Guess which All Ords ASX healthcare share just rocketed 19% on major FDA news

Investors are bidding up the ASX healthcare share following good news from the US FDA.

| More on:
Doctor doing a telemedicine using laptop at a medical clinic

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The All Ordinaries Index (ASX: XAO) is up 0.5% in morning trade with one ASX healthcare share doing plenty of the heavy lifting.

Shares in the regenerative medicine company, which is focused on devices for wound care management and skin restoration, closed yesterday trading for $2.66. In earlier trade, shares were changing hands for $3.17 apiece, up 19.2%.

After some likely profit-taking, shares are trading for $3.00 apiece at the time of writing, up 12.8%. Investor enthusiasm roused following positive news from the United States Food and Drug Administration (FDA).

Any guesses?

If you said Avita Medical Inc (ASX: AVH), go to the head of the virtual class.

Here's what the ASX healthcare share reported today.

ASX healthcare share rockets on FDA greenlight

The Avita Medical share price is surging after the company reported that the FDA has greenlit its premarket approval (PMA) supplement for the RECELL GO system.

RECELL GO is an autologous cell harvesting device. It harnesses the regenerative properties of a patient's own skin to treat burn wounds and full-thickness skin defects.

The ASX healthcare share highlighted a number of advantages RECELL has over traditional skin grafting.

Those include:

  • Improved healing is achieved using significantly less donor skin
  • Pain is reduced, closure is faster, and the aesthetic appearance at the RECELL-harvested donor site is improved
  • Fewer procedures are required for definitive closure
  • A reduction in the length of stay for burns covering less than 50% of total body surface area

The company also noted that enhanced features of the device, including a simplified user interface, significantly reduce the training required for medical staff.

Commenting on the FDA approval sending the ASX healthcare share soaring today, Avita Medical CEO Jim Corbett said, "FDA approval of RECELL GO marks a paradigm shift in the treatment of partial-thickness and full- thickness wounds."

Corbett added:

By streamlining processes and enhancing operational efficiency with the use of RECELL GO, clinicians can now treat a greater number of patients and more broadly experience the proven benefits of RECELL technology.

We believe that this transformative shift will empower more clinicians to achieve optimal outcomes for their patients, driving greater adoption, and fundamentally redefining wound care management. It's GO time for a new era in wound care.

The ASX healthcare share will launch RECELL GO in its top burn treatment centres in the US in June.

Management said that existing accounts will be converted to RECELL GO throughout the year, while new accounts will receive RECELL GO with their first order.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Avita Medical. The Motley Fool Australia has recommended Avita Medical. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Healthcare Shares

woman sitting at desk holding hand up in stop motion
Healthcare Shares

Guess which high-flying ASX All Ords stock was just halted ahead of a key FDA decision

The ASX All Ords stock is awaiting an important announcement from the US FDA.

Read more »

Scientist looking at a laptop thinking about the share price performance.
Healthcare Shares

Is the slashed Sonic Healthcare share price a 'buying opportunity'?

Is this stock a healthy opportunity?

Read more »

A man has a surprised and relieved expression on his face. as he raises his hands up to his face in response to the high fluctuations in the Galileo share price today
Healthcare Shares

ASX healthcare stock surges 11% on 'incredibly valuable' FDA news

Some big news is getting investors excited on Tuesday. What's happening?

Read more »

A man thinks very carefully about his money and investments.
Healthcare Shares

How much could $10,000 invested in CSL shares be worth next year?

Do analysts think it would be worth sinking money into this top stock?

Read more »

Teamwork, planning and meeting with doctors and laptop for medical, review and healthcare. Medicine, technology and internet with group of people for collaboration, diversity and support in hospital
Healthcare Shares

This ASX All Ords stock is rocketing 20% after accepting a takeover offer

These two diagnostics companies are planning to merge their operations.

Read more »

A man sleeps in a bed with white sheets while holding a teddy bear and a smile on his face.
Healthcare Shares

Buy the ASX 200 healthcare stock with 'decades of growth ahead'

This healthcare giant is well positioned for growth, experts say.

Read more »

Shot of a mature scientists working on a laptop in a lab.
Healthcare Shares

Telix Pharmaceuticals share price sinks on unexpected Nasdaq news

ASX 200 investors are bidding down the Telix Pharmaceuticals share price today. But why?

Read more »

Health workers shake hands and congratulate each other on good news.
Healthcare Shares

This ASX 200 healthcare stock is up 48% in a year, but one director is still buying!

A director of this ASX 200 healthcare company has just lifted his personal stake by 50%.

Read more »