The AVITA Therapeutics Inc (ASX: AVH) share price will be on watch on Friday after the release of its fourth quarter update.
How did AVITA perform in the fourth quarter?
For the fourth quarter of FY 2020, the regenerative medicine company delivered total global revenue of US$3.88 million.
This was driven almost entirely by its U.S. RECELL System sales of US$3.79 million. This was broadly flat on the global revenue of US$3.94 million and U.S. RECELL System sales of US$3.78 million it generated in the third quarter.
For the full year, total revenue was approximately US$14.32 million. This was an increase of US$8.78 million or 160% over FY 2019's sales. U.S. RECELL System sales contributed approximately US$13.79 million, an increase of US$9.39 million or 213% year on year.
At the end of the quarter, AVITA had a cash balance of approximately US$73.84 million. This was a decrease of US$5.92 million or 7.4% from the end of the third quarter. This reduction includes costs of more than US$1 million relating to its redomiciliation to the United States and its preparation for U.S. GAAP compliance.
"Most challenging commercial conditions."
AVITA Therapeutics' Chief Executive Officer, Dr. Mike Perry, was pleased with the company's performance after facing the "most challenging commercial conditions" since the launch of the RECELL System.
He said: "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."
"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," he added.
Dr Perry concluded: "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."
Outlook.
Dr. Mike Perry appears cautiously optimistic on the future.
He commented: "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 also highlighted a large number of opportunities it is pursuing for the RECELL System. This includes its use in treating vitiligo, the outpatient burn market, and an expansion into Japan.
