Lucid Diagnostics (LUCD) Canaccord Genuity's 46th Annual Growth Conference summary

Diagnostic platform overview

• Offers a non-invasive molecular test, EsoGuard, for early detection of Barrett's Esophagus, a precursor to esophageal cancer, with high negative predictive value and 99% predictive accuracy for early pre-cancerous conditions.

• Test is performed in-office in about 45 seconds and is positioned as a triage tool to improve compliance over traditional upper endoscopy, which has poor adherence rates.

• The target population is well-defined, with established surveillance and treatment algorithms, and the test fills a critical gap in early detection.

• Compliance and patient satisfaction are high, with 95% able to complete the test and 85%+ follow-up for positive results.

Commercial strategy and adoption

• Maintains test volumes of 2,500–3,000 per quarter, initially driven by health fairs and fire department events, now shifting toward traditional physician engagement as reimbursement milestones approach.

• Over 60,000 tests performed to date, with groundwork laid for broader adoption once Medicare coverage is secured.

• Focused on engaging commercial payers, Laboratory Benefit Managers (LBMs), and health systems, with recent positive coverage from Concert and inclusion in endoscopy guidelines by United and Cigna.

• VA business is expanding, leveraging federal supply schedule contracts at the Medicare rate, with revenue expected as more VA centers contract.

Reimbursement and financial outlook

• Medicare payment rate established at $1,900 since 2021, with commercial contracts negotiated individually but aiming to protect the Medicare rate.

• Awaiting a draft Local Coverage Determination (LCD) to convert non-coverage to coverage, with a one-year lookback for claims once finalized.

• Several million dollars in backlog pending reimbursement, with sufficient capital for current needs but plans to raise growth capital post-coverage.

• Expects to maintain 80% gross margin at scale, with test costs projected to drop to low hundreds through automation.