DermTech Reports Second Quarter 2021 Financial Results
DermTech (NASDAQ: DMTK) reported impressive financial results for Q2 2021, showcasing a 269% year-over-year increase in total revenue to $3.1 million, driven by a 267% rise in billable sample volume. Assay revenue surged 349% to $2.9 million. The company achieved a positive assay gross margin of 11%, compared to negative margins in 2020. Cash and equivalents stood at $268.3 million. DermTech also launched PLAplus for improved melanoma detection and provided updated revenue guidance of $11.5 million to $13.5 million for the full year, indicating strong growth prospects.
- Total revenue increased 269% year-over-year to $3.1 million.
- Assay revenue grew 349% to $2.9 million.
- Billable sample volume reached approximately 11,750, a 267% increase year-over-year.
- Achieved a positive assay gross margin of 11%, up from negative 118% in Q2 2020.
- Launched PLAplus, enhancing melanoma detection sensitivity from 91% to 97%.
- Full year 2021 assay revenue guidance of $11.5 million to $13.5 million, indicating robust growth expectations.
- Net loss for Q2 2021 was $17.1 million, worse than the $9.6 million loss in Q2 2020.
- Sales and marketing expenses surged 130% to $7.9 million, indicating increased operational costs.
DermTech, Inc. (NASDAQ: DMTK) (“DermTech”), a leader in precision dermatology enabled by a non-invasive skin genomics platform, today reported unaudited financial results for the quarter ended June 30, 2021.
Second Quarter 2021 Highlights
-
Billable sample volume of approximately 11,750 for the second quarter of 2021, a
267% increase compared to approximately 3,200 recorded for the second quarter of 2020 and a25% sequential increase over the first quarter of 2021. -
Assay revenue of
$2.9 million for the second quarter of 2021, a349% increase compared to the second quarter of 2020 and a33% sequential increase over the first quarter of 2021. -
Total revenue of
$3.1 million for the second quarter of 2021, a269% increase compared to the second quarter of 2020 and a24% sequential increase over the first quarter of 2021. -
Achieved second consecutive full quarter with positive assay gross margin of
11% compared to negative118% for the same period of 2020. -
Launched PLAplus, our next generation test for the enhanced early detection of melanoma, which adds TERT (“Telomerase Reverse Transcriptase”) promoter DNA driver mutation analyses to the current RNA gene expression based Pigmented Lesion Assay (“PLA” or the “DermTech Melanoma Test”). The combined tests elevate the sensitivity from
91% to97% and maintain a negative predictive value of >99% , resulting in a less than1% probability of missing melanoma. - Released topline results from second economic study of the PLA in connection with an actuarial model developed by OptumInsight to evaluate the economic impact of inserting the PLA into the visual assessment and histopathology pathway for pigmented skin lesions clinically suspicious of melanoma.
-
Cash, cash equivalents and short-term marketable securities were
$268.3 million at the end of the quarter.
“DermTech continued to execute on its core business drivers during Q2 by delivering healthy sample volume and revenue growth as we began to emerge from the peak of the pandemic,” said John Dobak, M.D., chief executive officer of DermTech. “Our recent efforts to complete the sales force expansion planning, the start of our in-market beta testing of our telemedicine solution, DermTech ConnectTM, and the initiation of a couple of integrated primary network pilots, enables additional adoption of the DermTech Melanoma Test and lays the commercial foundation for future products and channel expansion.”
Second Quarter 2021 Financial Results
Assay revenue increased
Gross margin for the three months ended June 30, 2021 was
Sales and marketing expenses for the three months ended June 30, 2021 were
Research and development expenses for the three months ended June 30, 2021 were
General and administrative expenses for the three months ended June 30, 2021 were
Net loss for the three months ended June 30, 2021 was
Cash, cash equivalents, and short-term marketable securities totaled
Full Year 2021 Guidance
Management estimates that full year 2021 assay revenue will be between
Conference Call and Webcast Information
DermTech will host a conference call and webcast to discuss the second quarter financial results on Wednesday, August 4, 2021 at 1:30 p.m. Pacific time / 4:30 p.m. Eastern time. The conference call can be accessed live over the phone by dialing (844) 467-7114 for U.S. callers or (409) 231-2086 for international callers, using conference ID: 9781109. The live webcast can be accessed at investors.dermtech.com.
About DermTech:
DermTech is the leading genomics company in dermatology and is creating a new category of medicine, precision dermatology, enabled by our non-invasive skin genomics platform. DermTech’s mission is to transform dermatology with our non-invasive skin genomics platform, to democratize access to high quality dermatology care, and to improve the lives of millions. DermTech provides genomic analysis of skin samples collected non-invasively using an adhesive patch rather than a scalpel. DermTech markets and develops products that facilitate the early detection of skin cancers, and is developing products that assess inflammatory diseases and customize drug treatments. For additional information on DermTech, please visit DermTech’s investor relations site at: www.DermTech.com.
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,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, expectations with respect to: the performance, patient benefits, cost-effectiveness, commercialization and adoption of DermTech’s products and the market opportunity therefor, DermTech’s negotiations with private payors, and DermTech’s ability to expand its product offerings. 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 and private payors; (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; (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 (x) 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 (y) other documents filed or to be filed by DermTech with the SEC. 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.
