Ann: AVITA Medical to Announce First Quarter 2023 Results, page-48

I listened to the call this morning and my conviction in holding AVH has been validated. There were no surprises in the financials and all looks to be on track to get approvals and increase sales staff for rollout of expanded use including Soft Tissue indication on July 1. Also RCELL GO on track for submission by 30 June 2023. This will be the real driver for growth.
In regards to the NICE argument this improved device makes those claims obsolete as the cost benefit will be at least 30% improved.

As an investor I am reassured with Jim’s leadership. His response to the questions showed his deep understanding of the company operations and did not give fluff answers but were very incite full which you don’t get from official reports. This makes his projections for revenue growth very credible and does not give you the impression he is pulling numbers out of thin air. He mentioned they buy historic burns data and validate with their own experience to determine potential growth numbers. This is the sign of real leadership. He also mentioned doing surveys of his sales team to gauge quality standards and he is very pleased with the high level he is observing. They use a buddy system to train the new sales staff so this gives me confidence the new sales team will become productive in short period. Sales calls already started to prep the market for the imminent release of soft tissue approval.

Having already hired 39 of 40 positions this also shows his leadership in delivering on his promise to expand sales team and reaffirms the guidance. Big tick for management.


In summary the market should respond positively to the latest results. I don’t think it has been fully priced in and we should see a decent uptick in SP moving into approvals in coming month.

Regards
Richard