Avita Medical (ASX:AVH) share price sinks to 52-week low despite 'pivotal' trial update

Shares in the medical company are down today, despite a positive update

The AVITA Medical Inc (ASX: AVH) share price has dropped to a 52-week low today despite news that the medical producer has entered its RECELL System product into a trial.

Today's slide comes off the back of a 2.78% fall yesterday after the medical company announced it had adjourned its AGM without any business discussions due to a lack of numbers to proceed.

At the time of writing, the Avita share price is down 2.29% trading at $3.42 apiece. Let's take a closer look at the latest news.

Scientists in white coats look disappointed.

Image source: Getty Images

Trial results to be revealed next year

In today's release, Avita advised it was starting a trial for its RECELL System for the regimentation of stable vitiligo.

If found successful, the product could be used in the treatment of the skin condition, which affects at least 2% of the global population, according to the company.

Up until now, the RECELL System had been only pointed for use in the United States, toward the treatment of acute thermal burns.

However, as vitiligo is incurable and has no current FDA-approved options, Avita hopes the product may assist those living with the skin disease.

CEO Dr Mike Perry said Avita expected topline data to be returned from the trial next year. 

Recruitment of the last patient in this blinded, randomised pivotal trial is a significant milestone and lays the groundwork for regulatory approval and commercialisation of the RECELL System in 2023 for use in patients with stable vitiligo.

Avita share price snapshot 

The Avita share price has seen a steep decline, dropping 28.5% over the past 12 months. Shares in the company are down 32.6% this year to date.

Based on today's share price, the company has a market capitalisation of more than $231 million.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended Avita Medical Limited. The Motley Fool Australia has recommended Avita Medical Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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