Weight-loss devices maker GI Dynamics (ASX:GID) announced a couple of new wins in recent weeks, tallying new reimbursement coverage from healthcare officials in Israel and the Netherlands.
Israel’s Clalit Health Services granted coverage for GI’s EndoBarrier device, a non-surgical implant designed to help treat Type II diabetes and obesity. Clalit is the largest health maintenance organization in Israel, and one of the largest in the world, according to a press release.
Patients with Clalit insurance can receive at least 50% reimbursement for undergoing treatment with EndoBarrier and hospitals in Israel may further negotiate with Clalit the total cost of the device.
"We are pleased that one of the world’s largest and most progressive HMOs has become the first organization to widely adopt our innovative technology, underscoring the clinical and economic value of EndoBarrier Therapy in treating type 2 diabetes and obesity," GI Dynamics president & CEO Stuart Randle said in prepared remarks. "We will continue to work closely with Clalit and Medison, our distributor in this region, to make EndoBarrier more broadly available to physicians and patients in Israel."
The company also secured reimbursement from Dutch healthcare authority NZa, providing coverage for a preset number of EndoBarrier procedures at a local hospital. The preliminary approval allows Netherlands healthcare officials to collect some real-world data on the device before putting together a larger package, according to the Australian Life Scientist.
The announcements come on the heels of news that GI Dynamics won a reimbursement nod from German regulators and that the company also launched discussions with healthcare regulators in Switzerland.
The EndoBarrier is a plastic sleeve that lines the small intestine to treat obesity and Type II diabetes. The device prevents food from being absorbed by the body, inducing weight loss and helping control the symptoms of diabetes.
GID shares were up 1.9% today, closing at about 49¢ (AUD $0.54) apiece on the Australian Stock Exchange.
