Pacific Edges Medicare Coverage Delay Offers Hope but Uncertainty Remains

Pacific Edge Limited (NZX: PEB) received temporary relief as Medicare coverage under US contractor Novitas won’t end until April 2025, analysts report. At the time of writing, Craigs Investment Partners research analyst Rob Morrison noted that while the delay is a positive development, it does not ensure a permanent reprieve. Novitas, which previously reviewed and chose to withdraw coverage twice over two years, is unlikely to change its stance despite what Morrison considers a flawed decision. Medicare coverage is critical for Pacific Edge’s Cxbladder diagnostic tests in the US market. The uncertainty surrounding the ultimate outcome has left investors cautious, with analysts suggesting a challenging path forward if coverage is removed. The delay, however, provides Pacific Edge more time to address Novitas’ concerns and advocate for the reinstatement of coverage.

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