| 2019-07-16 16:18:01|
STIM, UNH 16:18 07/16 07/16/19
UnitedHealth coverage decision positive for Neuronetics, says Piper Jaffray
UnitedHealth (UNH) recently issued a coverage decision stating that theta burst TMS has been deemed "unproven and not medically necessary," which will make obtaining reimbursement from the insurer more difficult in the future for theta burst providers, Piper Jaffray analyst Matt O'Brien tells investors in a research note. This would specifically impact MagVentures, which has been mentioned frequently as a key competitor to monitor for Neuronetics (STIM), adds the analyst. The analyst says that with no changes to the reimbursement pathway for Neuronetics in the coverage update, he views the news as incrementally positive for the company as it competes in the theta-burst stimulation category for major depressive disorder patients. O'Brien reiterates an Overweight rating on Neuronetics and continues to view the name as his favorite small cap idea.