Avita Medical (ASX:AVH) said yesterday that it raised $9 million in a partially underwritten rights issue for its ReCell device, which is designed to use a patient’s own skin cells to treat burns, chronic wounds and skin defects.
Avita, which has offices in Northridge, Calif., Cambridge, U.K. and Perth, Australia, said it issued nearly 100.2 million new shares in the offering, which closed July 4.
The company said July 10 that it plans to use the funds in part to ramp up its U.S. commercial operations ahead of an expected approval, and on “building commercial traction” in China and Australia, where it’s already on the market.
“The company wishes to thank our shareholders for their support at this exciting stage of Avita’s development,” CEO Adam Kelliher said in prepared remarks. “We have some crucial upcoming milestones, both clinically and commercially, and we will keep building value around our unique regenerative medicine approach.”
Morgans Corporate Ltd. was underwriter and lead manager for the offering.
Last month Avita said it tapped health economics group IMS Health to join a study of its ReCell regenerative medical device to evaluate its economic benefits when used at U.S. burn centers. The study is being funded by the U.S. Health & Human Services Dept.’s Biomedical Advanced Research & Development Authority via a $61.9m development and procurement contract.
HHS extended its contract with the company to the tune of $8 million in June, to support the expected U.S. market approval and launch of its ReCell autologous cell harvesting device.