STRATA Skin Sciences moves to expand reimbursement for XTRAC excimer laser therapies
On August 7, 2025, STRATA Skin Sciences said it is working with the Centers for Medicare & Medicaid Services to secure temporary codes that would expand reimbursement for its XTRAC excimer laser treatment, with a goal of making these treatments broadly reimbursable by 2026. According to the company, the American Medical Association has approved temporary codes that extend coverage to inflammatory and autoimmune skin conditions beyond current use, a shift that STRATA believes could roughly triple its addressable patient population and improve treatment economics for dermatology practices.
The announcement follows recent clinical findings supporting the use of excimer laser therapy in combination with JAK inhibitors for vitiligo, which the company says further strengthens XTRAC’s role within modern dermatologic care.
Legal update
STRATA also reported progress in its ongoing lawsuit against LaserOptek America. A Federal District Court has allowed the addition of LaserOptek Korea and C. Dalton, LLC as defendants, which the company says supports its claims of unfair competition.
Market and analyst context
– Most recent analyst rating: Buy, $6.00 price target
– Overall AI-driven view: Neutral, reflecting financial and technical headwinds despite constructive corporate developments
– Technical sentiment signal: Sell
– Current market cap: $8.13 million
– Average trading volume: 24,784
What this could mean
– For patients: If coverage expands to a wider range of inflammatory and autoimmune skin diseases, more patients could gain access to light-based therapies as part of their care plans.
– For physicians: Expanded reimbursement and clearer coding can reduce administrative friction, help align payment with practice costs, and support integration of excimer therapy alongside newer agents such as JAK inhibitors.
– For STRATA: A larger reimbursable market and improved practice economics could support utilization of the company’s installed base and its U.S. Partnership Program, which offers per-treatment pricing with support services.
Additional context and comments
– AMA approval of temporary procedure codes establishes clinical and procedural recognition; CMS decisions determine the breadth of coverage and payment levels. While temporary codes can pave the way for broader reimbursement, actual payment timing and rates depend on subsequent CMS and payer actions, which may vary by plan and region.
– The company’s 2026 target for reimbursement is a positive milestone to watch. Interim steps typically include coding clarification, valuation, and payer policy updates.
– The clinical signal around combining excimer laser with JAK inhibitors in vitiligo is notable. Light therapy can be complementary to systemic agents, potentially improving outcomes while allowing dermatologists to tailor treatment intensity and duration.
Hopeful outlook
If CMS coverage expands as planned, dermatology practices could see better alignment between clinical need and reimbursement, enabling broader access to targeted light therapies for patients with challenging inflammatory and autoimmune conditions. Coupled with emerging combination data, STRATA may be positioned to participate in a more comprehensive standard of care.
Summary
– STRATA is collaborating with CMS to secure temporary codes aimed at expanding XTRAC reimbursement by 2026.
– AMA has approved temporary codes covering inflammatory and autoimmune skin conditions, potentially tripling the addressable market.
– Recent studies support pairing excimer laser therapy with JAK inhibitors for vitiligo.
– Legal case advances with additional defendants added in STRATA’s unfair competition lawsuit.
– Market indicators remain mixed: a Buy rating with a $6 target alongside a Neutral AI view and a Sell technical signal.