The Avita Medical Inc (ASX: AVH) share price is down 7.2% to $1.62 in early trade.
Avita focuses on regenerative medicines. Its spray-on Recell medicine is used to treat burn patients.
Below we look at the ASX healthcare share's first-quarter results for the three months ending 31 March (Q1 2022).
What was reported for the quarter?
The Avita Medical share price is sliding after the company a 14% decrease in revenue compared to Q1 2021. Revenue for the quarter came in at $7.5 million.
The company reported the decline was largely due to its recognition of $4.1 million in Biomedical Advanced Research and Development Authority (BARDA) related revenue in 2021.
Avita's Q1 2022 commercial revenue increased 61% year-on-year to $2.8 million. It attributed the lift to "broader utilisation among our customer base as well as deeper penetration within individual customer accounts".
Gross profits of $5.7 million were down 13% from the $6.6 million reported in the prior corresponding period. Gross profit margin of 76% was identical to Q1 2021.
Operating expenses increased $2.8 million to $16.0 million, 21% higher than the corresponding quarter.
On the bottom line, and likely pressuring the Avita Medical share price today, the company reported a net loss of $9.5 million. That's 58% more than the $6.0 million net loss reported for the first three months of 2021.
What's next?
The company intends to use its cash reserves until US sales of its products ramp up to levels where those revenues can fund its ongoing operations. As at 31 March, Avita reported it has enough cash reserves to fund operations for the next 12 months.
Avita added, "We have no committed plans to issue further shares on the market."
As for dividends?
"There were no dividends paid and we have no plans to commence the payment of dividends."
Avita Medical share price snapshot
With this morning's intraday losses factored in, the Avita Medical share price is down a painful 53% in 2022. That compares to a year-to-date loss of 9% posted by the All Ordinaries Index (ASX: XAO).
