AVITA Medical has been stabilized by its new CEO, but the business still has a precarious cash runway. There aren't many great options for raising additional capital. The share price is too low to avoid painful dilution, it already has debt, and licensing deals may not provide much liquidity (and at what cost to long-term economics?). It may also attempt to attract a private placement or strategic investor, which could be a larger peer or an investment fund.

To be blunt, the path of least resistance for the business is to sell itself to a larger peer that has the resources to better capture the commercial opportunities -- and navigate the frustrating timelines involved across regulatory and technical landscapes. An acquisition in this case wouldn't be very rewarding, but it would allow a more graceful exit to shareholders who stuck it out.