AVH 0.37% $2.70 avita medical inc.

I think you nailed it with this comment: "All of this is clearly...

  1. 405 Posts.
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    I think you nailed it with this comment:

    "All of this is clearly pointing the way to a new standard of care in wound care"

    I understand the strategy is to leverage the sales force to sell additional external products while they are promoting RECELL, resulting in additional commercial revenue at minimal expense. However, since RECELL can and is be used in conjunction with a wide range of other products, including dermal scaffolds and dressings (others include debridement, negative pressure), why would they focus on adding a small handful of external products to their product portfolio? I would've thought they would sell a higher volume of RECELL kits with the hospitals approved/surgeons preferred dermal scaffold and dressing products.

    I can only think of one good reason:

    The "to be selected dermal scaffold" + RECELL + PermeaDerm + "other future products" = superior results.

    Superior results leads to a new standard of care, happier patients, physicians, hospitals, insurance providers, staff, and shareholders.

    I'm also looking forward to seeing where both companies end up in a few years time. It's probably also worth noting that the the market is willing to value PNV at around 20x sales after recently becoming profitable and revenue growth at around 60% YoY. If we can achieve profitability in FY25 with around 60% YoY revenue growth ($130M), and if the market is willing to value AVH at 20x sales, the share price of AVH could be around $29 ($96 RCEL).

 
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