EDEN PRAIRIE, Minn. - NeuroOne Medical Technologies Corporation (NASDAQ:NMTC), a medical technology firm, announced today that the Centers for Medicare and Medicaid Services (CMS) has assigned a new ICD-10-PCS code for its OneRF™ Ablation System, which is expected to enhance the technology's recognition and use within the healthcare system.
The new code, 00503Z4, will be effective from October 1, 2024, and is designated for the destruction of brain tissue using Stereoelectroencephalographic Radiofrequency Ablation through a percutaneous approach.
The OneRF™ Ablation System, which has received FDA 510(k) clearance, is designed for creating lesions in nervous tissue for neurosurgical procedures. The assignment of the new ICD-10-PCS code is a significant milestone for NeuroOne, as it facilitates hospital reporting of inpatient procedures utilizing the system. This development is poised to potentially streamline the billing process and improve the system's adoption in the treatment of neurological disorders.
Dave Rosa, CEO of NeuroOne, expressed optimism about the CMS's approval of the code, stating it as a critical step towards broader market acceptance of the technology. He also suggested that the OneRF™ Ablation System could potentially reduce hospital stays, the number of surgeries, and adverse events, while enhancing patient safety.
The OneRF™ Ablation System is part of NeuroOne's portfolio of thin film electrode technology, which also includes the Evo® cortical and sEEG electrode product lines. These products are used for recording and monitoring brain activity, primarily for periods less than 30 days. NeuroOne estimates the current market for brain ablation to be at least $100 million worldwide, with significant growth potential based on the large patient populations with unmet clinical needs.
NeuroOne is focused on the development of minimally invasive and high-definition solutions for EEG recording, brain stimulation, and ablation solutions for various neurological disorders. The company may also explore applications in other areas such as depression, mood disorders, pain management, and artificial intelligence.
This news is based on a press release statement and provides an overview of the recent development by NeuroOne regarding the CMS code assignment for its OneRF™ Ablation System.
In other recent news, NeuroOne Medical Technologies Corporation has reported a significant upturn in its Q2 product revenue, with a notable increase from $466,000 the previous year to $1.377 million in fiscal 2024.
The company is also making strides in commercialization and product development, particularly with the Evo sEEG Electrode product line and the upcoming OneRF electrode system. The net loss for the quarter, while still present, has seen a reduction from $3.5 million to $2.9 million year-over-year.
NeuroOne's financial position remains strong, with no debt and an additional $2 million raised through the sale of common stock. The company is also actively seeking strategic partners for technology licensing and has applied for a procedure reimbursement code for the OneRF ablation system from CMS.
CEO Dave Rosa and CFO Ron McClurg have both emphasized the company's growth opportunities and the ongoing expansion of their product lines. This includes the development of a spinal cord stimulation electrode for low back pain treatment. These recent developments underscore NeuroOne's strategic progress and growth in the medical technology sector.
InvestingPro Insights
As NeuroOne Medical Technologies Corporation (NASDAQ:NMTC) garners a new ICD-10-PCS code for its OneRF™ Ablation System, signaling potential growth in market acceptance, the financial health of the company remains a critical factor for investors. According to real-time data from InvestingPro, NeuroOne's market capitalization stands at $22.83 million, reflecting the scale of the company in the competitive medical technology landscape.
InvestingPro Tips suggest that NeuroOne holds more cash than debt on its balance sheet, which could provide financial stability as it seeks to expand the use of its OneRF™ Ablation System. However, the company is also quickly burning through cash, which could pose challenges in sustaining operations without additional funding or revenue streams.
The company's stock has experienced significant volatility, with a notable decline over the last month. This performance is reflected in the price total return metrics, with a one-month price total return of -22.34%, and a year-to-date price total return of -48.39%. This volatility may be of interest to investors looking for entry points or considering the risk profile of their portfolios.
For those interested in a deeper dive into NeuroOne's financials and future prospects, InvestingPro provides additional insights. With a total of 9 InvestingPro Tips available, investors can further explore the company's financial health and market performance. To access these insights and benefit from a comprehensive analysis, readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at https://www.investing.com/pro/NMTC.
Despite the challenges reflected in some of the financial metrics, the recent CMS code assignment could serve as a catalyst for NeuroOne, potentially enhancing the company's revenue prospects and market position in the long term.
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