PAVmed(US:PAVM)2024-03-27 19:12Financial Data and Key Metrics Changes - Quarterly revenue increased by 33% compared to the prior quarter, indicating strong growth momentum [5][39] - Non-GAAP loss for the year was $42 million, with a quarterly average loss of $10.5 million, and the fourth quarter loss was $10.6 million, consistent with the annual average [46][44] - Cash balance at the end of the quarter was $19.6 million, reflecting a sequential burn of $11.8 million, with a 31% reduction in quarterly burn rate since the beginning of 2023 [44][38] Business Line Data and Key Metrics Changes - Lucid Diagnostics recognized revenue of $1,040,000 for the fourth quarter, representing a 33% increase over the third quarter, with test volume at 2,200 tests [39][10] - Veris Health is shifting its strategy to target large academic and regional cancer centers, which is expected to enhance its financeability [26][34] - The PMX incubator was launched to develop and commercialize existing medtech portfolio technologies, starting with PortIO, EsoCure, and CarpX [15][4] Market Data and Key Metrics Changes - The estimated market opportunity for the technologies being developed is approximately $500 million, excluding the dialysis population [16] - The reimbursement landscape is improving, with about 82% of claims adjudicated, and 46% of those resulting in an allowable amount by insurance companies [20][41] Company Strategy and Development Direction - The company is focusing on driving shareholder value through independently financed subsidiaries, similar to Lucid, leveraging shared infrastructure [24][27] - The strategy includes seeking groundbreaking independently financeable technologies with large market opportunities [28][4] - The company aims to replicate Lucid's success by engaging with large academic cancer centers and establishing long-term commercial partnerships [34][26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting the potential for revenue growth through direct contracting and improved reimbursement processes [32][50] - The company is actively pursuing financing opportunities for its subsidiaries and believes it has a clear path to FDA clearance for its implantable monitor [6][35] - Management acknowledged the challenges in the reimbursement landscape but remains committed to enhancing long-term shareholder value [3][24] Other Important Information - The company has raised $18.1 million in preferred stock financing, strengthening Lucid's balance sheet [10] - The PMX incubator is a wholly owned subsidiary of PAVmed, aimed at securing financing for individual products [67][80] Q&A Session Summary Question: Can you provide additional commentary on the biomarker legislation? - Management noted that 15 states have some form of biomarker legislation, which varies by state, and they are starting to gain traction in this area [47][48] Question: How should we think about the potential revenue contribution from Veris in '24 and '25? - Management indicated that while there are longer lead times with large strategic accounts, the revenue opportunity is substantial due to the larger patient populations [58][60] Question: What is the status of the incubator and financial commitments? - The incubator is wholly owned by PAVmed, and the plan is to secure individual financing for each product without diluting PAVmed's majority stake [67][71]