AVITA Medical Enters Global Amendment with Stedical; Revenue Share Increased

What Happened AVITA Medical, Inc. (RCEL) announced on August 5, 2026 that it entered a Global Amendment with Stedical Scientific, Inc. to modify their existing distribution and manufacturing arrangements for PermeaDerm. Under the amendment (reported on Form 8‑K filed August 11, 2026), AVITA received a $500,000 fee in exchange for rights of first offer and refusal to expand its exclusive distribution territory to all or part of the European Union, the United Kingdom and/or Australia. The amendment also resets revenue-sharing terms, minimum payment requirements, and pricing for product sales to Stedical in certain markets.

Key Details

• $500,000 fee exchanged to give AVITA a right of first offer/refusal to expand its exclusive territory to EU, UK and/or Australia. (Agreement dated Aug 5, 2026)
• AVITA’s share of PermeaDerm revenue: 67% for sheet products (with higher sharing if gross margin >50%); 80% for glove products (with higher sharing if gross margin >35%).
• Minimums: $1.0 million total PermeaDerm revenue-sharing payment required for 2026, with minimum annual growth of 20% each year through 2030; all previous minimum revenue-sharing payment requirements under the prior distribution agreement were waived.
• Market/pricing carve-outs: Stedical may commercialize PermeaDerm in certain U.S. markets not served by AVITA — AVITA will sell those U.S. units to Stedical at a 10% premium to AVITA’s actual manufacturing costs. For PermeaDerm manufactured for Stedical to sell primarily in Asia, AVITA will sell to Stedical at $200 per carton plus a 10% manufacturing fee, subject to a reasonable volume cap.

Why It Matters

• The amendment materially changes how PermeaDerm revenue is split and establishes explicit minimum revenue-sharing payments through 2030, creating clearer near‑term revenue targets and sharing economics for AVITA.
• The $500,000 arrangement and ROFO/ROFR for EU/UK/Australia give AVITA a formal path to expand its exclusive distribution territory, while the carve-out allowing Stedical to commercialize in certain U.S. markets changes competitive and sales dynamics for those territories.
• Contracted transfer pricing for Stedical sales (domestic 10% premium to manufacturing cost; $200/ carton +10% for exports) codifies margins and volume limits for manufactured product supplied to Stedical, which will affect AVITA’s manufacturing revenue and gross margin reporting.