Why the AVITA Medical share price is storming 7% higher today

The AVITA Medical Ltd (ASX:AVH) share price is storming higher on Thursday after releasing an update on a study for its RECELL System…

In morning trade the AVITA Medical Ltd (ASX: AVH) share price has been storming higher.

At the time of writing the regenerative medicine company's shares are up 7% to 66.5 cents.

a woman

Why is the AVITA Medical share price storming higher?

As well as getting a lift from a market rebound this morning, investors have been buying the company's shares following an update on another pivotal study. This follows an update earlier this week on a pivotal study evaluating the company's RECELL System for soft tissue reconstruction

Today's update relates to the evaluation of the RECELL System for paediatric scald injuries.

According to the release, AVITA has initiated the pivotal trial for the treatment of paediatric scald injuries with the enrolment of the first patient at the Arizona Burn Center in Phoenix, United States.

This study is seeking to demonstrate that treatment with the RECELL System of partial-thickness burn injuries within 72-hours can safely and effectively increase the incidence of healing at day 10 when compared to a standard wound dressing.

The company's chief executive officer, Dr. Mike Perry, said: "The immediate treatment of scald injuries in paediatric patients represents a shift in thinking as surgeons currently favour a delayed approach to avoid the additional trauma associated with conventional skin grafting. With the commencement of this pivotal trial, we intend to demonstrate that treatment with the RECELL System within the first three days of a paediatric burn improves healing and decreases the need for autografting."

Trial goals.

The company is aiming to enrol 160 paediatric patients, ages one to 16 years old.

After which, the primary endpoint of its prospective multi-centre trial is to demonstrate that treatment of partial-thickness burn injuries with the RECELL System increases the incidence of healing at day 10 compared with a standardised wound dressing.

In addition to this, it will investigate the effects of both treatments on time to healing, the incidence of conventional autografting, pain, itching, scarring, health-related quality of life and resource utilisation. Healing will be evaluated by a clinician blinded to the treatment allocation.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Avita Medical Limited. 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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