Stephens downgrades CareDx after new CMS policy

CareDx

08/03/2023 08:39

** Stephens cuts precision medicine solutions firm CareDx
Inc  CDNA.O  to "equal weight" from "overweight"; cuts PT to $9
from $19
    ** Brokerage says Centers for Medicare and Medicaid Services
(CMS) new billing policy significantly restricts the
use/frequency of transplant testing directly impacting revenue 
    ** "Further, policy restrictions introduce considerable
uncertainty around key revenue drivers and likely significantly
shrinks the kidney transplant market" - Stephens
    ** Says this new policy adds to the list of challenges
currently faced by CDNA 
    ** CDNA down 7% YTD

 (Reporting by Aniruddha Ghosh in Bengaluru)
 ((Aniruddha.Ghosh@thomsonreuters.com; 91 83 83 81 2416;))