BTIG raised its price target for Senseonics (NYSE American:SENS) to $4 from $3, saying the company’s new Patient Access Bridge program makes strategic sense, even though it caused Senseonics to lower its 2019 guidance. The stock closed at $3.07 on March 12.
Analyst Dr. Sean Lavin writes that under the program, Senseonics will cover the cost of its Eversense long-term continuous glucose monitoring system for those patients with delays in insurance determinations.
“This will allow more patients to have procedures quickly and while it is possible the company may not be paid on every bill or appeal (reason for reduction in near-term outlook), by driving more patients into each insurance company sooner, it is likely Senseonics will gain routine coverage more quickly leading to much more substantial long-term revenue,” he added.
Dr. Lavin said other medtech companies with novel offerings have used similar approaches to encourage routine insurance coverage with substantial success.
