A positive signal came this week for DermTech Inc. (DMTK), a biotechnology company. DermaTech developed a new skin cancer diagnostic test, which a major insurance company has accepted.
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Cigna, which has approximately $90 billion in market cap, will cover the cost of DermTech tests through insurance programs. An easy-to-use test consists of simply glueing a transparent film on the birthmark and then removing it and sending it to the clinic to be examined. It contains DNA fragments sourced from epithelial cells attached to the film, which can be used to detect early signs of melanoma development.
Non-invasive, it can be conducted at home, does not require special preparation, and no special equipment is required. Only at the stage of analyzing the film with biological material do you need laboratory equipment and specialists.
Cigna will cover these tests for customers. Because this insurance company covers approximately a tenth of the US insurance market, this is a strong endorsement for DermTech Inc. (DMTK).
Since the professional community has validated the DermTech test, its use will likely expand. The company has been generating relatively small sales, with DermTech bringing in 5 million dollars only in the last quarter. A market value of $10 billion is estimated for the skin cancer products market, giving the company room to grow.
DermTech Inc. (DMTK) shares closed the last session down -1.75% and were -$0.8 per share lower on the year-to-date (YTD) basis. Even so, the stock soared more than 245.69% over the past year. Comparatively, the stock is up 38.53% YTD and 18.26% for the trailing three months. The performance for the shorter duration has been up 18.29% over the past week and 1.03% over the past month.
