CareDx Shares Soar 20% on Final Medicare Coverage Policy for Transplant Tests

Shares of CareDx Inc. (NASDAQ:CDNA) surged 20% on Thursday after the company announced the finalization of a Medicare Local Coverage Determination (LCD) that affirms coverage for its molecular tests used to monitor solid organ transplant rejection. The policy provides significant and long-awaited reimbursement clarity for the company's core testing services.

Policy Details and Impact

The final LCD from Medicare establishes clear guidelines for reimbursing CareDx’s key transplant surveillance products, solidifying a critical revenue stream for the diagnostics company. For investors, this decision mitigates regulatory uncertainty that has been an overhang on the stock, providing a clearer outlook for sales under the government's healthcare program for seniors.

The policy affirms coverage across kidney, heart, and lung transplants:

• Kidney Transplants: AlloSure Kidney is covered for up to six tests in the first year post-transplant and up to four tests per year in the second and third years.
• Heart Transplants: Coverage is maintained for AlloMap and AlloSure Heart, including combined use. The policy covers up to 12 tests in the first year and four annually for the subsequent two years.
• Lung Transplants: AlloSure Lung is covered for up to 12 tests in the first year and four per year in years two and three.

Company and Market Reaction

Ad

The clarification on Medicare reimbursement was well-received by the market, as predictable payment pathways are essential for the adoption and financial viability of medical diagnostic tests. The company stated that the policy provides stability for clinicians and patients who rely on its technology for post-transplant care.

"The final policy reinforces the role of molecular surveillance in transplant patient management, providing important clarity for patients and clinicians," commented Dr. Jeffrey Teuteberg, Chief Medical Officer of CareDx.

Context and Timeline

The final determination follows a review process that began when a proposed draft LCD was issued on July 17, 2025. After a public comment period, the final policy was published on July 16, 2026. According to CareDx, the new coverage rules are expected to become effective on August 30, 2026.