• Proposed flat reimbursement of $806 per square inch for outpatient skin substitutes
• Removal of price-based incentives may reduce higher-cost competitors
• Focus on proven clinical outcomes benefits PolyNovo's value-oriented products

PolyNovo Limited (PolyNovo) has outlined the impact and opportunity for the company from the proposed changes to U.S. Medicare Reimbursement for outpatient wound care. Under the existing reimbursement model, physicians are paid a percentage of the price for each skin substitute used, which has dis-incentivized the selection of lower-priced products. However, the Centers for Medicare & Medicaid Services (CMS) has now proposed a flat reimbursement of $806 per square inch for outpatient skin substitutes, a change designed to remove the economic incentive for surgeons to use higher-cost products and create a more value-oriented market. For PolyNovo, this means its NovoSorb BTM and MTX products are expected to remain profitable under the proposed flat rate. The removal of price-based incentives may also reduce the presence of higher-cost competitors, benefiting clinically robust, cost-effective products like PolyNovo's. Additionally, with physicians' decision-making increasingly focused on proven clinical outcomes, PolyNovo's products are well-positioned to compete strongly in the growing outpatient wound care market. The CMS proposal is currently under consultation, with a decision expected in November for a January 2026 start. PolyNovo is excited by the potential opportunities and will monitor developments closely.

PolyNovo is well-positioned to benefit from the proposed changes to U.S. Medicare reimbursement for outpatient wound care, as its cost-effective, clinically robust products are expected to become more competitive. The company is assessing the optimal commercial model to access this significant growth opportunity.