ReWalk Robotics Ltd (NASDAQ: RWLK) is having a great start to the trading session, trading up on strong volume after announcing that a leading insurance provider has initiated product coverage. Of course, the news excited investors, sending the stock screaming for the top. Today, we’ll talk about:
- The insurance coverage;
- what we’re seeing from RWLK stock as a result; and
- what we’ll be watching for ahead.
RWLK Announces Insurance Coverage
As mentioned above, ReWalk Robotics is having an incredibly strong start to the trading session this morning after making an insurance coverage announcement.
In a press release issued early this morning, the company said that Cigna Corporation has revised its policy regard coverage of exoskeleton medical devices for persons with spinal cord injury. This is incredible news as Cigna is one of the world’s largest health service companies.
In the release, RWLK said that Cigna will review submissions from beneficiaries on a case-by-case basis to consider providing coverage of the exoskeleton product based on medical criteria.
This marks a major milestone for the company as the policy revision is the first of its kind by a leading private insurer for individuals eligible to use exoskeleton devices. The company said that the policy change has already taken effect. However, the formal policy change will be updated in Cigna’s next revision cycle.
In a statement, Larry Jasinski, CEO at RWLK, had the following to offer:
This is a major milestone for healthcare beneficiaries in the United States. Cigna is leading by example with its understanding of emerging technologies, a focus on improving the overall health and well-being of beneficiaries, and most of all, in the development of progressive policies. This new policy is expected to have an immediate impact on the lives of qualified beneficiaries who will now have access to life changing medical devices.
ReWalk has prioritized interacting directly with payors and educating them regarding the benefits of exoskeletons use, and Cigna’s decision comes after providing them the most recent evidence. We anticipate that other payors will follow Cigna’s leadership in providing the latest and most current technologies for their members.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. When it comes to ReWalk Robotics, the news proved to be overwhelmingly positive. After all, the change in policy means that more patients now have covered access to the company’s products, expanding the opportunity to generate revenue. So, it’s not surprising to see that excited investors are pushing the stock up in the market this morning. At the moment (9:45), RWLK is trading at $0.35 per share after a gain of $0.077 per share or 28.24% 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 revenue growth and expanded insurance coverage of its products. Nonetheless, we’ll continue to keep an eye on the news and bring it to you as it breaks!
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