Lucid Diagnostics(US:LUCD)2023-08-15 16:38Financial Data and Key Metrics Changes - The company reported a net loss per share improvement from $0.40 to $0.27, reflecting a $4.9 million decrease in sequential net loss [59][88] - Non-GAAP operating expenses for Q2 2023 were $9.7 million, showing an 11.3% sequential decrease [58][87] - Revenue for Q2 reflects actual cash collections and invoiced EsoGuard tests, with a significant increase in collections for third-party reimbursement claims, tripling compared to the previous quarter [56][86] Business Line Data and Key Metrics Changes - EsoGuard test volume grew by 20% quarter-on-quarter to 2,200 tests, marking consistent double-digit growth over six quarters [5][35] - The company achieved a 99% technical success rate for the EsoCheck cell collection procedure [37] - The first direct employer contract was executed, offering EsoGuard as an employee benefit at 12 locations [6][44] Market Data and Key Metrics Changes - The split between commercial and Medicare/Medicaid claims is approximately 82% commercial and 17% Medicare/Medicaid [89] - The average allowed payment for adjudicated claims is now just under $1,900, indicating an increase in payment rates [90] Company Strategy and Development Direction - The company is focusing on expanding its geographic reach through satellite test centers and high-volume testing events [14][41] - There is an emphasis on improving revenue cycle management and engaging with commercial payers to enhance coverage and payment processes [20][74] - The company plans to continue enrolling patients in clinical utility studies to support payer engagement and demonstrate the test's impact on medical decision-making [76][132] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth trajectory, citing improved engagement with medical directors and a robust pipeline of accounts [68][120] - The company anticipates that the upgraded revenue cycle management will lead to better claims processing and payments, positively impacting revenue recognition [144][125] - Management highlighted the importance of clinical utility data in discussions with payers, indicating ongoing efforts to enhance this aspect [72][75] Other Important Information - The company has a laboratory capacity to perform over 10,000 tests per quarter, indicating sufficient capacity to meet current demand [12] - The EsoGuard study reported a 100% detection rate for cancer and over 80% for pre-cancer, showcasing the test's effectiveness [29][51] Q&A Session Summary Question: Can you quantify the volume that was lost during the period in May and June? - The total volume during that period was a little over 2,000 tests, but no claims were lost as they were submitted later [92][93] Question: How long until you can shift from billing on collections to submissions? - The timeline is uncertain and depends on the predictability of payment likelihood based on historical data [102][104] Question: What is the expected timing for the peer-reviewed publication of the clinical utility studies? - The goal is to submit data for peer review by the end of the month, with ongoing enrollment expected [111][112] Question: Were there any large events in Q2 that may not occur again in Q3? - There were no significant events that would risk the sequential volume growth trajectory, as growth has been strong across various channels [129][130]