CareDx Inc. (Nasdaq: CDNA) saw its shares surge nearly 29% on Thursday after the company announced the finalization of the Medicare Local Coverage Determination (LCD) process for molecular testing related to solid organ allograft rejection. The final policy affirms coverage across CareDx’s transplant surveillance offerings for kidney, heart, and lung. This development provides clarity for patients and clinicians regarding the use of molecular surveillance in transplant patient management.

The precision medicine diagnostics company said the final policy provides continued Medicare coverage for its transplant surveillance portfolio and maintains coverage for clinically indicated, for-cause testing across all three organ types. The proposed draft LCD was released on July 17, 2025, and was open for public comment through August 31, 2025. CareDx submitted a comment letter addressing key aspects of the draft. The Final LCD was published on July 16, 2026, and is expected to take effect on August 30, 2026.

Coverage Summary by Organ

Kidney Testing Coverage

The policy specifies coverage limits for AlloSure Kidney, affirming surveillance testing for up to six tests in the first-year post-transplant and up to four tests per year in years two and three. For-cause testing remains unchanged and is available when clinically indicated. CareDx noted that patients using AlloSure Kidney currently receive an average of approximately three to four tests during the first year after a transplant.

Heart Surveillance Policy

For heart transplants, coverage is maintained for AlloMap and AlloSure Heart, including their combined use when medically appropriate. The policy covers up to 12 surveillance tests in the first-year post-transplant and four tests in years two and three. Coverage of for-cause testing is also unchanged and available when clinically indicated.

Lung Monitoring Coverage

Coverage is maintained for AlloSure Lung for surveillance testing, including up to 12 tests in the first-year post-transplant and four tests in years two and three. These criteria align with the clinical need for frequent monitoring in the early post-transplant period for lung transplant patients.

BTIG analyst Mark Massaro has maintained a Buy rating on CareDx and raised the price target to $45 from the previous $28. The revised target indicates a more optimistic valuation for the company's stock.

Rating and Target Details

The analyst's decision to upgrade the price target comes as CareDx continues to navigate its market position. The new target of $45 represents a significant increase from the prior estimate of $28.

CareDx, listed on NASDAQ under the ticker CDNA, is the subject of this updated coverage. The Buy rating suggests confidence in the company's potential for growth.