11:36 AM EDT, 07/02/2024 (MT Newswires) -- Tempus AI ( TEM ) said Tuesday that the Centers for Medicare and Medicaid Services has granted advanced diagnostic laboratory test status for the company's sequencing assay, xT CDx.

The assay has been approved by the US Food and Drug Administration to perform matched normal sequence analysis to provide tumor mutation profiling for patients with solid organ neoplasms, the company said.

The initial rate established by CMS is $4,500 from July 1, 2024, to March 31, 2025, the company said. Beginning April 1, 2025, CMS will establish a new Medicare rate based on the weighted median of private payer amounts.

Shares of Tempus AI ( TEM ) rose past 5% in recent trading.

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