NEW YORK - Lucid (NASDAQ:LCID) Diagnostics Inc. (NASDAQ:LUCD), a medical diagnostics company specializing in cancer prevention, has been granted a Notice of Allowance from the United States Patent and Trademark Office (USPTO) for a patent on a method to detect esophageal precancer and cancer. This method is a critical aspect of the company's EsoGuard® Esophageal DNA Test.
The patented technology focuses on the methylation of the cyclin-A1 (CCNA1) gene, which has been associated with a spectrum of conditions ranging from early to late esophageal precancer, and to esophageal adenocarcinoma. Lucid's EsoGuard test employs next-generation sequencing to evaluate DNA methylation at specific sites on two genes, including CCNA1, offering a novel approach to identifying esophageal neoplasia.
Lucid's Chairman and CEO, Dr. Lishan Aklog, emphasized the patent's reinforcement of the company's intellectual property portfolio and its strategic focus on laboratory methods. The EsoGuard assay, according to Aklog, benefits from this focus, which will continue to be a priority for the company.
EsoGuard is designed to be used in conjunction with the EsoCheck® Esophageal Cell Collection Device, providing a noninvasive office procedure aimed at early detection of esophageal precancer in patients at risk, such as those with gastroesophageal reflux disease (GERD). The technology behind these products originated from research conducted at Case Western Reserve University (CWRU) and was commercialized through a partnership between Lucid and CWRU.
Lucid Diagnostics, a subsidiary of PAVmed Inc . (NASDAQ:PAVM), is dedicated to the early detection and prevention of esophageal cancer. The company's products, including the EsoGuard test, are the first and only commercial tools designed specifically for this purpose.
The announcement of the patent allowance is based on a press release statement and comes as part of Lucid's ongoing efforts to advance its diagnostic technologies and protect its innovations in the medical field. The company's stock may respond to this development, as patents can play a significant role in a company's growth and market position.
In other recent news, medical technology company PAVmed Inc. and its digital health subsidiary Veris Health Inc. have been awarded a $1.8 million grant from the National Institute on Minority Health and Health Disparities. The grant is aimed at funding research to optimize the Veris Cancer Care Platform for medically underserved cancer patients. In addition to this, PAVmed announced significant growth in its second quarter 2024 financial results, with subsidiary Lucid Diagnostics reporting a 31% increase in test volume and a 44% revenue growth year-over-year.
PAVmed's balance sheet showed $25.5 million in cash reserves, and the company reported a six-fold increase in revenue for Q2 compared to the previous year. The company is also in discussions with CMS Medicare Contractor MolDX to secure Medicare coverage for its EsoGuard test. Furthermore, PAVmed is preparing to relaunch the development of an implantable monitoring device, and expects to submit the device for FDA approval by mid-2025.
These recent developments underline PAVmed's strategic efforts to strengthen its financial position and advance its medical technology offerings. The company's future revenue growth is closely tied to the reimbursement landscape for its EsoGuard product and the successful financing of its subsidiaries.
InvestingPro Insights
As Lucid Diagnostics, a subsidiary of PAVmed Inc. (NASDAQ:PAVM), advances its innovative esophageal cancer detection technology, it's crucial to examine the financial landscape of its parent company. Recent InvestingPro data reveals that PAVmed has a market capitalization of $11.45 million, reflecting its current market valuation.
Despite the promising patent developments for Lucid Diagnostics, PAVmed faces some financial challenges. An InvestingPro Tip indicates that the company is "quickly burning through cash," which could be a concern for investors considering the capital-intensive nature of medical technology development.
On a positive note, PAVmed has shown impressive revenue growth, with a 378.63% increase over the last twelve months as of Q2 2024. This substantial growth may be partly attributed to the commercialization efforts of technologies like EsoGuard.
However, another InvestingPro Tip points out that PAVmed "suffers from weak gross profit margins." This is evident in the reported gross profit margin of -77.62% for the same period, suggesting that the company is still working towards achieving profitability in its operations.
For investors interested in a deeper analysis, InvestingPro offers 11 additional tips for PAVmed, providing a more comprehensive view of the company's financial health and market position.
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