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DermTech Q4 Revenues Up 31 Percent

NEW YORK – DermTech reported after the close of the market on Thursday that its fourth quarter revenues rose 31 percent year over year.

For the three months ended Dec. 31, 2020, the La Jolla, California-based developer of genomic melanoma tests posted $2.1 million in revenues, up from $1.6 million in Q4 2019.

Assay revenue soared 220 percent to $1.6 million from $500,000 a year ago. Meanwhile, contract revenue fell 49 percent to about $600,000 million in Q4 2020.

Billable sample volume for the quarter grew 69 percent year over year to about 8,300, compared to 4,905, for the same period in 2019.

DermTech's Q4 net loss was $9.4 million, or $0.48 per share, compared to $5.1 million, or $.43 per share, in the year-ago quarter.

DermTech's R&D expenses jumped 216 percent to $1.9 million in Q4 2020 from $600,000 in Q4 2019. The firm's selling, general, marketing and administrative expenses rose 65 percent to $7.9 million from $4.8 million in Q4 2019.

In February, DermTech inked a contract with Blue Cross Blue Shield of Texas (BCBSTX) to cover the PLA as an in-network test for about 6 million members.

DermTech CEO John Dobak said in a statement that the firm expects to monetize its Q4 sample volume by securing commercial payor coverage and increasing its proportion of Medicare samples

For full-year 2020, DermTech's revenues rose about 74 percent year over year to $5.9 million from $3.4 million in 2019.

Assay revenue skyrocketed 200 percent to $4.2 million year over year, compared to $1.4 million in 2019. Contract revenue for the full year fell 19 percent to $1.6 million, compared to $2.0 million in 2019. Billable sample volume for the full year rose 75 percent to 24,000 compared 13,714 in to 2019.

"While limited access to physician offices continues to impede our sales efforts… we are confident we can access very large market opportunities through our mission to transform the practice of dermatology, improve patient care, and help reduce melanoma deaths," Dobak added.

DermTech's 2020 net loss rose to $35.2 million, or $2.08 per share, from $19.7 million, or $2.81 per share, in 2019.

DermTech's full-year R&D expenses jumped 112 percent to $5.3 million from $2.5 million in 2019. The firm said the increase was primarily due to higher compensation costs related to expanding the R&D team, increased clinical trial costs, and increased spending on laboratory supplies to support new product development. The firm's selling, general, marketing and administrative expenses for the year jumped 97 percent to $29.9 million from $15.2 million in 2019.

The firm finished 2020 with $24.2 million in cash and cash equivalents.

DermTech expects that Q1 2021 assay revenue will be between $1.6 million and $1.9 million. However, it declined to provide financial guidance for the full year 2021 due to the uncertainty of the COVID-19 pandemic.

Following the close of a $143.7 million public offering in January, DermTech plans to expand its direct-to-consumer and telemedicine operations by expanding its digital marketing platform for its PLA test.

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