CytoSorbents Corp. (NSDQ:CTSO) shares jumped 9% to $5.35 apiece today after the company reported that it landed a permanent reimbursement procedure code for its CytoSorb therapy in Germany.
The Monmouth Junction, N.J.-based company developed its blood purification therapy to treat inflammation in critically-ill patients and for use during cardiac surgery. CytoSorb is an extracorporeal cytokine filter, made up of biocompatible, porous polymer beads that use pore capture and surface adsorption to remove toxic substances from the blood and other bodily fluids.
“We have worked diligently for the past several years to attain this key foundational milestone that is expected to catalyze major increases in adoption and sales of CytoSorb in Germany. The relatively short time frame in which this specific reimbursement code was granted is remarkable, and validates the importance and value of our CytoSorb therapy to physicians in Germany, where its usage has seen tremendous growth,” VP of sales & marketing Dr. Christian Steiner said in prepared remarks. “Of note, this new reimbursement was achieved with the strong and broad support from several major German medical societies, across different medical specialties.”
“Our previous reimbursement was more generic, and led in many cases to inadequate reimbursement, impeding usage and sales. Now, with several years of CytoSorb treatment cost data and a dedicated reimbursement code specific to our therapy, we believe our customers will be able to negotiate significantly higher reimbursement under the new code that covers not only the cost of the device, but the procedural costs as well,” Dr. Steiner added. “The new code has now been communicated throughout the entire CytoSorb hospital customer base in the country and becomes effective January 1, 2017. Furthermore, we expect that this enhanced reimbursement in the leading country in the European Union will have a positive impact on reimbursement in other countries as well.”
