PAVM - Earnings call transcript Q2 2024

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Operator

Good morning, and welcome to PAVmed's Second Quarter 2024 Business Update Conference Call. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to Matt Riley, PAVmed Director of Investor Relations. Please go ahead.

Michael Parks

Thank you, operator, and good morning, everyone. in update participating for you today's call. business Thank

PAVmed. call Lishan of Aklog, me Officer along today and Dr. the on of Financial Chief Officer Joining Chairman are Chief Dennis McGrath, with PAVmed; Executive

is and The press release are about to unknown PAVmed's our business all include business and forward-looking forward-looking and moment statements Please a subject the press available the release. update, to financial take cause The and update statements known statements website. made. may read on and differ announcing results conference disclaimers in the call that release to materially risks the these uncertainties statements, results forward-looking actual from press

with to are Commission. actual that Exchange the the cause Factors filings described Securities differ could and disclaimer results in our and in

and in these X XX-Q annual see most operations, in important a and and affect that updates on subsequent Factors, X-K. a Part report subsequent the uncertainties SEC Form For filed of quarterly filed Risk Forms other PAVmed's may reports entitled description with and risks the XX-K and future any on Forms recent Item XA, list

the actual Except forward-looking will expectations required expectations to revise to or publicly changes statements. by results those any based or on forward-looking be in or may the disclaims conditions law, that update differ intentions affect as any in or events, likelihood or obligations the in reflect circumstances statements PAVmed which contained may that from

Take Aklog, away, would and I Lishan. turn to PAVmed. call Dr. now like it Chairman to the CEO of over Lishan

Lishan Aklog

call. everyone. quarterly Thank Thank you you, for update morning, Matt, our and good joining

for your long-term I'd proceeding, support ongoing shareholders Before and to thank commitment. like

to have PAVmed seeking made PAVmed's our to shared I'm we've calls, recent and its at of independently well subsidiaries been pleased infrastructure. in has be to its long-term positioned progress and strengthen stability financeable this discussed updated the strategy on leverage finances front. we for by each As

fulfilling we as direction, subsidiaries independently over able this PAVmed's solid strategy. and, its with earnings are call, is PAVmed's its Lucid commercial Lucid making positive finance has X in operations discussed potential. and strongest fronts in a consistent been large asset progress towards to headed yesterday's remains also multiple other

As we'll of round valuations. in independent Both financing attractive discuss for an the to financing deep and close is of Health the these securing PMX incubator Veris securing later, is process PortIO. at

Let's recent weeks. starting with start second and Diagnostics, with Lucid just some from highlights quarter the briefly. Again,

quarter quarter-on-quarter record us productive with to the we that CheckYourFoodTube that revenue EsoGuard had flat large and us. was able is revenue MolDX XX% follow to CMS regard with year-on-year, meeting program event was an highlight held data. important to contract being a and important We Second and and meeting payments, a test quarter events test being revenue translate the Medicare growth. volume look milestone able up to line but it approximately growth with increased for XX% An our forward with of our on and contracted upfront CheckYourFoodTube first submission with for

first James later, Cancer the our our and have, Health, with discuss Center, on we'll Veris has Ohio State's At program patients focus we pilot our been as the platform. onto

will with our As implantable Veris, relaunch that have into the close secured which capital begin expect process financing. first in I are we to we soon. very development of tranche of mentioned, once the we and the Concurrent to we're raising monitoring, that we preparing

for incubator, under on And the as we're capital -- mentioned focused PortIO. for I raising PMX

to might who for be story. Just a you those quick new of PAVmed the overview

Lucid subsidiaries. structure. Diagnostics, as a Veris Here's behalf diagnostic operates our Health, health privately offering I services, traded on shared by shared publicly its digital include, held The mentioned, company; our entire our corporate company; PAVmed of services infrastructure products subsidiaries in in PortIO. in other under the launched, recently umbrella services was designed And allow which to structure shared is the PMX, technologies incubator, our is this other to model. bring one portfolio, of assets, which and on us focusing of

