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Tactile Medical Stock Rises After Positive Flexitouch Trial Results

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Tactile Systems Technology, Inc. (TCMD - Free Report) , popularly known as Tactile Medical, has announced positive results from the clinical study evaluating Flexitouch advanced pneumatic compression device (APCD) for treating lower extremity lymphedema in Veterans. The results were published in the Journal of Vascular Surgery, Venous and Lymphatic Disorders.

Data from the study demonstrated substantial improvements in health-related quality of life among veterans after treatment with Flexitouch APCD, the primary endpoint of the study. The use of Flexitouch also led to improvements in patient compliance and limb girth reduction.

Likely Trend of TCMD Stock Following the News

Following the news release, shares of TCMD rose 0.6% to $13.90 at yesterday’s closing.

The recent announcement of positive study results further enhances the company's commitment to improving patient outcomes and quality of life, signaling a promising sentiment around its initiatives. By collaborating with clinicians, Tactile Medical aims to expand clinical evidence and raise awareness, ultimately increasing access to care and reducing healthcare costs for thousands of patients annually.

TCMD's Flexitouch Study Highlights Key Patient Benefits

This 52-week prospective trial, the largest in the United States, examined outcomes in 179 Veterans with lower extremity lymphedema treated with the FlexitouchAPCD. Conducted across four VA medical centers, the study assessed health-related quality of life (QoL) at baseline and at 12, 24 and 52 weeks, along with secondary outcomes like limb circumference, cellulitis events, skin quality and therapy compliance, offering a comprehensive view of the treatment's effectiveness.

In the study, chronic venous insufficiency (phlebolymphedema) emerged as the leading cause of lymphedema, affecting about 63% of participants. Additionally, mild lymphedema was the most prevalent stage of the disease, reported in 68% of patients, highlighting the commonality of these conditions among Veterans undergoing treatment with the Flexitouch device.

Data from the study showed that the use of Flexitouch APCD improved health-related and general quality of life measures, as measured on the Lymphedema QoL scale. The QoL score increased from 6.2 to 6.9 among patients during the study duration. Secondary outcomes showed notable reductions in limb girth (1.4 cm), cellulitis events (from 21.4% to 6.1%) and skin hyperpigmentation (from 75% to 40%). High patient compliance rates of 92% at eight weeks and 72% at 52 weeks further emphasize the therapy's effectiveness.

Compliance with compression garments also increased, rising to 74% at 52 weeks from 64% at baseline. Additionally, a 6% reduction in limb girth was observed at 12 weeks for patients with moderate to severe lymphedema, indicating the device's effectiveness in managing the condition.

A potential approval for the device will help the company provide Veterans with at-home tools to improve their health and quality of life.

Market Prospects Favoring TCMD

Per a report in Verified Market Research, the Pneumatic Compression Therapy Market size was worth $4.9 billion in 2023. It is anticipated to reach $6.4 billion by 2030 at a CAGR of 4.5%. 

The robust growth is likely to be driven by the increasing prevalence of chronic diseases, a growing aging population, heightened awareness and acceptance of the therapy, and advancements in technology.

Recent Lymphedema Platform at Tactile Medical

This Month, Tactile Medical announced that the Pricing, Data Analysis, and Coding contractor for CMS has approved HCPCS code E0651 for billing the next-generation pneumatic compression platform, Nimbl, which will be commercially available in the United States soon. Nimbl received FDA 510(k) clearance in June to treat lymphedema, chronic edema, venous insufficiency and wound healing.

TCMD’s Stock Price Performance

Shares of Tactile Medical have lost 2.8% year to date against the industry’s 8.8% growth. The S&P 500 has risen 20.2% in the same time frame.

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Zacks Rank & Key Picks

Currently, Tactile Medical carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space are Universal Health Services (UHS - Free Report) , ATI Physical Therapy (ATIP - Free Report) and Aveanna Healthcare (AVAH - Free Report) . While Universal Health Services sports a Zacks Rank #1 (Strong Buy), ATI Physical Therapy and Aveanna Healthcare carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Universal Health Services has an estimated long-term growth rate of 19%. UHS’ earnings surpassed estimates in each of the trailing four quarters, with the average being 14.58%.

Universal Health Services has gained 41.1% compared with the industry's 34.8% growth year to date.

ATI Physical Therapy's earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 7.25%.

ATIP's shares have gained 5.5% year to date compared with the industry’s 18.6% growth.

Aveanna Healthcare's earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 47.5%.

AVAH's shares have surged 104.5% year to date compared with the industry’s 15.7% growth.

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