San Diego-based DermTech announced that it will lay off 30 employees, approximately 15% of the precision dermatology firm’s workforce, along with taking additional restructuring measures intended to cut operating expenses, streamline operations, and focus its resources on revenue growth.
In a statement, DermTech said its restructuring plan will dedicate substantially all of its resources to growing reimbursed billable samples and expanding payer coverage of its noninvasive DermTech melanoma test.
The company added that it anticipates that it will incur a one-time restructuring charge of about $1.3 million in the first quarter of 2024; however, when combined with previous cost-cutting measures, restructuring will reduce its total operating expenses by $40 million compared to fiscal year 2022.
DermTech eliminated 40 jobs and paused pipeline programs in June 2023 as part of its restructuring plan.
“Growing revenue remains our primary objective and we began to see meaningful improvement in many of our top-line and operating metrics during the third quarter of 2023. Our realigned commercial tactics and focus on reimbursed tests has yielded improvement in nearly all of our key performance indicators. We must continue to refine our approach as we learn more and be determined to achieve these goals with a lean organization and by aligning behind only the highest ROI opportunities,” Bret Christensen, CEO of DermTech, said in a statement.
“We recognize today’s additional restructuring actions will be difficult for our colleagues and their families. I’m extremely thankful for their commitment as we worked tirelessly to enhance the standard of care for evaluating melanoma,” Christensen said.