Market Overview

Health Economic Model Published in Advances in Therapy Demonstrates Reduced Cost and Decreased Hospital Stay with the RECELL® System


Real world experience found that the RECELL System could save one US
Burn Center up to USD $28MM annually

AVITA Medical ((ASX: AVH, OTCQX:AVMXY) announced today that the health
economic model of the U.S. burn care pathway, developed in collaboration
with Biomedical Advanced Research and Development Authority (BARDA) and
IQVIA, has been published in the peer-reviewed journal, Advances in
. The model demonstrates that utilizing AVITA Medical's RECELL®
System for the treatment of in-patient burns is cost-saving or
cost-neutral and results in reduced length of hospital stay as compared
to the standard of care.

"This model is the outcome of an outstanding collaboration between
industry, government, medical, and health economics experts to develop
the first economic model of U.S. burn care, allowing for robust
evaluations of changes to practice including use of new products such as
the RECELL System," said Andrew Quick, Chief Technology Officer.

Utilizing this model, health economic data projects that use of the
RECELL System to treat in-patient burns could save a major U.S. burn
center up to USD $28 million annually compared to treatment with the
standard of care. These findings were recently presented at the American
Burn Association (ABA) 51st Annual Meeting by Kevin Foster, MD, MBA,
FACS, of the Arizona Burn Center. The model calculated savings based on
the demographic mix of patients treated at that center in 2018.

Each year nearly half a million Americans suffer acute thermal burns
that require medical treatment, resulting in approximately 50,000
hospitalizations and more than 3,000 deaths. Use of split-thickness skin
grafts is considered standard treatment; however, skin grafts are
associated with significant pain, delayed healing and hypertrophic
scarring, each of which contributes to the substantial costs incurred by
the healthcare system.

"Use of this model will have broad implications for the U.S. burn care
community, allowing burn centers and hospitals to better understand the
fiscal aspects associated with the care of patients with severe burn
injuries," said Erin Liberto, Chief Commercial Officer. "On average,
burn centers can save 14-17% of their costs utilizing the RECELL System.
The health economic data coupled with our strong clinical data and
reimbursement coverage present an undisputable value proposition to
hospital administration and further enhance our ability to penetrate new

The Advances in Therapy article titled, "Cost-Effectiveness of
the Use of Autologous Cell Harvested Device Compared to Standard of Care
for Treatment of Severe Burns in the United States," may be accessed
online at
The model employs sequential decision trees to depict the stages of burn
care, from initial burn assessment through treatment for definitive
closure of the burn wound, and predicts relative differences between use
of the RECELL System compared to the standard of care. The model is
based on data from the American Burn Association's National Burn
Repository database, clinical trials, and real-world use data. Actual
costs of care come from three U.S. burn centers, and when combined with
Monte Carlo simulation of a burn center patient population, the overall
burn center budget impact can be accurately predicted.

Authors of the publication include James H. Holmes IV, MD FACS,
Director, WFBMC Burn Center, Professor of Surgery, Wake Forest
University School of Medicine, Winston-Salem, North Carolina, William
Hickerson, MD, FACS, Memphis Medical Center, and Kevin Foster, MD, MBA,
FACS, Maricopa Integrated Health System at the Arizona Burn Center.

Funding for the model was provided by the Biomedical Advanced Research
and Development Authority (BARDA), under the Assistant Secretary for
Preparedness and Response, within the U.S. Department of Health and
Human Services. Funding provided by BARDA, under Contract No.


AVITA Medical is a regenerative medicine company with a technology
platform positioned to address unmet medical needs in burns, chronic
wounds, and aesthetics indications. AVITA Medical's patented and
proprietary collection and application technology provides innovative
treatment solutions derived from the regenerative properties of a
patient's own skin. The medical devices work by preparing a REGENERATIVE
EPIDERMAL SUSPENSION™ (RES™), an autologous suspension comprised of the
patient's skin cells necessary to regenerate natural healthy epidermis.
This autologous suspension is then sprayed onto the areas of the patient
requiring treatment.

AVITA Medical's first U.S. product, the RECELL® System, was approved by
the U.S. Food and Drug Administration (FDA) in September 2018. The
RECELL System is indicated for use in the treatment of acute thermal
burns in patients 18 years and older. The RECELL System is used to
prepare Spray-On Skin™ Cells using a small amount of a patient's own
skin, providing a new way to treat severe burns, while significantly
reducing the amount of donor skin required. The RECELL System is
designed to be used at the point of care alone or in combination with
autografts depending on the depth of the burn injury. Compelling data
from randomized, controlled clinical trials conducted at major U.S. burn
centers and real-world use in more than 7,000 patients globally,
reinforce that the RECELL System is a significant advancement over the
current standard of care for burn patients and offers benefits in
clinical outcomes and cost savings. Healthcare professionals should read
the INSTRUCTIONS FOR USE - RECELL® Autologous Cell Harvesting Device (
for a full description of indications for use and important safety
information including contraindications, warnings and precautions.

In international markets our products are marketed under the RECELL
System brand to promote skin healing in a wide range of applications
including burns, acute wounds, scars and vitiligo. The RECELL System is
TGA-registered in Australia and CFDA-cleared in China.

To learn more, visit


This letter includes forward-looking statements. These
forward-looking statements generally can be identified by the use of
words such as "anticipate," "expect," "intend," "could," "may," "will,"
"believe," "estimate," "look forward," "forecast," "goal," "target,"
"project," "continue," "outlook," "guidance," "future," other words of
similar meaning and the use of future dates. Forward-looking statements
in this letter include, but are not limited to, statements concerning,
among other things, our ongoing clinical trials and product development
activities, regulatory approval of our products, the potential for
future growth in our business, and our ability to achieve our key
strategic, operational and financial goal. Forward-looking statements by
their nature address matters that are, to different degrees, uncertain.
Each forward-looking statement contained in this letter is subject to
risks and uncertainties that could cause actual results to differ
materially from those expressed or implied by such statement. Applicable
risks and uncertainties include, among others, the timing of regulatory
approvals of our products; physician acceptance, endorsement, and use of
our products; failure to achieve the anticipated benefits from approval
of our products; the effect of regulatory actions; product liability
claims; risks associated with international operations and expansion;
and other business effects, including the effects of industry, economic
or political conditions outside of the company's control. Investors
should not place considerable reliance on the forward-looking statements
contained in this letter. Investors are encouraged to read our publicly
available filings for a discussion of these and other risks and
uncertainties. The forward-looking statements in this letter speak only
as of the date of this release, and we undertake no obligation to update
or revise any of these statements.

View Comments and Join the Discussion!