© Reuters. Needham reiterates Purchase on Lucid Diagnostics (LCUD) following investor day
Needham reiterated a Purchase ranking, and 12-month value 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 specialists on the panel emphasised that EsoGuard successfully fulfills an important hole in diagnosing Barrett’s Esophagus (BE) or pre-cancerous circumstances.
The specialists highlighted that as an alternative of cannibalizing their practices and process volumes, the adoption of EsoGuard has led to their enlargement. One knowledgeable identified that given the provision and success charges of BE therapies (together with RF ablation), he now feels compelled to display screen all high-risk sufferers utilizing EsoGuard. He additional talked about that not one of the sufferers he recognized and handled for Barrett’s Esophagus have gone on to develop esophageal most cancers.
Administration went on to debate potential monetary situations as an instance the consequences of enhanced income realization and take a look at quantity enlargement.
Based on administration’s estimations, by sustaining working bills and take a look at quantity at a relentless degree 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 price of 8.5%, LUCD might obtain a money movement breakeven level by the conclusion of the second quarter of 2025.
Needham analysts wrote in a observe, “We consider that will increase in LUCD’s income realization would be the primary driver in direction of profitability, and we consider that LUCD has made good progress in doctor adoption and payor reimbursement thus far.”
Shares of LUCD are down 0.73% in pre-market buying and selling Thursday morning.