Wells Fargo Downgrades Glaukos To Sell On IStent Reimbursement Cuts

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Wells Fargo analyst Lawrence Biegelsen downgraded Glaukos (GKOS) to Underweight from Equal Weight with a price target of $41, down from $100. The analyst sees downside risk to sales from the proposed reimbursement cuts to the company's iStent.

The Centers for Medicare and Medicaid Services last night issued the proposed outpatient prospective payment system for 2022 which includes the facility fees for the hospital outpatient and ambulatory surgery center settings. In the proposed rule, CMS lowered the facility fee in the ambulatory surgery center setting by 25% which was greater than expected, Biegelsen tells investors in a research note.

This comes after the CMS cut the physician fee for the iStent by 90% in the proposed physician fee rule last week, adds the analyst. He believes that if finalized, the proposed cuts are likely to have a "significant negative impact" on iStent sales.

 

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