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Tactile Medical's Shares Rise After PDAC Approval for Nimbl

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Tactile Systems Technology, Inc. (TCMD - Free Report) , popularly known as Tactile Medical, announced that its next-generation pneumatic compression platform, Nimbl, has received approval from Pricing, Data Analysis, and Coding (PDAC) contractor for the Centers for Medicare & Medicaid Services (CMS). This approval allows the use of HCPCS code E0651 for Medicare billing following FDA 510(k) clearance in June 2024.

The company collaborates with clinicians to advance clinical evidence, raise awareness and improve patient access to care. By offering solutions that enhance quality of life and reduce healthcare costs, Tactile Medical helps patients manage their conditions more effectively at home each year.

Shares of TCMD closed 1% higher on Sept. 16 following the news announcement.

Significance of PDAC Approval for Tactile Medical’s Nimbl

The PDAC approval for Nimbl marks a crucial milestone for Tactile Medical, enabling Medicare reimbursement for its next-generation pneumatic compression device. This is significant because it not only validates the efficacy and utility of the system for chronic conditions such as lymphedema, chronic edema, venous insufficiency and wound healing but also increases accessibility for Medicare patients. With a more compact design and digital connectivity features, Nimbl is positioned to improve patient adherence and outcomes, enhancing both the treatment experience and health benefits. This approval accelerates the commercial rollout and underscores the company’s innovation in the field of chronic disorder therapies.

Management announced that the PDAC approval for Nimbl was received earlier than anticipated, highlighting CMS' recognition of its health benefits for Medicare patients with lymphedema and chronic venous insufficiency. It also emphasized Nimbl’s sleek design and technical advancements, which enhance patient adherence and reflect the company’s focus on innovative solutions throughout the treatment process.

With a 40% smaller size and 68% lighter weight than previous models, it offers enhanced portability for active users. Nimbl also connects to the Kylee digital app, allowing patients to track therapy progress and share results with their care teams, making treatment more convenient and effective.

The company plans to commercially launch Nimbl in the United States in the coming weeks.

Market Prospects Favoring TCMD

Per a report in Coherent Market Insights, the global lymphedema treatment market size was worth $570.4 million. It is anticipated to reach $1.1 billion by 2030 at a CAGR of 9.7%.

The robust growth is likely to be driven by the rising prevalence of lymphedema, increasing incidence of cancer and technological advancements.

TCMD Stock Price Performance

Shares of Tactile Medical have lost 2.2% year to date against the industry’s 9.2% growth. The S&P 500 has witnessed a 17.8% rise in the same time frame.

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Zacks Rank & Key Picks

Currently, Tactile Medical carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space are Universal Health Services (UHS - Free Report) , Quest Diagnostics (DGX - Free Report) and Aveanna Healthcare (AVAH - Free Report) . While Universal Health Services sports a Zacks Rank #1 (Strong Buy), Quest Diagnostics and Aveanna Healthcare carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Universal Health Services has an estimated long-term growth rate of 19%. UHS’ earnings surpassed estimates in each of the trailing four quarters, with the average being 14.58%.

Universal Health Services has gained 41.1% compared with the industry's 34.8% growth year to date.

Quest Diagnostics has an estimated long-term growth rate of 6.20%. DGX’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 3.31%.

Quest Diagnostics shares have risen 3.7% year to date compared with the industry’s 10.2% growth.

Aveanna Healthcare's earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 47.5%.

AVAH's shares have surged 104.5% year to date compared with the industry’s 15.7% growth.

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