Opko Health shares drop nearly 10% on Medicare coverage 'set
Oct 7, 2016 20:22:24 GMT
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Post by gutset on Oct 7, 2016 20:22:24 GMT
South Florida Business Journal
Oct 7, 2016, 2:22pm EDT Updated Oct 7, 2016, 2:26pm EDT
Shares of Opko Health dropped nearly 10 percent Friday morning following concerns over Medicare coverage of a cancer screening procedure.
Medical claims-processing firm Palmetto GBA posted a no-coverage decision on Opko’s 4Kscore prostate cancer test, viewed as “a major setback” to Opko (NASDAQ: OPK) by Jefferies analyst Brandon Couillard, who said 4Kscore had been widely perceived as a growth driver for the Miami pharmaceutical and diagnostics giant.
Shares on Friday hit a low of $9.53 per unit, nearly 10 percent lower than the previous day’s closing price of $10.43, though the drop was perceived by some an overreaction because Novitas, a peer to Palmetto, will likely act independently and offer a different determination.
The 4KScore test – studied in over 22,000 patients, with results presented in 12 peer-reviewed publications – was shown to improve health outcomes by avoiding unnecessary biopsies while identifying men at high risk for serious prostate cancer.
“Opko believes there is more than enough scientific and clinical data to justify a positive local coverage decision by Medicare administrative contractors, and intends to work closely with these organizations to demonstrate the value of the 4Kscore test to improve individual patient care as well as the efficiency of healthcare systems,” the company said.
Columbia, South Carolina-based Palmetto is one of the country’s largest providers of high-volume claims and transaction processing to the federal government and other commercial customers. As it stands, 4Kscore’s commercial pathway is uncertain without Medicare coverage.
Prior to the coverage decision, Opko's trajectory was positive. It announced in late August that it had completed the acquisition of Toronto-based biopharmaceutical company Transition Therapeutics. A final transaction figure was not disclosed, but it was reported in June that the deal was valued at about $60 million.
Meanwhile, Opko is also preparing for the launch of Rayaldee. The patented drug aims to treat secondary hyperparathyroidism in patients with chronic kidney disease and/or vitamin D deficiency.
Oct 7, 2016, 2:22pm EDT Updated Oct 7, 2016, 2:26pm EDT
Shares of Opko Health dropped nearly 10 percent Friday morning following concerns over Medicare coverage of a cancer screening procedure.
Medical claims-processing firm Palmetto GBA posted a no-coverage decision on Opko’s 4Kscore prostate cancer test, viewed as “a major setback” to Opko (NASDAQ: OPK) by Jefferies analyst Brandon Couillard, who said 4Kscore had been widely perceived as a growth driver for the Miami pharmaceutical and diagnostics giant.
Shares on Friday hit a low of $9.53 per unit, nearly 10 percent lower than the previous day’s closing price of $10.43, though the drop was perceived by some an overreaction because Novitas, a peer to Palmetto, will likely act independently and offer a different determination.
The 4KScore test – studied in over 22,000 patients, with results presented in 12 peer-reviewed publications – was shown to improve health outcomes by avoiding unnecessary biopsies while identifying men at high risk for serious prostate cancer.
“Opko believes there is more than enough scientific and clinical data to justify a positive local coverage decision by Medicare administrative contractors, and intends to work closely with these organizations to demonstrate the value of the 4Kscore test to improve individual patient care as well as the efficiency of healthcare systems,” the company said.
Columbia, South Carolina-based Palmetto is one of the country’s largest providers of high-volume claims and transaction processing to the federal government and other commercial customers. As it stands, 4Kscore’s commercial pathway is uncertain without Medicare coverage.
Prior to the coverage decision, Opko's trajectory was positive. It announced in late August that it had completed the acquisition of Toronto-based biopharmaceutical company Transition Therapeutics. A final transaction figure was not disclosed, but it was reported in June that the deal was valued at about $60 million.
Meanwhile, Opko is also preparing for the launch of Rayaldee. The patented drug aims to treat secondary hyperparathyroidism in patients with chronic kidney disease and/or vitamin D deficiency.