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DermTech Shares Rise On Medicare Coverage For Skin Cancer Diagnostic Test

DermTech Shares Rise On Medicare Coverage For Skin Cancer Diagnostic Test

Shares of precision dermatology company DermTech Inc (NASDAQ: DMTK) are rallying Thursday after receiving Medicare coverage for its diagnostic test to rule out skin cancer.

The California-based company said the Medicare Administrative Contractor Palmetto GBA MolDx issued a final local coverage determination for its Pigmented Lesion Assay, or PLA. The PLA, which uses a non-invasive adhesive patch-based sample collection platform, analyzes gene expression to objectively rule out melanoma.

The test, according to the company, is used to rule out primary cutaneous melanoma and guide biopsy decisions of melanocytic skin lesions with one or more clinical or historical characteristics suggestive of melanoma.

DermTech noted that clinicians with sufficient skill and experience to decide whether a pigmented lesion should be biopsied may order the PLA test, and up to two tests are allowed per patient for each date of service.

"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," said John Dobak, CEO of DermTech.

DermTech shares traded up 2% to $12.67 at time of publication. The stock opened at its high for the day north of $15 per share.

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