Shares in Renalytix (LON: RENX) have soared following the market opening in the US. The share price has more than trebled to 45.5p, which is 323% higher than one week ago. Renalytix is quoted on Nasdaq as well as on AIM. Investors seem to be picking up on the setting of the Medicare price last week.
Heavy cash outflows are likely before revenues build up so this share price rise may be used to raise additional cash. There should be net cash at the end of June 2023, but there could be net debt of around £20m one year later.
Last week. the Centers for Medicare and Medicaid Services has published a draft local coverage determination for Renalytix for KidneyIntelX and kidneyintelIX.dkd. The Medicare price is $950/test. The specified coverage is for patients with diagnosed Tupe 2 diabetes and Stage 1-3b Chronic Kidney Disease.
Renalytix is participating in the BTIG MedTech conference in Utah on 13-14 February.
Kidney disease affects more than 850 million people around the world and 38 million people in the US have chronic kidney disease. Around 35 million US people have Type 2 diabetes.
A study of KidneyIntelX at a major US clinical centre. After one year, blood pressure control improved as did blood glucose control. The rate of kidney function decline reduced across all risk categories.
Renalytix is expected to generate revenues of £5m in the year to June 2024 and double that level the following year. There are still substantial losses expected.
