Medicare has begun reimbursing Lucid Diagnostics for its EsoGuard DNA test at $1,938 per test, while the company has secured $15 million to support commercial expansion.
Lucid Diagnostics Inc has begun receiving Medicare reimbursement for its EsoGuard Esophageal DNA Test at the established Clinical Laboratory Fee Schedule rate of $1,938.01 per test. The commercial-stage cancer prevention company also closed a $15 million private placement of Series C convertible preferred stock to extend its cash runway and support commercial operations.
The reimbursement payments cover claims submitted for EsoGuard tests performed at one of Lucid’s two CLIA-certified laboratories under Proprietary Laboratory Analyses (PLA) code 0114U. Lucid initially announced on Sept 22 that it would begin submitting claims to Medicare, with payments commencing shortly thereafter.
“Medicare is now paying for EsoGuard,” says Lishan Aklog, MD, Lucid chairman and CEO, in a release. “For the first time, Medicare beneficiaries nationwide have fully reimbursed access to the groundbreaking EsoGuard test. This breakthrough marks a seminal moment in our mission to end the scourge of esophageal cancer through precancer testing of at-risk patients. It opens up significant near-term commercial opportunities that extend beyond primary care, gastroenterology, and geriatric practices.
“Medicare reimbursement removes a key headwind in our continued engagement with large health systems and will also help accelerate our efforts to secure coverage by commercial payors. Our team is laser-focused on translating this pivotal milestone into near-term commercial results, and this financing provides the resources we need to do so.”
Health System Engagement and Clinical Utility
Lucid, a subsidiary of PAVmed Inc, focuses on testing individuals with gastroesophageal reflux disease, or chronic heartburn, who face an increased risk of developing esophageal precancer and cancer.
The EsoGuard test analyzes DNA from cells collected using the company’s EsoCheck Esophageal Cell Collection Device, an office-based procedure designed to identify precancerous changes early. Company leadership indicated that receiving Medicare reimbursement removes a major adoption barrier when partnering with large health systems and negotiating coverage determinations with commercial payors.
Details of the $15 Million Financing
The $15 million private placement closed on Oct 21, 2026, with existing long-term shareholders purchasing newly designated Series C convertible preferred stock at $1,000 per share. The shares are convertible into common stock at an initial conversion price of $0.3519 per share.
Participants in the private placement included holders of a majority of Lucid’s 12.0% senior secured convertible notes due in 2029. The participating noteholders formally recognized that Medicare claim payments resolved concerns tied to the notes’ Medicare-related event of default provision.
Lucid stated that it intends to allocate the net proceeds toward working capital, general corporate purposes, and the commercial expansion of EsoGuard across primary care, gastroenterology, and geriatric clinical settings.
