DermTech Announces Additional Restructuring Actions to Focus on Revenue Growth and Streamline Operations
January 31 2024 - 4:30PM
Business Wire
- Ongoing emphasis on growing revenue for the
DermTech Melanoma Test (DMT)
- Approximately $40 million in total operating
expense reductions compared to fiscal 2022 resulting from all
restructuring actions
DermTech, Inc. (NASDAQ: DMTK) (DermTech or the Company), a
leader in precision dermatology enabled by a non-invasive skin
genomics technology, today announced additional restructuring
actions to prioritize revenue growth, streamline operations and
further reduce overall operating expenses.
The Company has continued to rigorously evaluate its growth
opportunities and operations, while dedicating substantially all of
its resources to growing reimbursed DermTech Melanoma Test (DMT)
billable samples and expanding payer coverage. These additional
restructuring actions will primarily affect operations, but impact
the entire organization, and will result in a workforce reduction
of approximately 30 employees, or approximately 15 percent of
DermTech’s workforce. The Company expects to achieve approximately
$40 million in total operating expense reductions compared to
fiscal 2022, when combined with its initial restructuring plan
announced in June 2023. The Company anticipates a one-time
restructuring charge of approximately $1.3 million in the first
quarter of 2024.
“As we wrapped up last year, we recommitted to rigorous capital
allocation in support of revenue growth and finding additional
operating efficiencies in 2024,” said Bret Christensen, CEO,
DermTech. “Growing revenue remains our primary objective and we
began to see meaningful improvement in many of our top-line and
operating metrics during the third quarter of 2023. Our realigned
commercial tactics and focus on reimbursed tests has yielded
improvement in nearly all of our key performance indicators. We
must continue to refine our approach as we learn more and be
determined to achieve these goals with a lean organization and by
aligning behind only the highest ROI opportunities.”
Christensen continued, “We recognize today’s additional
restructuring actions will be difficult for our colleagues and
their families. I’m extremely thankful for their commitment as we
worked tirelessly to enhance the standard of care for evaluating
melanoma.”
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 using
its Smart StickersTM. DermTech develops and markets products that
facilitate the assessment of melanoma. 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,”
“runway,” "outlook," “anticipate,” “intend,” “plan,” “strive,"
“may,” “will,” “sustain,” “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;
expectations regarding DermTech’s potential growth, scale, patient
reach, financial outlook, including its cash runway and future
financial performance DermTech’s ability to increase its test
volume, revenue and the proportion of reimbursed billable tests and
control or reduce cost, expenses and cash burn; and expectations
regarding agreements with or reimbursement or cash collection
patterns from government payers (including Medicare) 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
government payers (including Medicare) 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/20240131945520/en/
Steve Kunszabo DermTech (858) 291-1647
steve.kunszabo@dermtech.com
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