Ed Kensik10.25.06
Shares of Waltham, MA-based NeuroMetrix fell sharply on Tuesday and set a 52-week low as the medical-device maker was hit with new worries about physicians’ ability to bill insurance companies for procedures using its automated nerve conduction test.
Shares of the company dropped $4.63, or 23%, to $15.22 in early afternoon trading, October 24, on the Nasdaq Stock Market as investors absorb news that yet another insurance provider decided not to allow physicians to use three existing reimbursement codes to bill for NeuroMetrix's test, NC-stat.
Tuesday's weakest level of $14.30, on heavy volume, was a 52-week low surpassing the prior low of $16.33 set Oct. 11. There was a 52-week high of $41.19 on April 21.
NeuroMetrix makes a strap-on device that allows physicians, even general practitioners, to test for problems like carpal tunnel syndrome and back pain, eliminating the need for a trip to the specialist.
For the last couple of years, physicians under NeuroMetrix' guidance have been able to bill the procedure under existing codes that cover the standard surface and needle procedures it competes with. The growth prospects have led the company's stock to more than double in value over the past 17 months. Chief Executive and founder Shai Gozani told investors last month that the market for his company's products could top $1 billion.
The problem is, the revenue stream could soon start to dry up as more medical carriers balk at reimbursing the procedure.
Shares of the company dropped $4.63, or 23%, to $15.22 in early afternoon trading, October 24, on the Nasdaq Stock Market as investors absorb news that yet another insurance provider decided not to allow physicians to use three existing reimbursement codes to bill for NeuroMetrix's test, NC-stat.
Tuesday's weakest level of $14.30, on heavy volume, was a 52-week low surpassing the prior low of $16.33 set Oct. 11. There was a 52-week high of $41.19 on April 21.
NeuroMetrix makes a strap-on device that allows physicians, even general practitioners, to test for problems like carpal tunnel syndrome and back pain, eliminating the need for a trip to the specialist.
For the last couple of years, physicians under NeuroMetrix' guidance have been able to bill the procedure under existing codes that cover the standard surface and needle procedures it competes with. The growth prospects have led the company's stock to more than double in value over the past 17 months. Chief Executive and founder Shai Gozani told investors last month that the market for his company's products could top $1 billion.
The problem is, the revenue stream could soon start to dry up as more medical carriers balk at reimbursing the procedure.