NeurAxis, Inc. announced that it has secured medical‑policy coverage from four additional insurers, adding roughly 1.25 million new covered lives in West Virginia, New Hampshire, South Carolina, Virginia, and Florida. The expansion follows the effective January 1, 2026 Category I CPT code that now fully reimburses the non‑invasive ear‑stim device for pediatric functional abdominal pain and functional dyspepsia, allowing the company to reach a broader patient base without the prior authorization hurdles that limited earlier adoption.
The new CPT code and expanded payer coverage remove a major barrier to adoption. Prior authorization requirements had slowed the uptake of the PENFS/IB‑Stim therapy; with the code now in effect, providers can bill directly and receive reimbursement, which is expected to accelerate the conversion of the company’s 100 million covered‑life base into actual procedures before its cash runway ends.
Financially, NeurAxis reported preliminary Q1 2026 net sales of $1.6 million, up from $0.9 million in Q1 2025, while Q4 2025 net loss rose to $1.7 million from the prior year. The company’s cash balance was $5.0 million as of December 31, 2025, and an auditor’s report for fiscal year 2025 expressed substantial doubt about the company’s ability to continue as a going concern. Gross margin in Q4 2025 was 85.4%, down 100 basis points year‑over‑year due to inventory issues and a lower‑margin product launch, even as FY2025 revenue increased 33% year‑over‑year to $3.6 million.
CEO Brian Carrico said, "Momentum in expanding insurance coverage for IB‑Stim remains strong as we work to make this therapy more accessible and affordable to patients nationwide through written policy coverage on a national scale with all payers." He added, "Payers across the country are increasingly recognizing the efficacy of IB‑Stim due to the Category I CPT code now being effective and our PENFS technology included in leading clinical guidelines. Backed by a solid balance sheet, we are prepared to expand the commercial footprint in parallel to increased payer coverage and capitalize on accelerating demand."
On April 22, 2026 NeurAxis also amended its at‑the‑market equity offering program to increase the maximum aggregate offering amount to $11.5 million, positioning the company to raise capital if needed to support the expanded commercial footprint and address cash runway concerns.
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