NORTHRIDGE, CA and CAMBRIDGE, UNITED KINGDOM -- (Marketwired) -- Jan 28, 2016 -- Avita Medical Ltd. (ASX: AVH) (OTCQX: AVMXY), a regenerative medicine company specializing in the treatment of wounds and skin defects, today announced its financial results for the second quarter of fiscal 2016 which concluded on December 31, 2015.
Q2 Financial Highlights
- Total ReCell® for the first six months of fiscal 2016 were 17% higher than the previous year period
- Respiratory sales for the first half of the fiscal year were 9% lower than last year, and quarterly sales were down 1% compared to the second quarter of fiscal 2015
- Overall company sales for the first half of the fiscal year were in line with the first half of fiscal 2015
- First half fiscal 2016 sales in France and Germany were up 54% and 213%, respectively, versus the year ago period
- UK sales for the first six months of the fiscal year were flat on a year-over-year basis, and increased 9% for the second quarter compared to the three month period in fiscal 2015
- Receipts for the quarter were down 39% compared to the previous quarter as the company transitions to new distributors
- Net operating cash out flow for the second quarter was 11% higher compared to the previous quarter
- Completed financing of AUD$10,018,644 million in a common stock placement through issue of 107,727,359 shares at a price of AUD$0.093 per share
- At end of the second quarter of fiscal 2016, the Company reported cash on hand of AUD$7.7 million.
Avita continued to execute its comprehensive commercial strategy during the second quarter as it transitions its business for long-term growth. The Company generated overall sales for the first half of the fiscal year that were in line with the same period of fiscal 2015. In particular, the European market showed significant improvement with an increase in first half sales of 213% in Germany and 54% in France. On a segment basis, the Company achieved revenue growth of 17% for its ReCell® business during the first half compared to the first half of fiscal 2015, demonstrating the growing interest in these regenerative medicine products and the need for improved treatment options for wounds, burns and skin defects.
During the quarter, Avita took important steps to strengthen its balance sheet and enable it to focus entirely on its ReCell® business. As a major step in its funding strategy to support its stated commercialization goals, Avita completed a financing of over AUD$10 million in a common stock placement to sophisticated and institutional investors through the issue of 107,727,359 shares at a price of AUD$0.093 per share. In addition, the Company announced the sale of its respiratory business for $2.64 million, which comprises $2.2 million in cash and $440,000 in stock. The transaction is anticipated to close by early February. The sale of the respiratory business, coupled with its Biomedical Advanced Research and Development Authority (BARDA) contract, which will start generating revenue during the current quarter, will provide the Company with significant non-dilutive capital. With a strong and growing cash position, Avita is strategically positioned to support its ongoing clinical activities and work toward commercialization. At end of the second quarter of fiscal 2016, the Company reported cash on hand of AUD$7.7 million.
Adam Kelliher, Chief Executive Officer of Avita Medical, commented, "This quarter was extremely significant for Avita from a strategic perspective. Importantly, we divested our respiratory business, which enabled us to accomplish two important goals. First, we have transitioned our business to focus solely on ReCell®, a business which continues to grow sales globally and we believe will play an important role in wound care and the treatment of skin defects. Second, it provides additional cash to support our ongoing clinical activities so that we can commercialize in the United States. Over the past few quarters, we have worked hard to transition Avita for long-term growth and we are excited about our recent achievements toward this goal."
ABOUT AVITA MEDICAL LIMITED
Avita Medical develops and distributes regenerative products for the treatment of a broad range of wounds, scars and skin defects. Avita's patented and proprietary collection and application technology provides innovative treatment solutions derived from a patient's own skin. The Company's lead product, ReCell®, is used in the treatment of a wide variety of burns, plastic, reconstructive and cosmetic procedures. ReCell® is patented, CE-marked for Europe, TGA-registered in Australia, and CFDA-cleared in China. In the United States, ReCell® is an investigational device limited by federal law to investigational use. A pivotal U.S. trial is underway, with patient enrollment completion anticipated by the end of 2015. To learn more, visit www.avitamedical.com.
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FOR FURTHER INFORMATION Avita Medical Ltd Adam Kelliher Chief Executive Officer Phone: +44 (0) 1763 269 770 [email protected] Avita Medical Ltd Tim Rooney Chief Financial Officer Phone: + 1 (818) 356-9400 [email protected] Avita Medical Ltd Gabriel Chiappini Company Secretary Phone +61(0) 8 9474 7738 [email protected] UK/EU Instinctif Partners Gemma Howe/Sue Charles Phone +44 (0)20 7866 7860 [email protected] USA The Ruth Group Lee Roth, Investor Relations Kirsten Thomas, Public Relations Phone: +1 (646) 536-7012 / +1 (508) 280-6592 [email protected] / [email protected] Australia Monsoon Communications Rudi Michelson Investor Relations / PR Phone: +61 3 9620 3333 [email protected]
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