PAVmed(US:PAVM)2021-11-17 04:23Financial Data and Key Metrics Changes - PAVmed recognized $200,000 of revenues related to EsoGuard with a margin of 28% during Q3 2021, which is not reflective of future margin expectations due to minimum fixed costs during the early ramp [38] - PAVmed reported a net loss attributable to common shareholders of $12.3 million or a loss of $0.15 per common share for Q3 2021, compared to a loss of $5.5 million or $0.11 per share for the same period in 2020 [40] - PAVmed had cash of $37.3 million as of September 30, 2021, and is debt-free [41] Business Line Data and Key Metrics Changes - Lucid recognized $200,000 of revenues related to EsoGuard with a margin of 28% in Q3 2021, with expectations of margins greater than 90% at moderate volumes [42] - Lucid's research and development costs increased to approximately $2.2 million in Q3 2021 from $1.2 million in the prior year, primarily due to increased clinical trial costs [42] - Lucid reported a net loss attributable to common shareholders of $7 million or a loss of $0.49 per common share for Q3 2021, compared to a loss of $2 million or $0.14 per share in the same period in 2020 [44] Market Data and Key Metrics Changes - The EsoGuard test has secured a national Medicare payment rate of $1,938, effective January 2021, with ongoing efforts to secure Medicare coverage and private payer payment [60] - The number of EsoGuard tests performed during Q3 was flat at 203 tests compared to the prior quarter but up over 300% on an annual basis [59] Company Strategy and Development Direction - PAVmed's long-term strategy is to create more Lucids by using its resources to rapidly advance and commercialize innovative technologies [21] - The company plans to expand its infrastructure, including launching dedicated product research and development facilities and a CLIA-certified diagnostic laboratory [24][66] - PAVmed aims to pursue new opportunities through licensing and acquisition of innovative technologies, including later-stage pre-commercial and revenue-generating products [23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ongoing COVID-19 pandemic's impact on commercial operations, noting that Lucid's activities are primarily outpatient-based [25] - The management team is hopeful for a draft Local Coverage Decision (LCD) from CMS in the coming months, which could significantly impact reimbursement [90][92] - Management highlighted the importance of primary care physician referrals for the adoption of EsoGuard testing, indicating a strategic shift towards this demographic [96] Other Important Information - PAVmed and Lucid collectively hold approximately $90 million in cash and no debt, marking the strongest financial position since inception [17] - The company has added dozens of employees over the past quarters and expects to accelerate growth in headcount in 2022 [23] Q&A Session Summary Question: Can you walk through the steps regarding the expected timelines for the draft LCD? - Management indicated that they do not expect additional data to be necessary for the draft LCD and are hopeful for a straightforward decision based on existing data [90][91] Question: Where were most EsoCheck procedures performed during Q3, and what are the expectations for early 2022? - Management noted that the majority of tests were performed through traditional GI physicians, with expectations for a shift towards primary care referrals as test centers ramp up [94][96] Question: What feedback has been received from physicians regarding EsoGuard and EsoCheck? - Management reported positive feedback from primary care physicians, highlighting the simplicity of the ask and the effectiveness of the messaging [100][103]