RCEL - Earnings call transcript Q1 2024

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Operator

Good day, and thank you for standing by, and welcome to the AVITA Medical, Inc.

First Quarter 2021 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Jessica Ekeberg, Director of Investor Relations. Please go ahead.

Jessica Ekeberg

operator. you, Thank Medical's AVITA XXXX call. earnings Welcome first to quarter

are Chief Financial Executive Joining me and Corbett, call today's Chief on Officer; Jim David Officer. O'Toole,

website, Relations release available earnings presentation www.avitamedical.com our under Today's the section. and Investor on are

could results Please recent Before and expressed comprehensive Securities forward-looking the of call the to call factors. forward-looking actual any this you implied or this based and expectations cause for includes during promises risk are Act Reform known differ I'd uncertainties of materially as review we unknown today. the from statements statements on involve Private Any nor by the are like neither provided expectations forward-looking descriptions begin, SEC filings statements. of of remind that to the most statements meaning that Litigation within our risks XXXX. and with These guarantees management's

Jim I over call comments. to will his turn now for the

James Corbett

us and Thank afternoon, you, Jessica. Good for thank today. joining you

today's I financial by outlook XXXX. call first and for our priorities will followed the of by quarter begin results and business our discussing

will a the us. update, before I for the quarter who Q&A. This our financial turn commentary for this call performance the David, over opening to call will disappointing Following quarter provide was to on

that Our did short $XX.X it arrival quarterly first time not quarter but million commercial achieve revenue felt our we of first growth. my of since expectations not only also the sequential marked

targets. to our the revenue by of in distribution certain business, encouraged in January, with While aspects encountered meeting challenges early address as are important such Stedical we agreement we it's our our

XXth. the to of several announcement, revenue believe assessment, Accordingly, important understand Not rules, the we to on or for guidance more market we by were our begin accurate this performance, I promptly may ASX provide caused hindered announcement to And nor this into At ability justify challenges data. financial performance. made provide what prudent we our that color have refrain me announcement with it's to Let despite comprehensive was our April this had frustration quarter, on investors. under having faced I issue speculations, we more call. statements our time the insights completed it minimize the to to an provide and not information from external in which instead gather the that note could release to analyzed providing having

through we previously of the of as experienced level Since XX we slower-than-expected only of accounts were defects. defects full-thickness the first announced, of rate new full-thickness a First, launch a for total quarter. accounts in added XXXX, closed our March skin XX, XX June XXXX of skin conversion in accounts expanded which new

However, the average a of we for quarter. at had of the an accounts first month new new accounts XXX end total XX of expected per

to complexities, we the initial process these we scope continue skin trauma committee more Despite surgeons single broadened VAC believe the and reimbursement analysis across efficient While opportunity plastics, the scenarios defects general approval including in multiple of have a managing presents as known sales indications navigating pursue initially the for RECELL, accounts. within become full-thickness medical beyond closing specialties, value facility, will to various and our process expectations. new the complicated underestimating multiple

look have full-thickness we forward of quarterly In quarter, second rejections. this, updating X, Looking standing current we approved. XXX skin We we from our total on on had at have Of Slide XX only accounts account a to our to call. defects. X submissions our to you had to XX, on progress launch for be May next expect VACs the

external device claims in below to the was historical determine a in or wound our expectations rate, business significantly we our to burns burn due data. decline rely whether admissions addition In conversion To our on quarter. account was this utilization,

feed our of as data claims, and February, January. Group, able claims breach which happened secure provider a the aware, was are of this unit data in data to for claims provider. disruption, you the UnitedHealth our However, U.S. data disrupted for largest many billing insurance to at a data clearinghouse Despite

admissions Burn typically are predictable and flat.

revealed lower compared burn data January admission the a However, for previous X XX% Januaries. the rate to wounds

decline. our Although were overall current until estimates flat for not years, the suggest to X% receive will if from X March admissions data would that providers reflect and compared months admissions September, prior data we quarterly February rate these

be team While we our of initiated we performance below XX% expectation of will least our believe approach cannot XX burn reinvigorate account clinical business. our our the an physically will training understanding burns at have burn for the of coverage in To their burn time that supplement this our causes accurately at present quarter, specialists of enhanced We sites, dedicating accounts, pinpoint strategy. centers.

