Telix soars on proposed US payment changes
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The news: Telix Pharmaceuticals led gains on the ASX after welcoming proposed changes to US regulations around payments for diagnostic radiotherapy treatments.
The numbers: Telix shares surged 12.7% to $19.79 by 11:30am AEST, making it the highest performing stock across the ASX 200.
The company said that currently in the US, costs associated with diagnostic radiopharmaceuticals were packaged together into payments for nuclear medicine tests. The proposed changes by the US Centers for Medicare and Medicaid Services (CMS) would see refinements to this policy to improve the accuracy of overall payment amounts by paying separately for any diagnostic radiopharmaceutical with a per day cost greater than USD630 ($933).
Proposed changes to the Hospital Outpatient Prospective Payment System (OPPS) are published annually and have a 60-day comment period, which will end on 9 September. The final rule will be issued in early November 2024 and take effect 1 January 2025.
The context: The Melbourne-based biopharmaceutical company said it welcomed the proposed changes which would see diagnostic radiopharmaceuticals, including Telix's prostate cancer imaging product Illuccix, continue to be paid separately by CMS for traditional Medicare Fee for Service patients in the hospital outpatient setting following the expiry of transitional pass-through payment status.
This would also apply to new diagnostic products being developed by Telix, if approved.
What they said: Telix Americas CEO Kevin Richardson said: "Telix welcomes the proposed rule, which will facilitate more equitable and reliable access to advance imaging for all patients and support physicians to prescribe the most clinically appropriate solution".
"We commend the vision of CMS and the coalition, along with patient groups, for raising awareness about the necessity to reform the payment system to enhance patient outcomes and access," he said.
The source: ASX announcement
