The Novita Healthcare Ltd (ASX: NHL) share price is surging higher again today.
In morning trade the early childhood technology company’s shares jumped 20% to 9.8 cents before dropping back a touch.
When its shares hit that level, it meant they were up a staggering ~900% in the space of a month.
Why is the Novita Healthcare share price on fire?
Novita Healthcare’s shares have been on fire over the last few weeks following positive updates on its TALi Detect and TALi Train programs.
TALi Detect is a 20-min digital game-based screening tool available to all children to assess potential attention deficits. Whereas, TALi Train is a 25-session intensive digital program. It strengthens children’s three core attention skills – Selective Attention, Sustained Attention and Executive Attention.
Investors have become particularly excited recently after both programs received determinations that they can be delivered via the U.S. Reimbursement Code system. This essentially means that buyers can apply for cost reimbursement from U.S. healthcare insurers.
Given that TALi Train is the only regulatory cleared early childhood digital cognitive assessment and training program, investors appear to believe it could capture a decent slice of a lucrative market.
What about today’s gain?
This morning its local prospects were given an additional boost when it announced that the National Disability Insurance Agency has continued the registration of TALi Health as a registered provider with expanded registration classes.
TALI Health products are now accessible via two more registration classes. These are 0103 Assist Prod-Pers Care/Safety, 0116 Innov Community Participation, and 0124 Comms & Info Equipment. The latter was the existing registration class.
Novita Managing Director, Glenn Smith, said: “This expansion is a welcome development for participants in the NDIS. The NDIS is an insurance scheme funded by the Australian taxpayer and it is appropriate that children with developmental delay disorders or Autism Spectrum Disorder as examples, will be able to access TALi products via their self-managed plans with no out of pocket cost.”
The post Why the Novita Healthcare share price rocketed 20% higher today appeared first on Motley Fool Australia.
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