ScoPo’s Powerplays: Who fancies 22 minutes of exercise? And ASX...

ScoPo’s Powerplays: Who fancies 22 minutes of exercise? And ASX health stocks are up (finally)Health & Biotech
1 hour ago | Nadine McGrath

Impedimed
Brisbane-based medical software technology company ImpediMed (ASX:IPD) had a mixed week of news and was up ~9% on Friday after announcing the largest private payor in the US, UnitedHealthcare, had updated its commercial and individual exchange medical policy omnibus codes policy to state Bioimpedance Spectroscopy (BIS) for Lymphedema Assessment no longer requires clinical review.

IPD focuses on non-invasively measuring, monitoring, and managing fluid status and tissue composition using bioimpedance spectroscopy (BIS) medical technology.

IPD in March achieved a key milestone with the US National Comprehensive Cancer Network (NCCN) including BIS as part of its new guidelines announced. The NCCN guidelines specifically named BIS as an objective measurement tool to identify early signs of lymphoedema.

Power says a key part of IPD’s strategy is to get private payor reimbursement in the US for its BIS SOZO testing.

“The change in the medical policy for health insurers is an important step forward for ImpediMed,” he says.

“That’s really important for increasing the rate of adoption for their device.”

In the not so good news, on Tuesday IPD posted its Q1 FY24 cashflow report with revenues down 12% YoY to $2.5 million, comprising of $2m in core SaaS revenue and $500k in contract, legacy and clinical revenue.

During the quarter 19 BIS SOZO
testing units were sold in the US, below the strong Q4 FY23 of 34 units sold but higher than long-term quarter averages.

IPD revised its expectations on private payors updating their medical policies, now expecting 30% coverage by end of CY23, down from 50% and ~85% by end of FY24, lower than the more than 95% previously forecast.

IPD says this is due largely to a change in the way Blue Cross Blue Shield (BSBC) assess changes in their policies.

Morgans has maintained a speculative Buy rating on IPD but reduced its 12-month target price from 24 cents to 22 cents.