SILK - Why Shares of Silk Road Medical Are Dropping Wednesday
2023-07-12 12:35:11 ET
Shares of Silk Road Medical (NASDAQ: SILK) were down more than 33% as of 12:30 p.m. on Wednesday after t he Centers for Medicare & Medicaid Services (CMS) announced a proposed change that could affect Silk's revenue. The healthcare stock is down more than 58% this year.
Silk Medical is a medical device maker that specializes in neurovascular diseases. The CMS said Tuesday it is is proposing to change coverage for a stroke treatment for carotid artery disease (CAD). Silk has a CAD therapy called transcarotid artery revascularization (TCAR). The CMS said it may put a competing CAD therapy, percutaneous transluminal angioplasty, which is done alongside stenting, on the same level as TCAR in regards to reimbursement.
By boosting a competitive method, the CMS move could hurt Silk's own sales. CAD is known as the silent killer because often the first symptom for a patient at risk of a stroke is a stroke or mini-stroke, called a transient ischemic attack.
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Why Shares of Silk Road Medical Are Dropping Wednesday