AOTI improves operating cash flow while Medicare expansion remains proposed

AOTI ($AOTI) reported 10.8% first-half revenue growth and a 16.6% increase in EBITDA to $3.6 million. Revenue growth excluding Arizona Medicaid was 18.8%, highlighting the difference between its underlying measure and reported performance. Operating cash flow turned positive at $0.9 million, compared with a $4.7 million outflow, while half-year net debt was $6.3 million.

The wound-care company is focusing its commercial team on patient outcomes and representative productivity. A proposed Medicare local coverage determination for topical oxygen therapy could widen access to its TWO2 treatment, but the proposal has not been finalized. That reimbursement opportunity therefore should not be counted as already secured sales or a new drug approval. The financial improvement is the fresh reported development; future growth still depends on reimbursement decisions, adoption and execution of the revised commercial approach.

Sources:

• Company RNS reproduced by Investegate