Canaccord Genuity Reiterates Buy Rating on CVRx Inc (CVRX)

Canaccord Genuity analyst William Plovanic reiterated a Buy rating and $15.00 price target on CVRx Inc (NASDAQ: CVRX).

The analyst commented: "CVRX announced on Friday that the American Medical Association CPT Editorial Panel has accepted new Category I codes for its Barostim therapy to treat the symptoms of heart failure. While this does not impact the current outpatient reimbursement overhang for the company, we view this as a positive step for the company nonetheless. The real benefit here would be the easing of prior authorization for Medicare Advantage and commercial pay patients, which make up around half of the company’s indicated patient population, according to management. With the current Category III codes, many times payors would automatically deny the claim as experimental — leading to patients and their physicians having to handle the prior authorization process. While the company has not quantified the number of approvals or denials for prior authorization, it has said it “wins more than it loses”. We do believe the easing of prior authorization would remove any friction around the procedure. From here, the company will go through the RUC process and we would expect to see the physician payment component in the Physician Fee Schedule proposal next year (usually in July). We still wait for the final OPPS to be released in mid-November to see whether CMS for 2025 will either 1) create the level 6 neurostimulator code, 2) map CVRX back to the New Tech APC that it was mapped to in 2024, or 3) move CVRX to the level 5 neurostimulator code which would potentially decrease Barostim’s reimbursement from $45K to ~$31.2K if finalized, and likely would impact the company’s ASPs."

For an analyst ratings summary and ratings history on CVRx Inc click here. For more ratings news on CVRx Inc click here.

Shares of CVRx Inc closed at $9.49 yesterday.

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