Biotech Values

[Whalatane]

SWAV

The Centers for Medicare and Medicaid Services unveiled a proposed rule that outlines three high-paying codes for coronary intravascular lithotripsy. Shockwave makes systems that perform that process — "cracking" hardened calcium in the arteries.

The timing is ideal for Shockwave, Needham analyst Mike Matson said in a report to clients. The company has a new technology add-on payment for inpatient use of its systems. But that ends on Sept. 30, about the same time the newer codes could go into effect.

"On an apples-to-apples basis, we estimate that the new (codes) will pay about $4,000-$5,000 more than the prior (codes) plus the new technology add-on payment," Matson said. "We think this is a positive for Shockwave and, more importantly, supports the view that CMS sees the value in IVL."

-------------
Kiwi