AVITA Medical: Experienced CEO Taking The Helm As Expansion Opportunities Await

Jan. 23, 2023 5:02 AM ETAVITA Medical, Inc. (RCEL)13 Comments


  • Shares have fallen by 83% over the past 3 years and are down 13% over the past year.
  • Q3 "beat and raise" along with appointment of a highly experienced CEO could turn sentiment around here.
  • Soft tissue repair launch in 2H 23 addresses an opportunity 3 to 4x the size of burns, with even larger vitiligo market to gain importance with reimbursement obtained in 2025.
  • Bear thesis is they are competing against long established standard of care in addition to much larger companies (Vericel, Mallinckrodt).
  • RCEL is a Buy below $9 (pilot position followed by accumulation of dips). I look forward to significant value creation in 2023 to 2025 (synergies between burn and soft tissue markets).
  • Looking for more investing ideas like this one? Get them exclusively at ROTY Biotech Community. Learn More »

Second degree burnt female hand. severe skin damage

ozgurkeser/iStock via Getty Images

**This article was originally published for ROTY Biotech Community subscribers on December 13th but has been updated where necessary. Despite the +24% gain since purchase, I continue to think it's an excellent long-term idea.


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This article was written by

Jonathan Faison profile picture
Community of Biotech Investors Focused on Value & Clinical Momentum

Founder of 500+ member ROTY Biotech Community (try the 2-week free trial to see if it adds value for you). Quality over quantity- enjoy connecting with readers.

Disclosure: I/we have a beneficial long position in the shares of RCEL, TMDX, TELA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: Disclaimer: Commentary presented is NOT individualized investment advice. Opinions offered here are NOT personalized recommendations. Readers are expected to do their own due diligence or consult an investment professional if needed prior to making trades. Strategies discussed should not be mistaken for recommendations, and past performance may not be indicative of future results. Although I do my best to present factual research, I do not in any way guarantee the accuracy of the information I post. I reserve the right to make investment decisions on behalf of myself and affiliates regarding any security without notification except where it is required by law. Keep in mind that any opinion or position disclosed on this platform is subject to change at any moment as the thesis evolves. Investing in common stock can result in partial or total loss of capital. In other words, readers are expected to form their own trading plan, do their own research and take responsibility for their own actions. If they are not able or willing to do so, better to buy index funds or find a thoroughly vetted fee-only financial advisor to handle your account.

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