Positive Outlook for Lucid Diagnostics: Medicare Coverage and Clinical Support Boost EsoGuard’s Market Potential

BTIG analyst Mark Massaro has reiterated their bullish stance on LUCD stock, giving a Buy rating on September 5.

Mark Massaro’s rating is based on the positive outcomes from Lucid Diagnostics’ recent CMS CAC meeting, where there was unanimous support from clinical experts for Medicare to cover the EsoGuard test. The test addresses a significant unmet need with its minimally invasive approach to screening for esophageal adenocarcinoma, targeting approximately 30 million at-risk Americans. The potential Medicare coverage could significantly expand the market for EsoGuard, which is priced at $1,938 per test, indicating a substantial total addressable market.
Additionally, the clinical validity and utility of the EsoGuard test were emphasized, with high confidence expressed by clinicians due to its 99% negative predictive value and improved diagnostic yield when paired with standard endoscopy. The test’s ability to increase screening compliance for esophageal cancer, which currently has low patient adherence, further supports the Buy rating. The expectation of a positive draft LCD within a few months and the potential for increased commercialization in primary care and GI offices also contribute to the optimistic outlook.

In another report released on September 5, Canaccord Genuity also reiterated a Buy rating on the stock with a $3.00 price target.