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AngioDynamics secures new CPT codes for NanoKnife System

Published 21/10/2024, 13:14
ANGO
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LATHAM, N.Y. - AngioDynamics , Inc. (NASDAQ: NASDAQ:ANGO), a medical technology company, today announced the receipt of CPT Category I codes for the NanoKnife System, facilitating broader patient access to minimally invasive treatments for prostate and liver lesions. These new codes, effective January 1, 2026, will enable healthcare providers to obtain reimbursement for performing Irreversible Electroporation (IRE) ablation procedures using the NanoKnife System.

The NanoKnife System employs IRE technology to destroy targeted cells by creating permanent nanopores in cell membranes, offering a minimally invasive alternative to traditional surgery or thermal ablation techniques. This technology is designed to preserve surrounding nerves and blood vessels, potentially reducing side effects.

The American Medical Association's CPT Editorial Panel granted the new codes following rigorous clinical studies, indicating that the NanoKnife System has met the criteria for clinical efficacy and value. The CPT Category I codes are recognized for services and procedures that are widely used and demonstrate clinical efficacy.

Jim Clemmer, President and CEO of AngioDynamics, emphasized the significance of this milestone and the company's commitment to expanding access to innovative treatments. With the establishment of these codes, healthcare providers are expected to achieve more precise billing and broader insurance coverage for NanoKnife procedures.

The NanoKnife System is cleared by the FDA for the surgical ablation of soft tissue and is approved for commercialization in several other countries. However, it has not been cleared for the treatment or therapy of a specific disease or condition.

This development is based on a press release statement and reflects AngioDynamics' ongoing efforts to enhance cancer treatment options and improve patient outcomes.

In other recent news, AngioDynamics has reported mixed results for the first quarter of fiscal year 2025. Despite a slight sales miss, the company posted net sales of $67.5 million, reflecting a modest 1.1% year-over-year increase. Analysts from H.C. Wainwright and Oppenheimer maintained a positive outlook for the company, affirming a Buy and Outperform rating respectively. The Med Tech segment of AngioDynamics, including Auryon and AlphaVac products, experienced a revenue increase of nearly 9%, offsetting a 4% decline in the Med Device segment. The company also revealed a transition to outsourced manufacturing, projected to result in significant annual savings by fiscal 2027. Looking ahead, AngioDynamics has reiterated its full-year 2025 guidance, expecting net sales between $282-288 million. These recent developments reflect changes in the company's operational strategy and market dynamics.

InvestingPro Insights

AngioDynamics' recent achievement in securing CPT Category I codes for its NanoKnife System marks a significant milestone for the company, potentially paving the way for increased adoption and revenue growth. However, investors should consider this development in the context of the company's current financial position and market performance.

According to InvestingPro data, AngioDynamics has a market capitalization of $259.65 million, reflecting its position as a smaller player in the medical technology sector. The company's revenue for the last twelve months stood at $292.73 million, with a concerning revenue decline of 12.85% over the same period. This decline in revenue underscores the importance of the new CPT codes in potentially driving future growth.

InvestingPro Tips highlight that AngioDynamics holds more cash than debt on its balance sheet, which could provide financial flexibility as it seeks to capitalize on the NanoKnife System's new reimbursement status. Additionally, the company's liquid assets exceed short-term obligations, suggesting a stable short-term financial position.

However, it's worth noting that AngioDynamics is not currently profitable, with a negative P/E ratio of -1.06. This aligns with another InvestingPro Tip indicating that analysts do not anticipate the company will be profitable this year. The stock has also underperformed recently, with a 15.25% decline over the past month.

For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips that could provide deeper insights into AngioDynamics' financial health and market position. These additional tips could be particularly valuable in assessing the potential impact of the NanoKnife System's new reimbursement status on the company's future performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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