So I as encourage really let's the to yesterday our Again, to from as refer for well be details. start would webinar I'll you brief press Lucid. further here. with release

As you here: can volume, quarter are The annually. the XX% up and quarter-on-quarter see remained flat volume annually; and test in up up revenue a and revenues record last record up a here, level to quarter, flat Lucid's quarter-on-quarter. test our have held have XXX% quarter-on-quarter, numbers grew XX% and shown

yesterday, we events one get payment. And fair allowed had that first mentioned events. CheckYourFoodTube of to we testing to the those over which contracted health we high-volume As we us pre-cancer XX refer held as upfront

publication. The studies, study, the emphasize review X data had clinical clinical and our study accomplishments, Phase and I validation really as later, ENVET-BE are critical the to study, evidence new peer peer EsoGuard-BE-X key another completed strategic review publications. utility released validation VA the study, pending And clinical clinical relate Cleveland

and the very to for look forward submitting month, until working team coverage was productive and MolDX we data the with MolDX meeting Medicare with program last Our EsoGuard. our secure to

to overview now on Health. I'll Veris a of an transition bit

health provide patient. platform. So to seek a care of software caretaker the Health platform, cancer devices, interface with a module. is and Cancer connected of for Veris X to a company is the personalized information of Veris box improve the patient that devices Bluetooth-connected or and care is the we This One care includes And seek enhance physiologic a components. module which Care physician they a clinicians that -- consists commercial-stage digital a

the of The remote monitor financing patient mentioned, to and for have establish is longitudinal We implantable continuous will under implantable restarting trends to risk interface the and was tools monitoring utilize seek the financing. monitor development hold the securing that And forward patient detection vision modern an company that's management. early implantable on pending data through look we're complications, and of care to project. I close as with The to improve platform. provide to

calls, on has academic previous discussed we large our strategic on been accounts. focus As center

been Bone a Oncology The past under this patients and University to we've in was Marrow Transplant that avoiding with Approximately program been memorandum success in of And XX State units. first platform's consistent to Ohio patient resulted MOU, And demonstrated to understanding. our up the complications. that in patient clinical have ability we of Gynecology have deterioration the returning with our onboarded June, and signs care, our pilot a had that mid-July pick date. launched getting launched We hospital engaged story

the Our our cancer to engagement strategy transition large with plan to on other upon partnerships to similar potential a completion full the this on clinical engagement, centers this of this other to continue fashion. with and pilot academic is, pilot study, identify based a look to University. success we And partner seek strategic of in

details. So monitor, that The here I have access briefly a here's monitor some with goal but implantable be mentioned further is to vascular implanted port. in can the Veris a conjunction

access event with respiratory the the there, patient -- key we implantable remote be typical have under monitor. can is a structure can cardiac that. so variety patient It without deliver detect and conjunction and vascular port, on right is see purple the involvement Bluetooth monitor features information monitoring can monitoring. has XXX% and connectivity designed of rate patient-triggered and the to compliance it assures can attract of for has a continuous any that the requirements temperature, billing could It You our implanted in with activity,

reengaging meetings final is path completed the this of the process launch. pre-submission shortly of meetings been did development with We clear to closed. FDA we've had the And the already to we commercial with some FDA completion multiple went relaunch and that so to poised and plan upcoming we FDA. a clearance have financing relaunch vendors once this expect pursue We've this we with So have financing. to well, at and started the upon clearance, do FDA

decided long-term focus infection failure, years unmet to PortIO. on a that large with an a have we reduce patients a call. one population, renal and venous couple very direct this the a target diverse talked and over pause addresses can is that including venous It poor and access. access a Moving rates complications and incubator very tech ago, as about for this need developing, marrow a alternative We've successfully addressable incubator. humans. within group used experienced our We've med a access market, of FDA the put our the and total completed to clearance. large briefly to it's And PortIO space large partnership called on really study, we in on -- been solid that's have and IP in the bone Medical. path first-in-human protection. is between to but We clear incubator Hatch been Well, last product PAVmed a

that financing of the fund So to now as getting to the version. project study this We're actively procuring forward PortIO the IDE capital well fund ground completion we and looking again. completion raising the second-generation are as off and of

the pass give over baton us Dennis our With to financial to I'll that, update.

