Melissa Martinson, president of the health economics consulting firm Technomics Research, says insurance companies might not rush to cover the treatment, even if it is highly effective.
“A lot of times insurance companies will claim they don’t consider cost when they make coverage decisions,” she said. “But most health economists and most people who work in the field don’t think that’s literally true.”
Aside from cost, insurers will consider safety and efficacy before approving something like VBLOC for people who are obese. Martinson says that defibrillating pacemakers, which are now common, faced similar hurdles when they were released.
And as for efficacy, that may be the toughest hurdle. William Dietz, director of the Redstone Center at George Washington University’s Milken Institute of Public Health, says obesity treatments have always struggled when it comes to maintaining weight loss. It’s still unknown if VBLOC’s effects will sustain over time or whether they will diminish.
“People are losing weight all the time, they just can’t sustain that weight loss,” Dietz said. “So we know the types of therapy available need to be long term.”
But the benefit of even a slight reduction in obesity has impacts on health. A five to 10 percent loss of excess weight can start to reverse high blood pressure, diabetes and other comorbidities.
I suspect mgmt is hoping to reprice their options at the lowest possible price. Then boom.. Will have series of news which propel the stock up.
I think Gladney sponsored investors will soon take it private for peanuts and sell the license. If we get around $2, we will be lucky. Time is very crucial. If they get insurance coverage, they have some leverage and price might go up, but still will be taken private/or sold. Current management don't have expertise to scale..
I agree that there is a fine line after this, to survive or go bust. As CEO mentioned there will be activities and update in the second quarter, I am holding my stock. Let us see.
They will get another 6.25M by August.
"The original securities purchase agreement, which consisted of three tranches, has been amended to allow for a fourth tranche of $6.25 Million. This final tranche must be drawn or waived on or prior to August 15, 2016."
I think the execs who ran the company so far were not businessmen, but scientists who did not want to give up control of their company until the hell broke loose. I know Google and Facebook came out ahead, but those guys are smart, brought right execs during the growth phase. ETRM founders did not do it. Maybe it is Minnesota thinking..
I went and found out that Winthrop employees are covered by Empire Blue of NY. It classifies Maestro as not Medically necessary and won't cover. Looks like Winthrop will bear the costs of VBloc implants, if they really care...
What happened to Winthrop deal? Nobody got vbloc implanted? I thought that news alone would generate a million dollars in revenue.. Something is missing here. Maybe that hospital has more paperwork for approval than the insurance companies themselves or VA hospitals.
I did not, because if it shots up without any news means, somebody knows something and buying up. No harm there except for shorts. If it is going down on good news means, somebody don't want it to go up means, manipulating the price to their advantage(aka naked shorting). I am concerned about the second one.
even with such good news. SEC has to intervene
I should have, but did'nt think it would act this quickly. Will wait. These guys will post a series of run up news to bring it back above $1.