Castle Biosciences (NASDAQ: CSTL) stock was absolutely crushing it on Friday, with shares skyrocketing 54.4% as of 11:47 a.m. ET. The huge gain came after Novitas, a regional Medicare administrative contractor, said that it is withdrawing a draft policy that would not have covered Castle's DecisionDx cancer tests for squamous cell carcinoma (SCC) and melanoma.

In addition, Castle announced that it will present new data for its DecisionDx-SCC and DecisionDx-Melanoma tests this weekend. The company is scheduled for a podium presentation and a poster presentation at the American Head & Neck Society's (AHNS) 11th International Conference on Head and Neck Cancer in Montreal.

Novitas' move is definitely the bigger catalyst for Castle. The genetic-testing stock plunged in June following the initial draft policy that would have denied coverage for DecisionDx-SCC. Today's gains recaptured much of that sell-off.

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Source Fool.com