It wouldn’t be an overstatement to say that since Donald Trump has become President, the US healthcare system has been in an acute state of flux. Experiencing intense pressure from not only lower drug prices, reshoring threats & import tariffs, but also disruption across the whole insurance system (re ending of Obamacare enhanced subsidies in Dec’25) as this issue is being hotly debated in Congress and led to the current 37 day government shutdown (ie longest in history).
Nonetheless despite the uncertainty, it was encouraging today to hear that advanced kidney transplant diagnostics firm Verici Dx (Mrkcap £9.5m) had materially expanded the private payor insurance coverage of its products, alongside simplifying the reimbursement process after signing a landmark contract with Prime Health Services, Inc. A fast-growing medtech group that processes around 35m claims per year and negotiates on behalf of US health insurers.
Indeed the agreement is especially positive for Verici Dx’s flagship blood test Tutivia (re monitoring for post transplant, acute kidney rejection) in terms of commercialisation and improved cashflow (ie lower working capital).
COO Patti Connolly commenting: “This agreement with Prime Health is an important milestone for Verici Dx, as we accelerate our commercial reach, expanding our patient network and supporting our approach to increased coverage from private payors.”
In term of the numbers, Singer Capital Markets have a 2.9p/share target price, underpinned by FY'25 revenues of $4.2m (vs $3.3m LY) and adjusted LBITDA of -$5.9m - closing Dec'25 with net cash of $2.6m.
Disclosure: Verici Dx is a Vox Markets client