Arch Therapeutics, Inc. announced that the Centers for Medicare and Medicaid Services established a new Level II Healthcare Common Procedure Coding System (HCPCS) code dedicated to the Company's AC5(R) Advanced Wound System (AC5). The new HCPCS code, "A2020," will become effective on April 1, 2023, creating a new pathway for reimbursement of AC5. The HCPCS code is expected to improve the ability of providers to charge CMS and other insurers for AC5 used in doctors' offices, wound care clinics, hospital outpatient departments and ambulatory surgical centers.

AC5 was cleared as a device by the Food and Drug Administration ("FDA") for the management of partial and full- thickness wounds, such as pressure sores, leg ulcers, diabetic ulcers, and surgical wounds. AC5 is a synthetic self-assembling wound care product that provides clinicians with multi-modal support and utility across all phases of wound healing. Case studies demonstrating that AC5 can lead to improved outcomes, including limb salvage, even for patients who have not responded to alternative modalities.