AVITA Medical, Inc. (NASDAQ: RCEL) witnessed a notable upswing of 22.47%, reaching $12.10 during the afterhours session on Thursday. This positive trajectory followed a 4.45% decline in AVITA Medical stock during the regular session, culminating at $9.88. The surge in RCEL stock can be attributed to the establishment of a consequential strategic distribution agreement.
AVITA Medical (RCEL) has formalized a distribution accord with PolyMedics Innovations GmbH, strategically broadening its global footprint into Europe. Per the stipulations of the agreement, PolyMedics Innovations assumes the exclusive distributor role for RECELL in Germany, Austria, and Switzerland, with potential expansion into additional European markets in the future.
PolyMedics Innovations, a privately-owned enterprise specializing in the commercialization of cutting-edge biomaterials and wound treatment systems, boasts an extensive distribution network spanning over 40 global markets. AVITA Medical (RCEL) aims to capitalize on PolyMedics’ profound expertise, well-established infrastructure, and extensive market knowledge to effectively amplify its market presence.
This collaboration with PolyMedics Innovations marks the inaugural phase of AVITA Medical’s strategic global expansion. The track record and proficiency of PolyMedics in globally distributing innovative wound treatments position them as an ideal partner for this venture. PolyMedics Innovations’ specialized sales team, with a profound focus on burns and trauma, seamlessly aligns with the targeted applications for RECELL.
In a recent development, RCEL successfully secured a debt financing facility of up to $90 million with OrbiMed, a prominent healthcare investment firm. Pursuant to the Credit Agreement, AVITA Medical accessed $40 million at the time of closing, with an additional $50 million available in two tranches at RCEL’s discretion, contingent upon achieving specific revenue thresholds.
The Credit Agreement spans five years, maturing in October 2028. As part of the agreement, AVITA Medical issued OrbiMed a warrant to acquire 409,661 shares of the Company’s common stock at an exercise price of $10.9847.
