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NEWTOWN, Pa. - Helius Medical Technologies, Inc. (NASDAQ:HSDT), a neurotech company with a market capitalization of $2.2 million, announced today that United Healthcare has approved reimbursement for the Portable Neuromodulation Stimulator (PoNS) device for patients with multiple sclerosis (MS). This marks the second major healthcare provider, following Anthem, to provide coverage for the PoNS device. According to InvestingPro analysis, the company currently holds more cash than debt on its balance sheet, though it faces challenges with cash burn.
The reimbursement approval by United Healthcare is set at the out-of-network adjusted list price, with a total approved lump sum amount of $18,100, which includes patient co-payment. This development is seen as an affirmation of the clinical need and benefits of the PoNS device, potentially supporting further discussions with other payors. The news comes as the company faces financial challenges, with InvestingPro data showing revenue of $430,000 in the last twelve months and a negative gross profit margin of -33.6%.
Helius Medical Technologies is recognized for its focus on neurologic deficits using its neuromodulation technology. The PoNS device is designed to improve balance and gait in MS patients and is used alongside physical rehabilitation exercises. The device, which is non-implantable and delivers mild electrical impulses to the tongue, is available by prescription for patients aged 22 and over in the United States.
Helius President and CEO Dane Andreeff expressed optimism about the company’s strategy to increase patient access to PoNS, stating that the recent reimbursement approval will aid in supporting more MS patients.
The PoNS device has also been authorized for sale in Canada for treating gait or balance deficits due to stroke, chronic balance deficit due to mild-to-moderate traumatic brain injury, and MS symptoms. In Australia, it is approved for short-term use as an adjunct to therapeutic exercise programs aimed at improving balance and gait.
This announcement is based on a press release statement from Helius Medical Technologies and reflects the company’s ongoing efforts to secure broader commercial payor coverage and third-party reimbursement for its PoNS device. InvestingPro analysis reveals the company’s overall financial health score as "WEAK," with analysts not anticipating profitability this year. For deeper insights into HSDT’s financial metrics and 12 additional ProTips, subscribers can access the comprehensive Pro Research Report, which transforms complex Wall Street data into actionable intelligence.
In other recent news, Helius Medical Technologies has announced a 1-for-15 reverse stock split, effective after the market closes on May 1, 2025. This decision, approved by shareholders, aims to maintain compliance with Nasdaq’s listing standards and will consolidate every 15 shares into one. Additionally, Helius Medical has secured $1.3 million through a private placement deal, involving the issuance of unsecured promissory notes and common stock shares. The proceeds from this transaction are intended for working capital and general corporate purposes.
Furthermore, Helius Medical has launched a new subsidiary, Revelation Neuro, Inc., which will focus on developing AI-powered brain-computer interface technology. This subsidiary aims to enhance neurorehabilitation and is expected to be funded by external sources. These developments reflect Helius Medical’s ongoing efforts to advance its presence in the medical device sector.
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