- A local coverage determination ("LCD") published today by the Centers for Medicare and Medicaid Services ("CMS") and effective June 6 will provide a pathway to cover management of patients with organ transplants, benefitting Natera (NASDAQ:NTRA), according to SVB Leerink.
- Analyst Puneet Souda writes this is a positive for Natera given the company's Prospera assay for transplant rejection.
- He adds that the LCD lays the ground for reimbursement of the overall transplant rejection biopsy market.
- Prospera is currently reimbursed for kidney transplant testing.
- "This LCD...provides an avenue of coverage expansion into multiple solid organ transplants, which we believe creates upside to the $2B [total addressable market] (mgmt. estimate) realization timeline," Souda writes.
- Natera shares are down 1.7% to $107.79 in afternoon trading.