Verici Dx PLC (AIM:VRCI) shares rose 7% as it announced that a "gapfill median rate" pricing of US$2,650 has been proposed for its Tutivia treatment for kidney transplant rejection by the Centers for Medicare & Medicaid Services (CMS) and, separately, posted 2022 results.
Gapfill pricing is a method used by CMS to establish payment rates for clinical laboratory tests under the Clinical Laboratory Fee Schedule when no comparable test already exists.
The developer of advanced clinical diagnostics for organ transplants said the proposed rate was supported by the majority of Medicare Administrative Contractor (MAC) localities, including Palmetto GBA, that will process future Medicare claims submitted for tests performed in Verici's Tennessee laboratory. The proposed rate is currently open for public comment before it is finalised later this year from which it is valid for a period of three years from 1 January 2024, after which it is subject to further review.
In a statement, Sara Barrington, chief executive officer of Verici Dx, commented: "This is another important milestone in our commercial strategy, and we are pleased the majority of MAC localities have proposed pricing for our Tutivia tests consistent with the resources required to develop and perform these tests. I look forward to the pricing being finalised later this year and securing reimbursement coverage in due course."
In its results for the year ended 31 December 2022, Verici Dx noted that it achieved the full commercial launch of Tutivia in January 2023, leading to first revenues being recognised in the current year.
For 2022, the company reported an adjusted EBITDA loss of US$10.5mln (2021: US$7.1mln loss). As of 31 December 2022, it had a cash balance of US$9.81mln (2021: US$10.3mln having raised gross proceeds of £10.0mln in March 2022 via a placing and subscription, giving it a cash runway extended to mid-2024).
Around 9.20am on Monday, Verici Dx shares were 7.1% higher at 11.25p.