Shares of LDR Holding Corporation (LDRH) have been rising and hit a 52-week high following the announcement that the Current Procedural Terminology (CPT) Editorial Panel has accepted the addition of Category I code 22858X as an add-on code to support two-level cervical arthroplasty procedures. LDR Holding reached a new 52-week high of $40.39 on Mar 13, 2014.
The rise in share price indicates positive market sentiment. The codes will become effective Jan 1, 2015 onwards. Simultaneously, the Category III code 0092T will be eliminated.
With the new code effective from Jan 2015, patient access to LDR Holding’s Mobi-C cervical disc replacement device will improve as a full coding and payment structure will be in place.
Mobi-C cervical disc replacement device was approved by the U.S. Food and Drug Administration (FDA) for two-level indications in Aug 2013. Mobi-C is unique as it is the only cervical disc replacement device to be approved by the FDA for both one and two-level use.
The CPT coding is a major milestone in the history of cervical disc replacement. According to information provided by the company, the emerging U.S. cervical disc replacement market is slated to grow 26% annually from $148 million in 2013 to $601 million by 2018. LDR Holding estimates that about 30% of patients undergoing anterior cervical surgery require two-level procedures.
Considering LDR Holding’s Mobi-C cervical disc replacement device is approved for one and two-level use, there is significant potential for the company to penetrate and drive growth of the cervical disc replacement market.
LDR Holding currently bears a Zacks Rank #3 (Hold). Some better-ranked stocks worth considering in the overall medical sector are Syneron Medical Ltd. (ELOS), Natus Medical Inc. (BABY) and Cynosure, Inc. (CYNO). All these stocks carry a Zacks Rank #1 (Strong Buy).
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