DermTech Reports Third Quarter 2021 Financial Results
Third Quarter 2021 Highlights
- Billable sample volume of approximately 11,720 for the third quarter of 2021, a 75% increase compared to approximately 6,700 recorded for the third quarter of 2020 and flat sequentially compared to the second quarter of 2021.
-
Assay revenue of
$3.0 million for the third quarter of 2021, a 140% increase compared to the third quarter of 2020 and a 2% sequential increase over the second quarter of 2021. -
Total revenue of
$3.0 million for the third quarter of 2021, a 122% increase compared to the third quarter of 2020 and a 3% sequential decrease compared to the second quarter of 2021. - Published results of the TRUST study which supports that evaluation of genomic atypia with DermTech’s Pigmented Lesion Assay increases both the real-world negative predictive value (NPV) and positive predictive value (PPV) of the melanoma diagnostic pathway and reduces biopsy burden, relative to the current visual assessment and histopathology pathway.
-
Announced expansion plans to support continued growth in
San Diego , with the lease of a 95,997 square-foot building that will become DermTech’s new corporate headquarters and the site of theDermTech Gene Lab . The building will undergo a significant transformation that will include conversion of office space to life science laboratory space. The first portion of the building opened to office staff during the third quarter, and additional portions of the building is slated to open throughout 2022. -
Appointment of
Monica Tellado , Senior Vice President, Finance at Gilead Sciences and Nathalie Gerschtein Keraudy, President of the Consumer Products Division of L’Oreal, to its board of directors. -
Cash, cash equivalents, restricted cash and short-term marketable securities were
$252.5 million at the end of the quarter.
“I’m proud of how we continued to execute against our growth drivers in the third quarter, despite a challenging macro-environment. We have built out our sales force, successfully completed a pilot with one primary care network and expanded a pilot with another, and we are progressing our pipeline products, Carcinome and Luminate,” said
Third Quarter 2021 Financial Results
Assay revenue increased
Gross margin for the three months ended
Sales and marketing expenses for the three months ended
Research and development expenses for the three months ended
General and administrative expenses for the three months ended
Net loss for the three months ended
Cash, cash equivalents, restricted cash and short-term marketable securities totaled
Full Year 2021 Guidance
Due to unforeseen impacts from the Delta variant and hurricane Ida, Management revised its estimated full year 2021 assay revenue to be between
Conference Call and Webcast Information
About
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
Condensed Consolidated Balance Sheets (in thousands, except share and per share data) (Unaudited) |
||||||||
|
|
|
|
|
|
|
||
Assets |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
204,061 |
|
|
$ |
24,248 |
|
Short-term marketable securities |
|
|
45,384 |
|
|
|
39,529 |
|
Accounts receivable |
|
|
2,819 |
|
|
|
1,480 |
|
Inventory |
|
|
424 |
|
|
|
104 |
|
Prepaid expenses and other current assets |
|
|
1,569 |
|
|
|
1,521 |
|
Total current assets |
|
|
254,257 |
|
|
|
66,882 |
|
Property and equipment, net |
|
|
4,295 |
|
|
|
2,731 |
|
Operating lease right-of-use assets |
|
|
