Ekso Bionics Shows Solid Progress in 3Q23; New CMS Reimbursement Change Could be Game Changer in 2024

10/27/23 (written by: Scott Gleason) Ekso Bionics Holdings, a maker of exoskeleton technologies has reported its financial results for the third quarter of 2023. Total revenue in the quarter was $4.6 million, a 38% year-over-year increase, and incorporated the sale of 41 EksoHealth devices. The street had been looking for revenue of $4.5 million.

The company also noted a record number of EVO unit sales, its industrial product for reducing workplace injuries by supporting the arms during manual work.

From a reimbursement perspective, The Centers for Medicare and Medicaid Services (CMS) have introduced a new proposal aimed at incorporating personal exoskeletons into the Medicare benefits category for orthopedic braces within the 2024 home health perspective payments and rate updates.

This proposed regulation carries significant implications as it would classify specific exoskeleton-type devices as eligible for Medicare coverage under the category of orthopedic braces. Pending approval, this expansion could substantially broaden the potential user base for Ekso Indego Personal to include approximately 164,000 individuals with spinal cord injuries who are covered by Medicare or Medicaid.

This could potentially allow patients access to the Ekso Indego Personal device at a fraction of the present costs (today they pay out-of-pocket). Furthermore, Ekso Bionics has recently submitted an application for the determination of a Medicare code for Ekso Indego Personal and should receive CMS’s decision on the reimbursement level in late November when the final schedules are posted. This could be a major catalyst for future demand.

EPS in the quarter were ($0.24) compared to street forecasts of ($0.31).

The CEO of Ekso Bionics, Scott Davis, expressed satisfaction with the strong sales of EksoHealth devices, reflecting substantial multi-unit orders and increased customer adoption of the Indego product line. Additionally, the company made strides in expanding its EksoWorks business, evidenced by record EVO unit sales in the quarter.