CareDx Earns Stock Downgrade Amid CMS Coverage Cuts Change Thesis
Raymond James downgraded CareDx Inc (NASDAQ: CDNA) to Market Perform from Strong Buy after MolDX issued a billing and coding article severely limiting coverage of the company’s tests in multiple areas.
The article removes current Medicare coverage for multimodality in the heart. It indicates that surveillance testing is only covered when a patient would otherwise have received a surveillance biopsy, limiting the frequency of testing primarily in the kidney.
Raymond James estimates that 30% of overall revenues are at risk.
Management is optimistic that coverage will resume for multimodality is plausible near-term thanks to data it intends to submit as soon as this month. It is pleased that AlloSure Heart will be covered on a standalone basis.
The analyst is cautious about the new data resulting in an immediate reversal.
The stock is unlikely to outperform in the near- and intermediate term. Despite general reticence to issue reactionary downgrades, the analyst writes that it is appropriate.
Price Action: CDNA shares are down 15.6% at $9.09 on the last check Friday.
Latest Ratings for CDNA
Date | Firm | Action | From | To |
|---|---|---|---|---|
Feb 2022 | Raymond James | Maintains | Strong Buy | |
Oct 2021 | Raymond James | Maintains | Strong Buy | |
Jun 2021 | Raymond James | Maintains | Strong Buy |
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This article CareDx Earns Stock Downgrade Amid CMS Coverage Cuts Change Thesis originally appeared on Benzinga.com
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