Avita Medical raises £10m to fund US push
Cambridge wound and skin treatment specialist Avita Medical is raising £10 million to underpin expansion in the US and probe new medical applications for its technology.
The UK and Australian regenerative medicine business is preparing for US ReCell commercialisation for burn injuries.
Avita has received commitments from wholesale and institutional investors for a private placement and allied to a rights issue that brings in the £10m.
Avita CEO Dr Mike Perry said: “We sincerely appreciate the support received from investors under the private placement, indicating confidence in Avita’s pursuit of its future milestones, including PMA approval in 2018 followed by a successful commercial launch of ReCell in the US burns market.
“This fundraising is expected to underpin Avita through key milestones including, initial BARDA product procurement, US FDA approval and the launch of ReCell in the US burns market.
“What we consider compelling for investors is the strength of our clinical data from the two US trials of 131 patients at 12 leading US burn centres demonstrating that use of the ReCell device results in significantly less donor skin harvesting, relative to standard care, for treatment of burn injuries.
“The data has revealed a 97.5 per cent reduction in donor skin harvested for treatment of second-degree burn injuries, while also showing a 4.4 times greater likelihood of donor site healing for those patients after just one week.
“In our US FDA pivotal trial for third-degree burns we achieved the co-primary endpoints along with data exhibiting a 32 per cent reduction in the use of donor skin, with no safety concerns.”
Last month Avita submitted a Pre-Market Approval application for its ReCell® autologous cell harvesting device for treatment of burn injuries to the FDA. This is a precursor to achieving US product approval.
The fundraising follows an extensive roadshow attracting new Australian and overseas institutional backers which have either invested or been introduced to the Avita story for the first time.
Avita’s patented and proprietary collection and application technology provides innovative treatment solutions derived from the regenerative properties of a patient’s own skin.
Its devices work by preparing a Regenerative Epithelial Suspension (RES™), an autologous suspension comprised of the patients’ own skin cells and wound healing factors that are necessary to regenerate natural healthy skin. This is then applied to the area to be treated.