PAVmed(US:PAVM)2024-05-14 15:59Financial Data and Key Metrics Changes - The cash balance at the end of Q1 2024 was $25.5 million, with an additional $11.6 million added from Lucid financing, resulting in pro forma cash of $37.1 million [12] - The average quarterly burn rate for the trailing four quarters was $11.7 million [12] - Non-GAAP loss for Q1 2024 was $8.6 million, reflecting a $2 million sequential improvement compared to Q4 2023 and a $2.5 million improvement year-over-year [16] - Total non-GAAP operating expenses for Q1 2024 were $12.6 million, showing a $2.2 million sequential improvement and a $2.4 million improvement year-over-year [16] Business Line Data and Key Metrics Changes - Lucid's revenue for Q1 2024 was approximately $1 million, flat compared to Q4 2023 but more than double the revenue from Q1 2023 [15] - EsoGuard test volume grew by 10% quarter-on-quarter, with 2,420 tests conducted in Q1 2024 [15][7] - Veris Health is focusing on large academic cancer centers, with a memorandum of understanding signed with Ohio State University for a pilot program involving 100 patients [9][18] Market Data and Key Metrics Changes - The average allowed amount for out-of-network claims was approximately $1,800, with 75% of claims adjudicated and about 46% resulting in allowable amounts [16][8] - The total addressable market for PortIO is estimated to be upwards of $3 billion, targeting patients with poor veins and those in renal failure [11] Company Strategy and Development Direction - The company is pursuing a strategy to drive shareholder value through independently financed subsidiaries like Lucid, Veris, and PMX PortIO, leveraging shared infrastructure [4][6] - The PMX incubator was launched to raise capital for individual products, with PortIO as the first target [6][10] - The focus is on securing coverage from regional plans in biomarker legislation states to enhance market access for EsoGuard [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about Lucid's progress and the upcoming MolDX presubmission meeting scheduled for July 17, 2024, to seek coverage for EsoGuard [4][8] - The company is actively seeking new independently financable technologies with large market opportunities [6] - Management highlighted the importance of capital raising efforts for advancing initiatives in Veris and the PMX incubator [12][31] Other Important Information - The company completed just under $30 million in a Series B preferred offering, strengthening its balance sheet [8] - The first-in-human study for PortIO showed excellent results with no complications [11] Q&A Session Summary Question: What are the milestones or expectations for the Ohio State MOU? - The pilot study aims to demonstrate feasibility with 100 patients, focusing on connecting patients to monitoring tools and providing data to physicians [19] Question: What does the total revenue opportunity look like for Ohio State? - The cancer center has 10,000 patients in infusion therapy, with potential recurring revenue of approximately $1,000 to $1,200 per patient per year [22] Question: How should we think about the opportunity of players like Ohio State? - There are several dozen centers on the target list, with about five in active engagement, including Ohio State [24] Question: How could strategic investments from venture arms be structured? - Investments from academic centers typically serve as a vote of confidence in the commercial potential of the partnership [25] Question: Can you discuss the fundraising environment for PortIO and PMX incubator initiatives? - The fundraising process is challenging but promising, with a focus on raising capital for PortIO first, followed by other projects like EsoCure and CarpX in parallel [31]