Therma Bright (THRM) Stock Surges Following Key Medicare and Medicaid Win in $1B DVT Market
Therma Bright's Venowave VW5, a circulation-boosting device, designed to treat and prevent deep vein thrombosis (DVT), became a major player overnight in the DVT market, which analysts expect to grow to $1.5 billion in value by 2032.
Therma Bright (TSXV: THRM) (OTCQB: TBRIF) (FSE: JNX), a medical device manufacturer, has made significant strides in the healthcare sector following recent news that the company secured a key Medicare and Medicaid designation for its flagship product, the Venowave VW5.
Last week, Therma Bright announced it secured the permanent Healthcare Common Procedure Coding System (HCPCS) code from the U.S. Department of Health & Human Services’ Centers for Medicare and Medicaid Services (CMS), undoubtedly, a big win for the relatively small healthcare company.
Following this announcement, Therma Bright’s Venowave VW5, a circulation-boosting device, designed to treat and prevent deep vein thrombosis (DVT), became a major player overnight in the DVT market, which analysts expect to grow to $1.5 billion in value by 2032.
The approval also marks a significant victory for Therma Bright, a company valued at $15 million, as it opens doors to broader market penetration and higher stock performance. Investors have taken a keen interest in this development, anticipating strong potential for growth as the device becomes more accessible to Medicare and Medicaid patients.
A New Approach to Blood Clot Prevention
Therma Bright’s Venowave VW5 is an innovative device that is strapped to a patient’s calf, creating a wave-like motion to stimulate blood flow back to the heart, preventing the formation of blood clots. This technology offers an alternative to the widely used compression socks, which are often uncomfortable and associated with side effects like skin ulcers, dry skin, and irritation. With over 900,000 Americans affected by DVT annually, according to the Centers for Disease Control (CDC), the Venowave VW5 is poised to address a critical healthcare need.
The introduction of the VW5 to Medicare and Medicaid patients is a game-changer for both patients and healthcare providers. The device’s HCPCS Level II code simplifies billing and reimbursement processes, making it more attractive for those seeking an alternative to traditional DVT treatments. Patients can either purchase the device outright, with a capped reimbursement of $1,199 for a pair or rent it with a monthly capped fee of $78.05 over 13 months.
Partnership for Distribution and Sales Expansion
Following the approval, Therma Bright secured a distribution partner to oversee an initial sales program aimed at testing Medicare and Medicaid reimbursement timelines. While the distributor’s identity remains undisclosed, the partnership is expected to boost monthly orders for the VW5 significantly. If successful, the distributor has committed to purchasing the remaining VW5 inventory, valued at $2.38 million.
Therma Bright’s CEO, Rob Fia, is optimistic about the company’s growth, stating that the designation will likely lead to a surge in demand for the Venowave VW5 among Medicare and Medicaid patients. The distribution partnership is seen as a vital first step in making the VW5 a standard treatment for DVT.
Beyond DVT: Expanding the Device’s Potential
Though investors are excited about the VW5’s potential in the DVT market, the device’s versatility offers even greater promise. The device significantly broadens Therma Bright’s market reach with applications in nine different areas.
The Venowave VW5 is designed to treat a range of conditions beyond DVT, including:
- Management of the symptoms of post-thrombotic syndrome (PTS)
- Prevention of primary thrombosis
- Treatment of lymphedema
- Diminishing post-operative pain and swelling
- Treatment of leg swelling due to vascular insufficiency
- Treatment of varicose veins
- Treatment of chronic venous insufficiency
- Enhancing blood circulation
- Treatment of intermittent claudication
Therma Bright also has a wide portfolio of products, further increasing the stock’s attractiveness.
This expansion positions the VW5 as a multi-functional medical device, making it an attractive investment opportunity. Therma Bright’s innovative portfolio includes other cutting-edge technologies, such as the AI-powered Digital Cough Test, which detects respiratory diseases, and the PREVA clot-retrieving device, designed for ischemic stroke treatment.
Therma Bright’s Promising Future
With a diverse range of promising products in development, Therma Bright is well-positioned to make a significant impact on the healthcare market. The company’s recent success with the VW5’s Medicare and Medicaid designation, combined with its ongoing innovations, has drawn the attention of investors eager to see how these developments will translate into sales and broader market success.
As the Venowave VW5 moves forward with its initial sales and reimbursement program, all eyes will be on the company’s ability to capitalize on its recent win. If early sales data is positive, the VW5 may soon become a household name in blood clot prevention and beyond.
Therma Bright (TSXV: THRM) Stock Price Action
Therma Bright stock is currently consolidating following a breakout in early August, with the THRM chart in the process of forming a bull flag pattern.
Bull flags or pennants, are continuation chart patterns in technical analysis, which often signal another breakout could be on the horizon.
Shares of Therma Bright stock closed today’s trading session at $0.08, even on the day. YTD, THRM stock is up 166.67%.
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