PAVmed, a commercial-stage medical technology company, and its majority-owned subsidiaries Lucid Diagnostics, a cancer prevention diagnostics company, and Veris Health, a private digital health company focused on enhanced personalized cancer care, have announced a reduction in workforce by approximately 20%, among other strategic business updates.

The companies outlined near-term strategic priorities and resource reallocation including product portfolio streamlining, and additional cost-cutting measures in the hopes of lowering quarterly cash burn by at least 25%. As part of the plan, Lucid will focus on its EsoGuard testing, a diagnostic test used to prevent esophageal cancer deaths through early precancer detection, volume through an increased focus on its sales personnel closing on larger accounts and new market development initiatives. This includes sales leadership shifting priority from recruitment and hiring to engagement with these larger accounts. The company will keep a team of 40 sales professionals, having completed targeted layoffs and closed prior vacancies.

Along with its sales team, Lucid will maintain its team of nurse practitioners and other clinical personnel so that the company can support its testing volume growth through its Lucid Testing Centers (LTC) and satellite LTC program. EsoGuard testing capability will continue to be addressed through the company’s investment in LucidDx Labs to drive improvements and cost efficiencies. Additionally, the company will continue its ongoing clinical utility studies to support in-network coverage for EsoGuard.

However, in an effort to prioritize near-term commercialization, Lucid will delay the completion of its EsoGuard BE-2 study to the second half of 2023 and pause further development of the EsoCure Esophageal Ablation device.

Veris seems to be executing a similar plan, including utilizing existing sales personnel to drive adoption its Veris Cancer Care Platform, a digital platform with symptom reporting, telehealth functions, and advanced data analytics to improve personalization of cancer care through remote patient monitoring. The company noted that it will only expand its sales team when commercial traction has been well-established.

Veris reported that it will delay the development and regulatory submission of its implantable physiologic monitor to the second half of 2023 and focus its downsized workforce on near-term commercialization. The company has already eliminated certain technology positions focused on future data analytics and announced it will retain personnel directly involved in customer integration and technical support.

PAVmed, Lucid and Veris’ parent company, plans to continue its support of Lucid’s next generation EsoGuard and EsoCheck product commercialization and Veris’ implantable physiologic monitor. Additionally, it will continue its joint early-stage research and development project with Novosound to explore its ultrasound technology for next-generation intravascular ultrasound imaging. High-value, near-term accretive opportunities will be the main focus of PAVmed when continuing its limited business development activities, the company noted. PAVmed is also indefinitely pausing or halting all other product development activities including CarpX, PortlO, and NextFlo.

The company stated that it will be pursuing additional cost-cutting initiatives including not paying annual cash bonuses.