• DermTech is a San Diego based molecular diagnostics company focused on the early detection of skin cancer enabled by a cutting edge non-invasive genomics platform
  • On August 29, 2019, Constellation Alpha Capital and DermTech underwent a merger and concurrent PIPE transaction at a price of $6.50 per share
  • As of Dec 31, 2019, DMTK was trading ~90% above the transaction price of $6.50 per share

Market Opportunity

  • More people diagnosed with skin cancer  (melanoma and basal/squamous cell) in the U.S. than any other cancer
  • 20% of people over 70 will develop skin cancer in their lifetime
  • 1 blistering sunburn during childhood or adolescence nearly doubles the chance of developing melanoma later in life
  • 5+ blistering sunburns between ages 15-20 increases melanoma risk by 80% later in life
  • 99% early survival rate when diagnosed early vs 23% survival rate at later stages
  • 15+ million skin biopsies at an estimated cost exceeding $6 billion conducted every year in the U.S.

Product Innovation

  • Current standard of care (visual inspection by dermatologist and surgical biopsy for pathological analysis of tissue samples) suffers from several drawbacks:
    • 17% probability of missed melanoma
    • Repeated surgery is painful – on average, detecting 1 melanoma requires 25 surgical biopsies
    • Risk of infection and slower wound healing for elderly patients
  • DermTech’s Pigmented Lesion Assay (PLA) test offers several distinctions:
    • 1% probability of missed melanoma
    • Instead of pathologist observation, PLA test utilizes genomic testing
    • No surgery required – tissue collected through adhesive tape
    • Patent protection until 2034

Business Growth

  • LCD received from CMS – effective from February 10, 2020
  • DermTech lab is CLIA licensed for all 50 US States
  • Melanoma detection market is ~$1.3 billion per annum
  • Ramp-up to ~53 sales reps in 2020-21 – capable of driving ~$75-100M in annual revenue
  • Partnerships with Johnson & Johnson, Biogen, MedImmune, Abbvie, Incyte, GossamerBio, L’Oreal
  • Additional products under development – targeting bigger indications like Basal/Squamous cell cancer and Eczema