Earnings call transcript: PAVmed Inc. Q1 2026 shows restructuring gains

PAVmed Inc. (PAVM) reported its financial results for the first quarter of 2026, highlighting significant restructuring achievements and advancements in its product portfolio. The company’s stock saw a modest increase of 3.1% in premarket trading, reaching $6.65. Despite a GAAP net loss of $1.1 million, the market reacted positively to the company’s strategic progress and upcoming milestones.

PAVmed’s first-quarter performance was marked by a strategic focus on restructuring and product development. The company successfully completed a two-year restructuring process, eliminating all convertible preferred stock and debt instruments. This move positions PAVmed for future capital raises and subsidiary financing, despite reporting a GAAP net loss of $1.1 million.

PAVmed’s stock price increased by 3.1% in premarket trading, reaching $6.65. The company’s stock remains near its 52-week low, but the modest increase reflects cautious optimism among investors. The market’s reaction is likely influenced by the company’s restructuring success and potential future developments, such as Medicare coverage for Lucid Diagnostics.

PAVmed anticipates significant developments in the coming quarters, including potential Medicare coverage for Lucid Diagnostics and further advancements in the Veris Health platform. The company plans to submit its Veris implantable physiological monitor for FDA approval by the end of 2026, which could enhance its market position.

Dr. Lishan Aklog, CEO of PAVmed, emphasized the company’s strategic achievements, stating, "We have successfully completed our restructuring process, positioning PAVmed for future growth and expansion. Our focus on innovative product development continues to drive our strategic vision."

During the earnings call, analysts inquired about PAVmed’s international expansion plans. CEO Dr. Lishan Aklog responded that while the company has received inquiries from Europe and Israel, its primary focus remains on U.S.-based opportunities, particularly those originating from academic medical centers.

Operator: Good morning, and welcome to the PAVmed third quarter 2026 business update conference call. At this time, all participants are in a listen-only mode. There will be a question-and-answer session following the prepared remarks. Should you require operator assistance, please press star 0. Please note, this event is being recorded. I would now like to turn the conference call over to Matt Riley, PAVmed’s Vice President of Investor Relations. Please go ahead.

Matt Riley, Vice President of Investor Relations, PAVmed Inc.: Thank you, operator, good morning, everyone. Thank you for participating in today’s business update call. Joining me today on the call are Dr. Lishan Aklog, Chairman and Chief Executive Officer of PAVmed, along with Dennis McGrath, Chief Financial Officer of PAVmed. The press release announcing our business update and financial results is available on PAVmed’s website. Please take a moment to read the disclaimers about forward-looking statements in the press release. The business update press release and conference call all include forward-looking statements, and these forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially from statements made. Factors that could cause actual results to differ are described in the disclaimer and in our filings with the SEC.

For a list and a description of these and other important risks and uncertainties that may affect future operations, see Part One, Item 1-A, entitled Risk Factors in PAVmed’s most recent annual report on Form 10-K filed with the SEC and any subsequent updates filed in the quarterly reports on Forms 10-Q and subsequent Forms 8-K. Except as required by law, PAVmed disclaims any intentions or obligations to publicly update or revise any forward-looking statements to reflect the changes in expectations on events, conditions, or circumstances on which the expectations may be based or that may affect the likelihood that actual results will differ from those contained in the forward-looking statements. I would now like to turn the call over to Dr. Lishan Aklog, Chairman and CEO of PAVmed.

Dr. Lishan Aklog, Chairman and Chief Executive Officer, PAVmed Inc.: Thank you, Matt Riley. Good morning, everyone. Thank you for joining our quarterly update call today. At our last business update call, we discussed the two-year process we undertook to permanently fix PAVmed’s legacy capital structure and strengthen its balance sheet. The final step has been completed in the last couple of weeks, the cap table is now clean. Dennis will discuss this in more depth, our cap table now just consists of common stock and term debt. With that, we now truly believe that PAVmed is really well-positioned to execute on its founding mission for us to operate as a high-growth, diversified commercial life sciences company with multiple independently financed subsidiaries operating under our shared services model, and that we are well-positioned to new ops that come along.

