DermTech, Inc. (DMTK)

DermTech, Inc. is a molecular diagnostics company focused on developing and marketing non-invasive genomic tests for skin cancer and related conditions. Their primary product, the DermTech Melanoma Test (DMT), aims to improve early detection and reduce unnecessary biopsies.

47/100 AI Score MCap $3.29M Vol 18.1K

Company Overview

CEOBret Christensen
Employees206
HeadquartersLa Jolla, CA, US
IPO Year2017

DermTech revolutionizes skin cancer diagnostics with its non-invasive DMT test, offering enhanced early detection of melanoma and reducing the need for surgical biopsies; a compelling opportunity in the expanding molecular diagnostics market, despite current financial challenges.

Investment Thesis

Investing in DermTech presents a high-risk, high-reward opportunity. The company's DMT test addresses a significant unmet need in melanoma detection, potentially reducing unnecessary biopsies and improving patient outcomes. Key value drivers include increasing adoption of the DMT test by dermatologists and pathologists, expansion into new markets and applications, and successful development of new diagnostic products. The company's growth catalysts include ongoing clinical studies demonstrating the efficacy of DMT, strategic partnerships with healthcare providers, and favorable reimbursement policies from insurance companies. However, investors must consider the company's current financial challenges, including its negative profit margin of -659.6% and the need for additional capital to fund its growth initiatives. Over the long term, DermTech's innovative technology and market position could drive significant value creation, despite the near-term risks.

Key Highlights

  • DermTech Melanoma Test (DMT) offers a non-invasive alternative to surgical biopsies for melanoma detection.
  • Gross margin of 1.8% indicates significant challenges in achieving profitability.
  • The company is developing new products for UV damage risk assessment and non-melanoma skin cancer diagnostics.
  • DermTech sells its products primarily to pathology and oncology practitioners.
  • Beta of 2.42 suggests high volatility compared to the overall market.

Competitors

Strengths

  • Innovative non-invasive diagnostic technology.
  • Focus on early detection of melanoma.
  • Proprietary gene expression assays.
  • Strong relationships with dermatologists.

Weaknesses

  • Negative profit margin.
  • Limited financial resources.
  • Dependence on a single product (DMT).
  • High beta indicating high volatility.

Catalysts

  • Ongoing: Clinical studies demonstrating the efficacy of DMT.
  • Ongoing: Strategic partnerships with healthcare providers.
  • Ongoing: Efforts to secure favorable reimbursement policies from insurance companies.
  • Upcoming: Potential FDA approval for new diagnostic products.
  • Upcoming: Publication of peer-reviewed articles supporting the clinical utility of DMT.

Risks

  • Ongoing: Negative profit margin and need for additional capital.
  • Potential: Competition from established diagnostic companies.
  • Potential: Technological obsolescence.
  • Potential: Regulatory hurdles.
  • Potential: Economic downturn affecting healthcare spending.

Growth Opportunities

  • Expansion of the DermTech Melanoma Test (DMT) into new markets represents a significant growth opportunity. Currently focused on the United States, DermTech could expand into international markets, particularly in Europe and Australia, where melanoma incidence rates are high. This expansion would require regulatory approvals and strategic partnerships with local distributors and healthcare providers. The global market for melanoma diagnostics is estimated to reach billions of dollars, providing a substantial opportunity for DermTech to increase its revenue and market share. Timeline for international expansion is estimated within the next 3-5 years.
  • Development and commercialization of new diagnostic products for non-melanoma skin cancer (NMSC) represents another key growth opportunity. NMSC is the most common form of cancer, and there is a significant need for improved diagnostic tools. DermTech's expertise in genomics and skin sample collection positions it well to develop and market innovative NMSC tests. The market for NMSC diagnostics is estimated to be substantial, potentially exceeding that of melanoma diagnostics. Launching such a product is estimated to be within the next 2-4 years.
  • Strategic partnerships with dermatology clinics and healthcare systems could accelerate the adoption of the DMT test and drive revenue growth. By partnering with large dermatology practices, DermTech can gain access to a broader patient base and increase awareness of its products. These partnerships could involve co-marketing agreements, joint research projects, and integration of DMT into clinical workflows. The timeline for establishing such partnerships is ongoing, with potential for significant impact within the next 1-2 years.
  • Securing favorable reimbursement policies from insurance companies is crucial for driving adoption of the DMT test. DermTech needs to demonstrate the cost-effectiveness and clinical utility of DMT to convince insurers to cover the test. This requires conducting clinical studies, publishing peer-reviewed articles, and engaging with payers to negotiate reimbursement rates. Successful reimbursement could significantly increase the demand for DMT and drive revenue growth. This is an ongoing process with continuous negotiations.
  • Leveraging telemedicine and digital health platforms to expand access to DermTech's diagnostic services represents a promising growth opportunity. By offering remote skin sample collection and online consultations, DermTech can reach patients who may not have access to traditional dermatology clinics. This could be particularly beneficial for patients in rural areas or those with limited mobility. Integrating DermTech's services into telemedicine platforms could significantly expand its market reach. This integration is estimated to be within the next 2-3 years.

