The 4DMedical Ltd (ASX: 4DX) share price is having a stunning start to the week.
In afternoon trade, the ASX medical technology stock is up 67% to 77 cents.
Why is this ASX stock rocketing?
Investors have been scrambling to buy the company's shares today after it was given a major boost in the United States.
According to the release, 4DMedical's XV Lung Ventilation Analysis Software (XV LVAS) procedure has been included on the U.S. Centers for Medicare & Medicaid Services (CMS) annual, final payment rates for hospital outpatient-based services, effective 1 January 2024.
This means from next year XV LVAS scans conducted in a U.S. hospital outpatient facility for Medicare patients can be billed to CMS to the rate of US$299 per scan.
What is XV LVAS?
XV LVAS is the first modality to dynamically quantify ventilation throughout the lungs, and its computed tomography-enabled counterpart software, CT LVAS.
It leverages the company's flagship patented XV Technology, which enables physicians to understand regional airflow in the lungs and identify respiratory deficiencies earlier and with greater sensitivity as they breathe.
The ASX stock's CEO and founder, Andreas Fouras, was very pleased with the news. He said:
I am very excited by this progress in the commercialisation of our technology, and the positive impact this reimbursement decision will have upon doctors and their patients. Achieving a Medicare reimbursement of US$299 per scan is a major milestone in our progress to secure reimbursement across the entire U.S. healthcare system and meaningfully removes a barrier to broader adoption across the large network of facilities providing healthcare to the 65 million Americans enrolled in Medicare. This ruling will lead to accelerated uptake of XV LVAS, which in turn will support our pursuit of a Category I CPT code.