PAVmed (PAVM) Stock: Why The Price Fell Today

By Amit Chowdhry ● Nov 17, 2021
  • The stock price of PAVmed Inc (NASDAQ: PAVM) fell by over 10% pre-market today. This is why it happened.

The stock price of PAVmed Inc (NASDAQ: PAVM) fell by over 10% pre-market today. Investors appear to be responding negatively to the company’s preliminary consolidated financial results.

PAVmed and its majority-owned subsidiary Lucid Diagnostics Inc. (Nasdaq: LUCD), a commercial-stage cancer prevention diagnostics company today provided a joint business update for the companies and discussed preliminary financial results for the six and nine months ended September 30, 2021.

Preliminary Consolidated Financial Results

— For the three months ended September 30, 2021, EsoGuard related revenues were $0.2 million and gross profit was $56 thousand. Operating expenses were approximately $13.7 million as detailed below including $4.0 million in stock-based compensation expense. GAAP net loss attributable to common stockholders was approximately $12.3 million, or $(0.15) per common share. As shown below and for the purpose of illustrating the effect of derivative accounting and other non-cash income and expenses on the Company’s financial results, the Company’s preliminary non-GAAP adjusted loss for the three months ended September 30, 2021 was approximately $8.2 million or $(0.10) per common share.

— PAVmed had cash and cash equivalents of $37.3 million as of September 30, 2021, compared with $17.3 million as of December 31, 2020. On a proforma basis, had the Lucid Diagnostics IPO occurred on September 30, 2021, cash would have been approximately $93.7 million after giving effect to underwriting commissions and financial advisory fees.

KEY QUOTES:

“The third quarter and recent weeks have proved to be an exciting time for our companies—almost certainly the most important in PAVmed’s corporate history. Lucid is now a Nasdaq-listed public company having raised sufficient capital to execute on its growth strategy and drive commercialization in a $25 billion-dollar addressable company. PAVmed’s equity stake in Lucid actually increased from approximately 73% to 76% post-IPO as a result of PAVmed converting debt into equity immediately prior to consummation of the IPO.”

“PAVmed and Lucid are both in a very strong financial position with over $90 million in cash between them. With Lucid now fully financed and self-sufficient, PAVmed no longer has to raise and spend capital, and dilute its shareholders, to finance Lucid’s operations. We can deploy PAVmed’s capital to advance and commercialize its other key products and expand our portfolio. As the majority shareholder PAVmed will continue to consolidate Lucid’s financials. I am also excited that we have crossed another small but important milestone. PAVmed and Lucid are no longer pre-revenue companies, with both for the first time recognizing modest revenue for the third quarter.”

— Lishan Aklog, M.D., PAVmed’s Chairman and Chief Executive Officer and Lucid’s Chairman and Chief Executive Officer

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.