PAVmed subsidiary receives $1.8 million NIH grant for cancer care

NEW YORK - PAVmed Inc . (NASDAQ:PAVM), a medical technology company, and its digital health subsidiary Veris Health Inc., announced the receipt of a $1.8 million grant from the National Institute on Minority Health and Health Disparities (NIMHD), part of the National Institutes of Health (NIH). The grant, awarded to Veris, is intended to fund research aimed at optimizing the Veris Cancer Care Platform for medically underserved cancer patients.

The two-year research project, titled "Bridging the Gap: Enhancing Cancer Care for Underserved Populations with the Veris Health Cancer Care Platform," will focus on addressing challenges faced by cancer patients, such as language barriers, limited access to technology, and socioeconomic disparities. The partnership with an academic cancer center aims to validate and improve the platform's effectiveness for these populations.

James D. Mitchell, M.D., Vice President of Digital Health at PAVmed and Chief Medical Officer at Veris, expressed gratitude for the NIH grant, which he believes will enhance the reach and impact of their technology, particularly for diverse patient populations. The grant is expected to expedite the expansion of the platform's capabilities and its adoption by academic cancer centers and the broader oncology community.

PAVmed's Chairman & Chief Executive Officer, Lishan Aklog, M.D., highlighted the grant's significance as it provides non-dilutive funding during a critical time for Veris. The company is currently seeking financing to advance its commercial strategy, which includes regulatory clearance and the launch of its implantable physiological monitor. The grant aligns with PAVmed's long-term strategy of ensuring its subsidiaries are independently financeable while benefiting from shared infrastructure.

The Veris Cancer Care Platform is a comprehensive digital care platform that includes remote physiological data collection, symptom reporting, telehealth capability, and electronic health record integration. It aims to offer personalized cancer care through early detection of complications and improved patient outcomes. Patients enrolled on the platform receive a VerisBox of connected healthcare devices, which transmit data to a clinician portal. Additionally, a patient smartphone app allows symptom reporting and caregiver engagement.

This information is based on a press release statement from PAVmed Inc.

In other recent news, PAVmed Inc. reported significant growth and strategic developments in its second quarter 2024 financial results. Lucid (NASDAQ:LCID) Diagnostics, a subsidiary of PAVmed, showcased a record quarter with a 31% increase in test volume and a 44% revenue growth year-over-year. PAVmed's balance sheet showed $25.5 million in cash reserves, with a quarterly burn rate of $11.6 million. The company also reported a six-fold increase in revenue for Q2 compared to the previous year, totaling approximately $1 million.

PAVmed is engaging in discussions with CMS Medicare Contractor MolDX to secure Medicare coverage for its EsoGuard test. The company is also working on private financing for its subsidiary Veris Health and is preparing to relaunch the development of an implantable monitoring device. PAVmed's PMX incubator is raising capital for PortIO, aiming to provide long-term access to the bone marrow.

These recent developments underline PAVmed's strategic efforts to strengthen its financial position and advance its medical technology offerings. The company's future revenue growth is closely tied to the reimbursement landscape for its EsoGuard product and the successful financing of its subsidiaries, as noted by analysts. The company expects to submit the implantable monitor for FDA approval by mid-2025.

InvestingPro Insights

The recent $1.8 million grant awarded to PAVmed's subsidiary Veris Health comes at a critical time for the company, as reflected in its financial metrics. According to InvestingPro data, PAVmed's market capitalization stands at a modest $13.01 million, with a revenue of $3.83 million for the last twelve months as of Q2 2024. While the company has shown impressive revenue growth of 378.63% over the same period, it faces significant financial challenges.

InvestingPro Tips highlight that PAVmed is "quickly burning through cash" and "suffers from weak gross profit margins." This is evident in the company's gross profit margin of -77.62% and operating income margin of -1557.4%. These figures underscore the importance of the non-dilutive funding provided by the NIH grant, as mentioned by CEO Lishan Aklog.

The grant's focus on expanding the Veris Cancer Care Platform to underserved populations aligns with the company's need to broaden its market reach and improve its financial position. However, investors should note that analysts do not anticipate the company will be profitable this year, according to another InvestingPro Tip.

Despite these challenges, PAVmed's stock has shown a strong return of 54.34% over the last three months, suggesting some investor optimism about the company's potential. The fair value estimated by analysts stands at $4.00, significantly higher than the previous closing price of $1.25.

For those interested in a deeper analysis, InvestingPro offers 11 additional tips for PAVmed, providing a more comprehensive view of the company's financial health and market position.

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