NEW YORK (GenomeWeb News) – Rosetta Genomics today said that Novitas, a designated Medicare contractor, has informed the firm that it plans to cover its miRview mets2 assay for all Medicare beneficiaries.
Rosetta's shares climbed as high as $7.84 in Wednesday trade on the Nasdaq, before closing at $4.99, up 208 percent.
The miRview mets2 test identifies tumor of origin in primary and metastatic cancer including cancer of unknown or uncertain primary.
"This is a major commercial achievement for Rosetta Genomics as Medicare coverage is a critical step toward widespread commercial adoption and payment for our lead diagnostic assay, miRview mets2, and enables access to this clinically valuable test to Medicare patients," Rosetta Genomics President and CEO Kenneth Berlin said in a statement. "This decision is important not only because Medicare is the largest US payor, covering a large percentage of the patients for whom miRview mets2 has been ordered historically and would be expected to be ordered in the future, but also because private payors often look to Medicare's decisions when setting their own reimbursement policies."
The daramtic jump in Rosetta's stock follows a one-for-fifteen reverse stock split that took place earlier this week. At the time, the firm's shares were trading at $.14. It also has been under threat of delisting from the Nasdaq for failing to satisfy two listing requirements: the $1 minimum bid rule and having $2.5 million in stockholders equity.