In a remarkable surge, Myomo, Inc. (NYSE: MYO) witnessed a notable 31.05% uptick in its stock value during the preceding trading session, culminating in a closing price of $4.01. This substantial rise was catalyzed by a significant announcement.
Myomo (MYO) disclosed that on February 29, 2024, the Centers for Medicare & Medicaid Services (CMS) released the final Medicare Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) fee schedule payment rates for the MyoPro.
The ultimate average fee schedule rates for the two Healthcare Common Procedures System (HCPCS) codes delineating the MyoPro, namely L8701 for its Motion W device and L8702 for its Motion G device, stand at $33,480.90 and $65,871.74, respectively. These details can be accessed beginning on page 67.
Effective April 1, 2024, these final fees will be implemented. Notably, on January 1, 2024, the MyoPro was formally categorized under the brace benefit classification, enabling reimbursement on a lump sum basis. Myomo has successfully concluded negotiations with CMS, a process initiated in 2018 with the issuance of the two HCPCS billing codes.
This marks a significant milestone for qualified Medicare Part B beneficiaries experiencing long-term muscular weakness or partial paralysis, as well as for Myomo as an enterprise. Moreover, MYO is also set to announce its financial results this week on March 7. In addition, MYO has recently completed its previously announced registered direct offering of common shares, in which a limited number of institutional investors, both new and old, as well as company insiders, participated.
The offering was priced at the market. In this offering, 1,578,948 shares of common stock (or common stock equivalents) were bought and sold for $3.80 a share, which mirrored the closing price of the company’s common stock on January 16, 2024, when it was traded on the NYSE American. Before placement agent commissions and other offering costs were deducted, the total gross proceeds came to about $6.0 million.