Additionally, The RECELL FDA. period May the GO end its interactive of XXX-day is XX, end nearing XXX-day by review XXXX. the will on

prioritized in conversion RECELL for Assuming GO burn XX be will approval, to June. our top accounts

See to X. ready Slide are go. We

let's a management to a are trajectory. growth We defects. as its the of Furthermore, to from committed equally now dedicated transforming of for of to burns, RECELL single Now establishing application focus attention turn broad remain treatment extending encompass to we our product AVITA wound care skin our RECELL company. Medical care the to standard full-thickness

PermeaDerm care. our we spectrum and turn this preparation ideal RECELL includes PermeaDerm, surgical, co-branded of better this slide, believe chronic and strategic in products replacement more Slide dressing to transformation, identify accessibility X. let's and build with our can wound full-thickness we burn exploring are reach commitment, the there's compatible patients. To the of other other epidermal and the align and partners to the care and which potential to Slide we our all portfolio skin for address products alongside on exploring vision treatment clinical to continuum RECELL defect of the of healing. can illustrates many XX. of wound company. See Referring additions of the and to PermeaDerm be each to products we're the expanding of in By Collectively, our a improve and and additional products. presentation, a bed the burn, March nature aid and launched broad understand needs portfolio. Today, are needs, part dermal further portfolio U.S. our wound actively As X complementary to RECELL traumatic clinical and our replacement we broad-based all used full which cases in with our these

blue an to skin healing optimal This in wound the of antimicrobial example concern the be is layer current can dressings a this product layer full-thickness infection. a single for for with This Here an in dark bed every represents protective the preparation, instance, base environment. focus. of a as In serves layer used maintain wound patient. bed defect

further represents supporting closure. green focus represents other layer scaffolds, The vascularized plus generate The dermal RECELL to blue a aimed layer split Scaffolds definitive our meshed thickness graft. area. light skin tissue

less autografting. aware, definitive As to closure using significantly this skin traditional compared procedure provides you are

Lastly is protection purple the transparent PermeaDerm for is the layer, dressing which optimized management. and moisture

looking wound of of focusing to care at ability customers of By management the landscape patients. provide and needs our while wound our continuum care broader the addressing products, this on core strengthened multiple and business we

widespread and our large coverage products comprehensive these leverage portfolio sales ensuring us to integrating effectively, RECELL-oriented across organization cohesive into major cases. allows Additionally, a

third-party in efforts Union We're making international distribution expand strategy. and progress of the Australia into on to partnerships. most Moving to our through expansion our European

and part the in expect agreements execute major Australia countries year. to during the remaining of EU We distributor

European part been MDR. obtain we RECELL as As an a under medical have known our of notified CE EU also for Union the body with efforts, regulation, new working mark to GO device

December. pleased conformity assessment major MDR During April the with we document they dedicated technical With provided, the report review to technical information this notified of the for to has GO confirmed RECELL we receive XX, completeness GO RECELL proceeding the audits CE the all review. X I'm check passed a identified are for XXXX, quarter, body subsequently that timeline, on September submitted required between that mark expect and been that and submission. document and

Additionally, we GO in are RECELL stage testing validation mini. the of

RECELL X.X% have area. centimeters cartridge less, of accommodates GO will GO skin body This designed same to XXX less samples. represents but mini total surface a smaller wounds As donor small as is the RECELL durable have different a approximately device or will address square reusable or which that reminder,

completion receive submit a in Breakthrough RECELL preparing PMA was device June. of same will to the testing, supplement GO granted. RECELL the mini This are submission Following for the we current Device validation designation that

the turning Now vitiligo to initiative.

