Avita raises $16m

Avita Medical has tapped investors for $16 million as the company prepares to launch its spray-on burns treatment, which was co-developed by medical entrepreneur Fiona Wood.

Avita has issued 320 million shares at 5 cents each, with Bell Potter Securities acting as lead manager to the placement.

Chief executive Michael Perry said the funds would assist the company with the approvals process.

“Proceeds from this placement will ensure that we are positioned to take full advantage of the expected upcoming pre-market approval of the Recell Device in the US, including establishment of our marketing and sales team, scale-up of manufacturing capabilities and expansion of research and development in areas such as pediatric burns, aesthetics and chronic wounds," he said.

“The extensive series of clinical data presented at the recent American Burn Association and ISPOR conferences strongly supports the value of Recell in the treatment of severe burns, and we have an exceptional commercial opportunity resulting from the unique combination of improved patient outcomes and substantial health economic benefits.”

Shares in Avita were flat at 5.2 cents each.