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Avita Medical share price climbs on new collaboration

The Avita Medical Ltd (ASX: AVH) share price has shot 3.93% higher in early trade after announcing a new collaboration with the University of Colorado.

Why is the Avita Medical share price climbing higher?

This morning, Avita announced that it will collaborate with scientists at the Gates Center for Regenerative Medicine at the University of Colorado.

The preclinical research collaboration will work to establish proof of concept and explore further development of a spray-on treatment. The treatment is targeted at genetically modified cells for patients with epidermolysis bullosa (EB).

EB is a group of rare and incurable skin disorders caused by genetic mutation, which can result in skin fragility and blistering.

The Aussie medical company also hopes to find applicability for other genetic skin disorders.

The partnership will pair Avita Medical’s patented and proprietary Spray-On Skin Cells expertise with the Gates Center’s own technology. Avita will retain the option to exclusively license technologies emerging from the partnership.

Director of the Gates Center for Regenerative Medicine, Dr. Dennis Roop, was excited by the partnership.

Dr. Roop said the Spray-On Skin Cells technology combined with the Center’s genetically corrected cells “has the potential to be game changing in the treatment of this disease”.

At the time of writing, the Avita share price is up nearly 4% to $0.58 per share.

How has Avita performed in 2019?

It’s been a busy 2019 for the Aussie medical group, with the Avita Medical share price rocketing higher across the year.

Avita recently joined the ASX 200 after surging an astonishing 625% higher in 2019. The company currently boasts a market cap of $1.2 billion following its strong share market performance this year.

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Motley Fool contributor Kenneth Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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