GO will second to be Our mini, this during timing, preliminary repigmentation evaluating begin quarter initial for for conclude will in follow-up scheduled submitted from treatment assessments we X-month June and in its the TONE, July. end quality insights we of we also will provide vitiligo study patients able By earnings data the patients. this the of expect our our and of PMA the supplement be the vitiligo With by RECELL which are patients post-market with our on life call cartridge for impact in have which August. to time, is

I plan submit study commercial begin of for our coverage indicated, and during publication separate As health the study second end have us economic the to we XXXX, by quarter TONE payer of positioning the to discussions XXXX.

the phase we a to phased in anticipate discussed, fourth of a quarter XXXX. previously with on the begin basis of As likely regional initial rollout coverage commercial

Our innovation continues. commitment and to growth

to with our in delivering and indications increased the as expanding to our drive growth reach, expand steadfast as well shareholders. are our of efforts all We portfolio sustained value within our adoption our goal

have an the organizational turning over Before I update. to David, call

retained longer an who search no replacement executive for President Senior is our the have of company. We with a find Global to firm Sales, Vice

X West directly During of the this East and interim report will period, our sales for the to me. VPs

commercial daily turn like In with over engaged the the addition, call sales will I'd David. entire to I directly team. With be that, to

David OToole

Thank Jim. you,

ended same was our months approximately which XXXX, more revenue commercial X.X% million, than XXXX. in was X the the For XX, $XX.X period March

However, the range. improve as commercial expectations to process have steps our return we growth believe revenue previous previous Jim have guidance we in We below submissions and this was significant and taken revenue including the significantly demonstrated our quarters. to VAC necessary has mentioned,

in will PermeaDerm. this the RECELL, include all all Since other versions wound which is our of last be less week reporting revenue Beginning in care PermeaDerm the launch X of RECELL; care March, portfolio, which than the quarter, now are such product categories: our X%. wound will products, revenue we and as products of with of expansion

profit margin to it this same the RECELL experience products period expect we new add where XXXX. directionally for our was to the we products. XX.X% for the increase and value expected Gross we our team in as This XX.X% sales to quarter be gains in However, with is compared XXXX selling new increase products.

Total for in in $XX.X marketing salaries and increase same increase of compared expenses were quarter expansion in organization higher sales including in the of support XXXX. to million the XXXX expense result our a attributable expenses, The is operating and result due operating period to the costs, to million commissions $X.X benefits, as million an travel to primarily benefits, $XX.X of commercial compensation. commercial expenses lower million and in quarter $X.X partially of by and all operations. G&A collectively growing as the of stock offset second by sales increased expenses salaries employee-related a

of million which as employee approximately debt in million income $XX.X in for of or medical Additionally, related million our and science or $X.XX R&D loss $X.X same the teams. increase other XXXX. warrant per million fair expense our of an loss to increase loss increased the cost we $X.X compared million loss for investment period $X.X to noncash of offset the $X.XX value in net per $X.X $X.X incurred net of cost, $X.X change by the expense to of income. Net due charges and in compensation of income primarily of to we Other related recognized and respectively, a a an million quarter first in was activities was by a share million liaison share liabilities,

as As and to cash $XX.X marketable had XXXX. XX, of compared of million we XX, of December million cash, March securities equivalents $XX.X

Stedical. significant that no purchases approximately that acknowledge we have other additional in with inventory $X for will $X.X gross of the quarter. the and with our be amount, recover future this through of use with this sales provides to a range attributable of Stedical totaling for inventory agreement will Recall part cash to approximately $X a that our We this items, as distribution in costs million It's we means distribution XX% inventory for sales. that which expense. including total million Of number expenses this note was gross of million agreement during significant important product margin, nonrecurring

than As indicated, anticipated we cash more we this quarter. used

than not no However, of of later and flow not long-term this the to is GAAP profitability a reach ability concern breakeven ours and affect quarter should third XXXX. cash our

guidance. revenue XXXX our to now Turning

second the in XXXX, $XX.X the revenues million of quarter $XX.X For range commercial of to to million. be

the lower year million $XX.X end I the million, will guidance XXXX, to our now of guidance continue of of for $XX.X revenue the reflecting full For to year Note approximately now that, us. that call lower the operator we range our of revenue growth we reaffirm provided over XX% includes And your end back questions. annual full for the you previously the to thank at from turn XXXX. PermeaDerm. With joining range the

