A proposed AOTI Medicare coverage determination for topical oxygen therapy dominated AIM this week, pushing the wound-care developer’s shares up 32.6% to 87.5p and topping a broadly positive session for small-cap risers.
AOTI Medicare Coverage Determination: The Market Case
AOTI Inc (LON: AOTI) disclosed that the Centers for Medicare & Medicaid Services (CMS) has issued a proposed Local Coverage Determination covering topical oxygen therapy across the whole of the United States.
The ruling would allow the company’s treatment to be used on diabetic foot ulcers that have failed to heal after four consecutive weeks of optimised care. A 45-day public comment period now runs before any final decision.
The company puts the medium-term addressable market at around $400m annually, with broader coverage capable of expanding that further. A trading statement is due on 27 July.
The proposed LCD is a change in direction for CMS. The regulator previously declined to pursue a national coverage determination for topical oxygen therapy, citing insufficient evidence, instead leaving coverage decisions to local Medicare Administrative Contractors, as set out in its CMS final decision memo on topical oxygen (CAG-00060R). AOTI had previously filed public comments to CMS arguing for national Coverage with Evidence Development, citing its ongoing randomised, sham-controlled, multi-centre clinical trial.
IQE Beats Expectations; Scancell Falls on Merger Terms
Semiconductor wafer maker IQE (LON: IQE) gained 32.6% to 48.85p after saying first-half trading had beaten expectations. Interim revenues reached at least £64m, with cash of £41.6m at the end of June 2026.
The company said demand for Indium Phosphide products is accelerating, with additional growth in aerospace, defence, wireless and 3D sensing. Full-year revenues are expected to grow 30%, with EBITDA in the low teens.
That result sits against the backdrop of IQE’s January 2026 trading update, which had flagged full-year 2025 revenue guidance of £90m to £100m and adjusted EBITDA of between negative £5m and positive £2m, as detailed in the IQE January 2026 trading update. IQE separately announced a $14m production order with a strategic customer for AI and datacentre markets on 14 July 2026, and struck a multi-year InP epiwafer supply agreement with Tower Semiconductor on 15 June 2026.
On the fallers board, Scancell (LON: SCLP) dropped 29.1% to 9.4p after disclosing terms of its all-share merger with Nasdaq-listed Neuphoria Therapeutics. Scancell shareholders will retain 85.5% of the combined group, which will be quoted on both AIM and Nasdaq.
Neuphoria brings £7.5m in cash. A private placement will raise a further £29.2m, and a UK placing at 9p per share will raise £9m, with a retail offer that could add up to £2.3m. The pro forma cash balance after completion would be £59.2m, which the company said would fund operations into 2028 and finance a global phase 3 trial for the iSCIB1+ active immunotherapy in advanced melanoma.
Scancell received FDA Fast Track Designation for iSCIB1+ on 28 April 2026, ahead of the merger announcement, according to the Scancell investor relations page. The phase 2 SCOPE study is expected to be published within one year.
Other Movers
Potentially AI (LON: AGI) rebounded 46% to 8.25p. The company began trading on 13 July after reversing into Tiger Alpha, completing a ten-for-one share consolidation and raising £4.9m at 5p per share. Three product launches are planned for the second half of 2026.
Healthy food supplier Tooru (LON: TOO) rose 36% to 0.17p. The company said its OAF range is increasing sales each week, and expects growth from Pulsin following listings in additional retailers.
Construction staffing provider Hercules (LON: HERC) climbed 31.1% to 40p after director buying. Non-executive Martin Tedham purchased shares at prices between 31p and 34.75p; chief executive Brusk Korkmaz acquired 100,000 shares at 39.75p each.
Celsius Resources (LON: CLA) fell 28.6% to 0.25p after Equinaire, an entity linked to Kiri Industries, issued a notice of event default and commenced foreclosure proceedings against Celsius’s 40% interest in Makilala Mining Company in the Philippines. Celsius refuted the default and said it would contest any attempt to auction its stake.
The AOTI Medicare coverage determination outcome, once the 45-day comment window closes, is the binary catalyst to watch: a confirmed final LCD would open US-wide reimbursement for a therapy currently reliant on patchwork local decisions.
