NEW YORK ─ Interpace Biosciences announced Friday that it is terminating a previously announced rights offering and standby purchase agreement with 3K Limited Partnership due to the likely adverse impact of a change in the Centers for Medicare & Medicaid Services' reimbursement policy for its thyroid tests.
The Parsippany, New Jersey-based firm said CMS has issued a new billing policy and will no longer reimburse for its ThyGeNext and ThyraMir thyroid cancer tests when the tests are billed together by the same provider for the same beneficiary on the same date of service.
ThyGeNext is used for the diagnosis of thyroid cancer from thyroid nodules using a next generation sequencing assay, while ThyraMir is used for the diagnosis of thyroid cancer from thyroid nodules using a gene expression assay.
On Jan. 13, the firm said it had commenced a $30 million rights offering, intending to distribute nontransferable subscription rights to holders of its common stock and outstanding warrants, with each right entitling the holder to purchase a 0.75 share of common stock at a price per whole share of common stock of $6.65.
"We are disappointed to terminate the rights offering due to the likely adverse impact of the change in CMS' policy but we are determined to seek alternative sources of financing to support the company's business," Tom Burnell, Interpace's president and CEO, said in a statement.
The firm said it is evaluating the potential impact of CMS' new policy and preparing an appeal.