Shares of Avita Therapeutics (ASX:AVH) plummeted 22.58% in Friday's trading session following the announcement of a leadership change and preliminary third-quarter revenue guidance. The significant drop reflects investor concerns over the company's immediate future and financial performance.

The company disclosed in a filing with the Australian Securities Exchange that Chairman Cary Vance has been appointed as interim Chief Executive Officer, effective immediately. Vance succeeds Jim Corbett in this role, marking a notable shift in the company's leadership. Avita's board has stated its intention to engage an executive search firm to identify a permanent CEO, considering both internal and external candidates for the position.

Adding to investor unease, Avita Medical provided preliminary revenue guidance for the third quarter ended September 30, projecting revenues of approximately AU$17 million. This financial outlook, combined with the sudden leadership transition, appears to have sparked significant selling pressure on the stock, resulting in the sharp decline observed during Friday's trading session.