Pacific Edge (ASX:PEB, NZE:PEB) said the US District Court for the Middle District of Pennsylvania has ruled it lacks jurisdiction to review a Medicare coverage decision affecting the company's Cxbladder cancer test, according to a Thursday filing with the Australian bourse.
The Court determined it could not hear Pacific Edge's complaint against the Local Coverage Determination, the filing said.
In January, the company received confirmation that its flagship Cxbladder test would no longer be covered by US Medicare contractor Novitas.
If not challenged, the finalized decision would become effective, which means reimbursement of Pacific Edge's Cxbladder tests would end.
The ruling prevents the court from considering the scientific or medical merits of the company's claims.
Despite acknowledging the strength of the company's arguments, a Judge stated that the court was not empowered to intervene in the matter, the filing added.
The company said it has made its case for either retiring the LCD or delaying its implementation to officials at the US Centers for Medicare and Medicaid Services, the US Department of Health and Human Services, and the Office of the General Counsel.
The company's shares fell past 2% in New Zealand in recent Thursday trade.
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