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July 24, 2006

ShareCyberonics Formal Request to CMS to Consider VNS for TRD

Cyberonics, Inc., has requested that the Centers for Medicare and Medicaid Services reconsider the existing National Coverage Decision 160.18 and add the Cyberonics' vagus nerve stimulation (VNS) device as covered durable medical equipment for patients diagnosed with treatment resistant depression (TRD).

Support for this request includes the July 15, 2006, U.S. Food and Drug Administration expansion of indications for use of VNS therapy for patients with TRD. Also, cited are results of a seven-year clinical trial program in which the Center for Devices and Radiological Health concluded that VNS therapy was safe and effective in accordance with requirements for approval of a Class III medical device.

Cyberonics proposes that if VNS therapy for TRD is compared to other antidepressant remedies for TRD, the VNS device will provide cost savings due to the health care utilization and disability patterns of those with TRD. Cyberonics proposes that because the VNS device is a durable treatment, that patients with TRD will be able to avoid chronic disability.

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