A key highlight of Lucid Diagnostics Inc’s (NASDAQ:LUCD) second-quarter earnings call was that the company confirmed its first laboratory benefit manager (LBM) win with Concert,according to BTIG.
The Lucid Diagnostics Analyst: Analyst Mark Massaro maintained a Buy rating and price target of $2.50s.
The Lucid Diagnostics Thesis: Concert concluded that only Lucid Diagnostics’ EsoGuard test had "demonstrated sufficient clinical evidence compared to other tests to warrant a medically necessary designation," Massaro said in the note.
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While confirming its recent LBM contract win with Concert, Lucid Diagnostics noted it had signed on three health plans and that the win opens up around 10 million covered lives over time, the analyst stated.
"We think securing the first larger LBM is typically the hardest, and management confirmed that having Concert on board is already driving productive dialogue with other LBMs and commercial payors," he wrote.
Lucid Diagnostics is awaiting coverage from the Centers for Medicare & Medicaid Services (CMS) for its EsoGuard Esophageal DNA Test. The analyst noted that, while timing is still uncertain, management:
- Expressed strong confidence in securing a positive draft LCD from Palmetto GBA soon
- Indicated signs of the broader CMS LCD backlog may be loosening.
"We continue to expect a positive draft Medicare LCD over the coming months, and think LUCD may be high in the queue," Massaro further wrote.
Q2 Results: Revenues grew 27% year-on-year to $1.5 million, in line with Street expectations. The company reported a loss of 8 cents per share and ended the quarter with a cash balance of $33.4 million, the analyst said.
EsoGuard volume rose by 1% year-on-year to 2,770 tests, in line with the company’s target of 2,500-3,000 per quarter.
LUCD Price Action: Shares of Lucid Diagnostics had risen by 3.63% to $1.00 at the time of publication on Monday.
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