RCEL - AVITA Medical: Financial Challenges Ahead Despite Innovative RECELL Device
2024-05-21 17:33:23 ET
Summary
- AVITA Medical specializes in regenerative medicine and has an innovative device for skin restoration that treats full-thickness skin defects and vitiligo.
- The RECELL device uses a patient's skin cells to create a spray-on suspension for healing and repigmentation. This procedure requires less donor skin and leads to faster wound recovery.
- RCEL's seemingly cheap P/S ratio is likely due to its operational inefficiency, which I don’t think will improve in the near term.
- Despite its innovative technology, I deem RCEL a "hold" due to financial concerns. Management needs to focus on achieving profitability to avoid dilution.
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AVITA Medical: Financial Challenges Ahead, Despite Innovative RECELL Device