AOTI Inc‘s Medicare coverage proposal cleared a pivotal hurdle on Wednesday after the Centers for Medicare & Medicaid Services issued a proposed Local Coverage Determination (LCD) for its topical wound oxygen therapy, sending the wound-healing company’s shares up by one-quarter to 82.5p on London’s AIM market.
The proposed LCD covers the whole of the United States and specifies that AOTI’s TWO2 therapy can be used to treat diabetic foot ulcers that have failed to heal following four consecutive weeks of optimised care. A 45-day public comment period now runs before any final determination.
What the AOTI Medicare Coverage Proposal Means for the US Market
AOTI describes itself as ‘the clear market leader in the topical oxygen segment with a 75% market share’, according to Alliance News via Morningstar. The company’s commercial infrastructure currently spans 26 states, covering around 86% of the US population.
The addressable market in the medium term could be around $400m annually, with broader coverage pushing that figure higher. A final LCD, once issued, would provide access to approximately 69 million Medicare enrollees.
The CMS Medicare Coverage Database shows the proposed LCD (DL33797) requires the treating practitioner to complete an in-person visit with each beneficiary for every month of continued coverage beyond the first, with documented criteria met at each visit. A pre-existing topical oxygen therapy determination, LCD L37873, remains separately listed in the database.
The CMS decision is also expected to accelerate reimbursement across Medicaid, commercial insurers, and managed care organisations, according to Proactive via Yahoo Finance, substantially reducing reimbursement risk for the company.
AOTI’s TWO2 therapy has been evaluated in double-blinded randomised controlled trials and real-world evidence studies. The AOTI press archive confirms the therapy received an ‘A’ grade treatment recommendation from the American Diabetes Association in their 2023 Standards of Care in Diabetes, and was recognised in the IWGDF 2023 Diabetic Foot Ulcer Guidelines. A trading statement is expected on 27 July.
Victoria Recovers, Scancell Corrects Merger Figures
Floorcoverings manufacturer Victoria (LON: VCP) reported a 6% dip in underlying revenues to £1.05bn for its latest financial year, with market conditions weaker than expected in the second half. The underlying loss widened from £11.5m to £62m, excluding one-off restructuring and refinancing costs. Net debt, including leases, stood at £1.06bn at the end of March 2026.
First-quarter revenues are 7% ahead and profitability is improving. EBITDA is expected to reach at least £115m this year, up from £92.3m. The share price declined 3.4% to 69.55p.
Scancell (LON: SCLP) issued a correction to its merger announcement. The pro forma cash balance after its all-share merger with Nasdaq-listed Neuphoria Therapeutics (NEUP) would be £59.2m. Neuphoria brings £7.5m in cash; a private placement will raise a further £29.2m. A UK placing will raise £9m at 9p per share, independent of the merger, and a retail offer could add up to £2.3m. The cash is expected to last into 2028, financing the global phase 3 trial for iSCIB1+ in advanced melanoma. The phase 2 SCOPE study publication is expected within one year. Scancell shareholders will hold 85.5% of the combined group. The shares fell a further 7.62% to 9.7p and are a quarter lower on the week.
Litigation funder Burford Capital (LON: BUR) said an ICC International Court of Arbitration tribunal awarded a counterparty more than $600m, with Burford Capital’s share set at A$250m. Ongoing litigation means this is not a final resolution. The shares rose 4.41% to 314.9p.
Kazera Global (LON: KZG) plans to return 80% of net cash proceeds from a $10.5m settlement with Hebei over the Aftan project in Namibia. The figure reduces to $9m if paid before the end of 2026, with distribution targeted for early 2027. Later payment would trigger three distributions across 2028, 2029, and 2030. The shares rose 4.69% to 1.675p.
The North Sea Transition Authority granted written consent for Neo Next+Energy Upstream UK to acquire Deltic Energy (LON: DELT), lifting those shares 7.41% to 7.25p. Healthy food supplier Tooru (LON: TOO) reported weekly sales growth in its OAF range and expects gains from Pulsin following new retail listings; its shares gained 9.68% to 0.17p. Team Internet Group (LON: TIG) said its search division returned to EBITDA profitability in June, with both search and domain names divisions improving margins; the stock slipped 3.37% to 43p, with a strong second-half weighting flagged for the full year.
