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Needham has maintained a Buy rating and a price target of $2.50 on Lucid (NASDAQ:LCID) Diagnostics Inc (NASDAQ:LUCD) as the company advances in its efforts to secure Medicare reimbursement for its EsoGuard diagnostic tool. On March 18, 2025, Lucid announced that the ENVET-BE study, which proved EsoGuard’s effectiveness in diagnosing Barrett’s esophagus, was accepted for publication in the medical journal Gastroenterology & Hepatology.
The ENVET-BE study, involving 199 participants, showed that EsoGuard increased the diagnostic yield for Barrett’s esophagus by 2.4 times. This recent study adds to previous data from two studies with a total of 614 participants, which demonstrated a 100% match between EsoGuard-positive results and physician referrals for an upper endoscopy. The concordance for EsoGuard-negative results and no-referral recommendations was just under 99%. While the company’s revenue grew 179% in the last twelve months, InvestingPro analysis indicates the company is still working to improve its gross profit margins.
The acceptance of the ENVET-BE study for publication is a significant step for Lucid Diagnostics , as it supplements the body of clinical utility data necessary for Medicare reimbursement submissions. Lucid Diagnostics has also recently achieved a milestone by securing its first commercial payor coverage for EsoGuard through Highmark Blue Cross Blue Shield in New York. This coverage aligns with the criteria set by professional society guidelines, such as those published by the American College of Gastroenterology (ACG). The payment rate for EsoGuard under this coverage is estimated to be close to the current Medicare payment rate of $1,938.
Needham’s analysts express optimism regarding the potential for Medicare to reimburse EsoGuard, which would likely lead to an increase in revenue growth for Lucid Diagnostics. As the company begins to process claims and collect payments from its expanding commercial payor coverage, revenue is expected to improve. Furthermore, upon receiving Medicare reimbursement, Lucid Diagnostics is anticipated to experience a rapid acceleration in both the volume of EsoGuard procedures and associated revenue growth. InvestingPro subscribers can access 12 additional key insights about LUCD, including detailed financial health scores and comprehensive valuation analysis in the Pro Research Report, helping investors make more informed decisions about this emerging healthcare company.
In other recent news, Lucid Diagnostics Inc. has announced that Highmark Blue Cross Blue Shield will provide coverage for its EsoGuard Esophageal DNA Test in New York. This marks the first positive policy coverage from a commercial insurer for the company’s esophageal precancer screening tool. Additionally, Lucid Diagnostics completed a significant stock sale, generating gross proceeds of approximately $15.3 million. The net proceeds from this offering, facilitated by Canaccord Genuity, will be used for working capital and general corporate purposes.
Lucid Diagnostics also terminated its "at the market" equity offering, which had initially allowed for the sale of up to $6.5 million in common stock. The company only raised about $292,790 before ending the offering. Furthermore, Lucid Diagnostics has regained compliance with Nasdaq’s minimum bid price requirement, ensuring its continued listing on the Nasdaq Capital Market. The company achieved this by maintaining a closing bid price of at least $1.00 per share for 10 consecutive trading days. These developments reflect Lucid’s ongoing efforts to strengthen its financial position and expand access to its diagnostic tools.
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