DMTK stock is moving higher in early trading on January 2, 2020, after the company announced that its product received Medicare coverage.
DermTech announced that the Medicare Administrative Contractor Palmetto GBA MolDx has issued a final local coverage determination for the Pigmented Lesion Assay, or PLA, test, whic is used to help rule out primary cutaneous melanoma and guide biopsy decisions of melanocytic skin lesions with one or more clinical or historical characteristics suggestive of melanoma.
“We are excited that Palmetto reviewed the clinical dossier for the PLA test and recognized that our test aids in the diagnosis of melanoma and may spare the patient the need for an unnecessary biopsy. It is our mission to enhance the early detection of melanoma through the power of precision genomics, and eliminate unnecessary surgery, leading to improved patient care and lower costs,” said CEO John Dobak.
Lake Street analyst Thomas Flaten noted that DermTech announced this morning that it has received its final coverage determination from CMS, which he sees setting the company up for significant growth in 2020. The analyst, who is expecting total DermTech revenue will grow to $7.2M from estimated 2019 revenue of $2.9M, keeps a Buy rating and $15 price target on the stock.