Comment on the announcement of CMS changes to catheter codes

London, UK, 22 August 2024 – Convatec, a leading medical products and technologies company, welcomes the Centers for Medicare & Medicaid Services (CMS) announcement of 16 August 2024 confirming the proposal from May of new reimbursement codes for intermittent catheters in the United States, with no change to pricing.

This coding change, effective from January 2026, encourages innovation and will allow for clearer differentiation between hydrophilic and other types of intermittent catheters, which supports choice for Healthcare Professionals (HCPs) and better outcomes for patients.

Through our Home Services Group, 180 Medical, Convatec is the clear leader in direct-to-home supply of urinary intermittent catheters in the US. Over half of those catheter sales are Convatec branded. Convatec also manufactures and sells a similar number of catheters through third party distributors. 

Hydrophilic catheters have been increasing as a proportion of Convatec's US sales (now over 60%), and in the US market as a whole, where customers and Healthcare Professionals recognise the benefits of the technology. This increase is expected to continue.

Convatec’s innovative FeelClean Technology™ is a third generation hydrophilic, with a superiority claim for comfort and less sticky residue from the US Food and Drug Administration (FDA)¹. The proportion of Convatec branded hydrophilic catheter sales in 180 Medical continues to grow. 

Convatec manufactures and sells over twice as many non-hydrophilic catheters to third-party distributors as we buy from third-party manufacturers. Therefore, any increase in the proportion of hydrophilic catheter sales would have a positive mix effect which would be neutral to positive on our margins.

These changes to CMS catheter codes have no impact on our forward guidance. We continue to expect high-single digit sales growth from Continence Care in 2024, mid-single digit sales growth thereafter and for Convatec to deliver mid-20s operating margin in 2026 or 2027. 

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Notes to editors

¹ FDA K213283 https://www.accessdata.fda.gov/cdrh_docs/pdf21/K213283.pdf (Established in 2022)

Contact
Investor Relations: IR@convatec.com   
Media: MediaRelations@convatec.com

About 180 Medical
180 Medical is a leading home services medical devices company in the United States, offering high-quality catheters and ostomy products. Convatec acquired the company in 2012.
 
About Convatec
Pioneering trusted medical solutions to improve the lives we touch: Convatec is a global medical products and technologies company, focused on solutions for the management of chronic conditions, with leading positions in advanced wound care, ostomy care, continence care and infusion care. With around 10,000 colleagues, we provide our products and services in almost 100 countries, united by a promise to be forever caring. Our solutions provide a range of benefits, from infection prevention and protection of at-risk skin, to improved patient outcomes and reduced care costs. Convatec’s revenues in 2023 were over $2 billion. The company is a constituent of the FTSE 100 Index (LSE:CTEC). To learn more about Convatec, please visit http://www.convatecgroup.com