Shares of medical robotics firm surged 61% in premarket today with high volume as Myomo attains certification as Medicare Provider.
Myomo, Inc. (MYO) shares are trading in bullish momentum followed the announcement of attaining the authorization of being a Medicare Provider. MYSO shares surged 61% in the premarket today and kicked off today’s trading session at $5.11.
On Tuesday, MYO shares rose by almost 65% in the extended trading session. Myomo shares crossed the $5 mark for the first time since early March as later on, it followed the bearish market trend affected by COVID-19 pandemic.
The wearable medical robotics company recently reported that the Centers for Medicare & Medicaid Services under the U.S. Department of Health and Human Services has authorized the Company to be a Medicare Provider. The latest development has attracted investors and their interest in the stake of firm has increased.
The company will now be able to bill Medicare directly when it delivers its MyoPro powered orthosis in 39 states and the District of Columbia.
With the following authorization as a Medicare Provider, the company is now part of the Medicare Supplier Directory at Medicare.gov. Myomo highlighted that it is working to complete the requirements for billing Medicare for delivery in the remaining 11 states.
MyoPro is based on upper-limb orthosis that is developed to support the arm and restore function to paralyzed or weak arms among the patients suffering from spinal cord injury, CVA stroke, ALS or other neuromuscular diseases, traumatic brain, and brachial plexus injury.
The Chief Commercial Officer of the company, Micah Mitchell stated:
“This certification is very important to Myomo. Not only does it allow us to bill Medicare directly in the future, it also opens the door to applying for in-network contracted coverage from many private commercial insurance companies as well as state Medicaid plans.”
The main goal of Myomo is to provide support to appropriate candidates with arm disabilities to obtain this useful technology for use at home, at work, and in school.
This certification means that the company moves one step closer to attain commercial insurance plans. By commercializing MyoPro, the company will have coverage over a broader market which would help Myomo to potentially better serve the qualifying beneficiaries of Medicare and other plans who suffer a paralyzed or weakened arm caused by stroke or nerve injury.
Myomo has not yet obtained reimbursement terms from CMS, and there is no guarantee at the moment that those terms will be implemented soon. However, provider status is a major push for the company to work on its product and requirements that are needed to obtain terms from CMS.
As of 02:01 P.M. EDT, Myomo, Inc. (MYO) was trading $5.01 with soaring by almost 30%. MYO started the day peaking at $5.61 at $10:48 A.M EDT.