Cancer Testing Firm DermTech to Cut 100 Jobs

The restructuring process means the company is exploring a possible sale or merger.

Screenshot 2024 04 22 At 3 37 02 Pm

DermTech, a company specializing in non-invasive skin genomics technology, announced that the special committee of its board of directors engaged TD Cowen to conduct a process exploring strategic alternatives to maximize stockholder value. Potential strategic alternatives that may be explored or evaluated include an acquisition, merger, reverse merger, business combination, sale of assets, licensing or other transaction involving the company.

There can be no assurance, however, that the strategic review process will result in any such transaction or if a transaction is undertaken, that such transaction would close in a timely manner or at all. DermTech does not intend to comment on this strategic review process and will make further announcements in accordance with its ongoing disclosure obligations and pursuant to applicable laws and regulations. The company will not be hosting a first-quarter 2024 earnings conference call as a result of today’s announcement.

The company is also implementing a restructuring plan to significantly reduce expenses associated with its current operations to preserve cash. These restructuring actions will result in a workforce reduction of approximately 100 employees, or approximately 56% of DermTech’s workforce. The company anticipates incurring a one-time restructuring charge of approximately $1.6 million in the second quarter of 2024 in connection with these restructuring actions.

Currently, the company intends to continue laboratory operations during the strategic review and believes it has sufficient capacity to process orders for the DermTech Melanoma Test (DMT).

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