Recent Highlights
- Strong U.S. product sales of A$2.2
million for third quarter of Fiscal 2019 were double second quarter
sales
- Ten presentations highlighting RECELL®
System additional clinical and economic benefits featured at
American Burn Association (ABA) 51st Annual Meeting
- Japan collaboration agreement with
COSMOTEC
- Application to market RECELL System
filed in Japan
- Equity placements completed for a total
of A$15.5 million in proceeds
AVITA Medical (ASX: AVH, OTCQX: AVMXY), a global regenerative
medicine company, announced that it filed today with the ASX its
Appendix 4C - Quarterly Cash Flow Report for the quarter ended 31
March 2019, the third quarter of its fiscal 2019. Provided below is
an update regarding the substantial accomplishments achieved during
the quarter, including the ramp up of RECELL® System sales during
the first three months of promotion of the product.
U.S. Commercial Sales of RECELL System
Active sales and marketing of the RECELL System in the U.S. for
the treatment of acute thermal burns commenced with the January
2019 national market launch, therefore the third quarter of fiscal
2019 represents the first three months of promotion for the
product. Product sales and other revenues for the quarter and nine
months ended 31 March 2019 were as follows (unaudited):
Three Months Ended
Nine Months Ended
(In thousands of AUD)
31 March
31 March
2019
2018
2019
2018
U.S. product
A$2,179
A$ -
A$3,281
A$ -
International product sales
189 238
900 845 Total product sales 2,368 238
4,181 845 Other revenue (including BARDA)
2,335
1,492 7,344 5,349
Total
revenue
A$4,703
A$1,730
A$11,525
A$6,194
“We are well ahead of our expectations for the U.S. launch of
the RECELL System and are delighted that sales doubled during this
quarter compared to the prior quarter,” said Dr. Mike Perry, Chief
Executive Officer. “The third quarter represents the first three
months of our market launch, and we have been very pleased with the
quick uptake of the RECELL System by burn centers that have been
the first movers in adopting the product. To date, 26 of the 134
burn centers within the U.S. have placed orders for the RECELL
System.”
“As we move beyond the early adopters, our collective experience
tells us that many of the remaining burn centers will follow a more
standard process for adopting the RECELL System, including an
initial evaluation of the product and advancement through their
hospital’s Value Analysis Committee (VAC), before making the formal
decision to purchase for regular use. This process can often take
six months or more to complete,” said Erin Liberto, Chief
Commercial Officer. “The recent ABA meeting added greatly to the
awareness and credibility of the RECELL System within the burn
community, and we look forward to converting this excitement into
product evaluations and the Value Analysis Committee approvals
required for adoption by additional U.S. burn centers.”
RECELL System Featured in Ten Presentations at ABA
Conference
Burn center professionals made ten presentations describing the
RECELL System at the American Burn Association (ABA) 51st Annual
Meeting held in Las Vegas April 2-5, 2019. Key results presented at
the ABA meeting included the following:
- Pediatric Treatment Outcomes:
Pediatric patients with mixed and full-thickness burns treated with
the combination of Spray-On Skin™ Cells prepared using the RECELL
System and widely meshed autografts experienced excellent healing
outcomes, with 98% of wounds healed four weeks after treatment. The
presentation was selected as a “Best of the Best Abstract” out of
more than 500 abstract submissions to the ABA meeting.
- RECELL Projected to Reduce Cost of
Treating Severe Burns: Health economic data projects that use
of the RECELL System to treat patients with severe burns could save
up to USD $28 million annually compared to treatment with the
standard of care at the Arizona Burn Center, part of the Maricopa
Integrated Health System (MIHS), a major public teaching hospital
and safety net system of care based in Phoenix.
- Long-Term Review by Co-Inventor:
Professor Fiona Wood, AM, Burns Service of Western Australia, Fiona
Stanley and Perth Children's Hospitals, described her experience
treating more than 3,500 patients with burns and other cutaneous
injuries, including a reduction in the number of surgical
procedures, earlier intervention, and reduction in time to healing
and length of stay.
- Donor Site Treatment Outcomes:
Preliminary results demonstrated that donor sites treated with the
Spray-On Skin Cells prepared using the RECELL System could be
reharvested in as little as seven days after treatment. The
presentation was awarded best in category at the ABA
conference.
