Myomo shares surge 11.89% after hours as Elevance expands coverage for advanced orthotic devices to 45 million members.

Myomo surged 11.89% in after-hours trading following Elevance Health's announcement to expand coverage of Myomo’s advanced orthotic devices to 45 million members across commercial, Medicare Advantage, and Medicaid plans. The partnership, which adds Myomo’s MyoPro powered orthoses to Elevance’s technology-enabled care offerings, aligns with the insurer’s strategy to enhance patient-centered care and differentiate its services. This move is expected to increase demand for Myomo’s products, particularly as assistive technologies gain traction in healthcare. While Alliance Global Securities cut its price target for Myomo to $3 from $4, the stock’s sharp rise suggests the Elevance deal outweighed bearish sentiment from the revised target. The expansion also positions Myomo to benefit from Elevance’s large member base and its focus on integrating innovative devices into care coordination.