San Diego biotech company making melanoma test patch cuts 56% of its workforce

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San Diego-based DermTech is also exploring the possibility of a merger, acquisition, sale of assets, licensing or other transaction.

DermTech, the San Diego-based company that developed a noninvasive skin sticker to detect melanoma, is cutting its workforce in half and exploring a possible sale. The local biotech announced Thursday that it is restructuring “to significantly reduce expenses associated with its current operations to preserve cash.” This includes reducing its headcount by 56 percent, or about 100 employees. DermTech debuted on the public market in 2019 through a reverse merger. As of Dec.

Rather than using a scalpel to collect skin tissue, the sophisticated sticker gathers samples from sensitive areas such as the neck, face and chest. The samples are then sent to a certified laboratory to process the results. The U.S. Food and Drug Administration has not reviewed or approved the commercial test. However, DermTech’s melanoma test has gained insurance coverage with many groups, including Medicare, Veterans Affairs and certain commercial insurers.

 

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