Detailed Narrative
CPT Code Impact & Strategy
The Category 1 CPT code for PENFS, effective January 1, 2026, confirmed key drivers for adoption, leading to disciplined strategic decisions in Q2. The company's strategy is centered on securing remaining insurance coverage and maximizing execution in covered markets, positioning the organization to scale rapidly as new coverage comes online. This approach has moved the company from theory to evidence, providing a clear roadmap for addressing historical adoption barriers.
Payer Progress & Market Access
NeurAxis reported significant progress with two large commercial payers, expressing cautious optimism for additional coverage in H2 2026 or early 2027. The market access strategy has been elevated to include direct engagement with commercial payers, inclusion in state Medicaid fee schedules, physician and KOL advocacy, and guidance from former payer executives. A new VP of Healthcare Economics and Policy is being hired to focus on upstream initiatives, while the VP of Market Access and Reimbursement will concentrate on downstream implementation and reimbursement pull-through.
Commercialization & Resource Deployment
Commercial execution is now the primary driver of growth, with the organization aligning resources to markets and accounts demonstrating the strongest coverage, demand, and utilization potential. The company is prioritizing hospitals based on reimbursement, patient opportunity, and their ability to dedicate clinic capacity to IB-Stim. A disciplined approach avoids broad expansion into markets lacking sufficient payer coverage, instead focusing on in-depth penetration of select favorable markets to generate higher returns and predictable growth.
Team Expansion & Initiatives
In Q2, NeurAxis strengthened its commercial team with new hires, including a full-time VP of Sales, VP of Marketing, a digital marketing expert, a medical science liaison, and a Director of Clinical Adoption. New initiatives include a targeted regional sales rep coverage model in key states, increased sales training rigor, and a focus on integrated health programs within pediatric GI. A 'strategic market initiative' will coordinate payer access, field execution, clinical education, and marketing efforts in targeted markets to create local intensity.
VA Opportunity
The federal supply schedule contract with the U.S. Department of Veterans Affairs is showing early activity, with multiple VA facilities placing orders and reorders. The VA represents a second meaningful growth platform due to its large patient population (7 million active patients, 3% with functional dyspepsia), centralized purchasing, and independence from commercial payer coverage. The company plans to deploy 10 1099 territory reps by September 15 to expand this channel, with expectations for a strong revenue read by year-end.
Adult Functional Dyspepsia Program
A large multisite randomized controlled trial evaluating IB-Stim in adult patients with functional dyspepsia is in its early stages. This study is designed to generate the necessary evidence to support future adult medical policy coverage. While this trial progresses, NeurAxis' near-term commercial focus remains strictly on children's hospitals and the VA, with minimal resources allocated to the adult study.