LITTLETON, Colo. - Vivos Therapeutics, Inc. (NASDAQ: VVOS), a company specializing in treatments for sleep-related breathing disorders, announced today that the American Medical Association (AMA) has released new Current Procedural Terminology (CPT) medical codes for its Vivos CARE oral medical devices designed to treat obstructive sleep apnea (OSA). These codes, effective from January 1, 2025, are expected to streamline billing processes for healthcare providers and facilitate coverage by commercial insurance payers.
The AMA's update to the CPT code set for 2025 includes 420 changes, with 270 new codes, 112 deletions, and 38 revisions. The new codes for Vivos CARE devices, which are FDA-cleared for treating moderate to severe OSA, aim to make treatment more accessible for patients, including children aged 6 to 17.
Kirk Huntsman (NYSE:HUN), CEO of Vivos, expressed optimism about the impact of the new codes on patient access to their proprietary airway remodeling technology. He also noted that the company is positioned to drive revenue growth, following recent regulatory approvals and the implementation of a new alliance-based marketing and distribution model.
The AMA President, Bruce A. Scott, M.D., stated that the latest CPT updates reflect advancements in clinical practice and contribute to a data-driven health system aimed at better patient care and outcomes.
Vivos believes these new codes will enhance the affordability and accessibility of OSA treatment nationwide. The company's method has already been used to treat over 45,000 patients globally and involves non-surgical, non-invasive treatment regimens.
The information for this article is based on a press release statement from Vivos Therapeutics, Inc.
In other recent news, Vivos Therapeutics has announced a registered direct offering of 1,363,812 shares of common stock, which is expected to raise approximately $4.3 million in gross proceeds. The funds are intended for working capital and general corporate purposes. H.C. Wainwright & Co. is serving as the exclusive placement agent for the transaction.
In addition, the company has gained FDA clearance for its oral appliance designed to treat pediatric obstructive sleep apnea. This clearance, based on significant symptom reduction in a controlled study, opens a new market for the company. Vivos Therapeutics also reported a 19% increase in total revenue for the second quarter of 2024. Ascendiant Capital maintained a Buy rating on the company's stock and increased the shares target to $6.60 from $6.40.
Furthermore, Vivos Therapeutics' Board of Directors has approved the 2024 Omnibus Equity Incentive Plan, pending stockholder approval, with the aim of retaining and motivating employees. The Board also authorized contingent stock option grants to certain executives and employees. Lastly, the company closed a $7.5 million equity growth investment to strengthen its cash position and announced a strategic marketing and distribution alliance in Colorado to enhance product accessibility. These are all recent developments in the company's strategic efforts towards sustained growth and profitability.
InvestingPro Insights
As Vivos Therapeutics (NASDAQ: VVOS) prepares for the implementation of new CPT codes in 2025, investors should consider some key financial metrics and insights from InvestingPro.
According to InvestingPro data, Vivos has a market capitalization of $8.23 million, reflecting its current position as a small-cap company in the medical devices sector. The company's revenue for the last twelve months as of Q2 2023 stood at $14.02 million, with a gross profit margin of 60.07%, indicating a relatively strong ability to generate profit from its core business activities.
However, investors should note that Vivos is currently facing financial challenges. An InvestingPro Tip highlights that the company is "quickly burning through cash," which aligns with the reported operating income of -$13.49 million for the same period. This negative operating income suggests that Vivos is still in a growth phase, investing heavily in its operations and technology development.
Another relevant InvestingPro Tip indicates that Vivos is "trading at a low revenue valuation multiple." This could be seen as an opportunity for investors who believe in the company's long-term potential, especially considering the upcoming implementation of new CPT codes which may drive future revenue growth.
It's worth noting that InvestingPro offers 7 additional tips for Vivos Therapeutics, providing a more comprehensive analysis for investors interested in delving deeper into the company's financial health and market position.
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