Dennis McGrath

Lishan, Thanks, morning, everyone. and good

the our results published was quarter last financial summary second for in Our press reported night. release

the full on of in XX-Q. a But I disclosures On quarterly key covered X the encourage context from highlights the Form slides, consider I'll quarter. few you remarks next those to in our report emphasize

With at quarter regard million. to June end the balance sheet, XX cash was $XX.X

the average quarter, previously per million announced. quarter. $XX.X During quarters X quarterly that amount added with financing to the rate Lucid is trailing The the we burn $XX.X million for

dependent over continues largely We revenues the fund today dependent X insurers health that year operations is which to EsoGuard. the for to reimbursement private is in XX-Q on both for on improve how how landscape government the X ability be our disclosed from quarters, next ramp on and

into Lucid is self-insured any financing X-year and to direct in work our by the at connection finance that and Health, employers accompanied increase including The California, incubator with University activities, lease The debt Additionally, and that threshold. liabilities. current outstanding State Cancer a renewal similar related we contracting efforts other initiatives, can either any Lab other change Ohio in both our largely Furthermore, particularly subsidiaries Center, for with these in corporate the satisfy in threshold. is time, assets which also Care PMX further long-term exceed as of refinancing to direct will Veris advance the with

of note satisfaction shares reductions decrease is conversion note. through The to notices Lucid the sequential in related principal of notes the fair in convertible that Lucid in and the value convertible issuances largely of

as mentioned in of As not of The restricted reflected quarter. the stock conversion face satisfaction issued shares stock XX.X during the GAAP GAAP unvested balance outstanding. X.X Lucid do the are well as including million awards shares our awards. in -- from XX-Q. are shares during of notices Lucid Shares included restricted last outstanding million yesterday, sheet X.X as week outstanding the on quarter, slide the shares unvested the reflect of million call

second review of $X approximately X quarter you'll of the key Trust this for year's Revenue information information. non-GAAP with even second quarter the quarter. cautionary compares about prior the the my disclosure particularly on information, items. the the With quarter the second reflects million quarters previous in certain over supplemental to a last year's regard about in to light P&L, slide and this slide comments year of bottom is increase sixfold second on

detailed reimbursement. submitted for quarter, claims quarterly $X nearly As performed X,XXX Lucid on yesterday, call Lucid million representing tests approximately in billable the in our insurance

However, elimination of intercompany recognized consolidated Lucid the PAVmed's billed cash to Consequently, collections of amounts approximately generally insurance revenue transactions. of portion the from after revenue limit is Lucid's amount companies. $XXX,XXX

to that means process reimburse. For repeating. you is that traditional patient billable reimbursement those versus to The and recognize payment. submitted revenue insurers for we be probability early when actually invoiced of call, are delivered, can Lucid the fact the PAVmed key amount revenue are new claim submitted collected earnings in recognition government due is recognized of customer determinant to revenue recognition worth comment or of the that report private in the our when be the is health Therefore, of the claims will is stages on

insufficient called in presently, As to test ASC you'll physician. XX-Q, and reflect is jargon data this our is report of variable revenue the is XXX revenue see predictive to the normal recognition delivered in guidelines, when referring GAAP's the consideration there

the contracted as be means For delivered, referring report billable to physician. when contracted is the service our generally amounts recognized directly determinable will and are revenue with when is fixed and employers delivered

reduction to charges the paid noncash operating stock-based including is about compensation of year R&D related about prior expenses The million OpEx, stock. expense, primarily in second expense $XXX,XXX quarter year-over-year $X of flowing in of through

