Merit Medical confirms Wrapsody pass-through denied, says Wells Fargo

Wells Fargo says Merit Medical (MMSI) confirmed that a transitional pass-through for Wrapsody was denied in the Centers for Medicare and Medicaid Services’ 2026 outpatient rule proposal. Merit management said Wrapsody was not awarded a transitional pass-through during this review period, the analyst tells investors in a research note. The company added that it is still engaging with CMS to under the decision and what the next steps are. Wells is “somewhat surprised” by the news and expects the company will appeal the decision. It now expects Wrapsody sales to come in at the low end of guidance without the pass-through payment. Wells keeps an Overweight rating on the shares with a $108 price target