Organogenesis selloff on CMS proposal ‘may be incorrect,’ says BTIG

BTIG believes the selloff in shares of Organogenesis (ORGO) on the Centers for Medicare and Medicaid Services’ proposed 2026 physician fee schedule “may be incorrect.” Advanced wound care is likely the biggest news out of proposal as Medicare made a point to highlight how much costs have risen over the past few years, the analyst tells investors in a research note. BTIG believes that given the starting rate of $125.38, it expects to see significant pricing upside and downside for products under the proposed payment structure based on their reported average selling prices relative to the proposed rate. In Q4 of 2024, Organogenesis’ Apligraf had an average selling price of $30.57, the analyst tells investors in a research note. If the starting rate is finalized, the product would see a 310.1% increase in price, notes BTIG. On the other hand, the firm says MiMedx’s (MDXG) EpiFix and EpiCord will drop lose 21% and 49%, respectively, based on their Q4 prices. BTIG views last night’s share selloff as “draconian,” believing the CMS proposal may bring consolidation and a clean-up of the market. It keeps a Buy rating on Organogenesis. The stock in premarket trading is down 17% to $3.73.