CMS announcement positive for CareDx and Natera, says Craig-Hallum

Craig-Hallum analyst Alexander Nowak says the Centers for Medicare and Medicaid Services issued an “interesting” statement today pertaining to the transplant reimbursement cuts instituted 12 months ago. Along with the statement, CMS revised the billing and coding article that triggered “much consternation” and appears to have partially reversed the cuts, or, at a minimum, the reimbursement cuts did not get worse, the analyst tells investors in a research note. The firm views the news as positive for both CareDx (CDNA) and Natera (NTRA). For “pure-play” CareDx, “we have finally gotten two stable quarters after the shock cuts,” says Craig-Hallum.