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ARTICLE | Company News

Foundation Medicine sinks after cutting guidance

July 31, 2015 3:44 AM UTC

Foundation Medicine Inc. (NASDAQ:FMI) lost $7 (24%) to $22.30 on Thursday after lowering its 2015 guidance as part of its 2Q15 earnings, which it reported after market close Wednesday (see BioCentury Extra, July 29). The company now expects $85-$95 million in revenue, rather than $105-$115 million.

On a conference call Wednesday, CEO Michael Pellini said Foundation Medicine had expected to have local coverage determinations (LCDs) in place for a portion of Medicare cases during 1H15, but that progress was slower than expected and the company no longer assumes it will receive any Medicare payments this year. He said Palmetto GBA LLC issued an LCD July 6 for the company's FoundationOne in a subset of patients with non-small cell lung cancer (NSCLC), but that the "next phase" of obtaining coverage decisions from regional Medicare administrative contractors "is going to take more time to play out." ...