Silk Road tumbles, InspireMD rises after Medicare coverage proposal for stents
12/07/2023 15:48
(Updates)
** Shares of medical device maker Silk Road Medical Inc
SILK.O fall 23.5% to a more than 3-year low of $24.98 - set
for worst day on record
** The U.S. Centers for Medicare & Medicaid Services issued
a proposed decision memo for expanded Medicare coverage for
carotid artery stenting (CAS) procedures, which analysts say
could pressure sales of certain SILK devices
** CAS is a procedure for opening clogged arteries to
restore blood flow to the brain, while SILK's stent devices are
used for transcarotid artery revascularization (TCAR)
** "CAS is now on par with TCAR in the eyes of CMS from a
reimbursement perspective," says J.P.Morgan, which downgraded
SILK stock to "neutral" from "overweight"
** The memo is a "net negative" for SILK, says Piper
Sandler, adding that it sets the stage for additional
competitive pressure in the coming years
** Meanwhile, InspireMD's NSPR.O shares jump 23% to $2.82
as Piper Sandler viewed the memo as a "clear positive" for co,
prompting it to lift PT to $3.50 from $3.00
** The memo highlights NSPR's commercial strategy, which
centers on its proprietary stent technology to drive patient
outcomes, says Piper Sandler, but notes co needs standard risk
approval from FDA
** SILK shares down 53.5% YTD, while NSPR up 226% in the
same period
(Reporting by Pratik Jain and Medha Singh in Bengaluru)
((Pratik.Jain@thomsonreuters.com;))