charges largely EPS was first and for improvement non-GAAP $X.X convertible per the million basis, approximately prior related reflects $X.XX second quarter GAAP loss year for loss year-over-year improvement The a noncash the loss quarter charges sequential the second debt second the per from $X.X quarter to share. to about million Our share about loss and and expense. per that's out the share of the of non-GAAP On quarter, accounted share, stock-based per quarter. a in $X compared million $X.XX the the $X.XX for compensation

this -- to as are press the slide, with With months is expenses on of Total and, see in stats on the a the of expense operating non-GAAP graphic operating as our you XXXX first of can X second in and over call our regard which non-GAAP of presented operating quarter is quarter XXXX, some you'll year-over-year amounts. detail worthy reimbursement time for the $XX.X first release. expenses mentioned and illustration are to million repeating line levels yesterday. see, in our Lucid Also related also

pro second we billed quarter million of the In just $X revenue. X,XXX year, reflecting under in this tests, forma

claims submitted from year in amount submitted of longest-dated During the collected, item claims current about the about $XXX,XXX XX from balance Of first of paid XX% about and those were quarter in quarter, claims submitted the the second with $XXX,XXX. XX% were ago. last from the the months quarter, the we that collected

Our is increasing designated the the revenue using a stage for necessary. revenue an including to increasing mitigation medically issues, up with speed late times largest not turnaround the soliciting proactively cycle The follow at have payers records that manager been We've reporting earlier in plan medical manager claims in appeals is for being an for increase and cycle both process. seen payers.

and X,XXX We about about prior in that resulted of a this been are have are forma amount denied, first an during submitted nearly year, those the in deemed medically About $XX revenue. been just Out XX% representing under pending. a allowable reimbursement necessary about million for half authorization. insurance with weighted of claims $X,XXX company per of the XX% by adjudicated, pro test. average Of have or claims the XX% not require adjudicated, XX% XX%

noncovered. were Additionally, about to be deemed XX%

for that, With it up open operator, questions. let's

Operator

line your of And with the Osborn question Fitzgerald. Ross first Instructions]. [Operator comes from Cantor

Junwoo Park

in is scale This could to forward. launch you revenue provide for on full the color and to Matthew hoping and we if I launch time your pilot more the start see guess of Ross. when Park was I should just of coming terms line

Lishan Aklog

Yes.

that this follow on going X/X to well. So through, the purpose the And -- really it's are about of a how really pilot cancer very center pace. the designed to large logistics, handle in and country. we're the to we're with the We've of it's way with and aligned it's enrolled -- medical incoming center. of is platform. calls going XXX they regard They The largest third pilots And all making since about the going have sure on patients notifications, is that so was well.

to as described large institution what the academic the on the forward expect success on a we're cancer centers course, we to then, to, looking months. this transition with commercial of but prototype we using in with several look along fronts, pilot of that, to engagement, engage strategically wrap then way. a with not up engage ways And consistent the a memorandum really understanding just So based the and to of in to finding we'll other variety full of

Junwoo Park

it. I then would you And large additional that, any through helpful. contracts? conversations walk us up following you Got guys having pipeline your That's are guess And right on centers? with now of

Lishan Aklog

and Yes. several pipeline with a dozen We of them. have or have of so centers large active conversations do a

really this accelerate and those to pilot. forward upon We move expect completion of

restart been to expenditures working, -- has this focus and careful do some drive to Veris the account as our once I a financing and close believe -- additional our of to to securing as to to implantable pilot, particular Sorry, securing we on secure able been be expenses the start we've accounts. driver this I've able monitoring additional we'll development with to be that we strategy and we're And mentioned, once complete and financing. is so forth. operating

Junwoo Park

Got on provided the for Coming longer-term you guess under I my guys helpful. there? pending end. more guidance expect then it. get submit guys monitor the you just take approval I that on That's have to And steps to from you and the one financing, additional guess when implantable

