AVITA Medical Reports 28% Revenue Growth to $64.3 Million, Despite Increased Net Loss

AVITA Medical, Inc. reported a total revenue of $64.3 million for the fiscal year ending December 31, 2024, marking a 28% increase from $50.1 million in the previous year. The growth was primarily driven by a 29% rise in commercial revenue, which reached $64.0 million, attributed to deeper penetration in existing customer accounts and the introduction of new products for full-thickness skin defects. Despite the revenue increase, the company recorded a net loss of $61.8 million, up from a loss of $35.4 million in 2023, largely due to a significant rise in operating expenses, which increased by 29% to $111.8 million.

In terms of strategic developments, AVITA Medical expanded its product offerings in 2024, launching the RECELL GO device and entering into exclusive distribution agreements for PermeaDerm and Cohealyx. The RECELL GO, which received FDA approval in May 2024, is designed to treat thermal burn wounds and full-thickness skin defects, while the Cohealyx product is a collagen-based dermal matrix expected to launch commercially in the second quarter of 2025. The company also signed a multi-year agreement with Stedical Scientific, Inc. for the distribution of PermeaDerm, enhancing its portfolio in acute wound care.

Operationally, AVITA Medical's workforce grew to 260 employees as of December 31, 2024, with 99% based in the U.S. The company has focused on increasing its market presence, particularly in U.S. burn centers, and plans to roll out the RECELL GO mini device in early 2025 to address smaller wounds. The company’s international strategy includes expanding its reach in Australia, the European Union, Japan, and the U.K. through third-party distributors, with significant efforts already underway in Japan.

The filing also highlighted the company's financial challenges, including a cumulative deficit of $359.8 million as of December 31, 2024, and ongoing cash burn, with net cash used in operations amounting to $48.9 million for the year. AVITA Medical has entered into a credit agreement with OrbiMed Advisors, securing $40 million in debt, which is subject to revenue covenants. The company anticipates that its cash reserves, totaling approximately $35.9 million, will support operations for at least the next 12 months, but it remains dependent on achieving sufficient sales to fund ongoing expenses.

Looking ahead, AVITA Medical aims to drive revenue growth through the continued adoption of its RECELL technology and the successful launch of new products. The company plans to conduct post-market studies to gather clinical data supporting its offerings and is actively pursuing additional business development opportunities to complement its core technologies. The management remains optimistic about the potential for future profitability, contingent on achieving targeted revenue levels and expanding its market share in the acute wound care sector.