Arch Therapeutics, Inc. announced that the Centers for Medicare and Medicaid Services Level II Healthcare Common Procedure Coding System (“HCPCS”) code dedicated to the Company's AC5 Advanced Wound System went into effect on April 1, 2023. The HCPCS code, A2020, establishes a new pathway for the reimbursement of AC5 and is expected to improve the ability of providers in outpatient facilities, including doctors' offices, wound care clinics, hospital outpatient departments and ambulatory surgical centers, to seek payment from CMS and commercial payor networks throughout the country for use of the product. AC5 was cleared as a medical 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 proprietary synthetic self-assembling wound care product designed to provide clinicians with multi-modal support and utility across all phases of wound healing. Once applied, AC5 conforms to a wound's peaks and valleys prior to automatically assembling, thereby providing a different approach to manage challenging, irregular, undermined, and tunneling wounds.