REG - Convatec Group PLC - Convatec responds to draft CMS proposal

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RNS Number : 0915R  Convatec Group PLC  15 July 2025

Convatec responds to CMS draft payment
proposal for skin substitutes in the United States
 

Convatec notes the draft payment proposal from the Centers for Medicare &
Medicaid Services (CMS) for skin substitutes and the start of a sixty-day
public comment period.

 

Convatec supports CMS in seeking to remove excess cost and promote responsible
market practices. However, the proposed reimbursement rate risks limiting
patient choice, product quality and availability in the segment. We will
engage fully in the public comment process which closes on 12 September 2025.
We do not expect any changes before 2026 at the earliest.

 

Convatec's InnovaMatrix® is a highly effective product with significant
health benefits to patients and healthcare professionals, strong user feedback
and clinical evidence. We are committed to this segment and are on track to
publish our randomised controlled trials in 2026. We are also continuing to
develop sales across a range of indications, both within and outside the
United States.

 

InnovaMatrix® represented c.3% of Convatec Group revenue in the four months
to April 2025 and our guidance is for revenue of at least $75m in FY25. While
the outcome of this process remains uncertain, if the proposal is implemented
in its current form the potential year-on-year headwind to FY26 revenue could
be approximately 1-2% of Group revenue.

 

We will update investors at our half-year results on 29 July 2025.

 

Contacts

 Analysts & Investors      David Phillips, Head of Investor Relations  +44 (0)7909 324994

                           Jamie Lewis, Investor Relations Manager     ir@convatec.com (mailto:ir@convatec.com)
 Media                     FGS Global                                  Convatec-UK@fgsglobal.com

 

 

About InnovaMatrix(®)

Convatec's InnovaMatrix(®) is a leading porcine placental-derived
extra-cellular matrix for treatment of chronic, surgical and trauma wounds.
The product is cleared by the US Food and Drug Administration (FDA) in 15
separate medical indications, based on an established predicate product, under
a 510k medical device licence. Patients and HCPs have experienced first-hand
the positive, sometimes limb-saving, impact that InnovaMatrix(®) products
have on chronic wounds.

 

InnovaMatrix(®) is an excellent product delivering strong real-world results
for patients and is trusted by clinicians. Convatec remains committed to
evidence-based medicine to improve outcomes for patients and choice for HCPs.
Our randomised controlled trials
(https://www.convatecgroup.com/media/press-releases/2024/Convatec_update_on_InnovaMatrix_AC_clinical_data_second_randomised_controlled_trial_authorised/)
(RCTs) are on track to report in 2026. This will complement our published
real-world evidence (RWE), including RWE published in December 2024
(https://pubmed.ncbi.nlm.nih.gov/39720774/) . Further RWE will be published
before the end of the year.

 

About Convatec

Pioneering trusted medical solutions to improve the lives we touch: Convatec
is a global medical products and technologies company, focused on solutions
for the management of chronic conditions, with leading positions in Advanced
Wound Care, Ostomy Care, Continence Care, and Infusion Care. With more than
10,000 colleagues, we provide our products and services in around 90
countries, united by a promise to be forever caring. Our solutions provide a
range of benefits, from infection prevention and protection of at-risk skin,
to improved patient outcomes and reduced care costs. Convatec's revenues in
2024 were over $2 billion. The company is a constituent of the FTSE 100 Index
(LSE:CTEC). To learn more please visit http://www.convatecgroup.com
(http://www.convatecgroup.com)

 

 

 

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