AOTI celebrates "robust" top-line growth
AOTI Inc on Monday reported double-digit-percentage revenue growth for its first half, and believes it is "already well-positioned" for further growth.
In response, shares in AOTI jumped 14% to 100.00 pence around midday on Monday in London.
The wound healing-focused medical technology company previously, on Friday, announced a proposed local coverage determination from the US Centers for Medicare & Medicaid Services, which it dubbed a "transformational milestone".
The LCD, which will mandate Medicare treatment coverage criteria and reimbursement for AOTI's topical wound oxygen therapy once finalised, promises to "dramatically expand" its addressable US market.
AOTI subsequently, on Monday, reported 10% revenue growth to approximately USD35 million for the first half of 2026, from USD31.8 million the previous year.
AOTI also reported 18% underlying revenue growth, accelerating from 17% the previous year. The underlying measure excludes Arizona Medicaid, the firm having ceased treatment of new Medicaid patients in Arizona from April 1.
Chief Executive Officer Mike Griffiths said this underlying growth rate was "notably ahead of our previously published guidance of mid-teens for the full year."
"We remain optimistic about the benefits these continued positive trends will have on H2 performance," he continued. "This underlying trajectory benefitted from our significant commercial restructure, which is still only in the early stages of realisation and was generated despite continued headwinds from the One Big Beautiful Bill Act which has continued to affect our Medicaid expansion plans."
The Veterans Administration segment delivered an approximate 15% on-year revenue increase, while Medicaid delivered around 2% reported revenue growth with underlying growth of around 21%.
VA, which comprises approximately 57% of total revenue, had experienced "disruption associated with the US Department of Government Efficiency (DOGE) initiatives in 2025," AOTI noted, although this has "largely abated."
Griffiths added that the LCD "is undoubtedly a significant milestone for us...the resulting mandated Medicare coverage and reimbursement will be transformative for AOTI, significantly expanding access to our therapy for this patient population, while also helping to accelerate TWO2 therapy coverage and adoption across Medicaid, commercial, and other market segments.
"We are already well-positioned to drive operational leverage and growth with a market leadership position and our existing team footprint that encompasses the vast majority of the US population."
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