Boston-based Myomo’s offering includes more than 7.3 million shares of common stock priced at 60¢ per share. The company expects to close the offering on or about Aug. 29, 2023, subject to customary conditions.
Myomo develops wearable medical robotic technologies. These offer improved arm and hand function for those suffering from neurological disorders and upper limb paralysis.
The company plans to use proceeds for general corporate purposes, according to a news release. That may include working capital and capital expenditures, R&D expenses and sales and marketing activities.
Earlier this year, the Centers for Medicare and Medicaid Services (CMS) announced a new proposed rule that could benefit Myomo. It would classify the company’s technology as a brace, enabling payments on a lump sum basis.
If CMS finalizes that classification and publishes a fee in conjunction with the next public meeting — expected to come before the end of the year — Myomo could also use proceeds to fund additions to its headcount.
The company seeks to supplement its headcount to service a greater number of patients, procure additional inventory and ramp operations.
Myomo receives first Myopro Medicare claims
Myomo also announced that it received payments for two claims submitted for its MyoPro arm braces provided to Medicare fee-for-service beneficiaries.
The company recently delivered its custom-fabricated braces to these two patients. After review of the medical documentation, a Medicare billing contractor (DME MAC), covered and paid for the two claims. Because MyoPro remains under the durable medical equipment rental benefit category, payments came under the capped rental program. That reimburses devices for over 13 months.
If CMS goes on to classify MyoPro as a brace, the payment structure would change. Myomo said it has additional MyoPro claims currently under review.
“This is a positive step forward as we have been working collaboratively with the CMS staff and DME MAC medical directors to enable Medicare Part B beneficiaries to have access to the MyoPro if it is medically necessary for them,” said Myomo Chair and CEO Paul R. Gudonis. “We are pleased to see appropriate coverage and payment for these valuable braces that increase the quality of life and improve health outcomes for those impaired due to stroke and other neurological conditions.”
