Medicare reimbursement cuts prompt Orthofix to slash 2026 guidance, shares plunge

 

Medicare reimbursement cuts prompt Orthofix to slash 2026 guidance, shares plunge 16%

• FDA reclassified non-invasive bone growth stimulators from Class III to Class II in April 2026.
• CMS updated Medicare rules effective mid-May, cutting average reimbursement ~10% for key products.
• Orthofix lowered 2026 sales outlook to $838-848M from prior $850-860M range.
• Adj. EBITDA guidance reduced to $90-93M from $95-98M; no positive FCF now expected.
• Company withdrew 3-year financial targets citing reimbursement uncertainty and margin pressure.
• Bone growth stimulators are a significant revenue driver, making the hit material.
• Announcement at ~8:35am ET triggered immediate sharp selloff in today's session.

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