Interpace Diagnostics (OTC: IDXG) Stock Soars 45% After A Major Update

As another trading week gets into gear, there are some companies that have already hit the headlines, and one of those is Interpace Biosciences. The company came onto the radars of investors after its subsidiary unit, Interpace Diagnostics (OTC: IDXG), made a key new announcement. It may be a good idea to take a closer look.

The Update

It was announced that Interpace Diagnostics had received notification from First Course Service Options Inc. and Novitas, the Medicare Administrative Contractors of the Centers of Medicare and Medicaid Services (CMS), that they had decided to delay the Genetic Testing for Oncology Local Coverage Determination (LCD) implementation. As a consequence of the notification, the testing date was moved to April 24, 2025, from February 23, 2025.

The Reason

In the news release, Interpace Diagnostics announced that owing to the delay, it would be possible for the new administration under President Donald Trump to review the policy changes with greater thoroughness. The authorities from the new administration would look into the supporting clinical evidence with regards to the PancraGEN assay and then make an assessment of the negative impact on the care of patients. Investors could do well to add the Interpace Biosciences stock to their watch lists at this point.

Management Comment

PancraGEN has been continuously covered by Medicare for more than 10 years under a test-specific LCD, has helped over 80,000 patients, and has been proven by up to ~8 years of follow-up. According to Tom Burnell, President and CEO of Interpace, “On behalf of the patients and physicians that rely on PancraGEN for optimal care, we are grateful for this delay. We plan to use this additional time to work with the incoming administration to further demonstrate that there has not been any new evidence to justify non-coverage, which would effectively remove this test from the market.”