NEWTOWN, Pa. - Helius Medical Technologies, Inc. (NASDAQ:HSDT), a neurotech company, has announced that the Centers for Medicare & Medicaid Services (CMS) has released its proposed Medicare payment rates for the company's Portable Neuromodulation Stimulator (PoNS) therapy devices. These rates will be discussed at the upcoming HCPCS Public Meeting on May 29, 2024.
CMS has proposed a capped payment of $3,075.53 for the PoNS Mouthpiece and $1,206.53 for the PoNS Controller. These preliminary determinations are set to be reviewed in a public meeting, with the potential to influence the final decision on reimbursement rates.
Helius Medical's President and CEO, Dane Andreeff, commented on the CMS's preliminary rates as a "significant win" for the company. Andreeff indicated that Helius plans to argue for higher reimbursement rates at the May 29 meeting, emphasizing the unique therapeutic mechanisms of the PoNS devices compared to other neuromuscular peripheral stimulation therapies.
The PoNS device, which is used in conjunction with physical rehabilitation exercises, is designed to improve balance and gait by delivering mild electrical impulses to the tongue. It is currently approved in the United States for the treatment of gait deficit due to mild-to-moderate multiple sclerosis symptoms and is available in Canada and Australia for additional indications.
The preliminary payment determinations by CMS are not guaranteed to be finalized as presented, and the company cautions that actual results could differ materially from expectations. The finalized payment rates, if approved, would take effect from October 1, 2024.
Helius Medical Technologies aims to leverage the Medicare price determination to expand reimbursement across third-party payers and enhance its financial outlook, particularly as it seeks authorization for stroke treatment in the U.S.
This news is based on a press release statement from Helius Medical Technologies and does not constitute an endorsement of the company or its products. The final decision on Medicare payment rates will be determined after the HCPCS Public Meeting.
InvestingPro Insights
As Helius Medical Technologies, Inc. (NASDAQ:HSDT) navigates the complex landscape of Medicare reimbursements for its PoNS therapy devices, the company's financial health and market performance provide critical context for investors. The recent data from InvestingPro shows a market capitalization of $7.72 million USD, indicating the relatively small size of the company within the medical device sector.
InvestingPro Tips suggest that Helius Medical holds more cash than debt, which is a positive sign for the company's financial stability. This is particularly relevant as the firm prepares to argue for higher reimbursement rates, which could impact its cash flow and overall financial position. Additionally, the Relative Strength Index (RSI) indicates that the stock is currently in oversold territory, which might attract investors looking for potential undervalued opportunities.
However, it's worth noting that Helius Medical's stock price has experienced significant volatility, with a one-week total return of -29.83% and a one-month total return of -53.18%, reflecting the market's reaction to various challenges the company faces. The revenue has seen a decline of -18.17% over the last twelve months as of Q4 2023, and gross profit margins are weak at 9.47%, underscoring the importance of securing favorable Medicare payment rates to bolster financial performance.
For investors seeking to delve deeper into Helius Medical's prospects, there are 16 additional InvestingPro Tips available at https://www.investing.com/pro/HSDT. These insights could be critical in making informed investment decisions, especially in light of the upcoming Medicare payment rate discussions. To access these insights and more, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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