May. 14 at 3:18 PM
$CVRX is officially on watchlist for me.
Not ready to start a position yet because the cash burn is still real and this is a long way from cash flow breakeven.
That said, the story is getting more interesting.
Q1 revenue grew 20%, U.S. revenue grew 22%, gross margin hit 87%, and management kept full year guidance at
$63M to
$67M. The important part is that guidance did not seem to bake in a major reimbursement step change.
Now Humana issues the first Medicare Advantage coverage policy for Barostim, covering roughly 5.2M MA members.
That matters.
Medicare Advantage is roughly 1/3 of their patient mix, and reimbursement friction has been one of the biggest barriers to adoption. If this helps unlock approvals, physician confidence, and center utilization, full year guidance may end up being conservative.
Still not chasing. But if this breaks into the low
$4S, especially around that
$4.30 area, I’ll have my finger on the trigger.
