UBS-ConvaTec Group Plc Silver lining in final LCD for Convatec-20251216

What has happened?

Last night CMS published an announcement in relation to the application of a localcoverage determination plan (LCD) for skin substitutes starting January 1 2026. In it,CMS details products across 3 lists: the first is the approved list, the second is the 12month status-quo list and the third is the non-covered list. Products on the first list arefully covered by Medicare under the LCD. Products on the second list can be reimbursedat the discretion of the MACs (Medicare Administrative Contractors) on the basis thatthere was some progress shown in relation to generating clinical evidence before Nov 12025. Products on the third list are not covered at all.