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Avita Medical Amends Credit Agreement with OrbiMed

Story Highlights
  • AVITA Medical agreed to a sixth amendment to its credit agreement, adjusting revenue covenants.
  • Q3 2025 results showed a 13% revenue decrease, but expenses dropped 24%, improving net loss.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Avita Medical Amends Credit Agreement with OrbiMed

Meet Your ETF AI Analyst

Avita Medical ( (RCEL) ) has shared an announcement.

On November 5, 2025, AVITA Medical agreed to a sixth amendment to its credit agreement with OrbiMed Advisors, adjusting the revenue covenant to $70 million for the quarter ending December 31, 2025. The amendment also waived a ‘going concern’ requirement for the third quarter, with AVITA adding $500,000 to the principal balance as consideration. The company’s Q3 2025 financial results showed a 13% decrease in commercial revenue compared to the previous year, attributed to reimbursement challenges. However, operating expenses decreased by 24%, and net loss improved. AVITA received CE Mark approval for RECELL GO® in Europe, expanding its international presence. The company is focusing on key U.S. centers and expects full-year revenue between $70 and $74 million, down from prior guidance.

The most recent analyst rating on (RCEL) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Avita Medical stock, see the RCEL Stock Forecast page.

Spark’s Take on RCEL Stock

According to Spark, TipRanks’ AI Analyst, RCEL is a Neutral.

Avita Medical’s overall stock score is primarily impacted by its financial instability, with negative equity and ongoing losses being major concerns. Technical indicators suggest weak momentum, and the valuation is unattractive due to a negative P/E ratio. While the earnings call and corporate events provide some positive outlook, they are insufficient to significantly improve the overall score.

To see Spark’s full report on RCEL stock, click here.

More about Avita Medical

AVITA Medical, Inc. is a leading therapeutic company in the acute wound care industry, focusing on delivering transformative solutions. The company is known for its RECELL technology, which is designed to treat burn and traumatic wounds. AVITA Medical targets an addressable market segment estimated at $1.3 billion, primarily focusing on approximately 200 key U.S. burn and trauma centers.

Average Trading Volume: 647,771

Technical Sentiment Signal: Sell

Current Market Cap: $96.36M

For detailed information about RCEL stock, go to TipRanks’ Stock Analysis page.

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