ZOLL Medical Corporation (NASDAQ: ZOLL) disclosure that the Centers for Medicare & Medicaid Services said it will continue to cover the company’s wearable LifeVest defibrillator.
The company’s LifeVest wearable defibrillator is worn by patients at risk for sudden cardiac arrest. It continuously monitors a patient’s heart, and, if a life-threatening heart rhythm is detected, the device delivers a treatment shock to restore normal heart rhythm.
Sales of LifeVest have more than doubled to $111 million annually in the past two years. Delaying reimbursement would have taken away one of its main markets, the window of time when patients are evaluated or wait for a permanently implanted defibrillator.
In a note to clients, Jefferies analysts cheered the coverage decision as a “significant victory” for the ZOLL Medical and noted it removes the significant overhang weighing down shares in recent months. The analysts note the device is of critical importance to Zoll as it now makes up more than 20% of the medical device maker’s total revenue.
ZOLL Medical develops and markets medical devices and software solutions that helps emergency care and save lives.
Shares of the company surged 28.74% to $60.29 in Thursday’s trading session.
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