Convatec responds to CMS draft proposal on skin substitutes

Published 15/07/2025, 07:50
Convatec responds to CMS draft proposal on skin substitutes

LONDON - Medical (TASE:BLWV) products company Convatec Group PLC (LSE:CTEC) announced on Tuesday it will engage in the public comment process regarding a draft payment proposal from the Centers for Medicare & Medicaid Services (CMS) for skin substitutes in the United States.

The company expressed support for CMS’s efforts to reduce costs and promote responsible market practices, but raised concerns that the proposed reimbursement rate could limit patient choice, product quality and availability in the segment.

Convatec’s InnovaMatrix, a porcine placental-derived extra-cellular matrix for wound treatment, represented approximately 3% of the company’s group revenue in the four months to April 2025. The company expects revenue of at least $75 million from the product in fiscal year 2025.

If implemented in its current form, the proposal could create a potential year-on-year headwind to fiscal year 2026 revenue of approximately 1-2% of group revenue, according to the company statement.

The public comment period for the CMS proposal closes on September 12, 2025, and Convatec noted that any changes would not be expected before 2026 at the earliest.

InnovaMatrix is FDA-cleared for 15 separate medical indications. Convatec stated it remains committed to the segment and is on track to publish randomized controlled trials in 2026, while continuing to develop sales across various indications both within and outside the United States.

The company plans to provide an update to investors at its half-year results on July 29, 2025.

Convatec, a constituent of the FTSE 100 Index, reported revenues of over $2 billion in 2024.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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