ReWalk Robotics Ltd (NASDAQ: RWLK) is having an incredibly strong start to the trading session in the pre-market hours, and for good reason. Minutes ago, the company announced that it has delivered its first exoskeleton to a Cigna beneficiary.
As you could imagine, the news excited investors who are pushing the stock for the top. Today, we’ll talk about:
- The exoskeleton delivery;
- what we’re seeing from RWLK stock as a result; and
- what we’ll be watching for ahead.
RWLK Announces First Cigna Beneficiary Exoskeleton Delivery
As mentioned above, ReWalk Robotics is having a great start to the trading session in the pre-market hours after making an exoskeleton delivery announcement. The announcement came by way of press release early this morning.
In the press release, the company said that the first Cigna insurance beneficiary has received a ReWalk Personal 6.0 exoskeleton for use at home and in his community. RWLK said that the beneficiary is a New York man who sustained a spinal cord injury as the result of a motorcycle accident in 2016.
After learning about the company’s technology and going through the proper exams, the patient became eligible to receive a ReWalk Personal 6.0 exoskeleton. So far, he has started training in his new exoskeleton system.
Once the training is complete, the patient will be able to take the exoskeleton home and use the device in his day to day life. RWLK said that there are several other Cigna cases in the pipeline that are currently being processed.
Cigna revised its policy in February with regard to the coverage of exoskeleton medical devices for patients with spinal cord injuries. While the insurance company previously did not cover these types of devices, the company is now reviewing submissions from beneficiaries on a case-by-case basis.
This policy revision is the first of its kind by any major United States private insurer. However, the exoskeleton does receive similar coverage from the United States Department of Veterans Affairs.
In a statement, Larry Jasinski, CEO at RWLK, had the following to offer:
This coverage by Cigna, a leading global health service company in the United States, is the latest example of progress in the acceptance of exoskeletons by the payor community.
We continue to actively engage insurers regarding exoskeleton policy provision for eligible beneficiaries and are pleased to see recent progress with Cigna and other providers worldwide. The expansion of peer-reviewed publications on the benefits of exoskeleton use has led to meaningful discussions and advancements, which we believe will continue to expand across the industry.
Since our inception, we have delivered more than 500 exoskeleton systems, the majority of which are used by individuals at home, though many more are awaiting coverage of their own devices. As payors evaluate the benefits of exoskeleton technology we are confident more will follow Cigna’s lead and make this life changing technology available to its members.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. When it comes to ReWalk Robotics, the news proved to be overwhelmingly positive.
The first exoskeleton being delivered to a Cigna patient shows that this large, private insurer is taking these reviews seriously and providing this technology to patients in need. Further coverage from an insurance company like Cigna will likely lead to increasing revenue.
So, it’s not surprising to see that excited investors are pushing the stock on a run for the top. As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:45), RWLK is trading at $4.08 per share after a gain of $0.70 per share or 20.71% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on RWLK. In particular, we’re interested in following the story surrounding the company’s sales now that Cigna is covering its exoskeleton products on a case-by-case basis. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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