MINNEAPOLIS - Tactile Systems Technology, Inc. (NASDAQ:TCMD), known as Tactile Medical, a provider of medical technologies for chronic disorders, announced today that its latest product, Nimbl, has received approval for Medicare billing under the Healthcare Common Procedure Coding System (HCPCS) code E0651. This approval by the Pricing, Data Analysis, and Coding (PDAC) contractor follows the U.S. Food and Drug Administration's (FDA) 510(k) clearance in June 2024.
Nimbl is a pneumatic compression device designed for the treatment of lymphedema, chronic edema, venous insufficiency, and wound healing. The system stands out for its reduced size and weight—40% and 68% respectively—compared to previous models, enhancing portability and suitability for active patients. Additionally, Nimbl integrates with the Kylee™ digital app, allowing patients to monitor their therapy progress and communicate with their healthcare providers.
Sheri Dodd, CEO of Tactile Medical, expressed satisfaction with the PDAC's timely approval, emphasizing the device's potential to improve health outcomes and quality of life for Medicare beneficiaries affected by lymphedema and chronic venous insufficiency. Dodd highlighted the sleek design and technical advancements of Nimbl, reflecting the company's dedication to product innovation aimed at enhancing patient experience and adherence to therapy.
Tactile Medical plans to commercially launch Nimbl in the United States in the coming weeks. The company focuses on developing at-home therapy solutions for chronic conditions such as lymphedema, lipedema, chronic venous insufficiency, and chronic pulmonary disease. Through collaboration with clinicians, Tactile Medical aims to expand clinical evidence, raise awareness, increase access to care, reduce healthcare costs, and improve the lives of patients annually.
The news of Nimbl's approval is based on a press release statement and marks a significant step for Tactile Medical in providing advanced therapeutic options to patients requiring home-based care for chronic conditions.
In other recent news, Tactile Systems Technology reported a solid second quarter in 2024 with a 7% year-over-year increase in total revenue, reaching $73.2 million. The company's Lymphedema and Airway Clearance product lines saw revenues increase by 8% and 2% respectively. The adjusted EBITDA surged by 49% YoY, and the cash balance grew to $73.6 million.
However, the company revised its full-year 2024 revenue guidance to a range of $293 million to $298 million, reflecting the impact of stricter Medicare documentation requirements. This adjustment was also noted by BTIG, which maintained its Buy rating on Tactile Systems Technology with a steady price target of $16.00, despite the company's challenges with Medicare.
These recent developments suggest that Tactile Systems is navigating regulatory hurdles while maintaining financial growth. BTIG's analysis indicates that any positive developments could favorably impact the company's performance. As part of its key initiatives for 2024, Tactile Systems is progressing with technology investments and plans to deploy an e-prescribing tool later this year.
InvestingPro Insights
As Tactile Systems Technology, Inc. (NASDAQ:TCMD) gears up for the commercial launch of its innovative Nimbl device in the United States, investors and industry observers are closely monitoring the company's financial health and market performance. According to recent data from InvestingPro, Tactile Medical boasts a strong gross profit margin of 72.07% for the last twelve months as of Q2 2024, indicating a robust ability to manage production costs and generate revenue from its sales.
The company's market capitalization stands at $332.18 million, reflecting investor confidence in the company's growth potential. With a Price/Earnings (P/E) ratio of 10.03, Tactile Medical appears to offer a value proposition to investors looking for reasonably priced growth stocks in the healthcare technology sector.
An InvestingPro Tip highlights that Tactile Medical operates with a moderate level of debt, which suggests a balanced approach to financing that could provide flexibility for future growth and development initiatives. Moreover, the company has experienced a strong return over the last three months, with a 17.66% price total return, showcasing positive investor sentiment and market momentum following its recent product milestones.
For investors seeking more in-depth analysis and additional insights, InvestingPro offers further tips on Tactile Medical, such as the company's high shareholder yield and valuation implications based on strong free cash flow yield. In total, there are 9 additional InvestingPro Tips available, which can be explored through the Tactile Medical page on InvestingPro for those interested in a deeper dive into the company's financials and market outlook.
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