Teleflex (TFX) shares fell on Thursday after the Centers for Medicare and Medicaid Services proposed reimbursement rules that include a 20% cut in physician payments for UroLift.
UroLift is Teleflex’s system to treat enlarged prostate. The reimbursement guideline applies to procedures performed in doctors’ offices.
The news was a “negative surprise,” said Wells Fargo analyst Shagun Singh, according to Bloomberg. He said 30% of UroLift sales come from doctors’ offices.
Teleflex recently traded at $371.68, down 11%, leaving it down 4% for the past six months.
To be sure, Piper Sandler analyst Matt O’Brien said, according to Bloomberg, that while the reimbursement move on UroLift is sizable and will hurt doctors' profitability, it shouldn’t greatly curb Teleflex’s revenue and growth rate. He affirmed his overweight rating on the stock.
In other health news, Johnson & Johnson (JNJ) said Wednesday that it's voluntarily recalling all lots of five spray sunscreen product lines, because of benzene presence.
That includes Neutrogena and Aveeno. The company told consumers to stop using the products immediately.
The aerosol products are Neutrogena Beach Defense aerosol sunscreen, Neutrogena Cool Dry Sport aerosol sunscreen, Neutrogena Invisible Daily defense aerosol sunscreen, Neutrogena Ultra Sheer aerosol sunscreen, and Aveeno Protect + Refresh aerosol sunscreen.
Benzene is classified as a human carcinogen, a substance that could potentially cause cancer depending on the level and extent of exposure.
The New Brunswick, N.J., health-care giant said that benzene isn’t an ingredient in any of its sunscreen products, but it was detected in some samples of the affected aerosol sunscreen finished products. The company said it's investigating the cause.