• RECELL demand impacted by CMS reimbursement delay, recovery expected in Q3
• New study shows RECELL reduces hospital stay by 36%
• Cohealyx accelerates wound healing, enabling faster skin grafting

AVITA Medical reported its Q2 2025 financial and business update. The key highlights include:- RECELL demand was impacted by a temporary backlog in CMS reimbursement for RECELL procedures, leading to a $10 million overall reduction in RECELL revenue and a 20% drop in demand from the top 10 accounts. However, this issue is expected to be resolved in Q3 as Medicare contractors initiate pricing and payments.- A recent real-world analysis of the national burn registry over five years showed RECELL treatment achieves a significant 36% reduction in Length of Stay for a subset of patients with deep second-degree burns under 30% total body surface area. This represents a significant potential for hospital cost savings.- The company highlighted the case of Abbey, whose face and right arm were treated with RECELL, with results better than expected. Her progress over six years has been shared on Reddit, showcasing the impact of RECELL.- AVITA's Cohealyx product has demonstrated the ability to accelerate wound healing and enable autograft readiness in 5-10 days, compared to 2-4 weeks with conventional matrices. This represents a significant breakthrough in acute wound care.- The company is expanding the use of RECELL to burns under 20% TBSA at two major hospitals, with the potential to add around 150 additional patients per month. CMS also approved a New Technology Add-on Payment for RECELL in the trauma wound setting.- AVITA updated its full-year 2025 revenue guidance to $100-$106 million, representing growth of 55-65% compared to 2024. The company also expects to reach cash flow break-even in the second half of 2025.

AVITA updated its full-year 2025 revenue guidance to $100-$106 million, representing growth of 55-65% compared to 2024. The company also expects to reach cash flow break-even in the second half of 2025.

With the resolution of the CMS reimbursement backlog underway, AVITA expects full demand for RECELL to return in the second half of 2025. The company is also focused on executing its strategy, with the OrbiMed amendment securing long-term alignment with its revised growth plans.