Piper Sandler analyst Jason Bednar says he recently learned the payment rate from Medicare covering the monthly use of Novocure’s Optune system rose to $15,300 effective January 1, a nearly 9% increase from the Medicare payment rate in 2022. This represents a greater bump than 2022’s 5% jump and is well above the 0%-1% annual increases seen in the pre-COVID era, Bednar tells investors in a research note. All else equal, this should boost revenue to Novocure for all U.S. glioblastoma Medicare patients, which is 25% of its U.S. patient mix. He sees the development as a "modest positive" for Novocure and keeps a Neutral rating on the shares with a $70 price target.
Published first on TheFly
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