Do you hear that? That’s the sound of some mighty back-slapping at Uroplasty Inc.’s (NASDAQ:UPI) headquarters in Minnetonka, Minnesota.
After winning Medicare reimbursement Wednesday for its urinary incontinence therapy, the company has seen its stock price jump more than 20 percent to around $5.35 per share.
Uroplasty estimates Medicare will pay a base price of $97.49 per procedure, during which a pulse generator shoots low levels of electricity into the spinal nerves that control bladder function.
Behavioral Health, Interoperability and eConsent: Meeting the Demands of CMS Final Rule Compliance
In a webinar on April 16 at 1pm ET, Aneesh Chopra will moderate a discussion with executives from DocuSign, Velatura, and behavioral health providers on eConsent, health information exchange and compliance with the CMS Final Rule on interoperability.
However, Charles Haff, an analyst with Dougherty & Co., an investment bank in Minneapolis, thinks doctors will ultimately receive $126.47 per procedure.
Haff breaks it down this way: $65 to Uroplasty and $61.50 to the physician. Assuming the patient receives 12 neurostimulation sessions, doctors would generate revenue of $738 per patient. That’s well above the $450 doctors told Haff they would need in order to adopt the technology.
“With this higher-than-expected profitability for physicians to prescribe Urgent PC for their patients, we expect much more rapid adoption of the technology,” Haff wrote in a research note. “We would be strong buyers of the stock here.”
As a result, Haff boosted his fiscal 2012 sales forecast for Uroplasty to $26.1 million from $18.2 million. He also upgraded his fiscal 2013 sales estimate to nearly $40 million from $28.7 million.
A Deep-dive Into Specialty Pharma
A specialty drug is a class of prescription medications used to treat complex, chronic or rare medical conditions. Although this classification was originally intended to define the treatment of rare, also termed “orphan” diseases, affecting fewer than 200,000 people in the US, more recently, specialty drugs have emerged as the cornerstone of treatment for chronic and complex diseases such as cancer, autoimmune conditions, diabetes, hepatitis C, and HIV/AIDS.
