Zacks Investment Research Initiates Coverage on Avita Medical (OTCQX:AVMXY) (ASX:AVH) with a Buy Recommendation - Video Posted on InvestmentPitch.com
(Thomson Reuters ONE) -
Vancouver, British Columbia, June 26, 2013 - Zacks Investment Research has
initiated coverage on Avita Medical (OTCQX:AVMXY) (ASX:AVH). Analyst Jason
Napadano gives the company a buy rating and a $4.00 US price target, a premium
of 95% over the $2.05 price the day the report was issued.
InvestmentPitch.com has produced a "video news alert" about Avita Medical based
on this research report. If this link is not enabled, please visit
www.InvestmentPitch.com and enter "Avita" in the search box.
Based in the United Kingdom, Avita Medical develops and distributes regenerative
products for the treatment of a broad range of wounds, scars and skin defects.
Avita's patented and proprietary tissue-culture, collection and application
technology provides innovative treatment solutions derived from a patient's own
skin.
The company's lead product is ReCell Spray-On Skin, an autologous cell
harvesting, processing and delivery technology that enables surgeons and
clinicians to treat complicated skin defects, including chronic wounds, scars,
burns, depigmentation, and aid in rejuvenation or reconstructive procedures
using a patient's own skin cells to facilitate the regenerative process.
Clinical experience generated by the company shows the system can be
successfully used to promote healing and the formation of new skin structure
after a severe injury, such as a burn or scald.
Data also shows that ReCell can improve the appearance of acne scars, remove
areas of discoloration and restore pigmentation in patients with vitiligo, and
aid in the healing of chronic wounds such as venous leg ulcers and diabetic foot
ulcers.
The ReCell system has received CE Mark in the European Union, but is not
available for sale in the United States, where it is currently classified as an
investigational device limited by federal law to investigational use. However, a
Phase III FDA trial is in process.
In other areas outside of Europe, such as China and Turkey, the company is
partnering with distributors.
On a global basis, Zacks sees ReCell, conservatively, as a potential $250
million product. Approval for use in chronic wounds has the potential to double
that peak sales number to more than $500 million on a global basis. The
company's respiratory business provides meaningful revenues and cash, having
generated $3.4 million in product sales in fiscal 2012.
For a small biotech company, Avita is surprisingly well capitalized, with $12.3
million in cash as of March 31, 2013, which Zacks considers sufficient to fund
operations for the next three to four quarters.
Analyst Jason Napodano stated, "We believe the shares are set for a major re-
valuation on the pending phase 3/PMA data from the burns and scalds trial
currently being conducted in the U.S., with data expected around the middle of
2014"
The shares are currently trading at $2.58, well below Zacks' target of $4.00,
and with 16 million shares outstanding, the company is capitalized at $41.3
million.
The stock price on the OTCQX has been consistently over $2.00 for the past few
months, which would qualify the company for listing the American Depositary
Receipts on a major exchange, such as the NASDAQ- CM.
For more information, please visit the company's website www.AvitaMedical.com or
contact Sharoni Billik at 818-827-1675 or email sbillik(at)AvitaMedical.com.
For more information about Zacks Small-Cap Research or to obtain the report on
Avita Medical, visit their website at www.zacks.com..
About InvestmentPitch
InvestmentPitch.com, a multimedia company that provides a combined solution for
creating and hosting financial video content, and distributing it across
multiple platforms to investors and financial professionals, specializes in
producing three minute videos based on news releases and research reports.
CONTACT:
InvestmentPitch.com
Barry Morgan, CFO
bmorgan(at)investmentpitch.com
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Source: InvestmentPitch via Thomson Reuters ONE
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Unternehmensinformation / Kurzprofil:
Datum: 26.06.2013 - 23:03 Uhr
Sprache: Deutsch
News-ID 273728
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