Rosetta Genomics Ltd. (NASDAQ: ROSG) is not often in the news, but it is in the news a big way now. The microRNA-based molecular diagnostic test maker has announced that Novitas, the designated Medicare Administrative Contractor for its miRview® mets² assay, has informed the company that it plans to cover this assay for all Medicare beneficiaries.
MiRview® mets² is said to accurately identify the primary tumor of origin in primary and metastatic cancer including Cancer of Unknown or Uncertain Primary.
Medicare coverage opens up a giant commercial opportunity as this test will now be made available to Medicare patients. Medicare is the largest U.S. payor and the idea is that if Medicare starts covering a product then the private payor systems out there are likely to adopt reimbursement for medical insurance coverage as well.
Rosetta Genomics said that it launched its direct selling effort in the U.S. just one year ago.
As far as just how big this is… “The policy will cover the 45 million Medicare beneficiaries and will enable Rosetta to provide the miRview® mets2 assay for Medicare beneficiaries throughout the U.S. at no cost to the patient, thereby eliminating an adoption barrier for the physician ordering the test and for the patient.”
Teh company further noted about its test products, ” In the U.S. alone, Rosetta Genomics estimates that 200,000 patients a year may benefit from the miRview® mets and miRview® mets² test, 60,000 from miRview® squamous, 60,000 from miRview® meso, 54,000 from miRview® kidney and more than 1 million patients worldwide from miRview® lung.”
Shares were just at $1.62 on a split-adjusted basis Tuesday and this stock’s 1:15 reverse split has just taken place this week in the share price for what had been a penny stock. Now shares are up some 295% at $6.40 against a split-adjusted trading range of $1.40 to $36.45 over the last 52-weeks.
JON C. OGG