AVITA Medical (ticker: RCEL) disclosed an Aug. 5 amendment to its distribution and manufacturing agreement with Stedical Scientific. AVITA paid a $500,000 fee for a right of first offer and refusal to expand its exclusive distribution territory into all or part of the European Union, the UK, and Australia. Its revenue share on PermeaDerm increases to 67% for sheet-form products and 80% for glove-form products, with additional revenue sharing if AVITA's gross margin on those products exceeds 50% and 35%, respectively. AVITA must make at least $1.0 million in total PermeaDerm revenue-sharing payments in 2026, with 20% annual growth minimums through 2030; previous minimum payment requirements were waived. Stedical can also pursue PermeaDerm commercialization in certain U.S. markets AVITA doesn't currently serve, with AVITA selling to Stedical at 10% above manufacturing cost. For PermeaDerm Stedical sells outside the U.S., mainly in Asia, AVITA will charge $200 per carton plus a 10% manufacturing fee, subject to a reasonable volume cap.
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