FLORHAM PARK, N.J. - Celularity Inc. (NASDAQ: CELU), a company specializing in regenerative medicine, announced today that its Biovance® 3L product has been assigned a Healthcare Common Procedure Coding System (HCPCS) Q code by the U.S. Centers for Medicare & Medicaid Services (CMS).
The Q code, designated as Q4283, will be effective starting April 1, 2024, and is intended to streamline the processing of health insurance claims for Biovance® 3L, a tri-layer allograft derived from placental tissue.
Biovance® 3L is designed as a biological membrane for the treatment of partial- and full-thickness wounds, both acute and chronic. The new HCPCS Q code is expected to facilitate reimbursement and access to the product for healthcare providers and patients. Celularity's CEO, Dr. Robert J. Hariri, expressed optimism about the product's potential for growth and its ability to impact more lives following this regulatory milestone.
The HCPCS is a set of codes used by CMS for billing various medical procedures, supplies, products, and services to Medicare and other insurers. The Q codes specifically identify items not covered by national HCPCS Level II codes but which require coding for Medicare claims processing. Biovance® 3L's unique construction offers improved handling and promotes cell attachment, which is essential for tissue restoration at surgical sites.
Celularity Inc. focuses on developing biomaterial products and placental-derived cell therapies for a range of diseases, including degenerative diseases, cancer, and immune disorders. The company believes in the potential of the postpartum placenta as a source for developing accessible and affordable therapeutic solutions.
The information in this article is based on a press release statement from Celularity Inc.
InvestingPro Insights
As Celularity Inc. (NASDAQ: CELU) secures a new HCPCS Q code for its Biovance® 3L product, the company's financial health and market performance become focal points for investors. According to InvestingPro data, Celularity has a market capitalization of $114.8 million. Despite facing challenges such as a decline in revenue over the last twelve months by 20.93%, the company has seen impressive price returns, with a 25.48% increase in the last month and an even more striking 212.76% increase over the last three months.
The company's Price / Book ratio as of the last twelve months ending Q3 2023 stands at 3.8, which may interest investors looking for growth potential in the biotech sector. However, it's important to note that Celularity's net income is expected to drop this year, and analysts do not anticipate the company will be profitable within the same timeframe, as highlighted by two of the InvestingPro Tips.
On the brighter side, another InvestingPro Tip points out that Celularity has demonstrated a strong return over the last month, which could be a signal of growing investor confidence following recent developments, such as the HCPCS Q code assignment. For those interested in a more in-depth analysis, there are additional InvestingPro Tips available, which can be accessed on the InvestingPro platform. With the coupon code PRONEWS24, readers can get an extra 10% off a yearly or biyearly Pro and Pro+ subscription, providing a comprehensive suite of tools to make informed investment decisions.
As Celularity continues to navigate through its financial landscape, these InvestingPro Insights offer a snapshot of the company's current market position and potential future trajectory, aligning with the recent regulatory milestone that could pave the way for increased adoption of Biovance® 3L.
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