BOSTON - Myomo (NYSE:MYO), Inc. (NYSE American: MYO), a company specializing in wearable medical robotics for individuals with neurological disorders and upper-limb paralysis, has recently announced that the Centers for Medicare & Medicaid Services (CMS) have begun issuing reimbursements for its MyoPro orthotic device.
CMS's regional contractors, known as DME MACs, have processed and paid lump sum reimbursements to Myomo, and have started to reimburse orthotics and prosthetics (O&P) providers for MyoPros delivered to Medicare Part B beneficiaries.
The payments are based on the CMS-published fee schedule for the Healthcare Common Procedures Coding System (HCPCS) codes L8701 and L8702, which became effective on April 1, 2024. All four regional DME MACs have now remitted lump sum reimbursements, with payments already made for several Myomo patients and O&P providers.
Paul R. Gudonis, Chairman and CEO of Myomo, expressed satisfaction with the development, stating that Medicare beneficiaries will now have access to the MyoPro technology. He also noted the positive response from clinical providers within the orthotics and prosthetics industry, highlighting the clarity of reimbursement for channel partners and health professionals for medically appropriate patients.
Myomo's MyoPro is a powered upper-limb orthosis designed to support the arm and restore function for patients affected by various neurological conditions and injuries. It is recognized for being the only marketed device in the U.S. that can restore an individual's ability to perform daily activities by sensing the patient's electromyography (EMG) signals through non-invasive sensors.
Myomo, headquartered in Boston, Massachusetts, operates across the U.S. with sales and clinical professionals, and also has international representatives. The company aims to improve arm and hand function for those suffering from neurological disorders and upper-limb paralysis through its innovative technology.
The announcement is based on a press release statement.
InvestingPro Insights
As Myomo, Inc. (NYSE American: MYO) continues to make strides in the medical robotics field with the recent CMS reimbursements for its MyoPro orthotic device, investors and industry observers are closely monitoring the company's financial health and stock performance. According to InvestingPro data, Myomo has a market capitalization of $108.29 million and has experienced a significant revenue growth of 23.7% over the last twelve months as of Q4 2023. Despite the company's advances in technology and market presence, analysts have noted that Myomo is not expected to be profitable this year, with an operating income margin of -42.78% for the same period.
However, Myomo's stock has shown a high return over the last year, with a 623.63% return, and a notable uptick over the last six months, boasting a 126.51% return. This volatility and growth potential may appeal to certain investors, especially with the company's liquid assets exceeding short-term obligations, indicating a degree of financial stability. The stock is currently trading at a Price / Book multiple of 12.21, which is on the higher end, reflecting investor optimism about the company's value despite the lack of short-term profitability.
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