The Chinese government is not only funding Avita Medical’s local clinical trials for its skin regeneration treatment, but distributing it as well.

The $62 million company says a Chinese trial of its RECELL treatment is being funded by the China National Health and Family Planning Commission.

A subsidiary of state healthcare company Sinopharm is already distributing RECELL throughout China.

The comparison trial, which has started, will treat patients with second degree burns using the Avita (ASX:AVH) technology and one of two other treatments at The First Affiliated Hospital of the Fourth Military Medical University.

Asia Pacific general manager Lorraine Glover told Stockhead the research team approached them to use RECELL in the study of innovative burn treatments.

Avita shares have been hectic over the last few months.

RECELL is used to help with skin growth after burns or chronic wounds and reduce the amount of skin harvested during surgery.

Ms Glover says RECELL has been used in China since about 2010.

Avita has already done two clinical trials in the US treating severe burns, and plans to start trials in the UK and Australia this year as well as pediatric trials in the US.

“Our initiatives within China are consistent with our evolving strategy of using data from controlled clinical trials and health economic studies to ensure that RECELL is effectively promoted and priced in all major markets,” said Avita chief Dr Michael Perry.

Avita shares opened up 1.7 per cent to 6c.