Lake Street raises Castle Biosciences 2025 estimates after Novitas delay

Lake Street notes that CMS has delayed the implementation of the non-covered status of Dx-SCC by 60 days to April 24 from February 23 in what the firm calls “an unanticipated and unexplained move.” Though the firm does not know why CMS and Novitas has delayed the implementation of the non-covered status of Dx-SCC, the decision delivers additional revenue for 2025 for Castle Biosciences (CSTL), says the analyst, who is increasing 2025 estimates to account for the incremental Dx-SCC revenue and affirms a Buy rating and $40 price target on Castle shares.