- Treatment of Extensive Burns:
Patients with extensive burns, greater than 50% total body surface
area (TBSA), treated with Spray-On Skin Cells in combination with
widely meshed autografts healed as quickly as patients with smaller
burn injuries provided the same treatment combination, despite the
far greater clinical challenges associated with treatment for burns
over 50% TBSA.
- Publication Recognition: The
2018 publication of the RECELL System pivotal trial in
second-degree burns in the Journal of Burn Care & Research was
recognized during the “The Year in Review: The Top Journal
Publications” session of the ABA meeting.
Patients from the pediatric, donor site and large TBSA
presentations were treated under Investigational Device Exemption
(IDE) programs which allowed the use of the RECELL System to treat
patients in advance of the September 2018 market approval in the
U.S. The pediatric, treatment of donor sites, and extensive burns
presentations include classes of patients that fall outside of the
currently approved U.S. product labeling. Healthcare professionals
should read the INSTRUCTIONS FOR USE - RECELL® Autologous Cell
Harvesting Device (https://recellsystem.com/) for a full
description of indications for use and important safety information
including contraindications, warnings and precautions.
Funding and technical support for the development of the RECELL
System is provided by the Biomedical Advanced Research and
Development Authority (BARDA), under the Assistant Secretary for
Preparedness and Response, within the U.S. Department of Health and
Human Services, under ongoing USG Contract No. HHSO100201500028C.
Programs funded under the BARDA contract include two randomized,
controlled pivotal clinical trials, the Compassionate Use and
Continued Access programs, development of the health economic model
demonstrating the cost savings associated with the RECELL System,
and two randomized, controlled clinical trials in pediatric burn
patients.
Japan Collaboration and Application for Approval
In February AVITA Medical entered into a collaboration with
COSMOTEC, an M3 Group company, to market and distribute the RECELL
System for the treatment of burns and other wounds in Japan. In
addition, COSMOTEC filed on 25 February 2019 a Japan’s
Pharmaceuticals and Medical Devices Act (“JPMDA”) application for
approval to market the RECELL System in Japan. The JPMDA has
accepted the application and review is expected to take nine months
to a year.
COSMOTEC has extensive experience marketing medical devices and
other products into hospitals and surgical suites throughout Japan,
including specialties requiring a high level of training such as
cardiovascular treatment, making them an ideal partner for AVITA
Medical. COSMOTEC is wholly owned by the M3 Group, a major
healthcare company with great physician access in Japan and other
markets. The filing of the JPMDA application is a major milestone,
and AVITA Medical looks forward to making the RECELL System
available to patients in Japan.
Third Quarter Fiscal 2019 Financial Results
(Unaudited)
(All amounts are in thousands of AUD except where noted)
A copy of the Appendix 4C - Quarterly Cash Flow Report for the
third quarter of fiscal 2019, the quarter ended 31 March 2019, is
attached. Operations for the quarter were focused primarily on the
U.S. national market launch of the RECELL System for the treatment
of acute thermal burns, and the preparation and conduct of further
clinical development of the RECELL System.
During the quarter ended 31 March 2019, total cash receipts were
A$4,848, an increase of A$2,015 or 71% compared to the prior
quarter ended 31 December 2018. Cash receipts from customers for
the quarter ended 31 March 2019 were A$2,513, an increase of
A$1,655 or 193% compared to the prior quarter due to the
commencement of the U.S. national market launch of the RECELL
System. Cash received from BARDA during the current quarter
totalled A$1,724, a decrease of A$251 or 13% compared to the prior
quarter. The decrease was the result of wind-down of certain
activities associated with supporting the U.S. FDA approval of
RECELL System as well as Compassionate Use and Continued Access
programs. Through 31 March 2019, cumulative payments of A$24.36
million have been received under the BARDA contract.
