STRATA Skin Sciences obtains temporary codes for XTRAC excimer laser treatment.

STRATA Skin Sciences is working with CMS to obtain temporary codes for its XTRAC excimer laser treatment, expanding reimbursement eligibility for all inflammatory and autoimmune skin conditions, including vitiligo, atopic dermatitis, and alopecia areata. The American Medical Association previously approved updates to codes 96920-96922 for XTRAC treatments.

STRATA Skin Sciences (NASDAQ: SSKN) has been working diligently with the Centers for Medicare & Medicaid Services (CMS) to secure temporary codes for its XTRAC® excimer laser treatment. This move aims to expand reimbursement eligibility for all inflammatory and autoimmune skin conditions, including vitiligo, atopic dermatitis, and alopecia areata. The American Medical Association (AMA) previously approved updates to codes 96920-96922 for XTRAC treatments, effective January 1, 2027 [1].

By obtaining temporary CMS codes, STRATA aims to make these expanded indications reimbursable as early as the 2026 rule cycle. This acceleration could triple the addressable patient population to over 30 million, while also improving treatment economics for both providers and the company. The strategic implications are substantial, as dermatologists would be financially incentivized to use XTRAC therapy, which is directly reimbursable, rather than prescribing medications that do not generate provider revenue [1].

Recent peer-reviewed studies further bolster STRATA's market position. Two studies published last month demonstrated the efficacy of combining 308-nm excimer-laser therapy with JAK inhibitors for vitiligo treatment. One study showed a 100% overall response rate and 96% pigment stability in a multicenter trial, while another highlighted a case report achieving approximately 70% re-pigmentation in a patient with segmental vitiligo [1].

STRATA is also pursuing litigation against LaserOptek regarding false advertising claims. The company has reported favorable court decisions that could result in significant damages awarded to STRATA. This legal action aims to protect STRATA's market position against competitors making potentially misleading claims about reimbursement eligibility [1].

With an intellectual property portfolio covering combination therapies involving JAK inhibitors and Excimer laser treatments, STRATA is strategically positioned to benefit from emerging treatment protocols in dermatology. The company's unique offering includes the XTRAC® excimer laser, VTRAC® lamp systems, and the TheraClear®X Acne Therapy System. STRATA's Partnership Program, which offers a fee per treatment cost structure, has proven successful in the U.S. market [1].

References:
[1] https://www.stocktitan.net/news/SSKN/strata-skin-sciences-moves-to-accelerate-medicare-and-private-payer-t7pddud6zcju.html