Friday, July 14, 2023 1:36:32 PM
ALLISON GATLIN12:15 PM ET 07/14/2023
Shockwave Medical (SWAV) received mixed reimbursement news from the Centers for Medicare and Medicaid Services, and SWAV stock tumbled Friday.
The company is a leader in intravascular lithotripsy, a method of cracking hardened calcium in blood vessel walls. It rivals an older procedure called atherectomy that relies on a drill for the same purpose.
Late Thursday, CMS published a reimbursement decision that could hamper usage of intravascular lithotripsy for outpatients beginning in the second half of 2024. But the agency also increased the amount of money doctors receive from these procedures, making them more lucrative than traditional atherectomy.
In midday trading on today's stock market, SWAV stock dropped 4.8% near 270.50.
SWAV Stock: Reimbursement Shift In Flux
Under the current rules, CMS pays an additional $4,700 for outpatients who receive intravascular lithotripsy. But that reimbursement rule will expire after June 30, 2024. Shockwave expects CMS to eventually shift to a higher paying code.
But the agency didn't make that shift in the rule changes proposed for next year, Needham analyst Mike Matson said in a note to clients. Instead, it seems CMS will wait for the June 30, 2024, expiration and include the higher reimbursement code in the 2025 proposal.
"Outpatient coronary intravascular lithotripsy would lose the (additional $4,700 payment) and see lower reimbursement in the second half of 2024, which would probably cause decreased outpatient coronary utilization and sales, though it's difficult to quantify this," he said.
But Matson kept his buy rating and 325 price target on SWAV stock.
He noted physician payments for performing intravascular lithotripsy will increase by 25%-30% beginning Jan. 1, 2024. This makes Shockwave's technology more lucrative for doctors that standard procedures like atherectomy.
Shockwave Remains Below A Key Line
Shockwave shares broke out last month and immediately toppled, undercutting their 50-day moving average on July 7. SWAV stock is now trapped under a ceiling at that line, according to MarketSmith.com.
But Shockwave stock also has a strong Composite Rating of 95, IBD Digital shows. This means SWAV stock ranks in the top 5% of all stocks in terms of fundamental and technical performance.
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Kiwi
Recent SWAV News
- Kuehn Law Encourages SWAV, ALE, PRFT, and LSAK Investors to Contact Law Firm • PR Newswire (US) • 05/08/2024 07:12:00 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 05/06/2024 08:14:44 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/06/2024 08:05:20 PM
- Shockwave Medical Reports First Quarter 2024 Financial Results • GlobeNewswire Inc. • 05/06/2024 08:05:00 PM
- Shockwave Reducer Demonstrates Consistent, Positive Results in ‘Real-World’ Study • GlobeNewswire Inc. • 04/08/2024 08:03:00 PM
- Rowley Law PLLC is Investigating Proposed Acquisition of Shockwave Medical, Inc. • PR Newswire (US) • 04/05/2024 06:55:00 PM
- Kuehn Law Encourages KTRA, ABIO, SWAV, and NS Investors to Contact Law Firm • PR Newswire (US) • 04/05/2024 05:09:00 PM
- Johnson & Johnson to Acquire Shockwave Medical • Business Wire • 04/05/2024 10:31:00 AM
- GameStop Shares Tumble 20% in Pre-Market Trading Amid Revenue Decline, Direct Digital Plummets 42%, and More News • IH Market News • 03/27/2024 10:54:47 AM
- Shockwave Medical to Participate in the 23rd Annual Needham Virtual Healthcare Conference • GlobeNewswire Inc. • 03/26/2024 12:30:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/07/2024 02:10:29 AM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 03/06/2024 09:24:32 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 03/01/2024 10:09:57 PM
- Form S-8 - Securities to be offered to employees in employee benefit plans • Edgar (US Regulatory) • 02/26/2024 09:27:05 PM
- Form 10-K - Annual report [Section 13 and 15(d), not S-K Item 405] • Edgar (US Regulatory) • 02/26/2024 09:06:34 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 02/23/2024 10:56:40 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/23/2024 01:13:28 AM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 02/22/2024 09:24:54 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/22/2024 01:55:36 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/15/2024 09:03:36 PM
- Shockwave Medical Reports Fourth Quarter and Full Year 2023 Financial Results • GlobeNewswire Inc. • 02/15/2024 09:03:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/08/2024 01:17:11 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/07/2024 01:18:39 AM
- Form 3 - Initial statement of beneficial ownership of securities • Edgar (US Regulatory) • 02/07/2024 01:14:59 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/07/2024 01:11:50 AM
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