As the result of the U.S. national market launch of the RECELL
System and related initiatives, overall payments for operating
expenses increased during the third quarter of fiscal 2019. During
the quarter ended 31 March 2019, payments related to sales and
marketing, staffing, administrative and corporate costs for the
current quarter totalled A$9,578, a A$611 or 7% increase compared
to the quarter ended 31 December 2018. The increase was in a large
part due to the November 2018 hiring of the U.S. sales force for
commercialization of the RECELL System, a team that was in place
for the entire quarter ended 31 March 2019. During the quarter
ended 31 March 2019, payments related to product manufacturing and
operating costs totalled A$919, a A$565 or 160% increase compared
to the quarter ended 31 December 2018. The increase was directly
related to the increase in sales during the current quarter. These
increases were partially offset by payments for research and
development, which during the current quarter totalled A$925, a
A$644 or 41% decrease compared to the quarter ended 31 December
2018. The decrease was the result of the wind-down of certain
activities associated with supporting the U.S. FDA approval of the
RECELL System as well as the Compassionate Use and Continued Access
programs. As a result of the national launch of the RECELL System
in the U.S. in January 2019, and the expansion of research and
development, payments for operating expenses will increase in
future quarters. These expense payments will be partially offset by
receipts from customers and receipts under the BARDA contract.
Total net cash used in operating activities during the quarter
ended 31 March 2019 was A$6,481, a A$102 or 2% decrease compared to
the quarter ended 31 December 2018. The current quarter decrease in
net cash used in operating activities resulted from the increase in
total cash receipts partially offset by the increase in payments
for operating expenses.
During the quarter ended 31 March 2019, net proceeds provided by
Tranche 2 of an institutional placement of shares to U.S.,
Australian and international institutional and sophisticated
investors, and under a Share Purchase Plan, was A$15,536. Cash and
cash equivalents held at 31 March 2019 was A$38,902.
Future cash requirement will be dependent upon the success of
AVITA Medical’s efforts to commercialize the RECELL System,
particularly in the U.S., and the timing and magnitude of clinical
and other research and development programs the Company elects to
undertake to expand its product pipeline. Until such time that the
Company generates sufficient cash flow from operations, it expects
to fund its future cash requirements through a combination of
current cash resources, and potentially the issuance of shares and
debt financing.
ABOUT AVITA MEDICAL LIMITED
AVITA Medical is a regenerative medicine company with a
technology platform positioned to address unmet medical needs in
burns, chronic wounds, and aesthetics indications. AVITA Medical’s
patented and proprietary collection and application technology
provides innovative treatment solutions derived from the
regenerative properties of a patient’s own skin. The medical
devices work by preparing a REGENERATIVE EPIDERMAL SUSPENSION™
(RES™), an autologous suspension comprised of the patient’s skin
cells necessary to regenerate natural healthy epidermis. This
autologous suspension is then sprayed onto the areas of the patient
requiring treatment.
AVITA Medical’s first U.S. product, the RECELL® System, was
approved by the U.S. Food and Drug Administration (FDA) in
September 2018. The RECELL System is indicated for use in the
treatment of acute thermal burns in patients 18 years and older.
The RECELL System is used to prepare Spray-On Skin™ Cells using a
small amount of a patient’s own skin, providing a new way to treat
severe burns, while significantly reducing the amount of donor skin
required. The RECELL System is designed to be used at the point of
care alone or in combination with autografts depending on the depth
of the burn injury. Compelling data from randomized, controlled
clinical trials conducted at major U.S. burn centers and real-world
use in more than 7,000 patients globally, reinforce that the RECELL
System is a significant advancement over the current standard of
care for burn patients and offers benefits in clinical outcomes and
cost savings. Healthcare professionals should read the INSTRUCTIONS
FOR USE - RECELL® Autologous Cell Harvesting Device
(https://recellsystem.com/) for a full description of indications
for use and important safety information including
contraindications, warnings and precautions.
In international markets, AVITA Medical’s products are marketed
under the RECELL System brand to promote skin healing in a wide
range of applications including burns, acute wounds, scars and
vitiligo. The RECELL System is TGA-registered in Australia and
CFDA-cleared in China.
To learn more, visit www.avitamedical.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This letter includes forward-looking statements. These
forward-looking statements generally can be identified by the use
of words such as “anticipate,” “expect,” “intend,” “could,” “may,”
“will,” “believe,” “estimate,” “look forward,” “forecast,” “goal,”
“target,” “project,” “continue,” “outlook,” “guidance,” “future,”
other words of similar meaning and the use of future dates.
