First, RWLK was in oversold territory. Second, RWLK releases the statement below. IMO, people read too much into it and began the feeding frenzy. Traders moved in creating upward momentum until reality set in. (I warned about this) Now there are many left holding the bag.
I will try to explain why I believed that people were reading too much into the released statement. Read the statement slowly and carefully.
I believe that people were under the impression that RWLK was the SOLE beneficiary of the revision. You have to remember that RWLK is releasing the statement, so of course they mention that "veterans can be trained to ues the ReWalk device"....They can also be trained to use the EKSO device or any cuurrent or future competitor's device.
The main point of the VA revision is that patients have expanded ways to gain treatment using an exoskeleton device. (not specifically a ReWalk device)
VA Policy
In June 2018, the U.S. Department of Veterans Affairs (the “ VA ”) issued a revision to its national policy, initially released in December 2015, on exoskeleton medical device evaluation, training and procurement for qualifying veterans with spinal cord injury across the United States. The updated policy includes further guidance on the evaluation process and expands access to training program locations among the VA network and private rehabilitation centers, where "individual may be allowed to pursue training on exoskeleton use, such as use of the ReWalk"...again, note the words such as. That does not mean that they are exclusive. Remember, RWLK is using the statement by the VA (with a slight slant) to say that a ReWalk device COULD be used.
The VA statement is a broad overall policy that pertains to ALL exoskeleton devices.
IMO the drop in PPS is the oversold rally running out of steam and people coming to the realization that the PR was not earth-shattering news afterall.
Under the VA’s revised policy, the exoskeleton evaluation process will have all veterans flow through one of 24 designated spinal cord injury VA centers (“ SCI/D ”). Once a veteran is determined to be qualified for training and procurement of his/her own exoskeleton system, the individual may be allowed to pursue training on exoskeleton use, such as use of the ReWalk, in one of three ways: (i) at the applicable SCI/D hub center; (ii) on a case-by-case basis, at a qualified VA hospital designated by the VA’s “hub & spoke” program; or (iii) on a case-by-case basis, at a qualified private rehabilitation center via the VA’s Veterans Choice Program, through which veterans can receive care from a community provider paid for by the VA.
As a result of the revised policy, there are now 142 ReWalk certified private and VA SCI/D training centers across the United States and Canada potentially available to train veterans to use ReWalk. Furthermore, the network of VA SCI/D spoke sites may now be eligible to conduct training and provide additional opportunities.
