DermTech filed for voluntary chapter 11 protection in the U.S. Bankruptcy Court for the District of Delaware. The chapter 11 filing is a continuation of the company’s strategic alternatives review process. Currently, the company intends to continue its laboratory operations and processing orders for the DermTech Melanoma Test (DMT), while simultaneously conducting a process to sell substantially all of its assets. Through the bankruptcy process, the company intends to safeguard the interest of stakeholders and maximize the value of its assets.
Alongside the chapter 11 filings, the company also implemented a reduction in force (RIF) to significantly reduce expenses associated with its current operations to preserve cash. This RIF resulted in an immediate workforce reduction of approximately 15 employees (approximately 20% of the company’s workforce), with potential additional reductions of DermTech’s workforce in the future.
The latest cuts for DermTech come after the company earlier this year initiated another workforce reduction of approximately 100 employees, or approximately 56% of its workforce. At the time, the company anticipated incurring a one-time restructuring charge of approximately $1.6 million in the second quarter of 2024 in connection with the restructuring actions.
