Ekso Bionics Addressable Market to Grow on CMS Update

Ekso Bionics EKSO has reached a significant milestone in terms of transforming mobility solutions, particularly for individuals with spinal cord injuries. The company recently secured initial reimbursement from the Centers for Medicare & Medicaid Services for its Ekso Indego Personal exoskeleton.

This achievement is poised to expand Ekso Bionics' foothold in the growing exoskeleton technology market, which is gaining traction in both medical and industrial sectors.

Strategic Implications

The CMS reimbursement marks a pivotal moment for Ekso Bionics, as it opens up substantial opportunities in a market where cost has often been a barrier to access. With tens of thousands of Medicare beneficiaries living with SCI covered by Medicare, the reimbursement approval validates the efficacy and value of the Ekso Indego Personal. It will also significantly increase the addressable market for the device, which Ekso will be working to access in late 2024 and beyond.

This is expected to drive demand, thereby solidifying Ekso Bionics' position in the competitive landscape of medical exoskeletons.

Strategic Path Forward

Ekso Bionics is strategically positioned to leverage this reimbursement milestone to tap into a larger market. The company plans to collaborate with Medicare Advantage plans and commercial insurers later in 2024, aiming to make Ekso Indego Personal accessible to a broader spectrum of users.

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Moreover, the recently launched EksoHealth Personal Program will further streamline access by ensuring that potential users are well-suited for the device, enhancing patient outcomes and satisfaction.

Market Prospect

Going by a Market Research Future report, the exoskeleton market is projected to grow from $1.11 billion in 2023 to $16.0 billion by 2032, exhibiting a CAGR of 39.50% during the forecast period.

As the exoskeleton technology market continues to expand, particularly in the medical field, Ekso Bionics' achievement with CMS reimbursement is a crucial step in driving the adoption of these life-changing devices. By making advanced mobility solutions more accessible and affordable, Ekso Bionics is perfectly positioned to become a dominant player in the exoskeleton technology industry.

Share Price Performance

Year to date, shares of EKSO have plunged 57.2% against the industry's 9.7% growth.

Zacks Rank and Other Key Picks

EKSO currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader medical space are Intuitive Surgical ISRG, TransMedics Group TMDX and Quest Diagnostics DGX. While Intuitive Surgical and TransMedics sport a Zacks Rank #1 (Strong Buy) each, Quest Diagnostics carries a Zacks Rank #2 (Buy).

Intuitive Surgical's shares have surged 61.3% in the past year. Estimates for the company's earnings have remained constant at $6.67 per share for 2024 in the past 30 days.

ISRG's earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 8.97%. In the last reported quarter, it posted an earnings surprise of 16.34%.

Estimates for TransMedics' 2024 EPS have moved up 48.1% to $1.20 in the past 30 days. Shares of the company have soared 187.6% in the past year compared with the industry's 12.4% growth.

TMDX's earnings surpassed estimates in each of the trailing four quarters, the average surprise being 287.50%. In the last reported quarter, it delivered an earnings surprise of 66.67%.

Estimates for Quest Diagnostics' 2024 EPS have increased 0.2% to $8.89 in the past 30 days. In the past year, shares of DGX have risen 15.9% compared with the industry's 22.4% growth.

In the last reported quarter, DGX delivered an earnings surprise of 1.73%. The company has a trailing four-quarter average earnings surprise of 3.31%.

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