Lishan Aklog

pathway We've clearance meetings variety all done pretty preclinical studies of request. before, submission, for Yes. The to said has line out. had as their a we been at had well worked time multiple I -- FDA. We've the with

in feel shape, And like a we have pretty we're so good path. pretty predictable

But is path submitted, vendors secure we're financing the we takes if that are left able we're target relaunch sometime where submission. straightforward. some soon able time to product, to mid-next pretty to we the back back once And believe And and year at of get for that'll clearance off. development we to XXXX bring and looking take to It some a as be FDA the online to reasonable time.

Operator

Instructions]. [Operator

question Group. comes the with Vendetti from next Anthony Your line of Maxim

Anthony Vendetti

you want the I may I clarify. to just but think have answered question,

the you're about financing, for you Veris, talking for correct? about not when were So talking incubator, the

Lishan Aklog

Well, for Veris services PAVmed's both. right? furthest The shared Yes, model, just maybe use reiterate We opportunity that's again, for model. And both. new have that we to as one mentioned an is this to along. a

We have Obviously, first for looking into Veris. such as well into directly not also past really designed individual the capital the entities the we subsidiaries, to to years. a and capital, to hold ago has subsidiaries. raise done each time launched corporate that raise of quarters just incubator into that we're incubator PortIO. we're raise of capital is individual And Lucid couple over the couple seeking into And itself, that of but assets, the

Anthony Vendetti

Lucid, spinoff though, at And into like point, a this it's not Okay. Great. an correct? IPO

Lishan Aklog

technologies. these PAVmed's shared And take earlier amenable that don't year where We No. to the to to model markets that advantage are This that services now. is our we advance would simply was the do its assets other just for right those advance this the but of really think Lucid, capital No. raise and the beyond that to really right at now markets of not the infrastructure each have privately, to assets. these -- early-stage that not and public own capital assets we've created place are raise conclusion the

Anthony Vendetti

Agreed. that Yes. makes No, sense.

your Veris before in place expect FDA correct? to the by year on that you mid-'XX. the Is submit expect then have Veris -- to based best of you So for funding estimate, the end and

Lishan Aklog

sounds about right. That Yes.

off pretty I initial as We're going an on the -- think I will think is ground things effort to the actually financing us well. -- is said, hopeful close get to allow that that tranche soon. I

So that's regard are to -- those estimates broad timeline reasonable. with

Operator

question with Ascendiant of And from Capital. line Ed comes the Woo your next

Edward Woo

I Have question valuations terms for very general out to for funding had of Veris? a significantly about trying in seen going incubator valuations. well you when as change as raise you're the

Lishan Aklog

it and I on Yes. waiting further was study. far launch think, asset. depends clinical the study, the the has is IDE although advanced Veris been PortIO of mean, quite obviously, individual I actually along, just

been -- assets, we've want closed these yet, -- pleasantly to they're So speak these we've we surprised the at that prematurely. yes, again, I are transactions. we close been can so both we and interest believe But don't not strong and valuations

Operator

questions closing would for no this back I'm remarks. to Lishan further Aklog showing to Dr. I And it like at turn time.

Lishan Aklog

for alerts and Thank up you calls, for e-mail LinkedIn. really, Great. our very really PAVmed follow encourage and with updates some questions. and events Twitter Again, this to And important point as on our Investor keeping particular. our Relations keep about by I'd releases excellent you such on and for thank in signing and media periodic colleagues PAVmed much, progress incubator, our via up to we're our we news operator, subsidiaries, of to one, this website transition news or social to and look abreast forward Veris their the and you like excited for

So great day. everybody, thank have and you, a

Operator

and gentlemen, Thank participating. concludes all this you, you for Thank call. presenters. ladies today's conference And

now You may disconnect.

PAVmed (PAVM) 13 Aug 242024 Q2 Earnings call transcript