AVITA Medical's 15min chart triggers MACD Death Cross, Bearish Marubozu.

AVITA Medical's 15-minute chart recently triggered a MACD Death Cross and a Bearish Marubozu at 11:45 on August 27, 2025. This indicates that the stock price may continue to decline, with sellers dominating the market and bearish momentum likely to persist.

AVITA Medical's (NASDAQ: RCEL) stock has recently shown signs of significant market stress, with a 15-minute chart triggering a MACD Death Cross and a Bearish Marubozu at 11:45 on August 27, 2025. These technical indicators suggest that the stock price may continue to decline, with sellers dominating the market and bearish momentum likely to persist [1].

The company's recent earnings report, which includes its Q2 2025 earnings call, presentation, and 10-Q, reveals several challenges that AVITA Medical is facing. The company is grappling with reimbursement disruption due to a delay in the implementation of new CPT 1 codes for its RECELL product, which has affected provider reimbursement and demand. This issue is not a product problem but a claims processing issue [1].

Despite these challenges, AVITA Medical reported Q2 2025 revenues of $18.4 million, a 21% increase compared to the same period in 2024. The company's CEO, Corbett, attributed this growth to the broadening deployment of the RECELL system, particularly RECELL GO, and the contributions from new products like Cohealyx and PermeaDerm [1].

However, AVITA Medical's inadequate liquidity raises significant concerns. As of June 30, 2025, the company's cash and marketable securities totaled $15.7 million, compared to $35.9 million at December 31, 2024. The company has also experienced substantial cash burn, with its 10-Q reporting a cash burn for H1 2025 of $23,779. The company's liquidity position has raised "going concern" issues, and its 10-Q includes a caveat stating that the company may not be able to maintain compliance with its minimum cash balance covenant within the next twelve months [1].

In response to these liquidity concerns, AVITA Medical is actively evaluating strategies to obtain additional funding. The company has filed a Registration Statement on Form S-3 with the SEC in relation to the registration of common stock, preferred stock, debt securities, warrants, or any combination thereof for up to an aggregate of $200.0 million [1].

The company's new products, RECELL GO mini, PermeaDerm, and Cohealyx, offer promising growth prospects. RECELL GO mini, which was FDA approved in May 2024, is a next-generation autologous cell harvesting device that harnesses the regenerative properties of a patient's own skin to treat thermal burn wounds and full-thickness skin defects. PermeaDerm, in-licensed from Stedical Scientific, is a temporary biosynthetic dressing to temporize wounds and manage moisture. Cohealyx, in-licensed from Regenity Biosciences, is a product that provides significant convenience and comfort for patients, translating into large cost savings [1].

Despite these promising developments, AVITA Medical faces significant challenges. The company's market cap has been dropping from a year-to-date high of $0.36 billion to around $0.13 billion. If the company fails to correct its liquidity situation, its lender could cut it off, potentially leading to a price drop to nil. The Seeking Alpha Quant system rates AVITA Medical as a "Strong Sell," ranking it 4288 out of 4300 stocks in the biotech universe [1].

Investors should remain cautious and closely monitor AVITA Medical's progress. While the company's new products offer growth potential, the current market conditions and liquidity concerns pose significant risks. The company's future depends on its ability to navigate these challenges and secure additional funding.

References:
[1] https://seekingalpha.com/article/4816723-avita-medical-stock-promising-outlook-investors-with-high-risk-tolerance
[2] https://www.morningstar.com/news/globe-newswire/9519331/avita-alert-bragar-eagel-squire-pc-is-investigating-avita-medical-inc-on-behalf-of-avita-stockholders-and-encourages-investors-to-contact-the-firm