It's been a fairly lacklustre start to the trading week for most ASX shares so far this Monday. At the time of writing, the All Ordinaries Index (ASX: XAO) has fallen by 0.21%. But let's talk about the plunging Avita Medical Inc. (ASX: AVH) share price.
Avita Medical shares are in freefall today. This ASX healthcare share has dropped by a precipitous 19.38% so far this Monday to $3.66 a share. That comes after Avita shares closed at $4.54 each last Friday.
It was even worse for Avita this morning too, with the shares hitting a low of $3.53 soon after market open. That was a drop of 22.25% at the time.
So what on earth is going on with Avita shares today that has this company losing so much value?
Why has the Avita Medical share price lost 20% today?
Well, Avita is a bit of a unique case on the ASX. The company is actually a dual-listed share, with its other listing being on the United States NASDAQ exchange – Avita Medical Inc. (NASDAQ: RCEL).
Last Friday, Avita released some financial results and guidance to investors, covering the three months to 31 March 2023. These results revealed a 40% increase in revenue for the quarter to $10.6 million, as well as a rise in gross profit margins to 84%.
The company also announced a major change in its leadership team. Chief commercial officer Erin Liberto has resigned from the company, while Terry Bromley and Debbie Gardener have been promoted to senior vice president of global sales, and senior vice president of global marketing and strategy respectively.
ASX investors reacted negatively to this news on Friday's session, sending Avita shares down by 5.42%.
But Avita's American investors were far more savage on Friday night (our time). Over on the NASDAQ, the Avita share price tanked by a nasty 22.94%.
It seems Avita's ASX investors might be taking a lead from their American counterparts today in the wake of Friday's far more savage reaction. This could explain the doubling down of selling pressure that we seem to be witnessing on the ASX today.
But shareholders arguably don't have too much to complain about. Even after today's savage selling, the Avita share price on the ASX is still up a whopping 90% in 2023 so far:
