ASX Health Stocks: CBL targets more reimbursement revenue for NeuroNode device

Control Bionics to gain US$4,300 reimbursement for its NeuroNode device
Noxopharm begins a trial for SOF-SKN, targeting lupus, with results due in 2025
HitIQ signs a two-year deal with Westfield Sports High School

Control Bionics to benefit from new US Insurance code

Control Bionics (ASX:CBL) believes it is set to benefit significantly from a new US insurance code that approves reimbursement for its NeuroNode device, which will be effective from October 1.

The Centers for Medicare & Medicaid Services (CMS) in the US has granted a new HCPCS Level II code, E2513, for the NeuroNode, which will now qualify for a US$4,300 reimbursement.

The NeuroNode is an advanced assistive device that uses muscle signals to control communication tools, aiding individuals with severe speech and motor impairments.

The new code recognises the NeuroNode as an advanced augmentative and alternative communication (AAC) device that uses electromyographic (EMG) signals and 3D spatial movements, distinguishing it from traditional input devices.

This change will streamline the reimbursement process for healthcare providers and improve patient access to this innovative technology.

What this change also means is that starting October 1, Control Bionics and its US partners can apply for this new reimbursement for Medicare and Medicaid patients, and work towards having it covered by private insurers.

Historically, NeuroNode has been reimbursed through a general accessory code, which resulted in lower gross margins. The introduction of this specific code allows for direct billing of all NeuroNode components, potentially enhancing profitability.

While the exact future financial impact is difficult to predict, CBL says projections based on past performance suggest that if this new code had been in place since July 2023, it could have added approximately $400,000 to the company’s revenue for FY24.

Noxopharm targets new clinical trial

Noxopharm (ASX:NOX) is launching its first clinical trial for SOF-SKN, a new drug aimed at treating cutaneous lupus erythematosus (CLE), a serious autoimmune disease.

The trial, named HERACLES, will start in early 2025 in Australia to benefit from local expertise and government rebates.

This trial will test the drug’s safety and effectiveness, potentially setting the stage for broader applications of the Sofra platform in treating other autoimmune diseases like rheumatoid arthritis.

Initial results are expected within a few months, with a detailed analysis by late 2025.

Noxopharm is also preparing for future trials and is working on finalising the drug’s formulation and trial logistics.

HitIQ signs deal with Australia’s premier sports high school

HitIQ (ASX:HIQ) has signed a two-year agreement with Westfield Sports High School, Australia’s top sports-focused secondary school.

This deal marks HITIQ’s first venture into the school sports sector, where it will supply the school’s rugby league team with its advanced concussion management technology, including instrumented mouthguards.

The partnership allows HITIQ to monitor and manage head impacts, enhancing player safety.

Although the immediate financial impact is not significant, this agreement opens doors for HITIQ in the lucrative school sports market and may lead to more partnerships with other schools.

Optiscan to advance veterinary medicine

Optiscan Imaging (ASX:OIL) has signed a Memorandum of Understanding (MOU) with the University of Minnesota College of Veterinary Medicine.

This MOU marks the beginning of a collaboration to develop clinical data for Optiscan’s advanced imaging system, focusing initially on cancer research in pets.

The agreement will combine Optiscan’s cutting-edge imaging technology with the University’s research facilities and expertise.

This collaboration aims to create new veterinary applications for Optiscan’s system and generate the data needed for US FDA approval in veterinary medicine.

At Stockhead we tell it like it is. While Optiscan Imaging is a Stockhead advertiser, it did not sponsor this article.