Why Is Kidney-Disease Diagnostic Focused Renalytix Stock Trading Higher Today?
Portfolio Pulse from Vandana Singh
Renalytix plc (NASDAQ:RNLX) announced the U.S. Government's approval to add its kidneyintelX.dkd test to a 10-year Governmentwide Acquisition Contract for early-stage kidney disease testing, effective March 1, 2024. The test is priced at $950 per result. This contract allows for testing services at any government healthcare facility, including the U.S. Veterans Administration and Department of Defense. Additionally, Medicare's consideration of a coverage policy for KidneyIntelX could lead to insurance reimbursement for millions of patients. RNLX shares surged 32.50% to $1.10.
February 29, 2024 | 5:51 pm
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POSITIVE IMPACT
Renalytix plc's kidneyintelX.dkd test has been approved for a 10-year Governmentwide Acquisition Contract, effective March 1, 2024, with a set price of $950 per result. This approval and potential Medicare coverage could significantly increase the test's adoption and reimbursement, positively impacting the company's revenue and market position.
The U.S. Government's approval of Renalytix's test for a significant contract and the set pricing structure are strong indicators of future revenue growth. The potential Medicare coverage further enhances the test's marketability and adoption, leading to a positive outlook for the company's financial health and stock performance in the short term.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 100