CVRx announced that its Barostim baroreflex activation therapy will now be billed under new Category I Current Procedural Terminology (CPT) codes effective January 1 2026, replacing the prior Category III codes. The change establishes Barostim as a reimbursable procedure across U.S. hospitals and physician practices, marking a significant regulatory milestone for the company.
Category I codes are the standard billing codes used for established medical procedures. Transitioning Barostim to Category I eliminates the experimental denials that previously limited payer coverage, creating a stable, predictable reimbursement framework that supports broader adoption and reduces uncertainty for clinicians and payers.
The new coding framework is expected to accelerate device implantation and broaden market penetration. CVRx’s Q3 2025 revenue of $14.7 million and a gross margin of 87%—up from 83% the year earlier—illustrate improving profitability as the company scales its commercial operations. The change should allow CVRx to focus on expanding its sales force and patient base, driving stronger revenue momentum in the coming quarters.
CEO Kevin Hykes said, “The new Category I CPT codes will enable more predictable and consistent reimbursement for Barostim patients and healthcare professionals, and validate the important role of Barostim therapy in the heart‑failure treatment continuum.” The statement underscores the company’s confidence that the regulatory approval will translate into tangible commercial gains.
CVRx continues to manage a negative free‑cash‑flow of $38.98 million, but the company maintains a strong current ratio, indicating short‑term liquidity. The firm must balance the cash burn against the expected revenue acceleration from the new coding status while navigating competitive pressures in the heart‑failure device market.
Overall, the Category I CPT code transition positions Barostim for a more predictable reimbursement environment and sets the stage for accelerated growth, but the company’s long‑term success will depend on its ability to convert the regulatory milestone into sustained commercial traction while managing cash resources.
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