Project Description

PavMed Spin-off (Lucid Diagnostics) Notes

June 3, 2021 Update

February 25, 2021 Update

  • Pavmed (NSDQ:PAVM) announced that its majority-owned subsidiary Lucid Diagnostics will spin off into a separate public company.
  • The spin-off will take place through if favorable market conditions hold through an IPO or a SPAC acquisition.
  • After the spin-off, PavMed will remain Lucid Diagnostics largest shareholder.
  • Background from this article:
    • Lucid’s new commercial initiative is set to accelerate the commercialization of its EsoGuard technology by targeting multiple sales and marketing channels and building a network of EsoCheck operators to assure sufficient testing capacity and geographic coverage.
    • EsoCheck with “collect & protect technology” is designed to offer a less invasive, more efficient and cost-effective alternative to endoscopic biopsies when managing patients with eosinophilic esophagitis (EoE). Pavmed sees it as a way to replace endoscopy with a non-invasive device for patients with a condition requiring multiple and frequent invasive endoscopies with biopsies.
    • The company plans to retain and train a network of full-time nurses or other clinical personnel to serve as the operators for EsoCheck while seeking joint ventures with laboratory testing companies and pharmacy mini-clinics. A pilot program in one major metropolitan area is planned for the second quarter.
    • No timing was indicated as to when the transaction will take place but I will assume by Q3 2021.
  • In conjunction with the spin-off announcement, PavMed announced (has since closed) that it will raise $45MM of cash through a secondary offering.
  • Initial thoughts:
    • This doens’t seem like that interesting of a transaction, but I nee dto spend more time on it as I may be missing something.
    • PavMed is pre revenue but seems to have promising technology given it has a market capitalization of $323MM.
    • By owning PAVM, we will not receive the spin-off as the separation will take place through an IPO or sale to a SPAC.
    • I will continue to monitor.