Medicare Coverage Heals A Painful Summer For Cytomedix (CMXI)

A dismal summer for Cytomedix (OTC: CMXI) stock suddenly turned a little brighter today. The Centers for Medicare and Medicaid Services announced that they had approved coverage for autologous blood-derived products (the patient’s own blood) used in the treatment of chronic wounds specifically resulting from diabetes and pressure or venous wounds. Cytomedix develops and sells regenerative therapies including its AutoloGel System that produces platelet-rich plasma from the patient’s blood to treat wounds and inflammation.

Until today, the stock had fallen 44% from its 52-week high print at $2.32 recorded toward the last days in May. Buyers stampeded out of the gate this morning sending share prices 28 cents higher than the closing trade on Friday. In trader parlance, the stock gapped where the low trade of the day at $1.41 was higher than the previous day’s high. Traders will be looking to see if this morning’s news and action will lead to additional rallies in the stock price, or if today is just a one-trick pony. The stock reached its high on the day by the time 30 minutes had expired from the opening bell when it traded for $1.80. Shares of Cytomedix registered a gain of 30% for the session to close at $1.64, or up 38 cents. The 532,000 shares exchanging hands today far out-distanced an average daily volume of 122,000.

Shares hit an annual low of $0.28 almost a year ago. The stock had climbed steadily for nine months toward its summit and a gain of 900% from the bottom before swooning in June.

Cytomedix is a biotechnology company focused on the development and commercialization of innovative wound care therapies using the regenerative properties of platelets and adult stem cells. The company finds itself in a field that includes giants like Johnson and Johnson (NYSE: JNJ) and Baxter International (NYSE: BAX). The Gaithersburg, Maryland, company was founded in 1998.

In other related news, Cytomedix announced on July 18, 2012, the initiation of a phase I clinical study of ALD-451 in collaboration with Duke University for patients with brain cancer.

On April 11, 2012, the company released positive AutoloGel wound healing data.

A couple of stock promoters put out notes today on Cytomedix that can be viewed on Stockpromoters.com. The Stock Wizards said, “The company’s autologous technologies offer clinicians a new treatment paradigm for wound and tissue repair.” Penny Trader Publisher alerted readers with following note: “Up 25.4% in morning trading to $1.58”. Neither promoter listed receiving any compensation.

Twitter saw plenty of promotional activity for Cytomedix. @Pennystocks 24 tweeted about The Stock Wizards promotion of the stock, and @StockNewsNow noted the Medicare news.

Please make sure to read and completely understand our disclaimer at https://www.wallstreetpr.com/disclaimer. While reading this article one must assume that we may be compensated for posting this content on our website.

Published by Alan Masterson

Alan has over 25 years of trading experience in the U.S. equity markets. He began his career in finance working on a program trading desk specializing in over-the-counter stocks. His career progressed from that point to his current position as senior trader on an institutional trading desk. In the evenings, Alan teaches economics at a local community college. He has contributed articles to various publications over the last six years, including feature articles for an economics magazine and various financial blogs. You may contact Alan via his email (alanmasterson@wallstreetpr.com) or his Google+ page (https://plus.google.com/103338576216002376250).

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