AVITA Medical (RCEL) Piper Sandler 36th Annual Healthcare Conference summary

Strategic transformation and product innovation

• RECELL GO platform automates spray-on skin preparation, reducing OR and anesthesia time, and is reusable up to 200 times, streamlining hospital workflow and accelerating patient healing.

• Expanded indications now include burns, full-thickness trauma, and vitiligo, supported by a robust regulatory and IP platform.

• Adjacent market opportunities realized with new biosynthetic dressings and the Cohealyx dermal matrix, both expected to be meaningful contributors in the coming year.

• Cohealyx, co-developed with Regenity, optimizes graft take time, outperforming competitors in preclinical studies and reducing hospital stays.

• Transitioning from a single-product focus to a broader acute wound care portfolio.

Market adoption, financial outlook, and operational focus

• Rapid conversion to RECELL GO, with over 75% of revenue base converted by Q3 and expectations to exceed 90% by year-end.

• Margin profile remains strong, with gross margins expected to stabilize at 85%-88% despite a brief dip during product transition.

• Q3 focus on RECELL GO conversions temporarily slowed new trauma account additions, but a significant recovery is expected in Q4.

• Strategic focus shifting to larger, high-volume trauma centers to maximize impact and adoption.

• No significant headcount increases planned; profitability on a full GAAP basis targeted by Q3 next year.

Market expansion and competitive positioning

• Total addressable market (TAM) for burns expands from $400M to $1.5B with new products; trauma market adds another $2B in TAM.

• PermeaDerm and Cohealyx compete with established products like Suprathel, Integra, Kerecis, and PolyNovo, offering faster healing and lower costs.

• RECELL GO Mini addresses smaller wounds, with over 80% margin, and is near approval.

• European launch planned post-CE Mark approval, with initial modest contribution in 2025 and growth expected in subsequent years.

• International strategy targets sophisticated, well-funded healthcare systems; selective country entry planned.