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Lucid Diagnostics, a PAVmed subsidiary, has begun receiving Medicare payments for its EsoGuard Esophageal DNA Test and closed a $15 million private placement of Series C Convertible Preferred Stock with existing long-term shareholders. The company began submitting claims on September 22 for tests run at one of its two CLIA-certified laboratories, and is now being paid at the established Clinical Laboratory Fee Schedule rate of $1,938.01 per test.
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The preferred stock was sold at $1,000 per share and converts into common stock at $0.3519 per share. Investors included holders of a majority of Lucid’s 12.0% senior secured convertible notes due 2029, who acknowledged that Medicare payments have resolved the concerns behind the notes’ Medicare-related event of default provision. Proceeds will go toward near-term commercial operations, working capital, and general corporate purposes.
For Lucid, the payments remove a long-running reimbursement obstacle for a test designed to detect esophageal precancer in patients with chronic reflux. CEO Lishan Aklog said, “Medicare is now paying for EsoGuard,” and expects the milestone to help in talks with large health systems and commercial payors. In the second quarter, the company reported revenue of $1.5 million on 2,770 tests.
For the broader MedTech space, the news shows how reimbursement, not clearance alone, often determines when a diagnostic can scale commercially.
