The All Ordinaries Index (ASX: XAO) is up 0.7% in morning trade with one ASX All Ords stock racing ahead of those gains.

The outperforming stock in question is Avita Medical Inc (ASX: AVH).

Shares in the regenerative medicine company closed yesterday trading for $2.70. In morning trade on Tuesday, shares just leapt to $2.94 apiece, up 8.9%. After some likely profit-taking, shares are changing hands for $2.88 each at the time of writing, up 6.7%.

That leaves shares in the ASX All Ords stock down 31% in 2025.

Here's what's grabbing investor attention today.

ASX All Ords stock surges on US agreements

The Avita Medical share price is charging higher today after the company announced it has entered into a new contract manufacturing agreement with Stedical Scientific, a United States-based company, for its PermeaDerm transparent biosynthetic wound matrix.

PermeaDerm is cleared by the US Food and Drug Administration (FDA) for use in the treatment of a variety of wound types until healing is achieved.

The ASX All Ords stock also inked an amendment to its existing exclusive distribution agreement with Stedical Scientific.

Avita said the agreements will further strengthen the strategic relationship between the two companies to expand the reach and availability of PermeaDerm.

Under the new contract manufacturing agreement, which came into effect overnight, Avita Medial will manufacture PermeaDerm at Stedical Scientific's manufacturing facility in Ventura, California.

Avita Medical said it will make use of its existing infrastructure to drive the ongoing commercialisation of PermeaDerm in the US. The new agreement will also help streamline production, increase scale, and optimise manufacturing cost efficiencies to drive greater value.

The amended distribution agreement extends the contract term and modifies the revenue-sharing terms. Under the new terms, the ASX All Ords stock will retain 60% of the average sales price from PermeaDerm sales. Under the previous agreement, Avita Medical retained 50% of the average sales price.

What did management say?

Commenting on the new agreements helping to lift the ASX All Ords stock today, Avita Medical CEO Jim Corbett said:

These strategic agreements reflect our shared commitment to driving innovation and expanding market access, while ensuring that patients continue to receive first-in-class care. We look forward to leveraging our expertise to continue to drive innovation and growth in therapeutic acute wound care.

Lin Sun, chairman of Stedical Scientific, added:

PermeaDerm has demonstrated great healing results when used for various wounds. We are excited to expand our collaboration with Avita Medical through this manufacturing agreement.

This partnership ensures a robust supply chain for PermeaDerm and strengthens our commitment to delivering cutting-edge solutions to the global market.