- 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. On Mar 2, 2020, DMTK raised an additional $65 million at a price of $10.50 per share.
- On Mar 4, 2020, DMTK price reached $16.95 i.e. 2.6x the transaction price of $6.50 per share.
- 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.
- 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
- 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