Forward-looking statements in this letter include, but are not
limited to, statements concerning, among other things, our ongoing
clinical trials and product development activities, regulatory
approval of our products, the potential for future growth in our
business, and our ability to achieve our key strategic, operational
and financial goal. Forward-looking statements by their nature
address matters that are, to different degrees, uncertain. Each
forward- looking statement contained in this letter is subject to
risks and uncertainties that could cause actual results to differ
materially from those expressed or implied by such statement.
Applicable risks and uncertainties include, among others, the
timing of regulatory approvals of our products; physician
acceptance, endorsement, and use of our products; failure to
achieve the anticipated benefits from approval of our products; the
effect of regulatory actions; product liability claims; risks
associated with international operations and expansion; and other
business effects, including the effects of industry, economic or
political conditions outside of the company’s control. Investors
should not place considerable reliance on the forward-looking
statements contained in this letter. Investors are encouraged to
read our publicly available filings for a discussion of these and
other risks and uncertainties. The forward-looking statements in
this letter speak only as of the date of this release, and we
undertake no obligation to update or revise any of these
statements.
+Rule 4.7B
Appendix 4C
Quarterly report for entities subject
to Listing Rule 4.7B
Introduced 31/03/00 Amended 30/09/01, 24/10/05, 17/12/10, 01/09/16
Name of entity
AVITA Medical Limited
ABN
Quarter ended (“current
quarter”)
28 058 466 52331 March 2019
Consolidated statement of cash flows
Current quarter$A’000
Year to date(9
months)$A’000
1. Cash flows from operating activities 1.1
Receipts from customers 2,513 3,718 1.1a Receipts from government
contract (BARDA) 1,724 7,828 1.2 Payments for (a) research and
development (925 ) (4,020 ) (b) product manufacturing and operating
costs (919 ) (2,298 ) (c) advertising and marketing (2,265 ) (6,262
) (d) leased assets (263 ) (777 ) (e) staff costs (4,593 ) (11,948
)
(f) administration and corporate costs
(2,457 ) (6,367 ) 1.3 Dividends received - - 1.4 Interest received
93 190 1.5 Interest and other costs of finance paid - - 1.6 Income
taxes paid - - 1.7 Government grants and tax incentives - 2,441 1.8
Other (provide details if material) 611 611
1.9 Net cash used in operating activities
(6,481 ) (16,884
)
Consolidated statement of cash flows
Current quarter$A’000
Year to date(9
months)$A’000
2. Cash flows from investing activities 2.1
Payments to acquire: (a) property, plant and equipment (501 )
(1,223 ) (b) businesses (see item 10) - - (c) investments - - (d)
intellectual property - - (e) other non-current assets - - 2.2
Proceeds from disposal of: (a) property, plant and equipment (b)
businesses (see item 10) - - (c) investments - - (d) intellectual
property - - (e) other non-current assets - - 2.3 Cash flows from
loans to other entities - - 2.4 Dividends received (see note 3) - -
2.5 Other (provide details if material) - -
2.6 Net cash used in investing activities
(501 ) (1,223
) 3. Cash flows from financing
activities 3.1 Proceeds from issues of shares 16,983 45,037 3.2
Proceeds from issue of convertible notes - - 3.3 Proceeds from
exercise of share options - - 3.4 Transaction costs related to
issues of shares, convertible notes or options (1,447 ) (4,192 )
3.5 Proceeds from borrowings - - 3.6 Repayment of borrowings - -
3.7 Transaction costs related to loans and borrowings - - 3.8
Dividends paid - - 3.9 Other (provide details if material) -
-
3.10 Net cash from financing
activities 15,536
40,845
Consolidated statement of cash flows
Current quarter$A’000
Year to date(9
months)$A’000
4.
Net increase in cash and cash
equivalents for the period
4.1 Cash and cash equivalents at beginning of quarter/year to date
30,342
14,825
4.2 Net cash used in operating activities (item 1.9 above) (6,481 )
(16,884 ) 4.3 Net cash from used in investing activities (item 2.6
above) (501 ) (1,223 ) 4.4 Net cash from financing activities (item
3.10 above) 15,536 40,845 4.5 Effect of movement in exchange rates
on cash held 6 1,339
4.6 Cash and
cash equivalents at end of quarter 38,902
38,902
5.
