2 ASX small cap healthcare shares growing quickly

Avita Medical Ltd (ASX:AVH) and this ASX small cap healthcare share have been growing quickly in FY 2021…

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Earlier this week I looked at a couple of healthcare shares that have been tipped as potential market-beaters.

Today, I thought I would take a look at the healthcare sector again, but this time at the small end of town.

Two small cap healthcare shares that have been growing quickly are listed below. Here’s what you need to know about them:

Avita Medical Ltd (ASX: AVH)

Avita Medical is a global regenerative medicine company best known for its Recell system. This is a spray-on skin treatment used for burns victims. Demand for its offering has been growing very strongly over the last couple of years. Pleasingly, this has continued in FY 2021. During the first quarter, Avita reported a 59% increase in U.S based RECELL revenue to US$5 million. This strong revenue growth 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 isn’t resting on its laurels and is busy seeking to expand the use of the Recell system. It is hoping to be able to treat vitiligo with the system in the future. In addition, the company recently announced a collaboration with Houston Methodist Research Institute that will see the pairing of Avita’s proprietary Spray-On Skin Cells with Houston Methodist Research Institute’s expertise in reversing cellular ageing. The project is seeking to establish proof-of-concept for the development of a novel approach to reverse ageing and rejuvenate skin.

MedAdvisor Ltd (ASX: MDR)

MedAdvisor is a growing medication management platform provider. Its main focus is on addressing gaps in personal medication adherence. It provides software that connects to pharmacy dispensing systems to automatically retrieve medication records. It also comes with an intelligent training, information, and reminder system to ensure correct and reliable medication use. During the first quarter, MedAdvisor reported a 53% increase in cash receipts to $3.5 million.

The company also recently announced the acquisition of US-based Adheris for US$34.5 million (A$49 million). This acquisition will see MedAdvisor become a leader in tailored opt-out, direct-to-patient medication adherence programs in the USA. It will have an addressable network of 180 million+ patients, ~25,000 pharmacies (>57% of prescriptions in the USA) and a network of 618,000 prescribers (~60% of total).

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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 and MedAdvisor. The Motley Fool Australia has recommended Avita Medical Limited and MedAdvisor. 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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