AVITA Medical (ASX: AVH) is set to enhance patient care with its new FDA-cleared collagen-based dermal matrix in collaboration with Regenity Biosciences. This innovative technology will catalyse healing for chronic wounds and severe skin injuries, offering patients quality of care through faster recovery and better skin restoration.
“This strategic collaboration significantly strengthens our portfolio and advances our long-term growth objectives,” said Jim Corbett, CEO of AVITA Medical.
AVITA, headquartered in Valencia, California is a regenerative medicine company, specialising in developing innovative devices for wound care management and skin restoration. Their recent collaboration with Regenity Biosciences underscores medical advancing solutions and improving patient care. Built over two decades, Regenity Biosciences expertise in creating biocompatible and absorbable materials has positioned it as a preferred partner for medical device manufacturers seeking innovative solutions, especially for tissue and bone repair.
“Regenity’s proven expertise in developing and manufacturing bioresorbable materials aligns with our vision. By integrating their innovative collagen-based solutions with our existing RECELL technology, we believe we also have the potential to establish a new standard of care with a one-stage closure, thereby improving patient outcomes,” Corbett added.
AVITA Medical has secured exclusive rights to market, sell, and distribute a novel collagen-based dermal matrix developed by Regenity Biosciences, taking a leap forward in wound care. This new matrix is designed to enhance wound healing by promoting rapid cell repopulation and revascularization, which could lead to quicker and more effective wound closure.
Clinical studies are planned for 2025 to assess the matrix’s effectiveness both on its own and in combination with AVITA’s existing RECELL technology. The integration of this dermal matrix with RECELL holds the potential to establish a new standard of care by simplifying treatment through a one-stage closure approach, which could significantly improve patient outcomes.
The exclusive development and distribution agreement has an initial term of five years, with a possible automatic extension for an additional five years, provided certain conditions are met. According to the agreement, AVITA will pay $2.0 million upon Regenity receiving receipt of 510(k) clearance. Additionally, AVITA Medical is required to make up to $3.0 million in further payments by January 4, 2026, to support manufacturing capacity, contingent on favourable clinical study results for the new dermal matrix.
For the first two years, revenue sharing from product sales is set at 50% of the average sales price. In the following years, AVITA share will increase to 60% of the product’s average sales price.
For the March 2024 quarter, AVH reported $11.1 million in revenue which represented a 5.8% increase on the previous corresponding quarter ($10.5m).
As of March 31, 2024, the Company had $16.9 million of cash on hand.
Sidra is a Business Writer with The Sentiment
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