AVITA Medical Amends Stedical Agreements, Gains EU/UK/AU Expansion Rights
AVITA Medical, Inc. and Stedical Scientific, Inc. entered into a Global Amendment to their existing distribution and manufacturing agreements. This amendment grants AVITA Medical the right of first offer and refusal to expand its exclusive distribution territory to include the European Union, the United Kingdom, and/or Australia for a $500,000 fee. The agreement also increases AVITA Medical's share of revenue from PermeaDerm sales to 67% for sheet form and 80% for glove form, subject to gross margin thresholds. Additionally, AVITA Medical has new minimum revenue sharing payment requirements for PermeaDerm through 2030, while Stedical gains rights to commercialize PermeaDerm in certain U.S. markets and internationally under new pricing terms.
Key Highlights
- AVITA Medical paid $500,000 for right of first offer/refusal to expand PermeaDerm distribution to EU, UK, and Australia.
- AVITA's revenue share for PermeaDerm sheet form sales increased to 67%, with potential for more if gross margin exceeds 50%.
- AVITA's revenue share for PermeaDerm glove form sales increased to 80%, with potential for more if gross margin exceeds 35%.
- AVITA Medical is required to reach $1.0 million in PermeaDerm revenue sharing payments in 2026, with 20% annual growth through 2030.
- Previous minimum revenue sharing payment requirements under the Distribution Agreement were waived.
- Stedical Scientific can commercialize PermeaDerm in certain unserved U.S. markets, purchasing from AVITA at cost plus 10%.
- For PermeaDerm sold outside the U.S. (primarily Asia), Stedical will purchase from AVITA at $200 per carton plus a 10% manufacturing fee.
Price Impact
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