Operator

And question [Operator O'Neil Instructions] Capital from Markets. our Brooks from first Lake comes Street

Brooks O'Neil

would that I few to XXXX? half in revenue into But million that is say, you extend of of have questions. you it bit. XXXX I'll more Stedical try or $X to a a expect little limit the would that occur David, likely second

David OToole

for Thanks Brooks, attending. to you with Thank question. the talk So nice you. for

any given that We on haven't specifically. guidance

of days the selling We early are still PermeaDerm. in

but our that sales going uptake point say how time this hard in is think it's traction, to is some at I quickly having to be. team

give will of able to be this what August that revenue We in more be will year. guidance for PermeaDerm

Brooks O'Neil

Great.

ask early I'm RECELL me you in not accounts for Let for ordering looking mention are approval results Or it before do your was think evidence a GO didn't the a product? prepared specifically and QX. but any do you waiting remarks, second see factor that curious, you you QX in the in of much that question.

James Corbett

that. a this many it think look said, And Brooks, waiting It's don't don't anticipation our question. at of Jim. I I is for is accounts there so. did think that larger strong thoroughly are accounts. in I for there's that. good And That

Brooks O'Neil

Sure. sense. total That makes

wasn't and I'll I'll then Okay. of you it was just curious expansion, if size would over. full-thickness, turn in one I'm in expanded quarter? that significant the or that your a factor there the sales much this organization you assess last disruption ask think do of related Obviously, of anticipation and entire among organization to the launch results you whether the sales the for

James Corbett

then question the So answer studied and I a that. first because great analysis. That's

group you possible One stayed burn And them legacy in my that kept better. with prior would June, take of majority. When went X things group performed rep their rep good which a of actually I understand of than accounts. some changed right, the reps, group backwards, the some look then and the the actually that better over a the last to them wanted same -- that the that existed you and had with months, new slightly to accounts

So out our that a didn't to be turn of cause challenge.

Brooks O'Neil

Okay.

as apologize say year. make your really would in really little you you real that part sneaking So for to if committees I'm this listening, time and begin process the issue into point, back to optimistic through the ability at relates the and I one of taking you're move about progress get say tidbit, to on back we the the last it's to

James Corbett

the had years in good learn not submitted previous how Simply stated, that virtually yes. a reason, course, committee organizationally. We've a about had of the but not We it. VAC the to is, to something is X fact this -- to feel better do we

full-thickness more complex, And so them. you is -- came, had and when a we lot when it of

and to so develop and had And we basically new learn capabilities skills.

about do We're QX. have approvals we feel very So expecting significant quarter a here better that. in to in

disclosing So we we'll be that. shall see because

Operator

Our from next Jennings TD Josh Cowen. question comes from

Eric Anderson

in XQ. in could sequential you the think on mind, to in us year and Eric of for look is guidance What about half around have the think ramp Josh. year ultimately how range? full you commentary steps XQ that guidance the reach for I XQ up the With appreciate do the like? that This would back

James Corbett

quarter. light get course. We well, they first pretty get -- -- do of they steeper, do a had ultimately Well,

Our recapturing second our quarter momentum. we're

and when have I guidance, million. we QX the at to end lower QX, of look our we committed think $XX.X

the have But And launch with also so will dressing. PermeaDerm that, with additional full we'll energy. you're RECELL that. undoubtedly correct of what which us in give GO comes -- wound have in identifying some be course, launch, is growth We'll

some to during a we have yes. half. add haven't good lot the specifically will aboard the second But we coming ramp, that So guided additions

Eric Anderson

out once on the those or VAC few VAC something quickly curious. are happens that then curiosity, is utilization? Just accounts of Is approval away? how accounts in the that committees just something happens that expanded your the customer for And RECELL label, weeks, a within approvals, of right grants topic ramping that Understood.

