AVITA’s RECELL® System Reduces Cost And Hospital Stay In Burns Treatment

AVITA Medical (ASX: AVH) is a regenerative medicine company with RECELL® System as a lead product in its technology platform. Today, AVH announced that peer-review journal had published the Health Economic Model which reported that the development of the model was a collaborative effort from IQVIA and Biomedical Advanced Research and Development Authority (BARDA) along with AVH. The article demonstrates the use of RECELL® System for the treatment of in-patient burns resulting in reduced stays in hospital and cost- saving/neutral solution.


  (Source: Company’s Corporate Presentation, March 2019)


American Burn Association (ABA) held its 51st Annual Meeting in which the results of the model were presented by Kevin Foster of Arizona Burn Centre. USD$28 million annually could be saved with the use of this model as reported by Kevin Foster on the back of health economic data. Each year America suffers from approximately 50,000 hospitalisation and over 3,000 deaths due to critical thermal burns. Existing treatment includes the use of split-thickness skin graft (STSG). STSG is associated with significant pain, hypertrophic scarring and delayed healing.


Source: Company’s Corporate Presentation, March 2019)

The article which was published in the peer-review journal compared the use of standard of care and Autologous Cell Harvested Device (RECELL®). The model depicts the stages of burn care from assessment of wound to definitive closure of the wound and predicts relative differences between the use of both treatments. Clinical trials and real-world use are the sources of data on which the model is based upon along with American Burn Association’s National Burn Repository. The budget impact was predicted using Monte Carlo simulation from the actual cost data was obtained from three U.S. burn centers. James H. Holmes of WFBMC Burn Center, William Hickerson of Memphis Medical Center had published the article along with Kevin Foster of Arizona Burn Center.

Andrew Quick, Chief Technology Officer of AVH, stated that the efforts from various parties have led to the development of the first economic model of U.S. burn care pathway. Furthermore, he said the model allows to evaluate the changes in practice including the treatment using RECELL®.

Erin Liberto, Chief Commercial Officer of AVH, mentioned the implication for U.S. burn care community as the model will help burn centers to evaluate the financial aspects of treatments associate in burn care. He stated about the value proposition to hospitals from health economic data, strong clinical data and reimbursement coverage along with cost-effective treatment utilising RECELL®.

RECELL® is indicated for the use of patients above 18 years or older and approved by U.S. Food and Drug Administration (FDA) in 2018. The report read that RECELL® is significant advancement over the current standard of care and offers benefits in clinical outcomes and cost savings on the back of RCT trials at major U.S. burn centers and real-world use in more than 7,000 patients globally.

AVH stock surged up 11.364% in a day-trade to close at $0.490 on 16 May 2019. Over the past one year, the stock has gone up by 714.81%. The 52-week high and low of the stock are A$0.540 and A$0.050, respectively.


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