Pavmed (NSDQ:PAVM) announced today that its majority-owned subsidiary Lucid Diagnostics will spin off into a separate public company.
In a news release, Pavmed said Lucid Diagnostics intends to spin off if favorable market conditions continue to hold, whether it be through an initial public offering (IPO) or a business combination with a healthcare special purpose acquisition corporation.
Lucid Diagnostics’ board of directors concluded that the move, a long-contemplated step, Pavmed said, will be necessary to help it fulfill its long-term potential as it seeks to unlock its present value and execute on a major new commercial initiative.
Pavmed said in the release that it believes a Lucid spin-off would be in the best interests of the company and its shareholders, while Pavmed will remain Lucid’s largest shareholder following any such transaction.
Lucid’s new commercial initiative is set to accelerate the commercialization of its EsoGuard technology by targeting multiple sales and marketing channels and building a network of EsoCheck operators to assure sufficient testing capacity and geographic coverage.
EsoCheck with “collect & protect technology” is designed to offer a less invasive, more efficient and cost-effective alternative to endoscopic biopsies when managing patients with eosinophilic esophagitis (EoE). Pavmed sees it as a way to replace endoscopy with a non-invasive device for patients with a condition requiring multiple and frequent invasive endoscopies with biopsies.
The company plans to retain and train a network of full-time nurses or other clinical personnel to serve as the operators for EsoCheck while seeking joint ventures with laboratory testing companies and pharmacy mini-clinics. A pilot program in one major metropolitan area is planned for the second quarter.