Investors shrug at decent news from Avita, selling continues

Fri 13 May 22, 11:17am (AEST)

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Key Points

  • Avita reports $5.7m of gross profit for Q1 of 2022
  • Total net revenues are down 14% YoY
  • Despite a hard year for Avita, broker consensus remains optimistic

New operational SEC filings from Avita Therapeutics (ASX:AVH) for the first quarter (1Q) of FY22 show the company made a total of US$5.7m in gross profit for the quarter. 

Total net revenues were down 14% year-on-year (YOY) to US$7.5m. 

The company's share price has fallen 8% in the first hour of trades as investors likely also note that the company lists an operating loss of US$9.4m. 

Looking at 2022 YTD, Avita Therapeutics has lost 53.5% of its value. In the last month alone, it has lost 26%. 

With that said, the company's market cap sits at over $110m Australian. 

Avita's unaudited summary of Q1 results
Avita's unaudited summary of Q1 results

Regenerative burns maybe just 'ain't what it used to be'  

Avita's Q1 revenues this year were made on the back of sales of its flagship regenerative burns product, RECELL System, to hospitals in the US; as well as to BARDA. 

The RECELL System is a spray-on-skin solution used to heal flesh wounds on major burns patients. 

The tech works by using the patient’s own skin cells as an alternative to graft procedures, or alongside graft procedures. 

The RECELL system is Avita’s flagship, and only, product. 

Positive Broker Consensus 

Brokers suggest Avita Therapeutics is a buy right now; which could mean the price is trading at a significant discount to where it was this time last year, at over $5 a share. 

Whether or not brokers expect the price to reclaim those lofty highs, however, remains unclear. 

The company's share price is currently $1.59.

Avita's charts over the last year compared to the healthcare index
Avita's charts over the last year compared to the healthcare index


Written By

Jonathon Davidson


Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication.

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