Cambridge Heart Inc. (OTC:CAMH) got a much needed reimbursement win for its Microvolt T-Wave Alternans (MTWA) test for sudden cardiac arrest.
The Tewksbury, Mass.-based cardiac test maker said UnitedHealthcare will make the test a covered benefit for its subscribers. The health insurer is an operating division of UnitedHealth Group, the largest single health carrier in the U.S.
“We are very pleased that the largest private insurer in the country has made MTWA testing a covered benefit. It represents further validation of MTWA as an effective risk stratification tool for people at risk of sudden cardiac arrest,” Cambridge Heart CEO Ali Haghighi-Mood said in a prepared release .
The favorable coverage is positive news for a company that has had a rough go of it recently. In April, Cambridge Heart warned that it doesn’t have enough cash to stay afloat past the end of the year and registered for a stock offering worth more than $7.8 million. The company plans to sell nearly 30.2 million shares for 26 cents apiece, according to the filing.
During the first quarter, continuing pressure on capital equipment sales contributed to a 3.2 percent top-line slide during the first three months of 2011. Cambridge Heart managed to pare its losses by 8.2 percent during the three months ended March 31, to $1.3 million or 1 cent per share, on sales of $637,000. That compares to losses of $1.5 million, or 2 cents per share, on sales of $658,000 during the same period last year.