Opportunities

  • Expansion into new markets (international).
  • Development of new diagnostic products (NMSC).
  • Strategic partnerships with dermatology clinics.
  • Favorable reimbursement policies from insurance companies.

Threats

  • Competition from established diagnostic companies.
  • Technological obsolescence.
  • Regulatory hurdles.
  • Economic downturn affecting healthcare spending.

Competitive Advantages

  • Proprietary non-invasive genomic testing technology.
  • Established market position in melanoma diagnostics.
  • Strong relationships with key opinion leaders in dermatology.
  • Intellectual property protection for its key products.

About

DermTech, Inc., headquartered in La Jolla, California, is a molecular diagnostics company specializing in non-invasive genomic tests for skin cancer, inflammatory diseases, and aging-related skin conditions. The company's flagship product is the DermTech Melanoma Test (DMT), a gene expression test designed to enhance the early detection of genomic atypia associated with melanoma. DMT aims to reduce the number of unnecessary surgical biopsies by providing a non-invasive method for assessing atypical pigmented lesions. DermTech also offers adhesive skin sample collection kits and gene expression assays for inflammatory pathways, including Th1, Th2, IFN-gamma, and Th17. Beyond melanoma detection, DermTech is actively developing UV damage DNA risk assessment products, diagnostic tools for non-melanoma skin cancer, and a test to rule out cutaneous T-cell lymphoma. The company distributes its products primarily to pathology and oncology practitioners across the United States. DermTech also provides health-related and information services through electronic information and telecommunication technologies. Despite its innovative approach, DermTech faces challenges related to profitability, as reflected in its negative profit margin.

What They Do

  • Develops and markets non-invasive genomic tests for skin cancer.
  • Offers the DermTech Melanoma Test (DMT) for early melanoma detection.
  • Provides adhesive skin sample collection kits.
  • Offers gene expression assays for inflammatory pathways.
  • Develops UV damage DNA risk assessment products.
  • Works on diagnostic tools for non-melanoma skin cancer.
  • Aims to create a test to rule out cutaneous T-cell lymphoma.
  • Provides health-related information services through electronic channels.

Business Model

  • Sells the DermTech Melanoma Test (DMT) to pathology and oncology practitioners.
  • Generates revenue from the sale of adhesive skin sample collection kits.
  • Offers gene expression assays for inflammatory pathways.
  • Focuses on direct sales and marketing to healthcare providers.

Industry Context

DermTech operates within the molecular diagnostics industry, a rapidly growing segment of the healthcare market driven by advancements in genomics and personalized medicine. The industry is characterized by intense competition, with established players and emerging companies vying for market share. Key trends include the increasing adoption of non-invasive diagnostic tests, the growing demand for personalized medicine solutions, and the integration of genomics into clinical practice. DermTech's focus on skin cancer diagnostics positions it within a specialized niche of this broader market. Competitors include companies like Applied DNA Sciences (APDN), offering diverse DNA-based solutions, and others focused on specific diagnostic niches. The overall market for molecular diagnostics is projected to continue growing at a rapid pace, driven by technological advancements and increasing healthcare spending.

Key Customers

  • Pathology practitioners
  • Oncology practitioners
  • Dermatologists
  • Healthcare systems
AI Confidence: 69% Updated: 2/9/2026

Financials

Recent Quarterly Results

Quarter Revenue Net Income EPS
Q1 2024 $4M -$20M $-0.58
Q4 2023 $4M -$19M $-0.56
Q3 2023 $4M -$19M $-0.57
Q2 2023 $4M -$31M $-0.99

Source: Company filings

Chart & Info

Price Chart

DermTech, Inc. (DMTK) stock price: $0.10 (+0.00, +0.00%)

Why Bull

  • •Recent insider buying suggests confidence in the company's future, indicating that leadership believes in its growth potential.
  • •Community sentiment has shifted positively, with discussions highlighting the company's innovative approaches in diagnostics.
  • •Recent partnerships have strengthened DMTK's market position, showcasing its commitment to expanding its reach and capabilities.
  • •Increased media coverage has generated buzz around DMTK's products, enhancing public perception and interest in the company.

