RCEL - AVITA Medical Announces Preliminary Third Quarter 2023 Financial Highlights and Secures up to $90 million of Non-Dilutive Debt Financing with OrbiMed to Support Growth Initiatives | Benzinga
- Preliminary commercial revenue of $13.5 million for the third quarter 2023; full year 2023 guidance confirmed
- $40 million funded at close; $50 million of additional non-dilutive capital available at the Company's option, based on the achievement of certain revenue thresholds
- Capital from the transaction will support execution of strategic expansion and fuel continued growth
VALENCIA, Calif., Oct. 18, 2023 (GLOBE NEWSWIRE) -- AVITA Medical, Inc. (NASDAQ:RCEL, ASX: AVH)) (the "Company"), a regenerative medicine company leading the development and commercialization of first-in-class devices and autologous cellular therapies for skin restoration, today announced third quarter 2023 financial highlights and the closing of a debt financing facility for up to $90 million with OrbiMed, a healthcare investment firm. The non-dilutive capital provides financial flexibility to support portfolio expansion, global initiatives, and the further development and commercialization of approved indications.
For the third quarter ended September 30, 2023, preliminary commercial revenue was $13.5 million, a 50% increase compared to approximately $9.0 million for the same period in 2022. Gross margin for the third quarter was approximately 84.5%. Guidance for full year 2023 commercial revenue remains unchanged and is expected to be in the range of $51 to $53 million.
Under the terms of the Credit Agreement (the "Credit Agreement") with OrbiMed, the Company borrowed $40 million at closing. In addition, an aggregate of an additional $50 million is available in two tranches at the Company's option, based on the achievement of certain revenue thresholds. The Credit Agreement has a five-year term that matures in October 2028. AVITA Medical also issued OrbiMed a warrant to purchase 409,661 shares of the Company's common stock, with an exercise price of $10.9847.
"After another strong quarter, we are excited to be partnering with OrbiMed," ...