DermTech stock slumps 32% as Q2 net loss widens; lowers FY22 assay revenue outlook
Zerbor
DermTech (NASDAQ:DMTK) stock plummeted ~32% after Q2 net loss widened and the company lowered its FY22 assay revenue outlook.
DermTech CEO John Dobak said that in Q2 the company streamlined its laboratory processes, which reduced the per unit cost for its DermTech Melanoma Test (DMT) by 28% sequentially.
“However, we are revising our full-year 2022 outlook to reflect a lower average selling price (ASP) for our DMT. The ASP pressure is primarily the result of Medicare billing code edits, which are expected to be improved in the coming quarters, as well as less favorable collection patterns from commercial payors. Overall, we are seeing good activity with commercial payors and believe we will expand our covered lives footprint by the end of the year,” noted Dobak.
Q2 total revenue grew ~36% Y/Y to $4.23M. Assay revenue increased ~43% $4.15M.
Contract revenue declined ~59% Y/Y to $86K.
The company said Billable sample volume grew 56% Y/Y to ~18.32K.
Cost of assay revenue increased ~24% Y/Y to $3.24M.
Net loss widened to -$29.58M, compared to -$17.10M in Q2 2021.
As of June 30, cash, cash equivalents, restricted cash and short-term marketable securities were $177.4M. The company believes it has sufficient capital to fund its current operating plan through Q1 2024.
Outlook:
The Company said FY22 outlook for assay revenue to be between $16M and $19M; prior forecast during Q1 results on May 3 was a range of $22M to $26M.