Reconciliation of cash and cash
equivalentsat the end of the quarter (as shown in the
consolidated statement of cash flows) to the related items in the
accounts
Current quarter$A’000
Previous quarter$A’000
5.1 Bank balances 38,902 30,342
5.2 Call deposits - - 5.3 Bank overdrafts - - 5.4 Other (provide
details) - -
5.5 Cash and cash equivalents at end
of quarter (should equal item 4.6 above)
38,902 30,342
6.
Payments to directors of the entity and
their associates
Current quarter$A'000
6.1 Aggregate amount of payments to these parties included in item
1.2 (258 ) 6.2 Aggregate amount of cash flow from loans to these
parties included in item 2.3 6.3 Include below any
explanation necessary to understand the transactions included in
items 6.1 and 6.2 6.1 Executive Director remuneration (166k),
Directors fees (64k), Clinical Advisory Board fees (11k), and
Bioscience Consultancy (17k)
7.
Payments to related entities of the
entity and their associates
Current quarter$A'000
7.1 Aggregate amount of payments to these parties included in item
1.2 7.2 Aggregate amount of cash flow from loans to these parties
included in item 2.3 7.3 Include below any explanation
necessary to understand the transactions included in items 7.1 and
7.2
8.
Financing facilities availableAdd
notes as necessary for an understanding of the position
Total facility amountat quarter
end$A’000
Amount drawn atquarter
end$A’000
8.1 Loan facilities 8.2 Credit standby arrangements
8.3 Other (please specify) 8.4
Include below a description of each facility above, including the
lender, interest rate and whether it is secured or unsecured. If
any additional facilities have been entered into or are proposed to
be entered into after quarter end, include details of those
facilities as well.
9. Estimated cash outflows for next quarter
$A’000 9.1 Research and development
1,000 9.2 Product manufacturing and operating costs
1,000 9.3 Advertising and marketing 1,500 9.4 Leased assets 250 9.5
Staff costs 5,000 9.6 Administration and corporate costs 1,500 9.7
Other (provide details if material)
9.8
Total estimated cash outflows* 10,250 *
Pertains to outflows only, inflows from customer receipts
and government contracts, which totalled $4,848 for the quarter
ended 31 March 2019 and are expected to increase in future
quarters, are not included.
10.
Acquisitions and disposals
ofbusiness entities(items 2.1(b) and 2.2(b)
above)
Acquisitions Disposals
10.1 Name of entity
10.2 Place of incorporation or registration
10.3 Consideration for
acquisition or disposal
10.4 Total net assets
10.5 Nature of business
Compliance
statement 1 This statement has been prepared in
accordance with accounting standards and policies which comply with
Listing Rule 19.11A. 2 This statement gives a true and fair view of
the matters disclosed.
Dale Sander
Chief Financial Officer
30 April 2019
Notes 1. The quarterly report provides a basis
for informing the market how the entity’s activities have been
financed for the past quarter and the effect on its cash position.
An entity that wishes to disclose additional information is
encouraged to do so, in a note or notes included in or attached to
this report. 2. If this quarterly report has been prepared in
accordance with Australian Accounting Standards, the definitions
in, and provisions of, AASB 107: Statement of Cash Flows apply to
this report. If this quarterly report has been prepared in
accordance with other accounting standards agreed by ASX pursuant
to Listing Rule 19.11A, the corresponding equivalent standard
applies to this report. 3. Dividends received may be classified
either as cash flows from operating activities or cash flows from
investing activities, depending on the accounting policy of the
entity. + See chapter 19 for defined terms 1
September 2016
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190429005900/en/
U.S. MediaSam Brown, Inc.Christy CurranPhone
+1-615.414.8668christycurran@sambrown.com
O.U.S MediaMonsoon CommunicationsSarah KemterPhone
+61 (0)3 9620 3333Mobile +61 (0)407 162
530sarahk@monsoon.com.au
Investors: Westwicke PartnersCaroline CornerPhone
+1-415-202-5678caroline.corner@westwicke.com
AVITA Medical LtdDale A. SanderChief Financial
OfficerPhone +1-661-367-9178dsander@avitamedical.com
AVITA Medical (ASX:AVH)
Historical Stock Chart
From Mar 2024 to Apr 2024
AVITA Medical (ASX:AVH)
Historical Stock Chart
From Apr 2023 to Apr 2024