treatment gains more acceptance
Early last week Uroplasty, a Minnetonka-based medical device company, announced that a large Medicare administrative contractor will cover the company’s Posterior Tibial Nerve Stimulation (PTNS) treatment for urinary urgency associated with overactive bladder.
The contractor, National Government Services (NGS), serves about 10 million Medicare beneficiaries in 10 states.
Craig-Hallum analyst Charles Haff wrote in an investor note: “This NGS coverage decision is material in our view,” saying that Uroplasty management would increase its sales efforts in those 10 states as a result.
The parent company of NGS is WellPoint, which currently does not cover the procedure. But Haff speculates “this NGS decision may be a leading indicator for a positive coverage decision from this large commercial carrier in the future.”
Haff is maintaining his “buy” rating on Uroplasty.
Cardiovascular Systems reports better than expected sales
Medical technologies analyst Mike Matson from Needham & Co. is maintaining his “strong buy” recommendation on Cardiovascular Systems Inc. after the company’s recent fourth-quarter revenue beat consensus estimates, aided by acceptance of its new Diamondback 360 device for the treatment of coronary plaque.
Cardiovascular’s fourth-quarter results “support our thesis that the coronary launch should drive faster revenue growth,” he wrote.
The New Brighton-based company’s fourth-quarter revenues were $39.6 million, up 37 percent from the same period last year and above consensus analysts’ estimates of $37.2 million.