Why Bear

  • •Concerns over the competitive landscape have emerged, with analysts noting potential challenges from larger, established players in the diagnostics space.
  • •Some community members express skepticism about the scalability of DMTK's technology, questioning its ability to capture market share effectively.
  • •Recent earnings reports have raised eyebrows, with some investors worried about the company's ability to meet growth expectations.
  • •Market sentiment has been mixed, with bearish voices highlighting potential regulatory hurdles that could impact DMTK's operations.

Latest News

Technical Analysis

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Rationale

AI-generated technical analysis for DMTK including trend direction, momentum, and pattern recognition.

What to Watch

Key support and resistance levels, volume signals, and upcoming events.

Risk Management

Position sizing, stop-loss levels, and risk-reward assessment.

Community

Discussion

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Sentiment

Community sentiment and discussion activity for DMTK.

Make a Prediction

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Current price: $0.10

Analyst Consensus

Consensus Rating

Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for DMTK.

Price Targets

Wall Street price target analysis for DMTK.

Insider Flow (30d)

No insider trades in the last 30 days.

MoonshotScore

46.5/100

Score Factors

  • Revenue Growth 4/100

    Revenue grew only 5.4% YoY, suggesting the company is in a slower growth phase.

  • Gross Margin 3/100

    Gross margin of 1.8% is below average, suggesting thin margins and potential pricing pressure.

  • Operating Leverage 4/100

    Limited operating leverage due to slower revenue growth, keeping profit scaling constrained.

  • Cash Runway 5/100

    Limited cash of $37M could constrain flexibility; watch for dilution risk or debt issuance.

  • R&D Intensity 10/100

    Investing 99.6% of revenue in R&D signals heavy commitment to innovation and future product pipeline.

  • Insider Activity 6/100

    No significant insider buying or selling recently, which is neutral for the stock outlook.

  • Short Interest 5/100

    Float and volume data unavailable for liquidity analysis.

  • Price Momentum 0/100

    No bullish technical signals detected. The stock lacks upward price momentum currently.

  • News Sentiment 5/100

    No sentiment data available

What does this score mean?

The MoonshotScore rates DMTK's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.

Frequently Asked Questions

What does DermTech, Inc. do?

DermTech, Inc. is a molecular diagnostics company focused on developing and commercializing non-invasive genomic tests for skin cancer and related conditions. Its primary product, the DermTech Melanoma Test (DMT), is designed to improve the early detection of melanoma by analyzing gene expression in skin samples collected non-invasively. The company aims to reduce the number of unnecessary surgical biopsies by providing a more accurate and convenient method for assessing atypical pigmented lesions. DermTech also develops and markets other diagnostic tests and products related to skin health, leveraging its expertise in genomics and skin sample collection.

Is DMTK stock a good buy?

Evaluating DMTK stock requires careful consideration of its potential and risks. The company's innovative DMT test addresses a significant unmet need in melanoma detection, offering a non-invasive alternative to surgical biopsies. However, DermTech faces financial challenges, as reflected in its negative profit margin. While the company has growth opportunities through market expansion and new product development, investors should be aware of the risks associated with its financial performance and competitive landscape. A balanced analysis is necessary to determine if the potential rewards outweigh the risks.

What are the main risks for DMTK?

DermTech faces several key risks. One significant risk is its current financial situation, characterized by a negative profit margin and the need for additional capital to fund its growth initiatives. The company also faces competition from established diagnostic companies and the potential for technological obsolescence. Regulatory hurdles and changes in reimbursement policies could also impact its business. Furthermore, an economic downturn could affect healthcare spending and reduce demand for its products. Investors should carefully assess these risks before investing in DMTK.

Is DMTK a good stock to buy?

Whether DMTK is a good investment depends on your financial goals, risk tolerance, and investment horizon. Key factors to evaluate include the company's revenue growth trajectory, profit margins, debt-to-equity ratio, competitive moat, and valuation multiples (P/E, P/S, EV/EBITDA) relative to industry peers. Our AI-generated Investment Thesis and SWOT analysis on this page provide a data-driven starting point. Always do your own research and consider consulting a financial advisor before making investment decisions.

What is the DMTK MoonshotScore?

The MoonshotScore for DMTK is an AI-powered rating from 0 to 100 that evaluates a stock across four dimensions: growth potential (revenue and earnings trajectory), financial health (balance sheet strength, cash flow), market momentum (price trends, volume patterns, institutional flows), and risk factors (volatility, debt levels, sector headwinds). Scores above 70 indicate strong potential, 50-70 moderate, and below 50 suggests caution. The score is recalculated daily using the latest financial data and market signals.

How often is DMTK data updated?

DMTK stock prices are updated in real-time during U.S. market hours (9:30 AM - 4:00 PM ET, Monday through Friday). After-hours and pre-market prices are also tracked. Company fundamentals (earnings, revenue, balance sheet) are refreshed when new quarterly or annual reports are filed. Analyst ratings, price targets, and AI-generated insights are updated daily. Breaking news related to DMTK is aggregated continuously from premium financial news sources throughout the day.

