Lucid Diagnostics Inc., which licenses medical technology developed at Case Western Reserve University, has filed papers for a proposed initial public offering.
Lucid parent PAVmed Inc. (Nasdaq: PAVM, PAVMZ) said New York-based Lucid intends to list its common stock on the Nasdaq Stock Market under the ticker symbol “LUCD.” The number of shares to be offered and the price range for the offering have not yet been determined.
However, Lucid in its filing with the Securities and Exchange Commission said the IPO could raise up to $57.5 million.
PAVmed, which currently owns 73% of Lucid’s outstanding common stock, will remain Lucid’s controlling stockholder after the offering. PAVmed, a New York-based medical technology company, went public in 2016 in a $5.3 million IPO.
Founded in 2018, Lucid is focused on patients with gastroesophageal reflux disease (GERD), also known as chronic heartburn or acid reflux, who are at risk of developing esophageal cancer, specifically highly lethal esophageal adenocarcinoma. About 20,000 GERD patients in the U.S. are projected to be diagnosed with esophageal adenocarcinoma this year and approximately 16,000 will die from it, according to Lucid.
The company’s chief product is an esophageal cancer screening system, its EsoGuard DNA test performed on samples collected with its EsoCheck collection device. The technologies were developed at Cleveland-based Case Western Reserve University and were licensed to Lucid in 2018.
The EsoCheck device received 510(k) clearance from the FDA in 2019 and was granted a CE mark certification from European regulators in May. In 2020, EsoGuard, used with EsoCheck, was granted breakthrough device designation from the FDA and is currently the subject of two international premarket approval clinical trials.
Lucid said the IPO would allow it to grow and commercialize its products worldwide.
“We are proceeding with this offering and transitioning to a public company to drive a growth strategy focused on expanding commercialization across multiple channels, including expanding the number of our own testing centers, and expanding the clinical evidence of our products’ efficacy to support our ongoing regulatory, reimbursement and commercial efforts, as well as recommendation of our products in clinical practice guidelines,” Lucid said in the S-1 filing.
In 2020, Lucid posted a net loss of $8.3 million, compared with a net loss of $4.4 million in 2019. The company said it has not generated any “significant revenues” to date.
Lucid’s chief executive is life sciences veteran Dr. Lishan Aklog, who will become chairman and CEO after the IPO. Its chief financial officer is Dennis McGrath, formerly CEO, president and CFO of PhotoMedex Inc. (Nasdaq: PHMD). Chief Medical Officer David Wurtman was co-founder, president and CEO of Lyric Pharmaceuticals.
Cantor Fitzgerald & Co. and Canaccord Genuity LLC will act as joint book-running managers for the Lucid’s proposed offering. BTIG, LLC and Needham & Co., LLC will act as co-lead managers.
