ASX Health Stocks: Nova Eye surges over 40pc after USA Medicare changes withdrawn
Health & Biotech
Health & Biotech
Nova Eye Medical (ASX:EYE) surged by over 40% this morning after announcing that the proposed reimbursement changes covering minimally invasive glaucoma surgery (MIGS) in the US will now not go into effect.
The new rules, or Local Coverage Determinations (LCDs), were initially proposed by five Medicare Administrative Contractors (MACs) and were scheduled to become effective on January 29, 2024.
The LCDs had proposed to restrict or deny coverage for several MIGS procedures, including canaloplasty.
The changes would have hit Nova Eye particularly hard, as approximately 40% of the company’s global revenues are derived from health care facilities located in the 38 states covered by these MACs.
The announcements posted by the MACs today means that there will be no change in the status of reimbursement coverage for canaloplasty after January 2024.
Accordingly, canaloplasty procedures performed with the company’s iTrack portfolio of canaloplasty devices will continue to be reimbursed in all states in the USA.
Nova Eye Medical CEO, Tom Spurling, says this is a positive development for USA sales of the company’s new iTrack Advance canaloplasty device, which has achieved significant market penetration following its launch in May 2023.
“Surgeon appetite in the USA for our new iTrack Advance canaloplasty device has been strong and this announcement by the MACs will support continued sales growth following the recent period of confusion in the market arising from the LCDs,” said Spurling.
“We appreciate the efforts of the key societal groups, including the American Glaucoma Society (AGS), the American Society of Cataract and Refractive Surgery (ASCRS) and the American Academy of Ophthalmology (AAO), who advocated for the canaloplasty procedure during the review process with the MACs.
“Along with thousands of determined ophthalmologists who petitioned against the proposed changes, the societies played a critical role in ensuring glaucoma patients in the USA have continued access to canaloplasty,” Spurling added.