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Milestone Scientific gains Medicare reimbursement in Florida

EditorNatashya Angelica
Published 07/10/2024, 12:31 PM
MLSS
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ROSELAND, N.J. - Milestone Scientific Inc. (NYSE: NYSE:MLSS), a developer of advanced drug delivery systems, has secured a key Medicare reimbursement approval for its CompuFlo® Epidural System in Florida. The approval, announced on Monday at the American Society of Pain & Neuroscience Conference in Miami Beach, is seen as a significant step in the company's strategy to enhance the accessibility of its pain management technology.

First Coast Service Options Inc. (FCSO), a Medicare Administrative Contractor, has agreed to Medicare Part B physician price assignment for the CompuFlo Epidural System under a specific Category III CPT code. This development is expected to increase the system's adoption among the 1.6 million annual epidural steroid injection procedures performed in Florida for chronic back pain treatment.

Arjan Haverhals, CEO and President of Milestone Scientific, emphasized the importance of this reimbursement achievement, stating that it represents one of the most pivotal events in the company's history. The company is also actively pursuing reimbursement in other Medicare jurisdictions across the country.

The FDA-cleared CompuFlo Epidural System utilizes Dynamic Pressure Sensing® technology for real-time feedback during epidural procedures, enhancing patient safety and comfort. With Medicare reimbursement, the technology is poised to become more accessible to Medicare beneficiaries, potentially improving patient outcomes and supporting healthcare providers by reducing financial barriers to advanced pain management solutions.

Milestone Scientific is committed to furthering its reimbursement strategy in additional regions, aiming to establish the CompuFlo technology as a standard of care in epidural procedures. This news is based on a press release statement from Milestone Scientific Inc.

In other recent news, Milestone Scientific Inc. reported a slight drop in its Q1 2024 revenue to $2.2 million, compared to $2.6 million in the same period in 2023. Despite this, the company experienced a significant 31% increase in e-commerce sales and enhanced gross margins following a shift to a direct sales model. The company is actively seeking reimbursement for its CompuFlo Epidural System and maintains a favorable outlook for the medical segment.

Milestone Scientific has a robust balance sheet with $5 million in cash and no long-term debt, as it continues to prioritize achieving positive cash flow. The company's e-commerce platform, launched in January 2023, generated $1.3 million in revenue for the quarter.

The company's CEO, Arjan Haverhals, discussed the potential for growth in both the U.S. and international markets, particularly Brazil. The company aims to capture a 20% share of the epidural market, which could significantly boost revenue growth.

These developments are a part of Milestone Scientific's strategic focus on growth areas, including the U.S. dental market and international expansion. The company's success in the U.S. dental sector via its e-commerce platform has been significant, and profits are being reinvested to support the medical business.

Reimbursement from healthcare insurance providers is a critical factor for the medical business's success, and the company is working to establish partnerships to achieve this goal.

InvestingPro Insights

Milestone Scientific Inc. (NYSE: MLSS) has recently achieved a notable milestone with Medicare reimbursement approval for its CompuFlo® Epidural System in Florida. This development could be a catalyst for the company's financial performance and market valuation.

According to real-time data from InvestingPro, Milestone Scientific holds a market cap of approximately $54.83 million USD. Despite being currently unprofitable with a negative P/E ratio of -7.37, the company has shown a significant return over the last week, with a 7.58% increase in its share price.

An InvestingPro Tip highlights that Milestone Scientific's liquid assets surpass its short-term obligations, suggesting a degree of financial stability which may support its ongoing efforts to expand reimbursement for CompuFlo across additional Medicare jurisdictions. The company's strong return over the last three months of 16.85% reflects investor optimism which could continue to grow in light of the recent Medicare reimbursement approval.

Investors interested in deeper analytics and additional InvestingPro Tips can explore more at https://www.investing.com/pro/MLSS. There are currently 7 more InvestingPro Tips available, which can provide further insights into Milestone Scientific's financial health and market potential. To gain access to these valuable tips, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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