NuVasive Inc. (NSDQ:NUVA) said today the Centers for Medicare and Medicaid Services granted a new technology add-on payment for magnetically controlled growth rods, including the company’s Magec system.
The San Diego, Calif.-based company touted its Magec system as the only magnetically controlled growth modulation system cleared by the FDA for pediatric spinal deformity.
“CMS’s decision will significantly improve patient access to Magec, which is quickly becoming the standard of care for pediatric patients with EOS. The innovative Magec rod can be extended non-invasively with a magnet, reducing the number of planned distraction surgeries from up to 15, to only a single one. By transforming the experience for these patients, NuVasive is able to help minimize the risks associated with multiple surgeries, while also reducing the total cost of care. Thank you to our surgeon partners for supporting NuVasive through this rigorous process, and we will continue to work alongside providers and payors to improve access to innovative technology,” CEO Gregory Lucier said in a press release.
Last week, NuVasive significantly lifted its guidance for the year after reporting 2nd quarter earnings that topped Wall Street’s expectations and saw sales and revenue grow significantly from last year’s 2nd quarter.
The San Diego, Calif.-based company reported profits of $30.2 million, or 57¢ per share, on sales of $236.2 million for the 3 months ended June 30. That amounts to a massive 194.2% bottom-line gain as sales grew 16.4% compared with the same quarter in 2015.
Adjusted to exclude 1-time items, profits were $20.6 million, with earnings per share of 40¢.
The company’s earnings per share for the quarter handily beat the Street, which was looking for 36¢ per share. NuVasive topped the Streets revenue expectations by $3 million, with analysts looking for $233 million.