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.
