Here’s Why CareDx Inc (CDNA) Shares Skyrocketed 33% Today
It’s a very rewarding trading day for investors in CareDx Inc (NASDAQ:CDNA) with shares up over 40%, making the stock Wall Street’s bull of the day. The reason? The molecular diagnostics firm announced that its AlloSure for post-transplant surveillance qualifies for Medicare coverage effective October 9th, 2017.
The Centers for Medicare and Medicaid Services (CMS) released the final version of the coverage policy issued by Palmetto GBA, the Medicare administrator responsible for the MolDX technology assessment program that evaluated AlloSure.
“This is the moment we have all been preparing for, CareDx is ready to begin offering AlloSure to transplant centers across the US, ahead of our original timeline. We are hearing great interest from transplant nephrologists who want to begin using AlloSure as soon as CMS approval is finalized,” said Peter Maag, Chief Executive Officer. “We see the coverage decision by the MolDX team as a great signal for the support of kidney transplant patients and an acknowledgement of the unmet medical need. About 80% of kidney transplant patients are covered by Medicare, so many patients will have access to AlloSure, a new milestone in precision medicine in transplantation.”
On the ratings front, CareDx has been the subject of a number of recent research reports. In a report issued on May 22, Raymond James analyst Nicholas Jansen maintained a Hold rating on CDNA. On May 12, Piper Jaffray’s William Quirk maintained a Buy rating on the stock and has a price target of $3.00.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Nicholas Jansen and William Quirk have a yearly average return of 12.6% and 4.7% respectively. Jansen has a success rate of 71% and is ranked #224 out of 4609 analysts, while Quirk has a success rate of 57% and is ranked #1062.
CareDx, Inc. operates as a commercial stage company, which engages in developing, marketing, and delivering a diagnostic surveillance solution. Its product includes AlloMap, which aids clinicians in identifying heart transplant recipients with stable allograft function.