RCEL - Avita Medical cuts 2023 commercial revenue guidance on longer hospital approval timelines

2023-11-20 16:52:50 ET

Shares of Avita Medical ( NASDAQ: RCEL ) on Monday slumped as much as 11.4% in extended trading, after the skin restoration-focused pharmaceutical company cut its full year 2023 commercial revenue guidance.

RCEL stock had cut back the losses and was last unchanged at $12.54 after hours.

Avita ( RCEL ) said it now sees full year commercial revenue of about $49.5M to $50.5M, compared to a previous forecast of $51M to $53M.

The revision to the guidance comes to due the result of slower-than-anticipated progression in customers' value analysis committee (VAC) processes. A VAC is a group comprised of multiple roles within a hospital such as physicians, nurses, administrators and supply chain specialists. The group will evaluate and make recommendations on using new products or technology.

"Our expanded label for full-thickness skin defects opens up an abundance of exciting applications. With a wider range of potential uses, more clinicians within the hospital are engaged in the VAC process, leading to longer hospital approval timelines,” RCEL top boss Jim Corbett said in a statement .

"Although the VAC processes are taking longer than anticipated, we expect that once completed, the process will yield positive approvals and an expanded market opportunity," Corbett added.

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