James Corbett

approval, you Once training to a get then there process is of additional and and positions. selling uptake

burns for So And been the seeing time, are -- it the is trauma contrary few the centers years. to a this product. new it first-in-category using for a these who've first

with relatively starts medical course, and appropriate physicians we helping selling the education their So patients is our real how get in the to science that different with where then, role their because identify liaisons that's and to of and how But pure helping patients. quickly. get actually happen And burns. RECELL have process results they where initial a is order specialties the the about big can seen there a think treat physicians impact the we've

process adoption there a over So terms expanding time. is of in

Operator

question from And BTIG. our next Ryan comes from Zimmerman

Ryan Zimmerman

appreciate I of color Jim, back all components, particularly year. half on in the the the the

You're including PermeaDerm.

back think skin I'm pick back GO, of going half contributions can the assuming just in half RECELL year. on full-thickness the pace first, you at to up what a from Are wondering, year? I elaborate of faster you of the accounts maybe defects you're for the in kind the

back if the that help the this you of Just in ramp. ramp And question. of this first also agreements distributor kind kind in That's I throw the help international half of year. some understand then confidence of offset some in us certainly of the think your could

you're Jim. company a talking becoming about then care And more, wound

to those Are you're how points? well. sales salespeople? thinking Just call help more initiatives you pursue need force your And understand new about directing so do us as you current

James Corbett

Okay.

don't, me. compound at I back all. If sure is make I them and It try get come question. me Let a

So all, at me first start just let kind end. of of the

being wound vision needing company; of salespeople. broad care anticipate Our a we additional don't a,

issue. first that's So

areas, the type illustrated The of I they wounds. particular all actually second as go of slide, product is of these in with the that treatment

can preparation, salesperson dressing same the same PermeaDerm. on sitting they all our the patient, sophisticated So same get wound and doctor can there, they at wound. get while like they into That's same is a into time, RECELL scaffolding, can get into

treatment a is that our portfolio So expansion around existing physician leverage sites. and pure and sites

So sure. it's to be synergistic

half, out let in we're we few broken terms yet. back how don't terms of in In of it giving a on guidance ramp the me comment things, haven't -- the we

We little say that will, experience. as But a going there's to meaningful can we gain more of suffice be that a all. to intuit bit PermeaDerm, contribution first from you

again Second is of this XXX all, days GO, RECELL XX. ends May the and

we inventory of So have X And year for are -- of for built news. the positive prepared second the actually a are energy has a half because lot and things. that of

me Let you. them for differentiate

often is burns often -- the is and In it used between a X kits RECELL it use between X we world, are it's -- patients. that for

means that somewhere XX%. greater XX% as So TBSA, much than as

GO go same for imagining room OR surgeons, burns and Particularly, second material the amount. they're simultaneously X and they right? sequence, biopsy you biopsy, in to kit. you and cutting processing you use time it another process method that RECELL take process often the You a on. the have for a through take manual the into by it spray them a then in and is so And the process, And instruments bringing and then

they're quite of RECELL by the So motivated GO. really prospect

extra for because same burns the to is physician that the also what version. in help technician technician to or it full-thickness manpower the -- Secondly, case, doing takes because less a will physician assist with nurse use an current it they prepare benefit goes

person extra that RECELL need in case don't the of You GO.

double work technician also you a burns decreases helps significantly. effect. imagine, It you shorter can less don't the And making really and people. the So extra as it training need full-thickness, in the for and less in -- case has that requirements

simply consequence that expectation to upsurge it of do. an adoption an as have we easier being So we get of a

we're what happen. to So is going believing that's

So does Ryan? I them that -- get all? did

Ryan Zimmerman

then back -- It was them in knocking in there's lot for so. Thank for a think out. Jim. me, questions And queue, and just hop you lastly David. I'll there, of I

introduction would as margins? the line what little for PermeaDerm. you in With back are gross of a of half your the the the on PermeaDerm gross year expecting imagine margin ramps there's pressure bit up. I of

David OToole

Yes.

the know, agreement calls XX% As us in you margin for for gross RECELL.

our going business. core contributing it's So to be less than

more gross our of on but our be the So guidance as to like of over that with in second what for half of looks quarter from last second PermeaDerm we're call. year. there year the the -- the And I Brooks, to going degradation a half has giving indicated earnings revenue August around margin be

Operator

our question And from Piper Matthew next comes O'Brien from Sandler.

