Cyberonics rises; more insurers cover depression device |

Cyberonics rises; more insurers cover depression device

NEW YORK – Cyberonics Inc. stock rose Wednesday after the medical-device maker said twice as many insurers now cover the company’s implantable electronic depression treatment than previously reported.Shares of Houston-based Cyberonics rose $4.21, or 14 percent, to $33.50 in afternoon trading on the Nasdaq Stock Market.”When you see more insurers paying for this on a case-by-case basis, you get more confidence that this is actually going to happen,” Suntrust Robinson Humphrey analyst Amit Hazan said, referring to the likelihood that the company’s Vargus Nerve Stimulation, or VNS, device will establish a foothold in the marketplace.Cyberonics posted on the device’s Web site that, as of Tuesday, case-by-case approvals and reimbursements have come from 62 insurers, up from 31, as previously listed on the site.Several analysts said investors also appeared cheered by director Kevin Moore’s purchase of 55,000 shares for roughly $1.64 million in several transactions. He now owns 778,233 shares indirectly through Clark Estates Inc. and 15,000 shares directly, according to a filing with the Securities and Exchange Commission that is required within two days of insider moves.”The insider buying is clearly a good sign,” Jefferies & Co. analyst Ryan Rauch said.Vail, Colorado

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