Helius Medical cut to Hol at Maxim on ‘disappointing’ CMS payment determination

Maxim downgraded Helius Medical to Hold from Buy. The company has received reimbursement payment determination updates from Centers for Medicare & Medicaid Services for its Portable Neuromodulation Stimulator – PoNS – controller and mouthpiece, and both of these were disappointing, the analyst tells investors in a research note. The lower CMS pricing of $2,963.30 for the PoNS Mouthpiece and a preliminary rate of $519.80 for the PoNS Controller – compared to the VA prices of $7,344.97 and $23,843.72 respectively – reduces the firm’s revenue projections, with unfavorable discrepancy potentially impacting the company’s ability to drive profitability and limiting its pricing power in broader market adoption, the analyst tells investors in a research note.