PAVmed Inc. (PAVM), a medical device company, is trading at $4.11 at the time of the writing after dipping 16.46% during the aftermarket trading session. The decline is attributable to the announcement of quarterly results by the company. On Tuesday, PAVM closed the day at $4.92 after experiencing a growth of 0.41% during regular trading hours.
Why PAVM in Decline?
On Tuesday, PAVM released the financial results for the third quarter of the fiscal year 2021. The quarter ended on 30th September 2021. The EsoGuard related revenues generated by the company during the quarter were $0.2 million, while the gross profit was $56,000. The operating expenses for the period were $13.7 million against $5.52 million for the same period of 2020. The company suffered a net loss of $12.22 million against $5.48 million for the same period of 2020. The company had cash and cash equivalents of $37.3 million on 30th September 2021.
Alongside the financial results, PAVM also updated its business highlights of the quarter. The company’s subsidiary, namely Lucid Diagnostics, completed an initial public offering of 5,000,000 shares of common stock at a price to the public of $14.00 per share for total gross proceeds of $70 million. The Lucid continued to bring expansion into its network of Lucid Test Centers in cities across the Western U.S. PAVmed and Lucid also expanded their physical infrastructure to support the growth of both of the companies. Also, PAVmed acquired CapNostics, LLC, a company manufacturing EsophaCap®.
Lishan Aklog, M.D., PAVM Chairman, and Chief Executive Officer, while commenting on the results, said that the third quarter has proved to be an exciting time for the company as it had improved its financial stature remarkably during the period. He further went on to say that looking ahead, PAVmed could post tremendous growth in upcoming quarters.
Future Outlook for PAVM
During the last 12 months, PAVM stock has increased more than 170%, but during more recent days, the performance has generally remained abysmal. Analysts, however, are of the view that the company is in a strong position to bounce back quickly. Hence, potential investors should keep a close eye on the fluctuations of PAVM stock to make an informed decision regarding their investments.