DERMTECH, INC. |
||||||||
Condensed Consolidated Balance Sheets |
||||||||
(in thousands, except share and per share data) |
||||||||
(Unaudited) |
||||||||
|
|
June 30, 2021 |
|
|
December 31, 2020 |
|
||
Assets |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
229,609 |
|
|
$ |
24,248 |
|
Short-term marketable securities |
|
|
38,644 |
|
|
|
39,529 |
|
Accounts receivable |
|
|
2,185 |
|
|
|
1,480 |
|
Inventory |
|
|
497 |
|
|
|
104 |
|
Prepaid expenses and other current assets |
|
|
1,313 |
|
|
|
1,521 |
|
Total current assets |
|
|
272,248 |
|
|
|
66,882 |
|
Property and equipment, net |
|
|
3,285 |
|
|
|
2,731 |
|
Other assets |
|
|
167 |
|
|
|
167 |
|
Total assets |
|
$ |
275,700 |
|
|
$ |
69,780 |
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
2,104 |
|
|
$ |
1,573 |
|
Accrued compensation |
|
|
3,167 |
|
|
|
2,075 |
|
Accrued liabilities |
|
|
887 |
|
|
|
763 |
|
Short-term deferred revenue |
|
|
1,372 |
|
|
|
905 |
|
Current portion of capital lease obligations |
|
|
112 |
|
|
|
109 |
|
Total current liabilities |
|
|
7,642 |
|
|
|
5,425 |
|
Warrant liability |
|
|
577 |
|
|
|
1,650 |
|
Long-term deferred revenue |
|
|
2 |
|
|
|
639 |
|
Long-term capital lease obligations, less current portion |
|
|
170 |
|
|
|
226 |
|
Total liabilities |
|
|
8,391 |
|
|
|
7,940 |
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
Common stock, authorized as of June 30, 2021 and December 31, 2020; 29,607,394 and 20,740,413 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively |
|
|
3 |
|
|
|
2 |
|
Additional paid-in capital |
|
|
427,503 |
|
|
|
189,868 |
|
Accumulated other comprehensive income/(loss) |
|
|
2 |
|
|
|
(1 |
) |
Accumulated deficit |
|
|
(160,199 |
) |
|
|
(128,029 |
) |
Total stockholders’ equity |
|
|
267,309 |
|
|
|
61,840 |
|
Total liabilities and stockholders’ equity |
|
$ |
275,700 |
|
|
$ |
69,780 |
|
DERMTECH, INC. |
||||||||||||||||
Condensed Consolidated Statements of Operations |
||||||||||||||||
(in thousands, except share and per share data) |
||||||||||||||||
(Unaudited) |
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|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
||||||||||
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assay revenue |
|
$ |
2,910 |
|
|
$ |
648 |
|
|
$ |
5,100 |
|
|
$ |
1,445 |
|
Contract revenue |
|
|
209 |
|
|
|
196 |
|
|
|
543 |
|
|
|
956 |
|
Total revenues |
|
|
3,119 |
|
|
|
844 |
|
|
|
5,643 |
|
|
|
2,401 |
|
Cost of revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of assay revenue |
|
|
2,604 |
|
|
|
1,416 |
|
|
|
4,575 |
|
|
|
2,578 |
|
Cost of contract revenue |
|
|
20 |
|
|
|
29 |
|
|
|
51 |
|
|
|
70 |
|
Total cost of revenues |
|
|
2,624 |
|
|
|
1,445 |
|
|
|
4,626 |
|
|
|
2,648 |
|
Gross profit/(loss) |
|
|
495 |
|
|
|
(601 |
) |
|
|
1,017 |
|
|
|
(247 |
) |
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing |
|
|
7,907 |
|
|
|
3,433 |
|
|
|
14,419 |
|
|
|
6,377 |
|
Research and development |
|
|
3,594 |
|
|
|
864 |
|
|
|
5,845 |
|
|
|
1,761 |
|
General and administrative |
|
|
6,301 |
|
|
|
4,529 |
|
|
|
11,473 |
|
|
|
8,043 |
|
Total operating expenses |
|
|
17,802 |
|
|
|
8,826 |
|
|
|
31,737 |
|
|
|
16,181 |
|
Loss from operations |
|
|
(17,307 |
) |
|
|
(9,427 |
) |
|
|
(30,720 |
) |
|
|
(16,428 |
) |
Other income/(expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income, net |
|
|
35 |
|
|
|
10 |
|
|
|
69 |
|
|
|
10 |
|
Change in fair value of warrant liability |
|
|
170 |
|
|
|
(180 |
) |
|
|
(1,519 |
) |
|
|
(76 |
) |
Total other income/(expense) |
|
|
205 |
|
|
|
(170 |
) |
|
|
(1,450 |
) |
|
|
(66 |
) |
Net loss |
|
$ |
(17,102 |
) |
|
$ |
(9,597 |
) |
|
$ |
(32,170 |
) |
|
$ |
(16,494 |
) |
Weighted average shares outstanding used in computing net loss per share, basic and diluted |
|
|
28,979,148 |
|
|
|
16,149,496 |
|
|
|
28,070,539 |
|
|
|
14,625,069 |
|
Net loss per share of common stock outstanding, basic and diluted |
|
$ |
(0.59 |
) |
|
$ |
(0.59 |
) |
|
$ |
(1.15 |
) |
|
$ |
(1.13 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20210804006019/en/
FAQ
What were DermTech's Q2 2021 financial results?
How much did DermTech's assay revenue grow in Q2 2021?
What is DermTech's guidance for full year 2021 assay revenue?
What significant product launch occurred in Q2 2021 for DermTech?