Castle MolDX update doesn’t impact current Dx-SCC Medicare coverage, says Baird

Baird analyst Catherine Ramsey Schulte notes that MolDX contractors Palmetto, Noridian, CGS, and WPS posted final Local Coverage Determinations, or LCDs yesterday, confirming the non-coverage proposed in the corresponding draft LCDs published last year for Castle Biosciences’ DecisionDx-SCC. This update was consistent with the firm’s expectations, as Baird believed reversal of the proposed non-coverage decision was unlikely, and this update does not impact current DecisionDx-SCC Medicare coverage, which is provided through Novitas, the analyst tells investors. Baird, which continues to expect a Novitas final LCD in the next month or so, but adds that it also believes a reversal of its proposed non-coverage is unlikely, keeps an Outperform rating and $34 price target on Castle Biosciences shares.