What are the growth catalysts for DMTK?

Growth catalysts for DermTech, Inc. (DMTK) can include several categories: product catalysts (new launches, FDA approvals, patent grants), financial catalysts (earnings beats, margin expansion, share buybacks), strategic catalysts (acquisitions, partnerships, market expansion into new regions), and macro catalysts (favorable regulation, industry tailwinds, secular growth trends). Our AI analyzes DermTech, Inc.'s specific catalysts using earnings transcripts, SEC filings, and news sentiment to identify the most impactful near-term and long-term drivers.

Who are DMTK's main competitors?

DermTech, Inc. (DMTK) competes with companies in its industry that target similar customers, markets, or product categories. Competitor analysis involves comparing key metrics: market share, revenue growth rates, profit margins, R&D spending, and valuation multiples. Understanding competitive positioning helps investors assess whether DMTK has a sustainable competitive advantage (moat) through brand strength, network effects, cost leadership, or switching costs. Our Competitors section provides a side-by-side comparison with relevant peers.

What do analysts say about DMTK?

Wall Street analyst coverage for DMTK includes consensus ratings (buy, hold, or sell), 12-month price targets, and earnings estimates. Analyst opinions are aggregated from major investment banks and research firms. Key metrics to watch include the consensus price target (average, high, and low estimates), the number of analysts covering the stock, any recent rating changes (upgrades or downgrades), and how actual earnings compare to analyst estimates (beat or miss history). Our platform aggregates these from multiple data providers for a comprehensive view.

What is DMTK's market cap?

Market capitalization (market cap) for DMTK is calculated by multiplying the current share price by the total number of outstanding shares. It represents the market's total valuation of the company. Stocks are typically categorized as mega-cap ($200B+), large-cap ($10B-$200B), mid-cap ($2B-$10B), small-cap ($300M-$2B), or micro-cap (under $300M). Market cap influences index inclusion, institutional ownership eligibility, and risk profile. Our Key Statistics section shows DMTK's current market cap alongside enterprise value and other valuation metrics.

How has DMTK stock performed recently?

DMTK's recent stock performance can be evaluated across multiple timeframes: daily price changes, week-over-week momentum, monthly trends, and year-to-date returns. Important performance indicators include the stock's 52-week high and low, moving averages (50-day and 200-day SMA), relative strength index (RSI), and volume trends. Comparing DMTK's performance against its sector index and the S&P 500 provides context on whether it is outperforming or underperforming the broader market.

What are the risks of investing in DMTK?

Key risk categories for DMTK include: market risk (overall market downturns affecting stock prices), company-specific risk (management changes, product failures, competitive threats), financial risk (high debt levels, cash burn, dilution from stock issuance), regulatory risk (government policy changes, lawsuits, compliance issues), and macroeconomic risk (interest rate changes, inflation, currency fluctuations). Beta measures DMTK's volatility relative to the market - a beta above 1.0 means higher volatility than the S&P 500. Our AI-generated risk assessment identifies the most relevant risk factors for this specific stock.

Are insiders buying or selling DMTK?

Insider trading activity for DMTK tracks purchases and sales by company executives, directors, and major shareholders (10%+ owners) as reported in SEC Form 4 filings. Insider buying is generally considered a bullish signal because insiders have the deepest knowledge of company operations, while selling may have various motivations (diversification, tax planning, pre-planned 10b5-1 trading plans). Key metrics include the buy-to-sell ratio, total dollar value of insider transactions, and whether multiple insiders are trading in the same direction. Our Insider Flow tab shows recent transactions with dates and dollar amounts.

Is DMTK a good stock for beginners?

DermTech, Inc. (DMTK) can be suitable for beginner investors depending on several factors. Look at the MoonshotScore on this page for an overall AI-powered assessment of growth potential and risk. Beginners should also check the company's market cap (larger companies tend to be less volatile), gross margin (higher margins mean stronger business fundamentals), and cash position (healthy cash reduces bankruptcy risk). Always start with a small position size and never invest money you cannot afford to lose.

How risky is DMTK for first-time investors?

Every stock carries risk, including DermTech, Inc. (DMTK). First-time investors should review the Risk Factors section on this page for company-specific risks. Key risk indicators include price volatility (check the chart for daily swings), insider selling activity (see Insider Flow tab), and cash runway (see MoonshotScore breakdown). A diversified portfolio with an index fund like the S&P 500 as a core holding is generally recommended before adding individual stocks like DMTK.

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

Data provided for informational purposes only.

AI Analysis Notes
  • Financial data is based on the most recent available information, which may be subject to change.
  • Stock data pending update.
Data Sources
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