AVITA Medical’s Cohealyx shows promise in wound care

VALENCIA, Calif. - AVITA Medical, Inc. (NASDAQ: RCEL, ASX: AVH), a therapeutic acute wound care company with annual revenues of $29.41 million and modest growth of 2.98%, today announced a significant development in wound management with the publication of clinical results for its product, Cohealyx. The study, appearing in the Journal of Surgery, suggests that Cohealyx may offer faster wound bed vascularization and readiness for autografting compared to traditional dermal matrices. According to InvestingPro data, the company maintains a gross profit margin of 15.97%, reflecting its position in the specialized medical device market.

The report details a case series from The Ohio State University Wexner Medical Center, where two patients with complex, full-thickness hand wounds received treatment with Cohealyx. Results showed that one patient achieved a well-vascularized wound bed by day 5, allowing for autografting by day 7, while the second patient reached a similar state by day 10 and underwent autografting on day 13. Both cases resulted in successful skin grafts and functional recovery.

Jim Corbett, CEO of AVITA Medical, stated that the clinical publication validates preclinical findings and marks Cohealyx as a significant advancement in wound care. He highlighted the product’s ability to reduce the time to autograft readiness, potentially improving patient outcomes and lowering the risk of complications. InvestingPro analysis indicates the company faces financial challenges with an EBITDA of -$39.31M and an overall Financial Health Score rated as WEAK, suggesting the importance of successful product commercialization for future growth.

Cohealyx is engineered using AVITA’s proprietary TetraPure™ Technology, which incorporates crosslinked, purified collagen types I and III. These are designed to support cellular migration and rapid revascularization, promoting effective integration within the wound bed. The clinical publication represents the first validation of preclinical studies that had previously indicated wound bed readiness as early as day 7.

AVITA Medical specializes in solutions that aim to optimize wound healing and accelerate patient recovery. The company’s portfolio includes the RECELL System®, which uses a patient’s own skin to create Spray-On Skin™ Cells for treating thermal burn wounds and full-thickness skin defects.

This press release statement is based on the information provided by AVITA Medical and does not include any independent verification of the claims. The clinical outcomes reported are specific to the case series mentioned and may not be indicative of broader results. Investors looking for deeper insights into AVITA Medical’s financial metrics and growth potential can access additional ProTips and detailed analysis through InvestingPro. The full clinical paper is available online for those interested in further details.

In other recent news, AVITA Medical has announced the U.S. commercial launch of its new product, Cohealyx. This collagen-based dermal matrix is designed to support wound healing, marking an expansion of AVITA’s wound care portfolio. The company aims to improve clinical outcomes by combining Cohealyx with its existing products like the RECELL System and PermeaDerm. AVITA Medical’s CEO, Jim Corbett, noted that pre-clinical studies have shown that wounds treated with Cohealyx were graft-ready faster than those treated with leading competitors. This advancement could potentially result in faster healing and shorter hospital stays. AVITA is also enrolling participants in the Cohealyx I trial to evaluate clinical outcomes and recovery timelines further. This trial reflects the company’s commitment to backing its products with robust clinical data. AVITA Medical holds exclusive rights to market Cohealyx and PermeaDerm in the U.S., while the RECELL System is approved for various skin healing applications internationally.

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