Case Western Reserve University-linked Lucid Diagnostics is seeking an initial public offering that would net it up to $57.5m.

Lucid Diagnostics, a US-based developer of a diagnostic test for oesophageal cancer, has filed for an initial public offering on the Nasdaq Global Market that could result in up to $57.5m in proceeds.

The company has not yet set any terms for the offering.

Lucid Diagnostics was established in 2018 as a subsidiary of medical device manufacturer PAVmed to commercialise research originating at Case Western Reserve University (CWRU) and will be spun out as an independent company through the flotation.

The company currently markets a system consisting of two products: EsoCheck – approved in the US and the EU – is a capsule-sized swab that can be swallowed to collect samples from a patient’s oesophagus, and EsoGuard – approved in the EU – serves as the diagnostic test to analyse those samples.

Lucid is pursuing regulatory clearance in the US for EsoGuard and will use some of the IPO proceeds to complete clinical trials towards this goal.

The money will also allow Lucid to market the EsoGuard to primary care doctors, bolster its telemedicine programme with a direct-to-consumer campaign, expand regionally and across the US, and expand its manufacturing and laboratory capacity.

Lucid does not appear to have disclosed any external funding. CWRU currently holds an 8.4% stake in Lucid, while PAVmed is the majority owner with a 72.6% shareholding.

Cantor Fitzgerald, Canaccord Genuity, BTIG and Needham & Company have been hired as underwriters for the proposed offering.