© Reuters. Needham reiterates Purchase on Lucid Diagnostics (LCUD) following investor day
Needham reiterated a Purchase score, and 12-month worth goal of $2.50, on Lucid Diagnostics (LUCD) after attending the corporate’s investor day occasion on Tuesday.
Needham attended Lucid’s investor day assembly on New York Tuesday the place the medical firm outlined their working mannequin and technique to commercialize its EsoGuard take a look at for esophageal pre-cancer/Barrett’s Esophagus (BE) in high-risk sufferers.
LUCD invited two gastroenterologists to share their insights on EsoGuard. Each consultants on the panel emphasised that EsoGuard successfully fulfills a vital hole in diagnosing Barrett’s Esophagus (BE) or pre-cancerous situations.
The consultants highlighted that as an alternative of cannibalizing their practices and process volumes, the adoption of EsoGuard has led to their growth. One professional identified that given the provision and success charges of BE remedies (together with RF ablation), he now feels compelled to display all high-risk sufferers utilizing EsoGuard. He additional talked about that not one of the sufferers he identified and handled for Barrett’s Esophagus have gone on to develop esophageal most cancers.
Administration went on to debate potential monetary situations for instance the consequences of enhanced income realization and take a look at quantity growth.
Based on administration’s estimations, by sustaining working bills and take a look at quantity at a continuing stage whereas rising income realization from the present 16% to 90% by the second half of 2025, LUCD anticipated a discount in its money burn by 42%.
Moreover, if take a look at quantity continued to develop at a sequential charge of 8.5%, LUCD may obtain a money stream breakeven level by the conclusion of the second quarter of 2025.
Needham analysts wrote in a be aware, “We believe that increases in LUCD’s revenue realization will be the main driver towards profitability, and we believe that LUCD has made good progress in physician adoption and payor reimbursement to date.”
Shares of LUCD are down 0.73% in pre-market buying and selling Thursday morning.