8,162 |
|
|
|
— |
|
Restricted cash |
|
|
3,024 |
|
|
|
— |
|
Other assets |
|
|
167 |
|
|
|
167 |
|
Total assets |
|
$ |
269,905 |
|
|
$ |
69,780 |
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
2,504 |
|
|
$ |
1,573 |
|
Accrued compensation |
|
|
3,464 |
|
|
|
2,075 |
|
Accrued liabilities |
|
|
1,950 |
|
|
|
763 |
|
Short-term deferred revenue |
|
|
1,357 |
|
|
|
905 |
|
Current portion of operating lease liabilities |
|
|
1,379 |
|
|
|
— |
|
Current portion of finance lease obligations |
|
|
145 |
|
|
|
109 |
|
Total current liabilities |
|
|
10,799 |
|
|
|
5,425 |
|
Operating lease liabilities, long-term |
|
|
6,561 |
|
|
|
— |
|
Warrant liability |
|
|
408 |
|
|
|
1,650 |
|
Long-term deferred revenue |
|
|
— |
|
|
|
639 |
|
Long-term finance lease obligations, less current portion |
|
|
216 |
|
|
|
226 |
|
Total liabilities |
|
|
17,984 |
|
|
|
7,940 |
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
Common stock,
authorized as of 29,717,198 and 20,740,413 shares issued and outstanding at
|
|
|
3 |
|
|
|
2 |
|
Additional paid-in capital |
|
|
432,237 |
|
|
|
189,868 |
|
Accumulated other comprehensive loss |
|
|
(8 |
) |
|
|
(1 |
) |
Accumulated deficit |
|
|
(180,311 |
) |
|
|
(128,029 |
) |
Total stockholders’ equity |
|
|
251,921 |
|
|
|
61,840 |
|
Total liabilities and stockholders’ equity |
|
$ |
269,905 |
|
|
$ |
69,780 |
|
Condensed Consolidated Statements of Operations (in thousands, except share and per share data) (Unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assay revenue |
|
$ |
2,954 |
|
|
$ |
1,233 |
|
|
$ |
8,054 |
|
|
$ |
2,678 |
|
Contract revenue |
|
|
76 |
|
|
|
129 |
|
|
|
619 |
|
|
|
1,086 |
|
Total revenues |
|
|
3,030 |
|
|
|
1,362 |
|
|
|
8,673 |
|
|
|
3,764 |
|
Cost of revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of assay revenue |
|
|
2,875 |
|
|
|
1,587 |
|
|
|
7,450 |
|
|
|
4,165 |
|
Cost of contract revenue |
|
|
23 |
|
|
|
21 |
|
|
|
74 |
|
|
|
91 |
|
Total cost of revenues |
|
|
2,898 |
|
|
|
1,608 |
|
|
|
7,524 |
|
|
|
4,256 |
|
Gross profit/(loss) |
|
|
132 |
|
|
|
(246 |
) |
|
|
1,149 |
|
|
|
(492 |
) |
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing |
|
|
9,826 |
|
|
|
4,594 |
|
|
|
24,245 |
|
|
|
10,973 |
|
Research and development |
|
|
4,426 |
|
|
|
1,618 |
|
|
|
10,271 |
|
|
|
3,380 |
|
General and administrative |
|
|
6,199 |
|
|
|
2,939 |
|
|
|
17,672 |
|
|
|
10,980 |
|
Total operating expenses |
|
|
20,451 |
|
|
|
9,151 |
|
|
|
52,188 |
|
|
|
25,333 |
|
Loss from operations |
|
|
(20,319 |
) |
|
|
(9,397 |
) |
|
|
(51,039 |
) |
|
|
(25,825 |
) |
Other income/(expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income, net |
|
|
38 |
|
|
|
9 |
|
|
|
107 |
|
|
|
19 |
|
Change in fair value of warrant liability |
|
|
169 |
|
|
|
107 |
|
|
|
(1,350 |
) |
|
|
31 |
|
Total other income/(expense) |
|
|
207 |
|
|
|
116 |
|
|
|
(1,243 |
) |
|
|
50 |
|
Net loss |
|
$ |
(20,112 |
) |
|
$ |
(9,281 |
) |
|
$ |
(52,282 |
) |
|
$ |
(25,775 |
) |
Weighted average shares outstanding used in computing net loss per share, basic and diluted |
|
|
29,639,802 |
|
|
|
18,928,418 |
|
|
|
28,599,375 |
|
|
|
16,069,989 |
|
Net loss per share of common stock outstanding, basic and diluted |
|
$ |
(0.68 |
) |
|
$ |
(0.49 |
) |
|
$ |
(1.83 |
) |
|
$ |
(1.61 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20211109006463/en/
Press and Media:
sdion@dermtech.com
(858) 450-4222
Investors:
caroline.corner@westwicke.com
(415) 202-5678
Source: