AVITA Medical, Inc. (NASDAQ: RCEL, ASX: AVH) has strengthened its strategic alliance with Stedical Scientific, Inc. through a new Contract Manufacturing Agreement and an amendment to their Exclusive Distribution Agreement. These moves are designed to expand market access and streamline production for PermeaDerm®, a biosynthetic wound matrix used to support healing in a range of acute and chronic wounds.
Manufacturing Agreement: Enhancing Production & Efficiency
Under the new Contract Manufacturing Agreement, AVITA Medical will now manufacture PermeaDerm at its Ventura, California facility, leveraging its state-of-the-art infrastructure to ensure product availability while scaling production and optimizing costs.
“This partnership ensures a robust supply chain for PermeaDerm while allowing us to expand access to innovative wound care solutions,” said Lin Sun, Chairman of Stedical Scientific.
Revised Distribution Agreement: Greater Value & Performance Incentives
Originally signed in January 2024, the Exclusive Distribution Agreement has been amended to align with the new manufacturing setup. Key updates include:
- Revenue-sharing adjustments: AVITA Medical will now retain 60% of the average sales price, up from 50%, while Stedical Scientific receives 40% (after manufacturing costs).
- Performance-based milestones: These updates encourage further market expansion.
- Extended contract term: Strengthening the long-term partnership.
“These agreements reflect our shared commitment to innovation, efficiency, and improved patient care,” said Jim Corbett, CEO of AVITA Medical.
PermeaDerm: A Game-Changer in Wound Healing
PermeaDerm is a transparent biosynthetic matrix that supports healing for a variety of wounds, including thermal burns and full-thickness injuries. When used with AVITA Medical’s RECELL® System, which generates Spray-On Skin™ Cells, PermeaDerm enhances recovery outcomes. It is also FDA-cleared and reimbursable across U.S. inpatient and outpatient settings, making it more accessible to healthcare providers and patients.
With these new agreements, AVITA Medical and Stedical Scientific are poised to accelerate growth and innovation in the wound care market, ensuring continued availability and enhanced patient outcomes.
