult to predict revenue and procedural volume over the coming months, but we are pleased with current utilization rates and our physician commitment.
The Company continues to work with the U.S.
Biomedical Advanced Research and Development Authority (BARDA) on the procurement of the RECELL System for the U.S. strategic national stockpile for public health medical emergencies (with an estimated contract value of US$7.6 million). The Company
is hopeful of providing further updates on this topic during this quarter.
Future Market Opportunities
Set out below is an update on our various future market opportunities:
Notable publications released during the quarter were as follows:
AVITA Therapeutics continues to work with our Japanese marketing partner, COSMOTEC, to advance our application for approval to market the RECELL
System in Japan pursuant to Japan s Pharmaceuticals and Medical Devices Act. The application has been constructed broadly to seek approval for the treatment of patients with burns, chronic wounds and vitiligo in three (3) size
configurations of the RECELL System.
Progress on the application has been delayed due to the COVID-19 pandemic and the associated State of Emergency
declaration in Japan. In addition, Japan s regulatory agency, the Pharmaceuticals and Medical Devices Agency (PMDA), has now requested various non-clinical raw data (e.g., original hand
written copies of data entry forms or records) of a small subset of our historic studies, some of which were conducted more than ten (10) years ago. To facilitate PDMA s request, AVITA Therapeutics is repeating three (3) non-clinical or benchtop tests. These tests are expected to be completed and submitted in August, and the Company hopes to then advance our application for approval of the RECELL System in
Authorized for release by the Chief Executive Officer of Avita Therapeutics, Inc.
ABOUT AVITA THERAPEUTICS, INC.
AVITA Therapeutics is a
regenerative medicine company with a technology platform positioned to address unmet medical needs in burns, chronic wounds, and aesthetics indications. AVITA Therapeutics patented and proprietary collection and application technology provides
innovative treatment solutions derived from the regenerative properties of a patient s own skin. The medical devices work by preparing a RES REGENERATIVE EPIDERMAL SUSPENSION, an
autologous suspension comprised of the patient s skin cells necessary to regenerate natural healthy epidermis. This autologous suspension is then sprayed onto the areas of the patient requiring treatment.
AVITA Therapeutics first U.S. product, the RECELL System, was approved by the U.S. Food and
Drug Administration (FDA) in September 2018. The RECELL System is indicated for use in the treatment of acute thermal burns in patients 18 years and older. The RECELL System is used to prepare Spray-On Skin Cells using a small amount of a patient s own skin, providing a new way to treat severe burns, while significantly reducing the amount of donor skin required. The RECELL System is designed
to be used at the point of care alone or in combination with autografts depending on the depth of the burn injury. Compelling data from randomized, controlled clinical trials conducted at major U.S. burn centers and real-world use in more than 8,000
patients globally, reinforce that the RECELL System is a significant advancement over the current standard of care for burn patients and offers benefits in clinical outcomes and cost savings. Healthcare professionals should read the INSTRUCTIONS FOR
USE RECELL Autologous Cell Harvesting Device (https://recellsystem.com/) for a full description of indications for use and important safety information including
contraindications, warnings and precautions.
In international markets, our products are marketed under the RECELL System brand to promote skin healing in
a wide range of applications including burns, chronic wounds and aesthetics. The RECELL System is TGA-registered in Australia and received CE-mark approval in Europe.
To learn more, visit www.avitamedical.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This letter includes forward-looking statements. These forward-looking statements generally can be identified by the use of words such as
anticipate, expect, intend, could, may, will, believe, estimate, look forward, forecast, goal, target,
project, continue, outlook, guidance, future, other words of similar meaning and the use of future dates. Forward-looking statements in this letter include, but are not limited to,
statements concerning, among other things, our ongoing clinical trials and product development activities, regulatory approval of our products, the potential for future growth in our business, and our ability to achieve our key strategic,
operational and financial goal. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Each forward- looking statement contained in this letter is subject to risks and uncertainties that could cause
actual results to differ materially from those expressed or implied by such statement. Applicable risks and uncertainties include, among others, the timing of regulatory approvals of our products; physician acceptance, endorsement, and use of our
products; failure to achieve the anticipated benefits from approval of our products; the effect of regulatory actions; product liability claims; risks associated with international operations and expansion; and other business effects, including the
effects of industry, economic or political conditions outside of the company s control. Investors should not place considerable reliance on the forward-looking statements contained in this letter. Investors are encouraged to read our publicly
available filings for a discussion of these and other risks and uncertainties. The forward-looking statements in this letter speak only as of the date of this release, and we undertake no obligation to update or revise any of these statements.
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