I’ll talk a little bit about how that has accelerated since the restructuring took place. As we described on our last call, part of one major initiative that followed this restructuring has been the relaunching of our medical device portfolio under Joe Virgilio. He’s been on board now and has hit the ground running. He’s actively focusing on advancing multiple medical device opportunities, including PortIO and the endoscopic imaging technology we licensed for Duke under the Octeris umbrella, as well as broader responsibilities across our entire medical device portfolio, utilizing his expertise on building and scaling growth stage businesses and raising capital for these individual medical device initiatives. As I mentioned, the pipeline has definitely opened up. We are evaluating business development assets that are being brought forth to us.

We’re on our second major diligence exercise. We did pass on the first opportunity as attractive as it was, and we really do expect those to bear fruit and for us to bringing in commercial assets into our portfolio. Now let’s move on to Lucid Diagnostics. Lucid is on the cusp of transformative milestones, including what we believe is impending Medicare coverage. As we discussed on our previous call, we’re awaiting Medicare. We’re a bit of frustration that this has dragged on, but our confidence has not wavered. I encourage you to listen to yesterday’s Lucid business update call for greater details on this and other aspects of Lucid’s business. As a reminder, PAVmed remains Lucid’s largest shareholder. Lucid’s progress and upcoming major inflection points will benefit PAVmed.

Just a couple of highlights from the call yesterday. In addition to Medicare, it’s clear that we’re not remaining idle on the Lucid front. As we discussed, the VA is off to a good start following us securing the Federal Supply Schedule and pricing. First orders are being placed. The path pipeline is being expanded, and we look forward to revenue along that segment. We also discussed our direct engagement with commercial payers that we have received positive coverage under 1 of the laboratory benefit managers, and that will be public soon. Of course, with all that, Lucid was also able to successfully raise a round of capital that extended our runway well into 2027. Now let’s move on to Veris.

As we discussed in our last call, Veris is now well into the commercial phase of our strategic engagement with The Ohio State University. That process is well underway. The clinical rollout has been focused on the 3 clinical departments that had participated in the successful pilot study, and we’re now on the cusp of adding additional departments according to our rollout schedule that OSU leadership developed in collaboration with us. As we announced last time, the EHR integration is now live. It’s working well. And just overall, the feedback both on the clinical and the administrative side from our partners at OSU remains excellent, and we look forward to continuing to drive towards the targets that were established within as part of our strategic partnership with them.

Of course, a major focus right now is on the implantable physiological monitor. That development is progressing towards planned submission by the end of this year. As we discussed last time, we have a new, contract development and manufacturing partner firm. That partnership is going well. Velentium. The design and development efforts leading to design freeze and the transition to the final, pre-submission development work and testing is going well. A lot of the most recent efforts have been around the technical aspects of optimizing the battery life to get a full 2 year, 2 years of battery life. We’ve made excellent progress on that and look forward to continuing the work towards submitting that by the end of the year.

We’re also continuing to work on this expanded strategic vision for the company that we spent a bit of time on discussing during our last call. That includes ultimately expanding our commercial efforts beyond our single strategic partner and a variety of initiatives that are focused on transforming Veris Health beyond simple remote patient monitoring into additional strategic areas. We’re looking to leverage our commercial success at OSU to support this expansion into additional centers. The other aspects of the strategic transformation that we are working on, although within the limited confines of our capital resources today, are additional work on clinical support services and development efforts around AI-based projects beyond remote patient monitoring. With that, I’ll hand the call over to Dennis for an update on the financials.

Dennis McGrath, Chief Financial Officer, PAVmed Inc.: Thanks, Lishan Aklog. Good morning, everyone. Our summary for the first quarter were reported in our press release that has b