Castle Bio falls after cancer test fails to secure insurance coverage

Castle Biosciences

05/07/2024 18:02

** Shares of medical testing provider Castle Biosciences
 CSTL.O  down 15.1% at $18.04, hits over seven-month low
    ** Co fails to secure insurance coverage for its genetic
test for a type of skin cancer
    ** One of the Medicare Administrative Contractors (MAC)
maintained a non-coverage decision for co's DecisionDx-Squamous
Cell Carcinoma test which predicts the cancer's aggressiveness
and risk of recurrence
    ** A MAC is a private health insurer that processes
government-backed Medicare insurance claims and acts as the
primary operational contact between the Medicare program and the
health care providers enrolled in it
    **  The "sustainability of coverage has remained a question
and an overhang on CSTL," Leerink Partners analyst Puneet Souda
wrote in a note, adding that pending decision from another MAC
could resolve coverage questions for the test in 2024
    ** Including session's moves, stock down ~16% YTD

 (Reporting by Mariam Sunny in Bengaluru)
 ((Mariam.ESunny@thomsonreuters.com;))