Ann: Appendix 4E and Preliminary Final Report (Form 10-K), page-57

"Rejuvenation

We believe that reversing aging at a cellular level has the potential to impact rejuvenation by driving functional changes to skin cells. This will be significantly different from existing products, such as cosmeceuticals that supplement proteins to cells, and surgical approaches that do not alter cellular stat but alter tissue morphology. An approach for molecular reversal of the underlying defects resulting in aging could have a profound effect on rejuvenation.

In November 2020, AVITA announced a preclinical research agreement with the Houston Methodist Research Institute (“HMRI”) to explore molecular reversal of cellular aging through a novel cell suspension delivery system. AVITA retains the option to exclusively license HMRI’s patented technology as well as the right of first negotiations to HMRI’s technologies emerging from the partnership for further development and commercialization.

HMRI is a compelling partner for this work. Dr. John Cooke and his team have developed a novel, patented approach of telomerase reverse transcriptase delivery to reverse cellular aging and have been widely recognized as leaders in this space with multiple peer reviewed publications, grants, and awards. Further, HMRI has a strong program in translational medicine, including the Center for Rapid Device Translation that supports preclinical testing and GLP environments which could enable rapid translation from research into clinical trials.

In collaboration with HMRI, skin cells harvested using the RECELL Device have been molecularly reverse-aged, and used to regenerate skin in a mouse model, thereby establishing proof of concept. Work is ongoing to characterize the tissue to identify functional attributes associated with rejuvenated skin.

American consumers spend over $16 billion on aesthetic procedures per year. Over 8 million people underwent a medical facial aesthetic procedure aimed at improving skin tightness, texture or evenness in skin tone in 2020. Approximately, 1/8th of those procedures would be considered to be somewhat invasive with associated downtime or recovery needed thereafter. The total addressable market for AVITA in rejuvenation is approximately $15 billion. Our target market will likely be the same subset of users that are open to undergoing an in-office procedure but looking for more dramatic results without having to resort to plastic surgery.

Consumers are seeking a natural, more youthful appearance and there is a gap in the market for a minimally invasive procedure that provides meaningful results."