Matthew O'Brien

guys what new kind so QX in guide you is X he early you April that of kind XX in guess maybe did month for I getting back predicated ads far days the to seeing versus per and QX. of on Are is center May? of

James Corbett

-- you new about sort disclosing approvals meet month, repeat those for of the when Could talking have them approved. to you all they the expect have we dates are we specific we when of the additions expected be without what -- quarter, the XX in and is -- month of of by

So that's a...

Matthew O'Brien

Are all expected? you you you are or got expecting XX and XX, half? What expecting

James Corbett

to XX But wanted they committee. didn't XX. got. the we what we come -- Well, more is than

wasn't So that got committee turned It down. we different where turndown a and was problem. a went to

down. So been we've turned rarely

expect So have... we to these because we XX, happen

Matthew O'Brien

there. $X you Got range get but low million what even And the ramp, a it's is if to gives going back ramp. about don't all your there's how then skepticism And PermeaDerm the massive it ability to I back just know half, you be know confidence, of in end say get I to it. the the to guys is the big. that it's I just don't mean, maybe half it's it.

can fears get one can more question David. calm for those help just So there? I that just how do then And you quick of have some you

James Corbett

almost going bigger to very sits you a it constantly of business RECELL to be train first Well, have present fundamentally. a Sure. PermeaDerm RECELL transform get model as GO all, and role. pays cases. today, -- RECELL always is our We'll from GO but most plays role,

relative RECELL GO. way mean that and done adoption utilization in a So will process a doesn't that speak, the get require being energy hurts having accounts the RECELL full-thickness. those I slows Both skin of you creating having significant person. down the spray burn of in the to in from to of on work so

that So will a market quite big make is The difference. huge.

So getting product that easier use make easier to a a of will learn, difference. is to ton

Matthew O'Brien

And Okay. late that right? QX, is that launch is

James Corbett

May inventory. is No. XX, we It expect -- and we approval have

Matthew O'Brien

Okay, okay.

half should second So benefit right away.

Okay. the you And QX then David, big the commentary the with a marketing but that? was step-up force And to QX What hand on sales have range SG&A the And is in profitability? there sequential on expect enough get going would all comfortable that was sales from through you case, cash forward? is I spending that's QX, you on in we understandable then feel had to this side. to if and the why mean, you do

David OToole

Yes.

you asking, that that the revenue. of kind get the about, for one last where talked burn year. significant is in When I last one we answer a of about achieve thinking The with about were ramp-up point going The also our that first because is for as it's to to the the to that was not half very half year. of through ramp the start thanks Jim, -- question. significant initiatives cash is this the we've So last the

and for our run guidance a of significant that, with rate we so into revenue. achieve lower we'll And end the heading be XXXX when in we believe

we're to is next with XXXX talked we've GAAP breakeven And as getting profitability flow can achieving by to enter that believe be year. about of cash And flow the going cash done. we breakeven so -- revenue the we middle be

the asked our about going SG&A. question You forward, expenses

that -- QX we've think I sales end indicated of force our I'm we of increased the QX, as have sorry. we or think I --

in step major And as any flat, SG&A and also. going see to don't we is so not -- the other side stay expenses, relatively of it QX. far that will expense, if sales the And G&A it, R&D step-up decrease. up from marketing as

So in I see, we all We that a because of QX. expanded of marketing think X team do quarter and I've again, covered have underwent sales them. sales we'll full the increasing

Operator

comes question Access. our And next from from MST Kallos Chris

Chris Kallos

ask products just about wanted of more around to little Jim, Europe? plans the into a your particular, mark the and CE international expansion, I the launching in color

