Shares of Organogenesis Holdings Inc. (ORGO) fell 5.12% in Friday's intraday trading, following the release of a new local coverage determination (LCD) by the Centers for Medicare & Medicaid Services (CMS) regarding skin substitute grafts and cellular tissue-based products for treating diabetic foot ulcers and venous leg ulcers.
While Organogenesis welcomed the evidence-based approach and the inclusion of its NuShield product in the covered list, investors appear concerned about the potential impact of the new policy on reimbursement levels and future revenue.
The company acknowledged that the LCD decision could affect coverage and reimbursement levels for its products, which has been a key risk factor in the past. As Organogenesis navigates this new policy landscape, investors will closely monitor its ability to maintain profitability and growth momentum.
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