There will no doubt be an over-reaction by the market to this...

There will no doubt be an over-reaction by the market to this present annoying situation. In many respects it will probably provide some good buying opportunities for those brave enough or savvy enough to be prepared to wait for the final vindication of PEB's quality tests. The fact that Novitas is so antiquated in its thinking should not surprise. Novitas needs to be educated just as much as the clinicians have needed to be educated about the benefits of the PEB tests.
This is certainly a set back that IMHO will take the best part of a year to rectify. PEB does have a lot of cash reserves to get it through and it will still get income from those sources that have been using the tests already. So it is far from being game over. The testing regime that PEB has is solid and the results are convincing. Novitas just needs to get up to speed and listen to those clinicians that have been using the tests. They know that the tests are useful and needed.
While this will not be a happy day I am very hopeful that PEB will eventually emerge stronger and will forge ahead in future. The world needs PEB.