Why the AVITA (ASX:AVH) share price is charging higher today

AVITA delivered strong growth in the second quarter…

The AVITA Medical Inc (ASX: AVH) share price is pushing higher on Tuesday morning.

In morning trade, the regenerative medicine company's shares are up 3.5% to $3.25.

Rising share price chart.

Image source: Getty Images

Why is the AVITA share price pushing higher?

Investors have been bidding the AVITA share price higher today after it released its preliminary unaudited second quarter results.

According to the release, for the three months ended 31 December, AVITA delivered a 35% increase in quarterly revenue to US$6.9 million.

Combined with the US$7 million revenue it recorded in the first quarter, this brings its half year revenue to US$13.9 million. This represents an increase of approximately 37% over the US$10.16 million recorded during the prior corresponding period.

It is also worth noting that the company has changed its financial year-end. So, although this is only technically the end of the first half, the company is now starting FY 2022.

What about its earnings?

No margin or profit (or loss) data was provided with today's update. However, management did provide an update on its balance sheet. The release reveals that AVITA ended the period with US$55.5 million in cash and cash equivalents. This compares to US$60.5 million at the end of the first quarter.

AVITA also advised that it has US$49.3 million in short-term and long-term marketable securities and no debt.

These funds will come in handy for the year ahead. In December, the company completed the enrolment of pivotal clinical trial evaluating the safety and effectiveness of the RECELL System for the repigmentation of stable vitiligo lesions. And this month AVITA completed the enrolment of a pivotal study of the RECELL System for soft tissue reconstruction (trauma).

AVITA's Medical Chief Executive Officer, Dr. Mike Perry, said: "Our recent successes in getting two pivotal clinical trials fully enrolled, and also demonstrating proof of concept in two other potential indications, underscore our commitment to further growing the market opportunities for the RECELL system. Looking ahead, we will be preparing our vitiligo and soft tissue dossiers to submit PMA supplement applications to the FDA in late 2022 for commercial launches for those indications in 2023."

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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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