Trumpcare ’ s prospects dim, but not too dim to hit stent graft makers

The push on Capitol Hill to revive Trumpcare stalled yesterday, but not before the chatter out of Washington instigated a slide for stent graft makers’ stocks. The Affordable Care Act covers a 1-time screening for abdominal aortic aneurysms in men who smoke or smoked in the past, listing the test as an “essential health benefit.” The GOP’s healthcare reform proposal would do away with the AAA screening coverage, shifting the cost of the test to patients, which could in turn affect AAA repair procedure volumes. Investors reacted by pushing share prices down yesterday on Wall Street for Lombard Medical Technologies (NSDQ:EVAR), Endologix (NSDQ:ELGX) and C.R. Bard (NYSE:BCR), although the stocks have recovered somewhat today. EVAR shares closed down -9.3% at 68¢ apiece, but today climbed 4.9% to 71.4¢ in mid-morning activity. ELGX also clawed back some value, after closing down -7.2% yesterday at $6.66 per share, rising 4.8% to $6.98 each. BCR, which closed down -0.8% at $248.40 yesterday, was up 0.2% to $249.00 per share. Analysts at Leerink Partners, writing yesterday in a note to investors, said the sell-off was overdone “Of course the GOP proposal is just that (a proposal) and very well could get changed or not pass at all. Nevertheless, if implemented, the measures in this plan could represent an incremental negative for AAA device companies. At a minimum it represents another overhang for a stock (ELGX) that already is working throug...
Source: Mass Device - Category: Medical Equipment Authors: Tags: Healthcare Reform Stent Grafts Wall Street Beat C.R. Bard Capitol Hill Endologix Lombard Medical Technologies Source Type: news