The announcement of an increase in the Medicare reimbursement for the only commercial product of Second Sight Medical Products Inc. has boosted the firm’s share price. The Sylmar company saw its stock price increase more than 20 percent to $4.10 a share after the federal government on July 6 established a proposed Medicare reimbursement rate of approximately $150,000 for the Argus II implant, which provides partial sight to blind patients. The share price has stayed above $4 since although it is still below the 52-week high of $14.45 in July of last year. It closed July 20 at $4.08. The Medicare increase of almost 58 percent is significantly higher from the current rate of $95,000 for the company’s system, which uses an implant and camera mounted on a pair of eyeglasses to provide some vision. In the past, the Argus II system reportedly cost patients $150,000, but that doesn’t include the cost of surgery. On July 6, the Centers for Medicare & Medicaid Services posted its proposed rates for 2017, but the final determination of rates could vary significantly from the proposal. Amit Dayal, senior technology analyst with Rodman & Renshaw, a unit of H.C. Wainwright & Co. in New York, called the new rate good news for investors. “The stock reacted accordingly when the news came out,” Dayal said. “It’s pulled back a bit but it’s a small cap company still in the early stages. You have to keep your eye on the longer term opportunity.” Medicare reimbursement rates have a direct impact on Second Sight’s finances. For the first quarter ending March 31, the company reported a net loss of $5.8 million (-16 cents a share) compared with a net loss of $5 million (-14 cents) in the same period a year earlier. Revenue fell by 35 percent to $1.1 million. The company attributed the drop to fewer Argus II implants being done during the quarter as customers were concerned that the Medicare outpatient rate that went into effect in January would be insufficient to cover the equipment and surgical procedure. Chief Executive Will McGuire said in a statement at the time that the company had temporarily discounted the cost of Argus II for U.S. patients due to reimbursement concerns. “We are confident that this decision will allow implant volumes in the U.S. to rebound over the next several quarters,” McGuire said in the statement. Second Sight has Medicare coverage in 16 states covering about 40 percent of the beneficiary population. Dayal said that the Medicare reimbursement rate is just one of two main drivers for Second Sight’s financial growth, the other being the number of implants performed. The company needs to focus on getting more doctors qualified to do those implants, Dayal said. “That will be a bigger indicator in the long run for the opportunity,” he added.