TranS1 Inc. (TSON) said a Medicare administrative contractor removed its non-coverage policy for the medical-device company’s spine procedure AxiaLIF effective Jan. 1.
Medicare contractor Palmetto said its directors reviewed the clinical information and decided the benefits are supported by high-quality evidence and the procedure has clinical value.
Shares climbed 18% to $2.11 in early trading. The stock had lost more than half its value in the past three months through Tuesday’s close.
Palmetto provides care to about 9 million Medicare beneficiaries in California, Virginia, North Carolina, South Carolina, Nevada, West Virginia and Hawaii.
TranS1 Chief Executive Ken Reali said the decision brings total AxiaLIF payor coverage to about 23 million.
“We believe that this decision further validates the safety and effectiveness of the AxiaLIF procedure and our ability to work with payors to adopt policies that support reimbursement for the procedure.”
In September, the company sold stock to raise funds for additional clinical trials, continue reimbursement efforts, hire additional sales personnel and for research and product development, working capital and other general corporate purposes.
-By Lauren Pollock, Dow Jones Newswires; 212-416-2356; firstname.lastname@example.org