Proposed new LCDs likely benefit MiMedx if implemented, says Lake Street

Lake Street analyst Brooks O’Neil notes that all the Medicare Administrative Contractors, or MACs, proposed new Local Coverage Determinations, or LCDs, related to skin substitutes on April 25, but notes that these are proposals, which “invite discussion and hence are unlikely to survive in their current form.” However, they are “interesting as proposed, because all of the MACs have essentially proposed the same thing, which suggests something of a ‘national’ coverage decision in this case,” added the analyst, who says the proposed new LCDs are likely to benefit MiMedx if implemented. The firm remains “very comfortable recommending shares” and affirms a Buy rating and $12 price target on MiMedx.