By Katherine Hamilton
Shares of Avita Medical shares were lower after the company's preliminary third-quarter revenue came in below analyst expectations.
The stock shed 20% to $4.33 before the market opened Friday. Through the close, shares had lost 58% of their value.
The wound-care company said Thursday it expects sales in the quarter ended Sept. 30 to be $17 million, below the $19.2 million Wall Street was forecasting, according to FactSet.
Avita said it is assessing annual guidance and will provide an update on its view during its scheduled Nov. 6 call. The company in August cut its full-year revenue outlook after second-quarter revenue came in about $4 million below consensus estimates.
The company has been grappling with a delay in provider payment due to a change in the Centers for Medicare and Medicaid Services codes for the use of Avita's wound-treatment product Recell.
Issues with provider reimbursement starting in Janurary have constrained demand, with Recell revenue declining by $5 million across Avita's top 10 hospital accounts in the first half of 2025. The company had estimated in August that demand for Recell declined by about 20% and revenue fell by $10 million in the first half of the fiscal year.
Avita also on Thursday evening said its chief executive, Jim Corbett, would step down. Corbett has served since September 2022 and will be succeeded by board chair Cary Vance in an interim role.
Write to Katherine Hamilton at katherine.hamilton@wsj.com
(END) Dow Jones Newswires
October 17, 2025 06:28 ET (10:28 GMT)
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