James Corbett

to the head into not will it then under sometime X summertime, about distributors word. X Yes. Well, given things, for of that some months. some reason coincide we've distributors course, the -- the different in that technology. way to with not our launch one first GO as of GO as RECELL then cases with some distributor switch into tests we're October. or -- we've what's wrong MDR Europe. have We've readiness couple about get a to one familiar have of prefer not of we with broad identified window of RECELL And launch a done which -- test, is the for is we've is with to of they the time the is, clearly, signed September, all, done the course, perfect a with choices, we're the been them talking happening of One evaluating the after And

of know, is factors. same to true goal year. and that's MDR the -- is that get But Australia So one And our this done year. the recognizes you this may the

be Australia. with So the we'll doing same

Chris Kallos

to January, going quarter lower that in was to understand normalized? Great. historical Are also, norms I burn comfortable now that's that return correctly. was reason going has And rate for heard a And forward? the that? largely due you to if the What disappointing

James Corbett

enough don't so, January. facts that March, was we're itself that see It one we have And February on. effect the seems same it only that seeing currently. It had like and down But we away. seems is facts recall, was Chris. -- January you not can by on, right you if

Chris Kallos

growth everything going thickness accounts in aggressive Great. burns skin echoing the year. questions that accounts just rate the guess of defects? other How the half driven the in come much is of I new traditional around back full I'm versus be the have to by

James Corbett

of part than quarter. burns bigger in year, is the will will the full-thickness. grow fastest-growing our growth business. to and the going this sales will of the faster fourth be burns But majority, still the through it But more through part our year, this still even part Well, remain is which be market, full-thickness. is The biggest half

Operator

question And from from next Wilsons. Williams comes our Madeleine

Madeleine Williams

certain up wanting Jim color of a just regards characteristics get whether things understand reject and the that on trauma in can if rejected -- not going a David, the just trend wondered you you little kind In or centers more those the the VAC if do regards rejections, certain or RECELL putting color and to to can hospitals bit notice have have I'm I approvals or they to submissions. in forward? to that of

James Corbett

for the it's fit question. here There to candid. were seem There's X they didn't thanks XXX to submissions, and any out there. reasons be pattern almost Madeleine, -- and of

patient that Sometimes how their it related was they to example. a perceive for load was case,

for detect they all small was weren't. to a were for trend whether that the because pattern they was -- no case to saw, unless sample economic was all it's or it for reason, a or they Another be it which indications But was there the it. very try a trauma particular going thought pattern same whether center to not use them and

Madeleine Williams

you for about thinking the do you're you Okay. think just that's of assuming will included mind And occur, rest whether continue forecast I in and centers thinking the about that the in kind reject have which guess how will year? at of not the rate more or some rejections broadly, to

James Corbett

Yes. randomly. they occur almost We think

happen don't they a high at rate. So

our the will don't to have amount we effect on of reach think a rejections our ability guidance. So material

Operator

from And Hannah question Bank of from our next Mitchell America. comes

Hannah Mitchell

Mitchell Hannah is Ron on this Harrison. David, and Jim for

might you if quantities frame? wondering and provide National arrangement, can what the considering including what on be over more BARDA Preparedness color time BARDA Just any

James Corbett

Yes.

speak process -- So we've entered in into in the me -- or let over. or a all

BARDA to over. entering What fundamental would Our has units. get right? call made into agreement amount public, inventory that first maximum, X,XXX It they it's is an expired. we of we on a we're first which on certain is -- have haven't call And a up

priority. call so purchase a X,XXX -- event a national BARDA to And of in has as a the units the -- first and disaster,

it, of They where own in that only they and needed this the event would we're upon So inventory. disaster any to of our national a inventory. call own managing occur don't

Operator

remarks. no further back Corbett turn the to over now I to I would And am closing like showing Jim questions. for call

James Corbett

I'd look you to And again. from We like the next of talking Buh-bye. to again update you all listening with for quarter. you latest AVITA. thank getting forward thank and

Operator

Thank concludes conference This call. today's you for participating.

now disconnect. may You

AVITA Medical (RCEL) 13 May 242024 Q1 Earnings call transcript