DermTech Announces Restructuring to Prioritize Growth Opportunities and Streamline Operations
28 Junho 2023 - 5:30PM
Business Wire
- Strategic focus on growing revenue for the
DermTech Melanoma Test (DMT)
- Annualized cost reduction of between $25
million and $30 million
- Cash runway extended into the first quarter
of 2025
DermTech, Inc. (NASDAQ: DMTK) (DermTech or the Company), a
leader in precision dermatology enabled by a non-invasive skin
genomics technology, today announced restructuring actions that are
intended to prioritize the significant growth opportunities for the
DermTech Melanoma Test (DMT), streamline operations, suspend
pipeline programs and significantly reduce overall operating
expenses.
Following a detailed review of its growth opportunities and
operations, DermTech is focusing substantially all of its resources
on growing reimbursed DMT billable samples and expanding payer
coverage. All pipeline programs will be suspended. These
restructuring actions will primarily include sales, marketing and
G&A functions and will result in a workforce reduction of
approximately 40 employees, or approximately 15 percent of
DermTech’s workforce. DermTech forecasts annualized savings of
between $25 million and $30 million upon completion of the
restructuring plan. The Company anticipates a one-time
restructuring charge of approximately $2 million in the second
quarter of 2023.
“After a rigorous assessment of our entire business, we’ve made
the tough decision to realign our organizational footprint and
capital deployment,” said Bret Christensen, CEO, DermTech. “We are
changing certain tactics to prioritize reimbursed tests and drive
revenue growth, which capitalizes on our 40 percent increase in
covered lives to approximately 126 million since the end of 2022.
We have a great opportunity to integrate the DMT into the melanoma
care pathway to improve patient outcomes. By focusing on our
mission and taking these steps today, we’re better positioned to
lead the genomic revolution in dermatology.”
Christensen continued, “I’m enormously grateful for the
dedication and perseverance of my colleagues who are impacted by
this restructuring. You will always be part of DermTech’s DNA.”
DermTech had cash, cash equivalents, restricted cash and
short-term marketable securities of $108.4 million as of March 31,
2023. The Company believes it will have sufficient cash resources
to fund its planned operations into the first quarter of 2025.
About DermTech
DermTech is a leading genomics company in dermatology and is
creating a new category of medicine, precision dermatology, enabled
by its non-invasive skin genomics technology. DermTech’s mission is
to improve the lives of millions by providing non-invasive
precision dermatology solutions that enable individualized care.
DermTech provides genomic analysis of skin samples collected
non-invasively using our Smart StickersTM. DermTech markets and
develops products that facilitate the early detection of skin
cancers. For additional information, please visit DermTech.
Forward-Looking Statements
This press release includes “forward-looking statements” within
the meaning of the “safe harbor” provisions of the Private
Securities Litigation Reform Act of 1995. The expectations,
estimates, and projections of DermTech may differ from its actual
results and consequently, you should not rely on these
forward-looking statements as predictions of future events. Words
such as “expect,” “estimate,” “project,” “budget,” “forecast,”
"outlook," “anticipate,” “intend,” “plan,” “may,” “will,” “could,”
“should,” “believe,” “predict,” “potential,” “continue,” and
similar expressions are intended to identify such forward-looking
statements. These forward-looking statements include, without
limitation, expectations and evaluations with respect to: the
performance, patient benefits, cost- effectiveness,
commercialization and adoption of DermTech’s products and the
market opportunity for these products, DermTech’s positioning and
potential growth, financial outlook and future financial
performance, ability to monetize existing demand by increasing its
proportion of reimbursed billable samples, ability to maintain or
improve its operating efficiency and reduce operating expenses, the
sufficiency of DermTech’s cash resources and runway and ability to
access capital to fund its operating plan, the sufficiency of its
cash resources to fund planned operations for the anticipated
period, anticipated annual cash savings to be realized from the
restructuring, implications and interpretations of any study
results, and expectations regarding agreements with or
reimbursement or cash collection patterns from Medicare, government
payers or commercial payers and related billing practices or number
of covered lives. These forward-looking statements involve
significant risks and uncertainties that could cause the actual
results to differ materially from the expected results. Most of
these factors are outside of the control of DermTech and are
difficult to predict. Factors that may cause such differences
include, but are not limited to: (1) the outcome of any legal
proceedings that may be instituted against DermTech; (2) DermTech’s
ability to obtain additional funding to develop and market its
products; (3) the existence of favorable or unfavorable clinical
guidelines for DermTech’s tests; (4) the reimbursement of
DermTech’s tests by Medicare, government payers and commercial
payers; (5) the ability of patients or healthcare providers to
obtain coverage of or sufficient reimbursement for DermTech’s
products; (6) DermTech’s ability to grow, manage growth and retain
its key employees and maintain or improve its operating efficiency
and reduce operating expenses; (7) changes in applicable laws or
regulations; (8) the market adoption and demand for DermTech’s
products and services together with the possibility that DermTech
may be adversely affected by other economic, business, and/or
competitive factors; and (9) other risks and uncertainties included
in the “Risk Factors” section of the most recent Annual Report on
Form 10-K filed by DermTech with the Securities and Exchange
Commission (the “SEC”), and other documents filed or to be filed by
DermTech with the SEC, including subsequently filed reports.
DermTech cautions that the foregoing list of factors is not
exclusive. You should not place undue reliance upon any forward-
looking statements, which speak only as of the date made. DermTech
does not undertake or accept any obligation or undertaking to
release publicly any updates or revisions to any forward-looking
statements to reflect any change in its expectations or any change
in events, conditions, or circumstances on which any such statement
is based.
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version on businesswire.com: https://www.businesswire.com/news/home/20230628631087/en/
Steve Kunszabo DermTech (858) 291-1647
steve.kunszabo@dermtech.com
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