• Revenue: Lucid's Q1 revenue was flat compared to the previous quarter, totaling approximately $1 million.

• Test Volume: EsoGuard test volume increased by 10% quarter-over-quarter.

• Balance Sheet Cash: As of March 31, cash on hand was $25.5 million, with an additional $11.6 million added from Lucid financing, totaling $37.1 million pro forma.

• Quarterly Burn Rate: Average quarterly burn rate for the past four quarters was $11.7 million.

• Revenue Cycle Management: Improvements noted in prior authorization infrastructure, physician advocacy, and network allowed amounts averaging a robust $1800.

• Series B Financing: Completed just under $30 million of Series B preferred offering.

• Non-GAAP Loss: First quarter non-GAAP loss was $8.6 million, showing a sequential improvement of $2 million from the fourth quarter.

• Non-GAAP Loss Per Share: Reported at $0.99 per share for the first quarter.

• Warning! GuruFocus has detected 5 Warning Signs with PAVM.

Release Date: May 14, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• PAVmed Inc (NASDAQ:PAVM) has secured a memorandum of understanding with Ohio State's James Cancer Hospital to implement a pilot program, indicating potential growth in large academic centers.

• The company reported a 10% quarter-on-quarter growth in test volume for EsoGuard, showing continued demand for its flagship product.

• PAVmed Inc (NASDAQ:PAVM) has a clear path to FDA clearance for its implantable monitoring device, which is expected to enhance patient compliance and monitoring efficiency.

• The company has successfully completed a $30 million Series B preferred offering, strengthening its balance sheet and funding capabilities.

• PAVmed Inc (NASDAQ:PAVM) has made significant progress with its PMX incubator, partnering with Hitachi Medical to develop and fund new medical technologies.

Negative Points

• EsoGuard revenue was reported as flat, indicating potential challenges in revenue growth despite increased test volume.

• The company's ability to fund operations beyond one year is largely dependent on the ramp-up of revenues and the improvement of the reimbursement landscape for EsoGuard.

• Approximately 53% of EsoGuard's adjudicated claims were deemed not medically necessary or required prior authorization, highlighting challenges in insurance coverage and payment.

• The company faces a high quarterly burn rate of $11.7 million, which could impact long-term financial stability if not managed.

• PAVmed Inc (NASDAQ:PAVM) is still in the early stages of executing its updated strategy, and success is contingent upon the effectiveness of new initiatives and market acceptance.

Q & A Highlights

Q: What are the milestones or expectations for the memorandum of understanding with Ohio State to go to some type of definitive agreement? How many others like Ohio State are in the pipeline? A: Lishan Aklog, CEO of PAVmed, explained that the memorandum with Ohio State focuses on a pilot study to demonstrate the feasibility of their digital health tools in cancer care. The pilot involves up to 100 patients and aims to transition to a full commercial engagement. PAVmed is in discussions with about half a dozen other large centers, similar to Ohio State, to potentially replicate this model.

Q: Can you discuss the total revenue opportunity with Ohio State if the pilot is successful and it's rolled out across their entire network? A: Lishan Aklog noted that Ohio State's James Cancer Hospital treats 10,000 infusion therapy patients annually, representing a substantial revenue opportunity. He highlighted that the revenue potential from large centers like Ohio State is significantly greater than from smaller practices, due to the scale and efficiency of these institutions.

Q: How should we think about the potential for strategic investments from venture arms of large academic centers? A: Lishan Aklog mentioned that many large academic centers have venture arms interested in strategic collaborations that include investment opportunities. These partnerships could extend beyond clinical collaborations to include product development and licensing opportunities, providing a robust framework for both clinical and commercial advancements.

Q: Regarding the PMX incubator and PortIO, can you talk about the fundraising environment and the strategy for advancing these initiatives? A: Lishan Aklog described the fundraising environment as challenging but was optimistic about leveraging Hatch Medical's network to raise necessary funds. The strategy is to raise capital for each project sequentially but to advance them in parallel towards commercialization.

Q: What is the financial outlook for PAVmed given the current cash and burn rate? A: Dennis McGrath, CFO of PAVmed, reported a pro forma cash position of $37.1 million and a quarterly burn rate of $11.7 million. He emphasized that the company's ability to fund operations beyond the next year hinges on increasing revenues and improving reimbursement scenarios for their EsoGuard product.

Q: What progress has been made in the reimbursement and commercialization of EsoGuard? A: Lishan Aklog highlighted that EsoGuard is in the early stages of the reimbursement process, with efforts focused on securing coverage from both government and private health insurers. The company is also actively engaging in direct contracting efforts with self-insured employers to enhance revenue streams.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

This article first appeared on GuruFocus.