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ANGO Stock Rises Following the Receipt of CPT Category I Code for IRE

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AngioDynamics, Inc. (ANGO - Free Report) recently announced that Irreversible Electroporation (IRE) has received Current Procedural Terminology (CPT) Category I codes for the treatment of lesions in the prostate and liver.

CPT Category I codes are reserved for services and procedures that have demonstrated clinical efficacy, widespread use and proven value in the medical community. The recognition of IRE under these codes follows rigorous clinical studies and peer-reviewed data using the NanoKnife System that met the requirements for Category I CPT codes.

Likely Trend of ANGO Stock Following the News

Following the announcement, shares of the company moved nearly 11.2% north to $7.27 at yesterday’s close. However, for the year-to-date period, ANGO shares have declined 7.3% against the industry’s rise of 8.4%. The S&P 500 increased 22.7% in the same time frame.

Meanwhile, ANGO currently has a market capitalization of $265.8 million. In the last reported quarter, ANGO delivered an earnings surprise of 26.7%.

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Significance of CPT Category I Code

ANGO's NanoKnife System's achievement of CPT Category I status is a noteworthy milestone that demonstrates the company's dedication to offering patients cutting-edge and efficient treatment choices. This accomplishment reflects the worth of AngioDynamics' calculated investments in its cutting-edge IRE technology and NanoKnife System. Now that liver and prostate lesions have CPT Category I codes, the business is likely to continue striving to increase patient access to these transformative therapies.

With these new CPTCategory I codes, healthcare providers are likely to be able to bill more precisely for the treatments provided and should achieve broader insurance coverage and defined reimbursement rates for NanoKnife procedures, increasing market access to this minimally invasive IRE technology.

More on ANGO’s NanoKnife System

The NanoKnife System utilizes IRE technology to destroy targeted cells without thermal energy by delivering high-voltage pulses, creating permanent nanopores within the cell membrane. This stimulus induces an apoptotic-like cellular death in the targeted tissue, resulting in a complete ablation of the targeted tissue.

NanoKnife is one of ANGO’s major products and has been witnessing solid growth over the past few months. The product has previously received FDA clearance for the surgical ablation of soft tissue. The NanoKnife System was granted a Breakthrough Device Designation under the 21st Century Cures Act by the FDA. AngioDynamics also offers the FDA-approved NanoKnife 3.0 generator.

Favorable Industry Prospects for ANGO

Per a report by Fortune Business Insights, the global pancreatic cancer treatment market size was valued at $2.86 billion in 2023 and is expected to reach beyond $10.69 billion by 2032, exhibiting a CAGR of 15.8%.

Factors such as unhealthy lifestyles, alcohol consumption, and obesity have been the primary cause of pancreatic cancer in patients. The growing prevalence of pancreatic cancer in the population and developments in molecular biology, drugs, and technology are vital in driving market growth.

AngioDynamics’ Zacks Rank & Other Stocks to Consider

ANGO carries a Zacks Rank #2 (Buy) at present.

Some other top-ranked stocks in the broader medical space are Addus HomeCare (ADUS - Free Report) ,  Quest Diagnostics (DGX - Free Report)  and RadNet (RDNT - Free Report) . While Addus HomeCare sports a Zacks Rank #1 (Strong Buy), Quest Diagnostics and RadNet carry a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Addus HomeCare has an estimated long-term growth rate of 12.1%. ADUS’ earnings surpassed estimates in each of the trailing four quarters, with the average being 11.5%.

Addus HomeCare shares have rallied 85.5% compared with the industry's 16.9% growth year to date.

Quest Diagnostics has an estimated long-term growth rate of 6.8%. DGX's earnings surpassed estimates in each of the trailing four quarters, with the average being 3.3%.

Quest Diagnostics has gained 42% compared with the industry's 14.9% growth year to date.

RadNet’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 98.2%.

RDNT's shares have surged 93.7% year to date compared with the industry’s 14.8% growth.

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