DermTech (NASDAQ: DMTK), a precision dermatology company, has filed for voluntary chapter 11 protection in the U.S. Bankruptcy Court for the District of Delaware. This move is part of the company's strategic alternatives review process. DermTech plans to continue laboratory operations and processing orders for its Melanoma Test while seeking to sell most of its assets. The company aims to protect stakeholders' interests and maximize asset value through the bankruptcy process. Advisors include Wilson, Sonsini, Goodrich & Rosati, PC, AlixPartners, and TD Cowen. Additionally, DermTech has implemented a reduction in force (RIF), resulting in the immediate layoff of approximately 15 employees, or 20% of its workforce, with possible future reductions.
DermTech (NASDAQ: DMTK) reported its Q1 2024 financial results, highlighting a 7% increase in test revenue to $3.7 million and an 11% rise in total revenue to $3.8 million, attributed to higher average selling prices. Despite a 14% decline in billable sample volume, cost of test revenue decreased by 19%, improving the test gross margin to 16%. Sales, marketing, R&D, and general administrative expenses saw significant reductions, contributing to a net loss of $20.0 million ($0.58 per share), a notable improvement from Q1 2023's $31.3 million loss ($1.02 per share). The company had $42.4 million in cash and equivalents as of March 31, 2024.
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