In morning trade the Avita Therapeutics Inc (ASX: AVH) share price is pushing higher after the release of its first quarter update.
At the time of writing the regenerative medicine company's shares are up 2% to $6.23.
How did Avita perform in the first quarter?
For the three months ended 30 September, Avita reported total global revenue of US$5.1 million. This was up 56% on the prior corresponding period.
This revenue is made up almost entirely of its U.S based RECELL revenue, which came in 59% higher than the same period last year at US$5 million.
This was driven by a 27.2% increase in procedural volumes to 496 and the addition of 9 new accounts in the first quarter. The latter brings its total accounts to 86.
Avita reported a gross margin of 82% for the first quarter of 2021, compared with 81% in the same quarter last year.
However, its operating expenses are still vastly greater than the money it is bringing in. Operating expenses were US$14.9 million for the first quarter, up from US$8.3 million for the prior corresponding period.
Management advised that this increase was primarily driven by the additional costs incurred from its dual listed entity on the NASDAQ and the ASX, along with the commencement of pivotal clinical trials for the treatment of paediatric scald injuries, soft tissue reconstruction, vitiligo and other research and development activities aiming to further promote the RECELL System.
In light of this, Avita posted a net loss of US$10.2 million for the quarter. This led to the company finishing the period with a cash balance of US$65.8 million.
Outlook.
Due to the uncertainty surrounding the COVID-19 pandemic, management advised that it will not be providing financial guidance at this time.
However, it will continue to evaluate its guidance policies and anticipates providing an update at the time of its second quarter earnings announcement based on available information at that time.
