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MOUNTAIN VIEW, Calif. - NeuroPace, Inc. (NASDAQ:NPCE) will benefit from increased Medicare reimbursement rates for its RNS System beginning January 1, 2026, according to a company announcement on Monday. The news comes as the company’s stock has shown strong momentum, gaining nearly 11% over the past week and approximately 28% year-to-date, according to InvestingPro data.
The Centers for Medicare & Medicaid Services (CMS) has finalized two payment increases that affect the brain-responsive neurostimulator system used to treat drug-resistant epilepsy. Under the Physician Fee Schedule final rule, professional payments to neurosurgeons will increase by approximately 43% ($530) for initial implant procedures and 45% ($260) for replacement procedures.
Additionally, the Outpatient Prospective Payment System final rule reclassifies RNS System replacement procedures to a higher payment category, increasing average hospital Medicare reimbursement by 47% from $21,444 to $31,526.
"These changes better reflect the physician resources used in treating patients with RNS therapy and, over time, should further support neurosurgeon adoption and procedure growth," said Joel Becker, Chief Executive Officer of NeuroPace, in the press release.
The RNS System is described as the first commercially available brain-responsive platform that delivers personalized treatment at the seizure source for patients with drug-resistant epilepsy.
The reimbursement updates come as replacement procedures are becoming a larger part of NeuroPace’s business. The company stated that the hospital payment increase "should provide a helpful tailwind while supporting sustained access for Medicare beneficiaries treated in the outpatient setting."
The information in this article is based on a press release statement from NeuroPace.
In other recent news, NeuroPace Inc. reported impressive third-quarter 2025 financial results, with total revenue reaching $27.4 million. This figure surpassed both Cantor Fitzgerald’s estimate of $24.4 million and the FactSet consensus of $24.5 million, marking a year-over-year growth of approximately 30%. The company’s earnings per share also exceeded expectations, coming in at -$0.11 compared to the anticipated -$0.20. The strong performance was primarily driven by increased sales of the RNS System, which grew about 31% compared to the same period last year. Additionally, NeuroPace reported a gross margin of 77.4%, significantly above the consensus estimate of 72.6%.
Following these results, Leerink Partners raised its price target for NeuroPace to $19.00 from $18.00 while maintaining an Outperform rating. Cantor Fitzgerald reiterated its Overweight rating with a $16.00 price target, underscoring confidence in the company’s performance. These developments reflect the positive reception of NeuroPace’s financial achievements among analysts.
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