Nuwellis Stock Soars 121% on Major Increase in Reimbursement for Aquadex System
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Nuwellis (NASDAQ:NUWE), this Minneapolis-based medical device company saw its shares rise by 121.32% today as the US government decided to raise the reimbursement rate for ultrafiltration that is conducted using the Nuwellis' Aquadex System.
Nuwellis is a medical device company that specializes in producing the Aquadex SmartFlow system to do the ultrafiltration procedure for patients with fluid overload. Ultrafiltration process is used for eliminating extra amounts of fluid in patients with heart failure or kidney illness.
The US government through Centers for Medicare and Medicaid Services (CMS) revealed that it will adjust the payment per day for the ultrafiltration procedures that use the Nuwellis' Aquadex system from $413 a day to $1,639 starting from the 1 st of January 2025.
This equates to a lot more money in the pocket of healthcare providers for each procedure and this increased reimbursement will definitely be beneficial to both the patient and the healthcare provider. Patients can improve access to this treatment, while healthcare providers can have resources to train their staff to perform the procedure.
While for Nuwellis, higher reimbursement rate will increase the amount of revenues that Nuwellis can earn from each procedure using the Aquadex and encourage the healthcare providers to perform ultrafiltration using their Aquadex and at the end create higher demand for the device.Higher revenue may be translated into better financial position, fund their research and development in the future and do marketing. This good news led to a boost in the company's stock price and benefited shareholders.
The chart above shows the fact that Nuwellis has been operating in the net loss linestyle for more than 10 years but the company has been increasing in revenues in the most recent years. These consistent annual revenues ignited positive prospects signaling that Nuwellis could turn profitable in future in case of sustaining this trend.
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This article first appeared on GuruFocus.