Derma Sciences touts Medicare reimbursement win

Derma Sciences (NSDQ:DSCI) said yesterday that Medicare Administrative Contractor National Government Services will now consider the company’s Amnioexcel amniotic allograft membrane for coverage.

The change comes as NGS, which serves states in the Northeast and Midwest, sets to retire its local coverage determination for cellular or tissue based products as of September 1st.

The change will allow Derma Sciences’ Amnioexcel to be considered with appropriate documentation of medical necessity as a second-line therapy, following standard wound care treatment.

“We are very pleased with NGS’ decision to retire its LCD for CTPs. NGS’ jurisdiction includes several major metropolitan areas – such as New York, Boston and Chicago, which not only increases our market for Amnioexcel, but permits much more efficient sales rep coverage. While we now have coverage over the bulk of the country, we continue to pursue an LCD from the remaining MAC for Amnioexcel in order to ensure complete nationwide access to those who suffer from diabetic ulcers and other chronic wounds. Of note, Amnioexcel is one of the only amniotic allografts with level I Randomized Control Trial evidence in diabetic foot ulcers, and we expect this data to continue to support our sales efforts,” interim principal exec Stephen Wills said in a press release.

Approximately 24 million Medicare Part B beneficiaries are covered by NGS, and with the change its Amnioexcel will be eligible for Medicare reimbursement in 47 states and up to 93% of all Medicare beneficiaries.

Earlier this month, Derma Sciences said it closed its acquisition of regenerative allograft maker BioD in a deal worth up to $78 million, including milestones and earn-outs.

Princeton, N.J.-based Derma Sciences said it paid $21.3 million up front in a mix of cash and stock; meeting regulatory milestones could mean another $30 million, and the transaction included $26.5 million in earn-outs pegged to net sales growth. The deal, announced July 28, closed August 5, the company said in a regulatory filing.

BioD makes a line of allograft products derived from human placental tissue, including treatments designed for chronic wounds, soft tissue repair, resorbable adhesion prevention, scar tissue formation and ocular tissue repair. The company is based in Cordova, Tenn.

The post Derma Sciences touts Medicare reimbursement win appeared first on MassDevice.

from MassDevice http://ift.tt/2bCXiv8